hey welcome back everyone to my world of stocks in today's video uh we've got another video request from our community Discord this time from Mark the Shark who says "Alla if you could only spend $20 on a stock uh without the use of fractional shares what would it be?" Uh I know you've said in the past that the individual share price should never be a factor for investing in a stock but I just thought it would be a fun video topic maybe top five stocks under 20 uh could be interesting to look at some spec plays for that thanks i love all of your all your videos okay well thank you Mark uh you always have some fun ideas for videos for the channel so please keep them coming i'm always happy to do these and especially more kind of out of the box type of videos um kind of spices up the channel a little bit and I'm a fan of them so keep the ideas coming uh like you said I definitely would never recommend buying a stock based on just a share price instead you should just use Robin Hood or SoFi to buy fractional shares of literally any company you want for whatever amount you want the share the individual share price doesn't really matter um what does matter though more is uh the market cap and you know in general lowpric stocks do tend to have lower market caps and because of that they tend to be a lot more risky a little more speculative and they can see some big swings you know up or down and especially you know the younger the company is the smaller the market cap if they see success in some of their products their stock prices can really skyrocket at times um which is why a lot of people like to look at lowpric stocks but on the other hand if things go bad and they run out of cash or they don't perform as well in their business uh sometimes they can go bankrupt and you have a big failure on your hands so they can be a lot riskier because of that but uh hey you've been warned these are going to be some very risky stocks here for this video I'm going to try my best though to just give you a mixture of some safer ones with also some very risky ones and kind of treat the video as if I was forced to buy five stocks that trade for less than $20 what would I end up choosing here in in those um par within those parameters and maybe you can research them further if you find any of these interesting but hey make sure you hit the like button if you want more variety of different types of videos like this in the future but let's go ahead and jump straight into it i actually picked some really interesting stocks here i can't wait to talk with you about them now in no particular order stock number one is actually going to be a stock that only trades for less than $5 a share which is very interesting and it's also one that I've never covered before on the channel but that is actually a REIT known as Global Self Storage ticker symbol SLF uh or I just call them self and the reason why I chose this one well first of all uh you guys know how much I have been buying a similar stock in Extra Space Storage who is obviously much larger it's another res and I just think they have a fantastic business within self storage which I also think is really the what one of the best if not the best real estate market out there because of how safe it is how much demand there is for it talk a little bit about that in just a second but they also pay a very nice dividend too which I love collecting well Selfto stock is kind of like a tiny little version of that and it's one that I've actually been researching more recently ever since I started buying EXR and been doing more research into self- storage stocks and the market and uh what I like about Self is that I feel that they could even be a great acquisition target too down the road and there's a few reasons why I feel this way first of all this company is very small with a market cap of only $62 million you compare that with EXR who is over $30 billion so gigantic difference there and when you look at the stock price while it is positive over the past decade it's also lower today than it was during their 2016 highs with a valuation that is also about 6% cheaper than the sector on a price to adjusted funds from operations which is a key metric that we use for valuing REITs and with that cheap valuation though you'd think that the company would you know be struggling greatly but that's actually not the case uh last year for example self saw growth in same store sales income and occupancy rates with last quarter also seeing about 3% revenue growth with doubledigit funds from operations growth as well while occupancy stayed above 92% which is very strong and that's usually the case among a lot of self- storage it's a very strong market with low but very reliable growth as over 10% of all households now use a self- storage unit and the number of facilities has also grown just this year alone to over 58,000 in America up from 52,000 last year that's pretty good growth there now for reference Self only owns 13 properties while the market itself is highly fragmented with the biggest leaders only owning just a singledigit percentage of it but what that means is that there is a ton of room here guys for expansion and especially acquisitions which is how most reads you know typically grow is through acquiring other properties well last year alone saw about $5 billion in acquisitions in the storage market again self is only worth millions and even ex spent about $13 billion themselves to acquire life storage back in 2023 so I don't think it's too crazy at all to think that a company like Global Self could also be an acquisition target at some point in the future too but the nice thing about it is that even if that doesn't happen the stock already looks fairly attractive with a huge dividend of more than 5% again I don't own the stock myself as I've been pouring you know most of that money into EXR but as a tiny kind of baby version of that which could also be an acquisition target down the road Self does look pretty attractive here to me for less than you know five bucks and I may end up buying a little we'll see what happens i'll let you know in future videos but hey while I do not currently own that stock yet option number two is actually one that I do own myself already and that is the fintech SoFi ticker symbol SOFI who you know might surprise you but yeah this is another stock here trading under 20 and despite having some pretty high-flying moments it's actually lost over a quarter of its value since IPOing in June of 2021 however during that time their business has actually grown dramatically larger with sales and adjusted Ebida rising by over 20% and a whopping 50% last year respectively while both members and products grew by an average rate of over 50% per year since 2020 that's very strong growth guys now speaking of which the rise in products uh is really a direct result of how well SoFi has diversified as an all-in-one digital finance platform that together offers all kinds of member services within banking loans credit cards and of course investing all of which is done much faster and more conveniently because of their integrations which has also allowed them to cross-ell upsell many of their different products and services there's a lot of good synergies going on there with one of the most profitable of those uh different parts of their business really being what they call SoFi Plus which is a subscription membership that gives all sorts of perks to the different things that you do within the platform so the more you do you're plus member uh you're going to see a lot of benefits there and it's a great way to sell that membership get that recurring revenue the great thing too though is that this is still a young company within a fintech market that we all know is going to be worth trillions long term so there is still a lot of future growth potential to be had here now valuation wise it does get a little tricky as they currently sit north of a 50p ratio which I think you know because it's so high it's kind of suppressed the stock a bit at that rich valuation but you have to keep in mind that last year was literally their first year of being gap net income profitable so the idea is that there will be large growth on the bottom line over time and then the valuation should come down quickly uh either way though it is easily my favorite fintech at the moment i use their platform myself i love it especially for buying stocks actually use them for a community portfolio and for a personal Roth IRA account that I have too with them but my experience has always been very positive so I just think they're doing a great job and I like the stock long-term for stock number three though I'm going to go with an option that I've actually never talked about before on the channel but that I do think looks pretty attractive here and that is in the Home Security Specialist ADT ticker symbol ADT who currently trades for only around $8 a share and despite having some pretty nice upswings it is still down over a third of its value since IPOing back in 2018 now the interesting thing though is that the company has actually performed pretty well since then business-wise especially turning a corner on their EPS numbers following the 2020 pandemic but because their top line only grows at around a mids singledigit rate per year I think most investors just kind of um feel that it's a little too low growth maybe they don't see enough potential in a stock like this but uh I don't personally think that that's totally fair as they're actually growing at about the same rate as the home security market and that's even after already being the clear market leader which also shows them having a strong competitive moat being ranked America's most trustworthy brand in home security while also being preferred a whopping two times more than even their next closest competitor which has also led to some very strong subscriber numbers in the millions who uh really tend to stay with them for many years after initial signup leading to more recurring revenue that is also high margin and looking ahead I think there's still plenty of room to keep growing and expanding the business especially in areas of not just home security but also business security there's leak and detection there's personal emergency response you know for like old people needing help or even just someone slipping and falling um there's all kinds of new innovations too with smart devices and video doorbells and even with AI which by the way AI has not only been improving their security platforms but it's also making their business run more efficiently like in their call centers and with virtual assistants and all that type of stuff so um it's looking pretty strong at the moment i would say really though my biggest concern with a company like this is just from giant tech companies like Amazon Google Apple Microsoft Meta and more that could easily disrupt this market and some have already entered it too with all of that money um them really having all the money that they'll ever need to go in there and spend it pour into this and really become a disruptor in that market and that doesn't bode very well for a smaller company like ADT who's going to have a hard time competing with them having said that though ADT has actually adapted pretty well to those scenarios but launching their own smart home products and services even partnering with Google to make them even stronger who by the way Google actually invested nearly half a billion dollars in ADT back in 2020 and then put another 150 million in 2022 while also partnering with them on things like the trusted neighbor smart home security platform which is also a welcome sign of confidence uh so with the stock having fallen as much as it has leaving the valuation both 25% cheaper than their own 5-year average and another 38% lower than the sector median on a forward P basis it's also a pretty nice growth oriented dividend of more than a 2.6% yield with an excellent payout ratio of less than 30% nearly a double-digit growth rate yeah I just think the complete package here for less than you know under 10 bucks a share it's not that bad and it's definitely up high on my watch list okay for option number four uh we're going to go much more speculative and higher risk so you've been warned guys but it's actually a stock that I'm betting just a tiny amount on myself too and that is Recursion Pharmaceuticals ticker symbol RXRX who happens to trade for even less than just $5 a share after having lost over 85% of its value since IPOing in 2021 when it was riding high on the momentum of the pandemic now here's the thing though guys this biotech doesn't have any of their own let's call it medicines out on the market yet which means extremely weak financials in fact they don't even have a drug in phase three trials right now and that makes them extremely high risk to the point where this could be a stock that either skyrockets in the future or it could literally go bankrupt in just a few years from now you know depending on how they perform and if they run out of cash but what they do have at the moment is what is literally the most powerful biotech supercomputer in the world built in partnership with Nvidia with over 50 pabytes of health data to fuel it which is just as important as how powerful the computer is you really need all of that huge amount of data to fuel it too and all of that combined powers their drug discovery platform that uses artificial intelligence to research identify and even develop new treatments much faster and more efficiently than any legacy platform of the past ever could or that has ever really even been possible so much so that even other biotech giants like Ro Bear Merc and Santa have already partnered with RX to use their platform and even large investors like Kathy Wood and even Nvidia have directly invested in the stock too now I'm not a fortune teller and at a price to sales ratio of more than 25 with very small financials uh it feels like it's almost as likely that this company could go bankrupt as much as the stock could skyrocket i'm holding just a tiny piece of it just in case cuz if any new deals or partnerships get announced this is a company that I do think could soar from here on some very some very positive news and already we're seeing analysts project much higher sales in the next couple years too so we'll see what happens with it all right guys one last stock here but uh hey for pick number five uh I'm going to have to cheat a little bit i'm sorry guys hey I've been giving you a lot of stocks that are very low some have even been less than 10 even less than five let allow me to cheat a little bit with this last one i'm gonna go just a little bit higher than $20 a share because I just felt like I had to include this one i can't believe h how it's fallen to these levels um but it's just a little higher than 20 i'm talking about the world's largest biotech in Fizer ticker symbol PFE who let's be frank during the pandemic this was easily one of the most popular stocks to be buying because of the insane amounts of money that they were making from the Vshots and whether you're prov or anti-V both sides can agree that it made unbelievable amounts of money for this company instantly more than doubling you know their sales and profits while turning them into the largest biotech in the world but since then coming off the pandemic where those Vshot sales have really evaporated well investors started selling out in a frenzy sending the stock crashing by over 60% from the top to the point where they're even negative now over the past decade but here's the thing guys this year Fizer will still generate way more in sales than they did before the pandemic ever happened they'll also generate more profits and they already spent a ton of that money that they made from the Vshots to acquire multiple different companies totaling more than 70 billion in acquisitions to bolster up their already massive pipeline of more than 100 different future products so to treat the company and the stock like it's about to go bankrupt with a valuation that is over 50% cheaper than their competitors despite them still paying one of the biggest dividends out there at over a 7% yield to where it's now in a category among some super risky stocks that you know are all around 20 bucks or less much less um I just think that it's kind of wild to me to see Fizer even be close to this to where I could even include it in a list like this again putting any personal or ethical feelings aside about a giant pharmaceutical company like this as an actual stock investment I never thought I'd see Fizer anywhere near these low levels so I just had to include it anyway those are my thoughts guys i'd love to hear what you all have to say down below and hey please let me know if you um like these if you don't like these stocks if you don't like them what other stocks would you have put in their place instead i'd love to hear your thoughts but either way I just hope that you enjoyed the video thank you for stopping by my friends i wish you the best of luck out there i will catch you in the next one all right take care everybody bye-bye [Music]