Today, I’ve run a stock screen for MoneyShow.com readers looking for bargain stocks with big upside potential. Unlike any of my other screens, this screen focuses on stocks trading under $10 per share with a market cap of around $1 billion or less. As for the variables that I used in the screen, I focused on fundamentals, particularly companies that have:

  1. A healthy balance sheet with little debt,
  2. Strong prospects for rapid sales, and…
  3. Growth in earnings

Be forewarned: These kinds of stocks carry huge risks to them. A simple downgrade, news event, or missed earnings target can derail these small-cap stocks in a heartbeat and they can sometimes have low volume. But if you have some capital that you want to roll the dice with, these stocks will give you a good start in your research.

Here are my “$10 lottery specials.”

Wendy’s/Arby’s Group, Inc. (WEN)



Click to Enlarge

(WEN also happens to be consolidating toward its 200-day simple moving average, which has acted as support twice in the past two months.)

China Security & Surveillance Tech (CSR)



Click to Enlarge

FuelCell Energy, Inc. (FCEL)



Click to Enlarge

Limelight Networks, Inc. (LLNW)



Click to Enlarge

Local.com Corp (LOCM)



Click to Enlarge

By Ryan Mallory, trader and blogger, SharePlanner.com