5 Stocks Under $5 With Most 'Sell' Ratings

BOSTON (TheStreet) -- Stocks trading under $5 have limited analysts' coverage, so it's not a good sign for investors when most researchers recommend dumping shares. The following five U.S. stocks trade at less than $5 and have garnered the biggest number of "sell" ratings, making them vulnerable to analysts' bearish views. 5. YRC Worldwide YRCW Company Profile: YRC Worldwide offers transportation services. Share Price: 29 cents (Sept. 8) 2010 Stock Performance: -65% Analyst Consensus: Six analysts, or half of those covering YRC Worldwide, say investors should sell shares of the trucking company. Another five analysts rate YRC Worldwide as a "hold," and only one recommends buying the shares. Bearish Case: Credit Suisse analyst Christopher Ceraso wrote in an Aug. 4 research note that while less-than-truckload (LTL) fundamentals are improving, YRC Worldwide "still faces substantial headwinds in 2011. We maintain our view that any future value from profitability will not fall in the hands of common equity shareholders; but, rather, will accrue to the banks and the Teamsters." Ceraso has an "underperform," or "sell," rating on the trucking giant and a price target of 50 cents. No other analyst publishes a price target. 4. Energy Conversion Devices ENER Company Profile: Energy Conversion Devices designs, makes and sells photovoltaic products, known as PV or solar laminates that generate clean, renewable energy by converting sunlight into electricity. Share Price: $4.96 (Sept. 8) 2010 Stock Performance: -53% Analyst Consensus: Nineteen research firms have coverage on Energy Conversion Devices, with six rating the stock a "sell." The other 13 analysts say investors should hold the shares. The average of eight recent stock price targets is $5.51, which is actually 11% above where the stock currently trades. Bearish Case: Wedbush analyst Christine Hersey wrote in an Aug. 31 research note that while Energy Conversion Devices is making progress, it will likely continue "to struggle as oversupply conditions resume in 2011 and demand for niche products remains below expectations." Hersey has an "underperform" rating on the stock with a $4 price target. To read the rest, head over to TheStreet.com