Top Cheap Stocks For 2014

It might not be obvious to the casual observer, but right now,�Boeing (NYSE: BA  ) stock offers one of the best values available in the entire aerospace and defense industry. Why?

Three reasons.

Boeing is a contender
At first glance, Boeing stock looks firmly in the running as a good investment idea for defense investors. Stacked up against comparable players in this industry, Boeing's 17 price-to-earnings ratio ranks between the pricier 17.6 P/E at United Technologies (NYSE: UTX  ) , and the cheaper 11.4 P/E at Lockheed Martin (NYSE: LMT  ) . So the stock's neither outrageously expensive nor suspiciously cheap.

Boeing has the best prospects
Boeing stock also looks likely to prosper to a greater extent than its rivals. If United Tech is in the midst of a corporate restructuring that may or may not pay off, and Lockheed Martin is dogged by continuing difficulties with its F-35 fighter jet and the cancellation of its F-22 stealth fighter, all systems look like a go for Boeing as it sells cheaper F-15s and F/A-18s to the Pentagon, while the popular Boeing 737 continues to rack up record sales and works to get the kinks out of its popular 787 Dreamliner.

Top Cheap Stocks For 2014: USG Corporation(USG)

USG Corporation, through its subsidiaries, engages in the manufacture and distribution of building materials worldwide. The company offers gypsum and related products, including gypsum wallboard, joint compounds used for finishing wallboard joints, cement boards, glass mat sheathing, gypsum fiber panels, poured gypsum underlayments, ultra light panels, and various construction plaster products. Its gypsum products are used in various building applications to finish the interior walls, ceilings, and floors in residential, commercial, and institutional constructions, and repair and remodel constructions. The company also produces gypsum-based products for agricultural and industrial customers to use in various applications, including soil conditioning, road repair, fireproofing, and ceramics. In addition, it manufactures ceiling grid and acoustical ceiling tile for electrical and mechanical systems, and air distribution and maintenance applications. USG Corporation distribut es its gypsum products through specialty wallboard distributors, building materials dealers, home improvement centers and other retailers, contractors, and a network of distributors. Further, it distributes other manufacturers? gypsum wallboard, joint compound and other gypsum products, as well as drywall metal, insulation, and roofing products and accessories. The company sells its products under SHEETROCK, DUROCK, FIBEROCK, SECUROCK, LEVELROCK, RED TOP, IMPERIAL, DIAMOND, SUPREMO, AURATONE, ACOUSTONE, DONN, DX, FINELINE, CENTRICITEE, CURVATURA, and COMPASSO brands. The company was founded in 1901 and is based in Chicago, Illinois.

Advisors' Opinion:

• [By seekingalpha.com]

  USG is a worldwide producer of building materials, primarily gypsum wallboard, which is used for repair and construction.
  
  Shares are trading at $8.17 at the time of writing, at the lower end of their 52-week trading range of $7.88 to $19.91. At the current market price, the company is capitalized at $860.22 million. Earnings per share for the last fiscal year were -$3.87, and it paid no dividend.

  These earnings are expected to remain negative through the next couple of years, though the loss per share is expected to reduce to $1.60 in 2012. Revenue during this time is forecast to increase to around $3.25 billion.

  The story with USG is all about its debt. With $2.31 billion of debt under its belt, it has very little room to maneuver. With a patchy economy going forward, the company may find it hard to cut its loss per share by the amount that it needs to. Consequently, it may struggle to return to profitability. Given its debt, the book value of the shares is $5.01. Action looks to be time critical now. With S&P (MHP) recently cutting USG’s credit rating, it may soon be time for the company to go to the market to raise cash.

  If the company can address its burgeoning debt, then it may look attractive. Until then, avoid.

Top Cheap Stocks For 2014: Kimber Resources Inc(KBX)

Kimber Resources Inc., a junior mineral resource company, engages in the acquisition, exploration, and development of mineral resource properties in Mexico. The company primarily explores for gold and silver deposits. Its principal property includes the Monterde Property, which consists of 35 mineral concessions totaling approximately 29,296 hectares located in the Sierra Madre mountains of southwestern Chihuahua State. Kimber Resources Inc. was founded in 1995 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Louis]

  Exploration-stage gold and silver company Kimber Resources Inc. (KBX) has gained 26% year to date, and is up 58% in the past year. At $1.67, this penny stock is worth a close look for potential investors. The stock's 52-week range is 60 cents to $2.17.

• [By Louis Navellier]

  Based in Canada, junior mineral resource company Kimber Resources Inc. (AMEX: KBX) engages in the acquisition, exploration and development of mineral resource properties, primarily gold and silver deposits in Mexico. Currently, this exploration-stage company is trading on the higher end of its 52-week range of 60 cents to $2.17. Even after pulling back over the last few days, this penny stock is up almost 17% year to date, and 59% in the past 12 months. If you’re looking to add a penny stock to your portfolio, this little mining stock has the ability to bring quick gains your way.

10 Best Stocks To Own Right Now: TranSwitch Corporation(TXCC)

Transwitch Corporation designs, develops, and supplies semiconductor and intellectual property solutions for voice, data, and video communications equipment. The company provides integrated multi-core network processor system-on-a-chip (SoC) and software solutions for fixed, 3G and 4G mobile, VoIP, and multimedia infrastructures. It offers converged network infrastructure products, including infrastructure VoIP processors comprising Entropia series of processors for wire-line and wireless carrier equipment; EoS/EoPDH mappers and framers for formats and data speeds in the access portion of the network; tributary switches that enable traffic to be switched or re-arranged; and carrier Ethernet solutions consisting of Ethernet controllers and switches, as well as circuit emulation and clock recovery devices. The company also provides FTTx protocol processors, such as mustang, a system-on-chip solution for EPON optical network unit equipment; COLT processor, a system-on-chip so lution for the optical line terminator equipment; and Diplomat-ONT product, an integrated SoC solution for GPON ONU applications, as well as access VoIP processors and access controllers. In addition, it offers broadband customer premises equipment, including multi-service communications processors comprising Atlanta processor, a multi-service SoC for customer premises equipment that supports toll-quality telephone voice, fax, and routing functionality; and HDMI, displayport, HDP, and Ethernet IP cores for consumer electronics, home network equipment, and industrial and automotive applications. The company serves public network systems OEMs, WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs, as well as government, university, and private laboratories. It sells its products through direct sales force, independent distributors, and sales representatives. The company was founded in 1988 and is headquartered in Shelton, Connecticut.

Advisors' Opinion:

• [By Michael Brush]

  If you find yourself craving more high-definition video on your smartphone or tablet computer or if you've been checking out 3D televisions -- the next big trend -- you already know why TranSwitch (TXCC) stock should be a winner over the next few years.

  Once a techmania darling, trading at more than $500 a share, TranSwitch crashed and burned along with so many other Internet stocks. It has been all but left for dead since. Wall Street analysts are predicting the stock will actually have fallen to $2 a year from now, from recent levels of around $2.60, according to Thomson Reuters.

  What they're missing is that TranSwitch has revamped its chip offerings so they support high-definition video connections in TVs, PC and game monitors, smartphones, tablets and video cameras. This exposes the company to some big consumer trends. Another new product line supports gear that connects homes, offices and smartphones to the Internet.

  Those analysts and other investors don't put much faith in these new products. So why should you? Because the right kinds of insiders have been accumulating stock. Many of the new products are scheduled to hit the market over the next three months and generate meaningful sales by the fourth quarter. So now is the time to buy.

  Of course, we don't know for sure that TranSwitch's new products will catch on. But behind the scenes, they've been licensed by the likes of Intel (INTC), International Business Machines (IBM), Texas Instruments (TXN) and Analog Devices (ADI), Ted Chung, the TranSwitch vice president of global business development, tells me. That suggests TranSwitch may work its way into the Apple (AAPL) iGadget ecosystem, says Northland Capital Markets analyst Richard Shannon. That would be a game-changer for tiny TranSwitch, but the markets for its new products are so big that it probably can win even without such an advantage

• [By Michael Brush]

  If you find yourself craving more high-definition video on your smartphone or tablet computer or if you've been checking out 3D televisions -- the next big trend -- you already know why TranSwitch (TXCC) stock should be a winner over the next few years.

  Once a techmania darling, trading at more than $500 a share, TranSwitch crashed and burned along with so many other Internet stocks. It has been all but left for dead since. Wall Street analysts are predicting the stock will actually have fallen to $2 a year from now, from recent levels of around $2.60, according to Thomson Reuters.

  What they're missing is that TranSwitch has revamped its chip offerings so they support high-definition video connections in TVs, PC and game monitors, smartphones, tablets and video cameras. This exposes the company to some big consumer trends. Another new product line supports gear that connects homes, offices and smartphones to the Internet.

  Those analysts and other investors don't put much faith in these new products. So why should you? Because the right kinds of insiders have been accumulating stock. Many of the new products are scheduled to hit the market over the next three months and generate meaningful sales by the fourth quarter. So now is the time to buy.

  Of course, we don't know for sure that TranSwitch's new products will catch on. But behind the scenes, they've been licensed by the likes of Intel (INTC), International Business Machines (IBM), Texas Instruments (TXN) and Analog Devices (ADI),  Ted Chung, the TranSwitch vice president of global business development, tells me. That suggests TranSwitch may work its way into the Apple (AAPL) iGadget ecosystem, says Northland Capital Markets analyst Richard Shannon. That would be a game-changer for tiny TranSwitch, but the markets for its new products are so big that it probably can win even without such an advantage. 

Top Cheap Stocks For 2014: Advance Auto Parts Inc(AAP)

Advance Auto Parts, Inc., through its subsidiaries, operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP) and Autopart International (AI). The AAP segment operates stores, which primarily offer auto parts, including alternators, batteries, chassis parts, clutches, engines and engine parts, radiators, starters, transmissions, and water pumps; accessories comprising floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers; chemicals consisting of antifreeze, freon, fuel additives, and car washes and waxes; and oil and other automotive petroleum products. This segment also provides battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics and project brochures, loaner tool programs, and oil and battery recycling services; and sells its products through online. The AI segm ent operates stores that offer replacement parts for domestic and imported cars, and light trucks to customers in northeast and mid-Atlantic regions, as well as to warehouse distributors and jobbers in North America. As of January 1, 2011, the company operated 3,369 AAP stores, including 3,343 stores located in the northeastern, southeastern, and Midwestern regions of the United States under the Advance Auto Parts and Advance Discount Auto Parts trade names; 26 stores situated in Puerto Rico and the Virgin Islands under the Advance Auto Parts and Western Auto trade names; and 194 stores under the Autopart International trade name in the United States. It serves do-it-yourself, do-it-for-me, or commercial customers. The company was founded in 1929 and is based in Roanoke, Virginia.

Advisors' Opinion:

• [By Vatalyst]

  Advance Auto Parts (AAP) is the second largest parts retailer in the U.S. The common stock currently trades at a price to earnings ratio sits at 12.5, below its historical average of 16 and industry average of 15.7.

  Typical of Wall Street short term thinking, the madding crowd fled this stock in May, due to weak first quarter 2011 comparable store sales gain of 1.4% versus an 8.9% gain during December 2010. Price to book ratio is 4.57 whilst price to cash flow sits at 7.70, well below the industry average of 11.2.

Top Cheap Stocks For 2014: AeroVironment Inc.(AVAV)

AeroVironment, Inc. designs, develops, produces, and supports unmanned aircraft systems (UAS), and efficient energy systems for various industries and governmental agencies. Its UAS provide intelligence, surveillance, and reconnaissance, including real-time tactical reconnaissance, tracking, combat assessment, and geographic data to the small tactical unit or individual war fighter. The UAS wirelessly transmit critical live video and other information generated by their payload of electro-optical or infrared sensors directly to a hand-held ground control system, enabling the operator to view and capture images during the day or at night on a hand-held ground control unit. AeroVironment also provides spare equipment, alternative payload modules, batteries, chargers, repair services, and customer support for the UAS. In addition, the company produces industrial productivity and clean transportation solutions for commercial and government customers, develops potential clean t ransportation solutions, and performs contract engineering services; offers PosiCharge electric vehicle charging systems for industrial electric material handling fleets, electric vehicle charging systems for passenger and fleet vehicles, and power cycling and test systems for developers and manufacturers of plug-in electric and hybrid vehicles, as well as battery packs, electric motors, and fuel cells; and supplies power cycling and test systems to research and development organizations that focus on developing electric propulsion systems, electric generation systems, and electricity storage systems. It supplies its UAS primarily to the organizations within the United States department of defense. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Monrovia, California.

Advisors' Opinion:

• [By Chris Stuart]

  AeroVironment(AVAV) sells unmanned, remote-control military aircraft and rapid-charging battery stations for electric vehicles.

  The stock has fallen due to concerns over U.S. defense budget cuts. According to Benchmark Research, the company should do well because of growth in its electric-vehicle-charging business. "We will see major deployment of electric-vehicle-charging infrastructure in the coming year to support multiple electric-vehicle introductions and the White House's target of 1 million EV by 2015."

  AeroVironment was recently named to a list of stocks by Goldman Sachs that have a 15% probability, or better, of being acquired. Shares of AeroVironment rocketed 20% Wednesday as quarterly earnings exceeded analysts' estimates. While the shares are not quite as attractive compared with when I first ran the screen June 20, they still have upside potential, given TheStreet Ratings $38 price target.

Top Cheap Stocks For 2014: Majesco Entertainment Company(COOL)

Majesco Entertainment Company develops and markets video game products primarily for family oriented mass-market consumers. The company publishes video games for various interactive entertainment hardware platforms, including Nintendo?s DS, DSi, and Wii; Sony?s PlayStation 3 and PlayStation Portable; Microsoft?s Xbox 360; and personal computers. It also publishes games for various digital platforms consisting of mobile platforms comprising iPhone, iPad, and iPod Touch, as well as online platforms, including Facebook. The company sells its products primarily to retail chains, specialty retail stores, video game rental outlets, and distributors. The company was founded in 1998 and is based in Edison, New Jersey.

Advisors' Opinion:

• [By Louis]

  Majesco Entertainment (NASDAQ: COOL) is an innovative provider of video games for the mass market, developing a wide range of titles for Sony’s PlayStation, Microsoft’s Xbox and Nintendo’s WII systems. On June 7, COOL announced that it had signed a contract with the NBA to begin development of an original video-game basketball franchise. The stock rose an impressive 32% over the next five trading days while the broader market sold off.

  However, the stock is down today after reporting weaker-than-expected second-quarter earnings last night, missing consensus earnings estimates by 2 cents. Majesco reported net revenues of $32.1 million for the second quarter ended April 30, 2011, compared with $10.9 million reported for the same period in the previous year. The company’s operating income for the second quarter was $5.3 million, compared with an operating loss of $1.6 million reported for the same period in the previous year. So treat this sell-off as a buying opportunity.

• [By McWillams]

  Majesco Entertainment makes video games mainly for the family-oriented, mass-market consumer.

  Majesco's incredible run this year started on Jan. 11 when the company announced it had shipped more than 500,000 copies of its Zumba Fitness video game title for the Wii, Xbox 360 and PlayStation 3. In late January, the company announced that it regained compliance with the Nasdaq's minimum bid price requirement for continued listing.

  In early March, shares of Majesco climbed higher after the company posted better-than-expected fiscal first-quarter financial results, with revenue jumping to $48.5 million from $29.2 million in the same period a year earlier.

  Current Share Price: $3.20 (March 29)

  First Quarter Total Return: 315%

  Analyst Ratings: Majesco garners a lone "buy" rating from Needham & Co. and a "neutral" rating from Wedbush. Coincidentally, both research firms have a $2.50 price target on the stock.

  TheStreet Ratings has a "hold" recommendation on Majesco Entertainment. The research report from March 20 says revenue growth, a largely solid financial position with reasonable debt levels and solid stock price performance are strengths that are countered by the company's weak cash flow from its operations.