3 Great Stocks Under $10 a Share

Ten dollars is a key psychological level for many stocks. Growing companies generally don't go public at less than $10 a share, while some investors think $10 stocks are "cheap" because they can accumulate more shares.

However, a company's actual value is determined by its market capitalization (its stock price multiplied by the number of outstanding shares) and its P/E ratio (its stock price divided by its annual earnings per share). Therefore, a $10 stock can actually be more expensive than a $100 stock if its market cap is much higher than its annual revenue, or its P/E ratio is frothy relative to its industry peers.

That being said, there are still plenty of decent sub-$10 stocks that trade at reasonable valuations. Here are three oft-overlooked stocks that deserve a closer examination: UMC (NYSE: UMC), Limelight Networks (NASDAQ: LLNW), and Glu Mobile (NASDAQ: GLUU).

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Source Fool.com