Investors understand the importance of buying low and selling high. 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 also present investors with a substantial risk. Many of these companies are small-cap stocks which can be more volatile than more stable large-cap stocks. Not surprisingly, certain sectors like biotechnology and mining are heavily represented in this group of stocks.
Investing in these sectors does expose investors to more risk than in sectors like consumer staples or utilities. That's a risk that many investors are willing to take if they have speculative cash to put at risk.
However, investors need to keep in mind 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. 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.
