Surprisingly, there are about 45 stocks trading on the New York Stock Exchange which trade for less than $3 a share. Of course, some of these are on the verge of delisting, many are on the verge of bankruptcy, but you may find a few gems on the list of NYSE stocks under $3, just published by WallStreetNewsNetwork.com.
As an example, with the recent oil spill, WSP Holdings Ltd. (WH) might be worth taking a look at. The company makes casing, tubing, and drill pipes for oil and natural gas exploration, drilling, and extraction along with pipelines. This China based company has a forward PE of 12.4, and trades for around 1.36 per share.
Phoenix Companies Inc. (PNX) is a provider of life insurance and annuities. The stock trades for around 2.11 per share. It sports a very favorable forward PE of 4.0 and an extremely favorable PEG ratio of 0.30.
If you are expecting a real estate turn-around in Calfornia, check out MPG Office Trust, Inc. (MPG), a real estate investment trust specializing in office buildings. The stock is currently at 2.90 per share, carries a forward PE of 10.7, and a PEG of 0.83.