5 Best Stocks Under $5 is a feature intended to pinpoint smaller stocks that have recently shown outstanding performance-and that, because of recent positive events, seem likely to continue to outperform going forward.
Some may have been poor performers in recent months or years, but are showing improved price action and volume for the first time in quite awhile, and could very well be turnaround candidates.
Here’s a look at this week’s boomers:
Best Stocks Under $5: Aoxing Pharmaceutical Company, Inc. (AXN)
2/20/15 Closing Price: $1.95 (+249%)
Aoxing Pharmaceutical Company, Inc. (NYSE:AXN) was the largest gainer among all stocks this week, blasting forward nearly 250% on very high volume. AXN is a pharmaceutical company that specializes in research, development, manufacturing and distribution of narcotic, pain-management and addiction treatment drugs.
AXN reported second quarter earnings Tuesday in which revenue of $6.4 million was 85% above last year, along with a 20% decrease in cost of sales to $1.6 million. Gross profit increased 233% to $4.8 million. Earnings earned a penny per share, compared to a net loss of 4 cents a share a year ago.
Additionally, the day prior to earnings, China Aoxing reported completion of a private sale of 1.7 million shares of its stock to six company insiders at only 33 cents per share.
Investors are strongly advised to wait for a decent pullback before jumping onto this speculative, high flying stock, but it’s a stock that looks like it may have an interesting future.
Best Stocks Under $5: Harvard Apparatus Regenerative Tech Inc (HART)
2/20/15 Closing Price: $3.32 (+14%)
Harvard Apparatus Regenerative Tech Inc (NASDAQ:HART) is a clinical-stage biotech company that develops regenerated organs for transplant. On Wednesday, HART announced that it had closed a previously announced underwritten public offering of 2 million shares at $1.75 a share, and more than 695,000 shares of its Series B Convertible Preferred Stock at a price of $8.75 per share.
The Series B converts into five shares of common HART stock. The proceeds will go toward research and development, and to fund pre-clinical and clinical trials going forward.
Hart stock collapsed from $9 a share in September to a recent low of $2. However, with its strong showing this week, it looks like HART stock might have received some much-needed ventricular fibrillation.
Best Stocks Under $5: Celsion Corporation (CLSN)
2/20/15 Closing Price: $3.15 (+30%)
On Friday morning, Celsion Corporation (NASDAQ:CLSN) presented clinical data at the Molecular Medicine TRI-conference in San Francisco, to demonstrate GEN-1, a DNA-based immunotherapy to be used in advanced ovarian cancer patients. Celsion also announced that the Food and Drug Administration has accepted their planned Phase 1 dose-escalation clinical trial of GEN-1, combined with standard care for ovarian cancer, to begin this year at five or more U.S. clinical centers.
CLSN stock looks a little overextended at this level, and a pullback to the 200-day moving average at $2.85 would make a much better entry point to consider going long.
Best Stocks Under $5: Sphere 3D Corp (ANY)
2/20/15 Closing Price: $4.31 (+22%)
Sphere 3D Corp (NASDAQ:ANY) is a virtualization and data management solutions provider, which hasn’t had much news lately. But on Tuesday, CEO and Chairman Eric L. Kelly sent shareholders an open letter, providing an update on Sphere 3D’s finances. In the letter, Kelly said revenues grew from less than $4 million, to more than $36 million in 2014, and also predicted the company will exceed previous revenue projections for fiscal Q4 2014.
ANY stock has fallen from $9.50 to $3.50 since November, but looks like it may be trying to form new support between $4.00 and $4.50.
Best Stocks Under $5: SandRidge Energy Inc (SD)
2/20/15 Closing Price: $2.32 (+19%)
Boosted by rising prices in crude and Brent oil, it was a good week for SandRidge Energy Inc (NYSE:SD). SD is an independent oil and gas exploration and production company, with oil rich lands in both the U.S. and Poland.
On Wednesday, Sandridge announced that as of March 2, Steve Turk will take over as Executive Vice President and Chief Operating Officer. Turk was formerly the VP of operations for Chesapeake Energy Corporation (NYSE:CHK).
SandRidge was a very poor performer between July and January. However, SD’s stock price has doubled over the past month as energy prices have stabilized.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
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