Potential gains in 2013

By admin December 19, 2012 18:52

Big risks often can mean big rewards. Currently there are stocks selling under $5, if willing to take the chance there is a potential for big returns. Below is a list of five stocks you may consider investing in:

Wet Seal

This specialty retailer operates about 550 stores that sell clothes and accessories for young women. The company has had occasional bright moments, but the stock has been a volatile play, swinging between $3 and $5 for the better part of the past four years.

Right now shares are slightly below the $3 mark, but bluer skies may be ahead.

Sirius XM Radio

Yes, satellite provider Sirius XM Radio (SIRI) is in a tough spot since terrestrial radio remains entrenched, and streaming Internet radio from companies like Pandora Media (P) continues to gain momentum. But don’t count out Sirius XM.

Despite a lower bottom line that missed earnings targets in its most recent quarter, the company posted continued subscriber growth and revenue that beat Wall Street expectations.

Wendy’s

Wendy’s (WEN) has gone through some big changes in the past few years, including the sale of lagging Arby’s Restaurant Group and its first logo change in two decades. But while restructuring costs and lost Arby’s revenue crimped performance in early 2012, the company looks to be back on track.

1-800-Flowers.com

While the name implies telephone ordering, 1-800-Flowers.com (FLWS) is without a doubt an e-commerce company. It has strategic online relationships with Facebook (FB), Twitter, Pinterest, Google (GOOG), AOL (AOL), Yahoo (YHOO) and other big names the social media and Internet spaces.

Just consider this recent Newsday headline talking about a massive gift-sending promotion on Facebook that boosted not just the social media giant but related companies such as 1-800-Flowers.com as a result.

Star Scientific

Star Scientific (STSI) is fascinating company but a very speculative stock The company has long been working on smokeless tobacco products for those who have a nicotine urge but want to avoid the harmful effects of cigarettes. It’s also working on dietary supplements meant to be an alternative to smoking.

Smoking isn’t a growth industry, but smoking prevention seems to be gaining big-time momentum. And beyond that, the company is researching other tobacco-based drugs, including — crazily enough — a potential treatment for Alzheimer’s disease.