Hawaiian Holdings, Inc. (HA), Xinyuan Real Estate Co., Ltd. (ADR) (XIN) & Heckmann Corporation (HEK): Three Buys Under $10

Environmental protection

Our final buy under $10 is slightly more speculative then the companies above. Heckmann Corporation (NYSE:HEK) is heavily invested in the shale fracking business. However, the company does absolutely nothing with the natural gas/oil being extracted from the earth. Heckmann specializes in sourcing, storing, and transporting water. Seems simple right? Massive amounts of water need to pumped deep down into the earth in order to extract the oil/natural gas from the shale rock. Heckmann Corporation (NYSE:HEK) currently services 7 of the 8 shale basins in the U.S.

With Heckmann, you are paying a premium for growth, as the company is currently trading at 21.83 times forward earnings. The fracking industry is still in its infancy, and Heckmann Corporation (NYSE:HEK) is positioning itself well to capitalize on its expansion.

As we better understand the environmental costs of this fuel extraction process, Heckmann is positioned well for the long-term. In 2012, Heckmann Corporation (NYSE:HEK) acquired Power Fuels and Thermo Fluids, two companies that focus primarily on environmental services and waste recycling. Heckmann is attempting to emerge as a full service provider of water sourcing, transportation, and clean up.

Wrap up

It is important when you are investing your hard-earned money that you ignore all the headlines about the market. Whether people are bullish or bearish on the market as a whole, it is more important to identify companies that are undervalued, and placing your money in such companies.

The article 3 Buys Under $10 originally appeared on Fool.com.

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