Despite a week of worry over a free-falling Chinese stock market and an impasse between Greece and the eurozone, U.S. markets still managed to hold their own after today’s relief rally. The number of stocks below $5 that showed healthy gains, while not as prolific as in some previous weeks, was still surprisingly strong and well-diversified.
Here are five baby stocks that showed superlative gains on the week:
Best Stocks Under $5: Network-1 Technologies (NTIP)
7/10/15 Closing Price: $2.68 (+45%)
Network-1 Technologies (NTIP) develops, licenses, and acts as a protector of intellectual property assets, most of which are technology-related.
Talk about David up against Goliath! NTIP stock blasted higher this week after a U.S. district court judge denied motions to dismiss a patent infringement suit filed by Mirror Worlds Technologies, Inc., a subsidiary of NTIP, against Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT).
The ruling, by Judge Robert Schroeder III of the eastern district of Texas, means the suit by Mirror Worlds against the two technology giants will continue toward trial. It would not be totally unexpected to see a large out-of-court settlement coming soon.
Best Stocks Under $5: Professional Diversity Network (IPDN)
7/10/15 Closing Price: $2.67 (+32%)
Professional Diversity Network (IPDN) is an online professional networking operation that serves diverse cultural and ethnic groups seeking employment.
On Tuesday, IPDN stock surged higher after the company reported that it had surpassed 530,000 new registered users in the month of June, and over 1.5 million new registered users within the past six months. Second-quarter bookings were $10.3 million, up nearly 800% from Q2 of 2014.
IPDN’s new user growth this year is quite substantial, as prior to 2015 the company had just over 3 million users for its entire 12-year history.
Best Stocks Under $5: XOMA (XOMA)
7/10/15 Closing Price: $4.71 (+26%)
XOMA (XOMA) flew up the charts this week after Cowen Group reiterated an “outperform” rating on XOMA stock. On Cowen’s radar was the upcoming results of XOMA’s EYEGUARD-B Phase 3 clinical program for its gevokizumab drug, which treats a rare disorder called Behcet’s disease uveitis (BDU).
BDU, or Behcet’s syndrome, is a disorder that creates inflammation in the body’s blood vessels and leads to various ulcers on the body and mouth, as well as inflammation around the pupil of the eye.
Cowen feels that two pilot studies have, thus far, been encouraging, and that the drug’s safety record has been demonstrated positively. The test results are expected to be released during the last week of July.
In addition, XOMA announced this week that XOMA358 has been granted Orphan Drug Designation by the U.S. Food and Drug Administration to treat congenital hyperinsulinism.
Best Stocks Under $5: Highway Holdings (HIHO)
7/10/15 Closing Price: $4.20 (+20%)
Highway Holdings (HIHO) was a big winner this week after announcing a cash dividend of 10 cents per share, to be paid August 10, 2015 to shareholders of record as of July 13, 2015. That may not seem like much, but on a $4 stock it represents an annual dividend yield near 10%.
HIHO, which manufactures and sells metal, plastic, electric, and electronic parts to original equipment companies, submitted a positive earnings report at the end of June, and HIHO stock seems to be picking up steam in 2015.
Best Stocks Under $5: TeleCommunication Systems (TSYS)
7/10/15 Closing Price: $4.00 (+17%)
TeleCommunication Systems (TSYS) had a very busy week, lifting its share price much higher. On Monday, TSYS announced that the board of directors is establishing a special committee of independent directors to look for strategic ways to enhance stockholder value. This includes the hiring of legal and financial advisors.
One day later, it was reported that some industry observers believe the best option for the company may be a piecemeal sale, as the company has been struggling for quite some time.
On Friday, TSYS announced it has been granted a contract to provide statewide Technical Operations Support Services (TOSS) to the State of Maryland’s Department of Human Resources. The contract will last three years, with two 1-year option terms. The total contract, if the options are picked up, could be as much as $11.3 million.
It sounds like the Board of Directors may get their wish very soon.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
