After five consecutive days of decline, U.S. markets were able to regain their footing, somewhat, this week. The Fed meeting came and went without much ado, and all seemed quiet on international fronts. A mixed bag of earnings and economic reports pushed the markets higher, but left gains somewhat in check.
But, it was a much better week for sub-$5 stocks, and there were many in a diversified group of sectors to choose from. Let’s take a look at the stories behind the top five that gave speculators hope for bigger things to come:
Best Stocks Under $5: Nymox Pharmaceutical (NYMX)
7/31/15 Closing Price: $2.64 (+108%)
Nymox Pharmaceutical (NASDAQ:NYMX) was the big winner among the sub-$5 group this week, after reporting that its benign prostatic hyperplasia (BPH) treatment drug, fexapotide, showed significantly better results than a placebo group, and with minimal side effects reported.
The most striking result was the reduction in the number of patients needing prostate surgery within 24 months of being treated with fexapotide. BPH is another name for an enlarged prostate.
Nymox will now file for regulatory approval from the Food and Drug Administration. It would not be surprising to see one of the larger pharmaceutical companies make a bid to acquire NYMX after these results.
Nymox also announced the appointment of James G. Robinson, former Chairman and CEO of Morgan Creek Productions, a movie distribution company, to its board of directors.
Best Stocks Under $5: GigOptix (GIG)
7/31/15 Closing Price: $2.34 (+39%)
GigOptix (NYSEMKT:GIG) scorched higher this week after reporting second-quarter diluted earnings of 2 cents per share on $9.8 million in revenue. It was the first profitable quarter in company history. The revenue was up 22% over the past year, and up 9% from Q1 of 2015.
The company, which supplies high-speed semiconductor components for communication networks, also increased its cash on hand to $18.4 million, and said it was expecting to earn another $10.3 million in Q3, which would be the highest revenue in company history.
Best Stocks Under $5: AK Steel (AKS)
7/31/15 Closing Price: $2.95 (+17%)
When was the last time that steel stocks were leading the market in relative strength? Well, this week, several of them, including sub-$5 stock AK Steel (NYSE:AKS) did just that.
AKS was up big, despite posting poor quarterly earnings, because there was a report that a group of U.S. steel manufacturers have asked the U.S. government to impose tariffs on steel coming in from eight different countries, including China, India, Japan, and Russia. The steel companies say these countries are dumping “cold-rolled” steel (under-priced) into the U.S.
Also this week, AKS was upgraded by JP Morgan Chase & Co. (NYSE:JPM) from neutral to overweight, and by Macquarie Group Ltd (ASX:MQG) from neutral to outperform.
Best Stocks Under $5: Nova Lifestyle (NVFY)
7/31/15 Closing Price: $2.43 (+34%)
Nova Lifestyle (NASDAQ:NVFY) is a Commerce, Ca-based designer, manufacturer, and seller of residential furniture throughout the world. NVFY stock was quite strong this week after announcing its Board of Directors has hired China Everbright Securities Ltd., a large investment bank in China and Hong Kong, to look for “strategic options” and ways to open up significant value for stockholders.
Often this kind of announcement means the company may be open to be acquired or merged. A special committee was formed by the board at the end of June to explore options after inquiries were made from various funds and securities firms that have an interest in investing in Nova.
Another positive this week was the announcement that Nova will be displaying a new line of modern lifestyle furniture under its “Diamond Sofa” brand at the Summer 2015 Las Vegas Market trade show, from August 2-6.
Best Stocks Under $5: Gevo (GEVO)
7/31/15 Closing Price: $2.64 (+25%)
Gevo (NASDAQ:GEVO) is an Englewood, Co-based manufacturer of chemicals and biofuels that is developing alternative fuel sources, using isobutanol from renewable feedstocks, typically corn and plant waste.
Gevo had a big week after making a debut of its isobutanol blended gasoline at an Express Lube gas station in Fredericksburg, Texas. The advantages of isobutanol are said to be many, including resistance to moisture, and the ability to reduce engine corrosion in small landscaping equipment. Gevo says that, while ethanol can “gum up” the carburetors in lawn care equipment that sits idle over the winter, isobutanol will not do that.
Gevo has plans to off its product to more service stations, marinas, and outdoor equipment centers.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
