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Cheap Stock 1:
Star Bulk Carriers (SBLK)

If you're interested in cheap stocks, take a look at the dry bulk shipping sector. The global recession has decimated shipping rates at a time when capacity is on the rise. The double whammy of falling demand and increased supply has resulted in stocks in the group falling hard.

Names including Star Bulk Carriers (SBLK) lost significant value in 2008. But sometimes the harder they fall, the harder they rise. Bulk shippers have been huge winners since last March with some stocks going up by three or four times their price at the bottom.

While we have yet to see a big improvement in the global economy, improvement could propel these stocks to another triple or more. SBLK priced shares for the public at the peak of the market at a $15 level.

Those levels can be reached again as a new economic cycle begins.

NEXT: Cheap Stock 2 – StemCells, Inc. (STEM)