5 Stocks Under $5 for 2013
Jeff Reeves

The usual caveats apply, but these low-cost shares could net you big upside.

Let me make this clear right away: Cheaper stocks are not easier to buy than expensive ones; cheaper stocks do not inherently have a better chance of making you more money or making you profits any faster; round lots of stocks are not any better or worse than owning a handful of shares.

However, it’s indisputable that many investors gravitate toward low-priced investments.

They typically are more volatile than high-priced peers, and that makes for the possibility of bigger gains in a shorter period of time.

So for those of you looking for cheap investments, here are my five top stocks under $5 for 2013: Wet Seal (NASDAQ: WTSLA), Sirius XM Radio (NASDAQ:SIRI), Wendy’s (NASDAQ:WEN), 1-800-Flowers.com (NASDAQ:FLWS) and Star Scientific (NASDAQ: STSI).

One word of warning, however: Many of these stocks are very small and as a result are notoriously volatile. And most of them are cheap because of previous troubles beating them down on negativity. Be aware that you’re taking the tiger by the tail here, so protect yourself with limit orders and stop losses.

With that disclaimer in place, let’s get to the picks.

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Jeff Reeves is a financial journalist, and has been lead writer and editor for InvestorPlace.com since March 2010. Jeff's commentary has appeared in numerous finance publications, broadcast outlets and websites, including The Wall Street Journal, Forbes, MarketWatch, Smart Money, TheStreet.com, Fox Business Channel and a host of others. You can sign up for his free podcast via iTunes here. Jeff has also penned an eBook, The Frugal Investor's Guide to Finding Great Stocks: 11 Free Resources to Help Beginners Identify Fantastic Investments. Read more by clicking here.

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