The investment wisdom that a cheap stock is cheap for a reason is normally a good one to listen to. But every rule has exceptions, and sometimes a “cheap” stock is still a great one to buy and hold. The three listed below are trading under $10 per share, and could give you some healthy profits.

AMMO

Price: $5.80

AMMO (NASDAQ:POWW) makes ammunition and it is going through one of its best years ever. Third-quarter sales increased 500%, and during the first nine months of last year they almost quadrupled. The company predicts business to be even better in 2021 and into next year.

Gun sales have increased to sky-high levels recently, and Biden’s call for gun bans pushes conservatives to buy guns in droves. Millions of Americans purchased their first gun last year — around 40% of sales were to first-time gun owners — ammo sales could see even higher growth.

The gun and ammo industries are on fire right now, and AMMO should be a part of the profits windfall.

LiveXLive

Price: $6.07

Attending a concert during the pandemic has been almost impossible, which is why LiveXLive (NASDAQ:LIVX) arrived at just the right moment to allow people to attend events virtually. It hosts concerts via video and audio, and early in the outbreak had a 48-hour festival that got over 50 million views.

LiveXLive has announced it was increasing its content, and could be getting a better way to monetize its programming by using Facebook’s paid events feature. One analyst has increased his price target on the company to $7 per share, but with virtual events being the norm for the time being, the online event host might have more to give investors going forward.

OrganiGram

Price: $3.50

Partnerships between marijuana makers and consumer giants are not new, and even becoming normal these days. But the investment just made into OrganiGram (NASDAQ:OGI) by British American Tobacco (NYSE:BTI) might be very different.

 

The tobacco producer is, like most of the industry, moving away from cigarettes and toward healthier alternatives, like vapor and heated products. The company bought a 19.9% stake in OrganiGram, handing over $176 million for 58.3 million shares of the firm, and says it is mostly interested in the cannabidiol market.

 

The British company says Organigram “has a track record of innovation and creating high quality medical and recreational products, which are legally purchasable in Canada.”

Analysts are excited for the deal’s possibilities for OrganiGram: They believe its market share in Canada might double over the next three years, and that the acquisition gives the potential of entering new markets.

Especially if marijuana legalization happens in the States, it’s a partnership that will pay off for investors.

Author: Scott Dowdy

 

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