Some investors shy away from low priced stocks., but Rick Aristotle Munarriz thinks some stocks under $10 have nice growth potential. Here's his list of five such stocks to consider.

• Alvarion Ltd. (NASDAQ: ALVR) is currently at $8.98; its development trajectory looks impressive if we take into account the fact that it has gained 53% over the past two months. In addition, its quarterly earnings results and its cash-rich balance sheet point to further growth.
• Sirius Satellite Radio Inc. (NASDAQ: SIRI), currently at $2.72, is showing a lot of potential as its subscriber base continues to increase, while reducing its quarterly losses. Munarriz also cites the company's advantages tied to its pending merger with competitor XM Satellite Radio (NASDAQ: XMSR).
• Builders FirstSource Inc. (NASDAQ: BLDR) is currently at $7.48, down from $23 two years ago. Despite the fact that the company's quarterly earnings numbers weren't so good, BLRD was able to gain market share and is nicely positioned for a recovery in the next couple of years.
• Internet Brands Inc. (NASDAQ: INET), currently at $6.48, is seen as a good investment in the current dot-com world. Last week's $1.8 billion decision by CBS Corp. (NYSE: CBS) to acquire CNET Networks (NASDAQ: CNET) could be a sign that we should consider Internet Brands and its high traffic volume. Internet Brands has several pages that have high advertising potential, and should see this pay off in the future, or lead to a possible buyout by one of the major players.
• Natuzzi (NYSE: NTZ) is currently trading at $3.77. The company is facing some trouble related to its declining revenue and profit, but it is has the advantage of a lot of cash on its balance sheet.

Building Materials Holding Corp. (NYSE: BLG) -- implied volatility is Calm as BLG closes at 30-month low. BLG, a provider of professional residential services and building materials, closed at $13.41. BLG was frequently mentioned as a takeover target in previous years on a strong housing market and chatter that Home Depot's (NYSE: HD) ex-leader Bob Nardelli would purchase BLG. RHCO says this morning, "Potential for consolidation of Pro Dealers; When will it begin?" BLG June option implied volatility of 41 is below its 26-week average of 44 according to Track Data, indicating decreasing price risks.

Masco Corp. (NYSE: MAS) -- option implied volatility suggests non-directional Risk. MAS, a home improvement company, closed at $29.15. MAS over all option implied volatility of 27 is near its 26-week average of 25 according to Track Data, suggesting slightly larger risks.

Builders FirstSource (NASDAQ: BLDR) -- implied volatility suggests Flat Risk. BLDR, a supplier and manufacturer of structural and related building products for residential new construction, closed at $16.13. BLDR has a market cap of $571 million with long term debt of $318 million. BLDR reported March 2007 quarterly total revenue of $411 million. BLDR over all option implied volatility of 36 is near its 26-week average according to Track Data, suggesting non-directional risk.

BlueLinx Holdings (NYSE: BXC) -- options suggest non-directional risk. BXC, a distributor of building products, closed at $10.88. BXC has a market cap of $339 million with long term debt of $522 million. BXC reported 2006 annual revenue of $4.8 billion. RHCO says, "BXC is maintaining its growth story despite a tough home-building market. The key element is growing its specialty business faster than the structural segment." BXC over all option implied volatility of 40 is near its 26-week average of 42 according to Track Data, suggesting non-directional risk.

Option volume leaders today are: EnCana Corp. (NYSE: ECA), Apple Inc. (NASDAQ: APPL) and Hewlett-Packard (NYSE: HPQ).

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.