Buying low and selling high is sound advice whether you're an active trader or a buy-and-hold investor. And finding undervalued stocks that are trading below $20 gives investors the ability to get a substantial return with an investment of $2,000 or less.
However, these stocks can also present a substantial risk. Many of these companies are small-cap stocks, which can be more volatile than more stable large-cap stocks. You can find stocks under $20 in any sector, but you'll notice that sectors like biotechnology and mining are heavily represented in this group of stocks.
Investors need to remember that sometimes stocks trade for under $20 because of underlying fundamental problems. Some of these companies generate little revenue and many are not yet profitable. Unprofitable stocks are the first to sell when investors get bearish on stocks. Nevertheless, if you have an appetite for some risk, here are seven stocks under $20 for you to consider.
Click the "Continue to Slide #1" button to view the first company.
