In this article, we will take a look at the 10 best stocks under $15 according to Billionaire Michael Price.
One of America’s most successful value investors, Michael Price is the founder, chief executive officer and managing director of the New York-based hedge fund, MFP Investors. After earning his B.A in Business Administration from the University of Oklahoma, Michael Price began his investment career as a research assistant at Mutual Series, a fund under the management of acclaimed value investor Max Heine. After Heine’s death in 1988, Michael Price bought the company and later sold it to Franklin Templeton Investments in 1996. In 1998, Price established his very own hedge fund, MFP Investors. Michael Price has a reputation as an activist investor, employing a strategy that focuses on stocks that are suppressed by the market and buying them at a significant discount to their actual values. Price examines such stocks through an extensive research process, and buys a stake within a company only if he finds that it possesses sufficient attributes to make good investment returns.
According to the recent 13F Filings, Michael Price’s MFP Investors, as an investment fund, manages an estimated $910 million in its investment portfolio, with the Financial Services sector proving to be the heaviest, making up over 31.56% of the fund’s total portfolio value.
Michael Price of MFP Investors
Our Methodology
With this background in mind, let us now look towards the 10 best stocks to under $15 according to Michael Price’s MFP Investors. We made use of MFP Investors’ 13F portfolio for the second quarter for this analysis. The following list will consist of the top stocks present in MFP Investors’ portfolio that have a stock price below $15.
Why should we pay attention to Michael Price’s stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
10 Best Stocks Under $15 According to Billionaire Michael Price.
10. Plains GP Holdings, L.P (NASDAQ:PAGP)
Price’s Stake Value: $3.1 million
Percentage of Michael Price’s 13F Portfolio: 0.34%
Number of Hedge Fund Holders: 15
Stock Price as of September 29: $10.79
Plains GP Holdings, L.P (NASDAQ:PABP) is a holding company that provides logistics services for crude oil and refined products, as well as operates energy infrastructure. The company has a market capitalization of $2.10 billion and is ranked tenth on the list of the 10 best stocks under $15 according to Michael Price. Plains GP Holdings, L.P. (NASDAQ:PAGP) shares have offered investors returns exceeding 45.63% over the course of the past 12 months.
According to the recent 13F Filings, Michael Price’s MFP Investors holds over 260,518 shares of Plains GP Holdings, L.P, amounting to over $3.1 million in worth and accounting for 0.34% of the fund’s investment portfolio. At the end of the second quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $77.4 million in Plains GP Holdings, L.P. The number of hedge funds with stakes in the company remained unchanged across the first and second quarters of 2021.
For the second quarter of 2021, Plains GP Holdings, L.P reported earnings per share at $0.23, in line with market estimates. The company also reported revenues of $9.93 billion, surpassing estimates by $2.40 billion.
On July 13, Citi analyst Timm Schneider raised his price target on Plains GP Holdings, L.P to $13 from $11 and kept a Buy rating on the shares.
9. Plains All American Pipeline, L.P. (NASDAQ:PAA)
Price’s Stake Value: $4.75 million
Percentage of Michael Price’s 13F Portfolio: 0.52%
Number of Hedge Fund Holders: 7
Stock Price as of September 29: $10.16
Plains All American Pipeline, L.P. (NASDAQ:PAA) is an oil and gas company based in Houston, Texas. Ranked ninth on the list of the 10 best stocks under $15 according to Michael Price, the company provides transportation and storage of crude oil and liquified petroleum gas with operations in US and Canada.
Michael Price’s MFP Investors currently holds 418,581 shares of Plains All American Pipeline, L.P., worth $4.75 million and accounting for 0.52% of the fund’s total portfolio value. At the end of the second quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $65.9 million in Plains All American Pipeline, L.P. The number of hedge funds with stakes in the company remained unchanged across the first and second quarters of 2021.
The company reported revenues of $9.93 billion in its earnings report for Q2 2021, which beat estimates by $3.20 billion. The EPS was reported to be $0.23, in-line with the estimates for the quarter.
On September 28, BofA analyst Chase Mulvehill once again established coverage of Plains All American Pipeline, L.P with an Underperform rating and $10.50 price target.
8. William Penn Bancorporation (NASDAQ:WMPN)
Price’s Stake Value: $5.4 million
Percentage of Michael Price’s 13F Portfolio: 0.59%
Number of Hedge Fund Holders: 5
Stock Price as of September 29: $12.19
William Penn Bancorporation (NASDAQ:WMPN) operates as a bank holding company and engages in the provision of commercial and retail financial services. The Pennsylvania-based company is ranked eighth on the list of the 10 best stocks under $15 according to Michael Price.
At the end of the second quarter of 2021, William Penn Bancorporation holds 455,000 shares of William Penn Bancorporation, amounting to $5.4 million and representing 0.59% of the fund’s total portfolio value. At the end of the second quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $6.79 million in William Penn Bancorporation, up from 2 hedge funds in the previous quarter with stakes amounting to $4.9 million.
For the second quarter of 2021, William Penn Bancorporation (NASADAQ:WMPN) reported revenues generated amounting to $860,000.
7. Viemed Healthcare Inc. (NASDAQ:VMD)
Price’s Stake Value: $6 million
Percentage of Michael Price’s 13F Portfolio: 0.66%
Number of Hedge Fund Holders: 11
Stock Price as of September 29: $5.67
Viemed Healthcare Inc. (NASDAQ:VMD) operates as of healthcare services company, providing equipment and therapy services for the treatment of patients with various respiratory diseases. Ranked seventh on the list of the 10 best stocks under $15 according to Michael Price, Viemed Healthcare Inc. has a market capitalization of $224.99 million. MFP Investor increased its stake within the company by 521% in the second quarter of 2021.
At present, MFP Investors holds 840,476 shares worth $6 million of Viemed Healthcare Inc., representing 0.66% of the fund’s total investment portfolio. At the end of the second quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $40.3 million in Viemed Healthcare Inc., up from 10 hedge funds in the previous quarter with stakes amounting to $30.5 million.
On August 2, Viemed Healthcare Inc. issued its quarterly earnings report for the second quarter of 2021, with reported earnings per share at $0.04, beating market estimates by $0.01. In addition, the company generated revenues amounting to $27.4 million, surpassing estimates by $69,670.
Out of the hedge funds being tracked by Insider Monkey, California-based investment fund Cove Street Capital is a leading shareholder of Viemed Healthcare Inc., with over 1.75 million shares worth $12.5 million.
Just like Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Intel Corporation (NYSE:INTC) and Alphabet Inc. (NASDAQ:GOOG), Viemed Healthcare Inc. is a notable stock in Michael Price’s portfolio.
In the Q2 2021 investor letter of Richie Capital Group, the fund mentioned Viemed Healthcare, Inc.. Here is what the fund said:
“Viemed (VMD – down 29 % in the quarter) – The respiratory healthcare services company has experienced a challenging 2021 after benefiting from the pandemic in 2020. Growth has slowed in their core business primarily from Respiratory Technicians having difficulties accessing healthcare facilities due to Covid restrictions. The company was able to offset these challenges last year by providing much needed ventilators to hospitals. Now that economies are opening up, VMD expects to regain access to hospitals and get back to their 30%+ growth. March was their busiest month for new patients since the onset of the pandemic.
The biggest impact on stock performance in the quarter came from the release of a report from the US Department of Health and Human Services, Office of the Inspector General regarding an audit of VMD’s home patients. The OIG report claimed that VMD’s charging policies did not comply with Medicare requirements and thus VMD’s patients overpaid by some $29M. The company vehemently denies these claims and issued a detailed response. I reached out to the COO to clarify the details.
The OIG findings were not aligned with the Centers for Medicare & Medicaid Services (CMS) policy which they follow and comply with. The CMS had previously conducted a detailed audit for the same period. The CMS audit reported a 98% compliance rate (41 of 42) cases, while the OIG claimed non-compliance on all 42 of the exact same cases. From VMD’s perspective, they are caught in the crossfire between two sister agencies.
VMD has received no negative feedback from their hospital clients. And for all patients, a hospital employee is involved with the sales process for every non-invasive ventilator. The company expects this to pass with limited to no monetary repercussions.”
6. Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD)
Price’s Stake Value: $6.6 million
Percentage of Michael Price’s 13F Portfolio: 0.73%
Number of Hedge Fund Holders: 28
Stock Price as of September 29: $13.24
Originally known as Microbia, Inc., Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is a pharmaceutical company that develops and commercializes drugs for gastrointestinal and cardiovascular diseases. The company has a market capitalization of $2.16 billion, and is ranked sixth on the list of the 10 best stocks under $15 according to Michael Price.
According to the recent 13F Filings, Michael Price’s MFP Investors holds over 520,000 shares of Ironwood Pharmaceuticals, Inc., amounting to over $6.6 million in worth and representing 0.73% of the fund’s total portfolio. At the end of the second quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $498 million in Ironwood Pharmaceuticals, Inc.. The number of hedge funds that held stakes within the company remained unchanged across the first and second quarters of 2021.
For the second quarter of 2021, Ironwood Pharmaceuticals, Inc. reported earnings per share at $0.34, crossing consensus estimated by $0.12. The company also reported revenues of $104.03 million, beating forecast predictions by $11.56 million.
In July, Morgan Stanley raised its price target on Ironwood Pharmaceuticals, Inc. to $12 and kept an Equal Weight rating on the shares.
Out of the hedge funds being tracked by Insider Monkey, Connecticut-based investment fund Sarissa Capital Management is a leading shareholder of Ironwood Pharmaceuticals, Inc., with over 16.3 million shares worth $210.9 million.
5. Siga Technologies, Inc. (NASDAQ:SIGA)
Price’s Stake Value: $7.5 million
Percentage of Michael Price’s 13F Portfolio: 0.83%
Number of Hedge Fund Holders: 13
Stock Price as of September 29: $7.31
Siga Technologies, Inc. (NASDAQ:SIGA) is a New York-based pharmaceutical company that markets anti-viral treatments for lethal pathogens. Ranked fifth on the list of the 10 best stocks under $15 according to Michael Price, Siga Technologies, Inc. has a market capitalization of $548.81 million.
Michael Price’s MFP Investors currently holds over 1.2 million shares of Siga Technologies, Inc., worth more than $7.5 million and accounting for 0.83% of the fund’s portfolio. At the end of the second quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth more than $28.3 million in Siga Technologies, Inc.. The number of hedge funds that held stakes within the company remained the same for the first and second quarters of 2021.
At the end of the second quarter of 2021, Siga Technologies, Inc. reported revenues amounting to over $8.65 million.
Steel City Capital, an investment management firm, mentioned SIGA Technologies, Inc. in its Q2 2021 investor letter. Here is what the fund said:
“As “I go to print,” there’s a small possibility that SIGA Technologies (SIGA) is on the cusp of “meme stock” status, although I’m not holding my breath, and that’s certainly not the reason we own shares. SIGA is a commercial stage pharmaceutical company whose sole product, TPOXX, is an antiviral drug approved by the FDA for the treatment of smallpox. The company has an option-based contract to replenish the U.S. Government’s existing stockpile of the drug over the next several years. The remaining value of the contract if fully exercised – which I believe it will be – will generate more than $400 million in revenue for SIGA. The company is also pursuing a variety of growth initiatives both domestically and abroad. At recent prices, shares are trading at a mid-single digit P/E multiple.
So, what has made the company a viable “meme stock” candidate? As of this morning, more than 200 people in 27 states are being monitored for possible exposure to monkeypox after they had contract with an individual who contracted the disease in Nigeria before traveling to the United States this month. While SIGA’s drug is approved only for smallpox, the company is pursuing approval in Europe for indications that include smallpox, cowpox, and monkeypox. I believe the “Twittersphere” is starting to take notice of the connection. If nothing else, the monkeypox scare should reinforce to the U.S. Government and other governments around the world that deadly viral outbreaks are highly unpredictable yet unfortunately very possible. While we’re still learning lessons from COVID-19, I expect health and government officials around the world to make the calculation that it’s better to be prepared for such outbreaks before they occur. That should bode well for SIGA’s prospects.”
4. BlackBerry Limited (NYSE:BB)
Price’s Stake Value: $10.3 million
Percentage of Michael Price’s 13F Portfolio: 1.14%
Number of Hedge Fund Holders: 20
Stock Price as of September 29: $9.60
BlackBerry Limited (NYSE:BB) is a cybersecurity company based in Waterloo, Canada. Ranked fourth on the list of the 10 best stocks under $15 according to Michael Price, the company provides security software that make use of artificial intelligence and machine learning against cyberthreats.
The company reported revenues of $266 million in its earnings report for Q2 2021, which beat estimates by $26.26 million. The EPS was reported to be $0.11, surpassing estimates for the quarter by $0.09.
According to the recent 13F Filings, MFP Investors holds 850,000 stakes of BlackBerry Limited, amounting to over $10.3 million in worth, representing 1.14% of the investment fund’s portfolio. At the end of the second quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth more than $732 million in BlackBerry Limited. This is compared to 24 hedge funds in the previous quarter that held stakes amounting to approximately $499.7 million.
On September 23, TD Securities analyst Daniel Chan raised the his price target on BlackBerry Limited to $9 from $8.50 and kept a Reduce rating on the shares after the company issued its Q2 earnings report.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment fund Kahn Brothers is a leading shareholder of BlackBerry Limited, with over 1.76 million shares worth $21.54 billion.
3. Crimson Wine Group, Ltd (OTCMKTS:CWGL)
Price’s Stake Value: $10.4 million
Percentage of Michael Price’s 13F Portfolio: 1.15%
Number of Hedge Fund Holders: 1
Stock Price as of September 29: $8.59
Crimson Wine Group, Ltd (OTCMKTS:CWGL) is a California-based beverage company that engages in the production and sales of premium wines. Ranked third on the list of the 10 best stocks under $15 according to Michael Price, Crimson Wine Group, Ltd has a market capitalization of $193.48 million.
For the second quarter of 2021, the company reported GAAP EPS of $0.25, alongside revenues generated amounting to over $9.25 million, an increase of 6.02% on a year-over-year basis.
Michael Price’s MFP Investors presently holds more than 1.14 million shares of Crimson Wine Group, Ltd, amounting to over $10.4 million in worth, accounting for 1.15% of the fund’s total portfolio value. At the end of the second quarter of 2021, just 1 hedge fund in the database of Insider Monkey held stakes worth more than $10.4 million in Crimson Wine Group, Ltd.
2. BCB Bancorp, Inc. (NASDAQ:BCBP)
Price’s Stake Value: $13.7 million
Percentage of Michael Price’s 13F Portfolio: 1.51%
Number of Hedge Fund Holders: 7
Stock Price as of September 29: $14.88
BCB Bancorp, Inc. (NASDAQ:BCBP) is a New Jersey-based bank holding company that provides financial solutions, as well as retail and commercial banking services. The company is ranked second on our list of the 10 best stocks under $15 according to Michael Price.
At present, Michael Price’s hedge fund holds over 1.02 million shares of BCB Bancorp, Inc., worth more than $13.7 million and representing 1.51% of the fund’s total investment portfolio. At the end of the second quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth more than $28 million in BCB Bancorp, Inc., up from 3 hedge funds in the preceding quarter that held stakes amounting to approximately $21.3 million.
On July 19, BCB Bancorp, Inc. issued its quarterly earnings report for the second quarter of 2021, with reported earnings per share at $0.46, crossing market predictions by $0.05. Additionally, the company reported quarterly revenues of $26.88 million, an increase of 40.76% on a year-over-year basis, beating forecast estimates by $1.39 million.
1. S&W Seed Company (NASDAQ:SANW)
Price’s Stake Value: $58.4 million
Percentage of Michael Price’s 13F Portfolio: 6.45%
Number of Hedge Fund Holders: 4
Stock Price as of September 29: $2.60
S&W Seed Company is a multi-crop agricultural company that provides a wide range of forage, grain and other specialty crop products. Based in Colorado, S&W Seed Company is ranked first on the list of the 10 best stocks under $15 according to Michael Price.
According to the recent 13F Filings, Michael Price’s MFP Investors holds over 16 million shares of S&W Seed Company, amounting to over $58.4 million in worth, accounting for 6.45% of the fund’s total portfolio value. At the end of the second quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth more than $75.7 million in S&W Seed Company, down from 7 hedge funds in the previous quarter that held stakes amounting to over $78 million.
At the end of the second quarter of 2021, S&W Seed Company reported EPS of -$0.23, missing estimates by $0.06. The company also reported revenues generated amounting to over $15.05 million, beating market predictions by $0.38 million.
On September 29, B. Riley analyst Sarkis Sherbetchyan lowered the his price target on S&W Seed Company to $4.25 from $5 and kept a Buy rating on the shares.
Long Cast Advisers, in its Q1 2021 investor letter, mentioned S&W Seed Company. Here is what the fund said:
“You likely notice we’ve been purchasing S & W Seed (SANW), a producer and manufacturer of agricultural seeds. At current price of $3.90 and with 34M diluted shares and $50M in debt, SANW has an enterprise value of ~$180M. Against trailing 12-month sales, this infers a 2x EV / sales multiple which is in the mid point of the 1x-3x range typically seen in the industry space.
My interest in the company was piqued b/c I was looking for something that would work as a potential commodity hedge against inflation, and agriculture tends to do that. Digging in, I saw two broad attributes that make this company compelling…” (Click here to see the full text)
You can also take a peek at 10 Best Stocks to Buy According to Billionaire Daniel Sundheim and Best Stocks to Buy According to Billionaire Barry Rosenstein’s Jana Partners.
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This article is originally published at Insider Monkey.
