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 the high flyers this week:
Best Stocks Under $5: Biocept Inc (BIOC)
2/27/15 Closing Price: $3.16 (+118%)
Biocept Inc (NASDAQ:BIOC) is a small cancer diagnostics company that is working on using tumor cell and DNA tests with standard blood samples to provide better, more detailed information on tumor characteristics equal to or better than traditional biopsies.
This week BIOC stock soared after announcing that its blood-based diagnostic, OncoCEE-BR, was used in a prospective study at Columbia University to determine the hormonal status of advanced-stage metastatic breast cancer patients.
BIOC stock blasted up from $1.75 to $4.75, though it has since fallen back to $3.16, so it’s definitely not a stock for the faint of heart. But it remains an inexpensive issue with some interesting products, and the potential to break out again at any time.
BIOC has a conference call scheduled for Monday, March 9, after the closing bell to issue its Q4 earnings report.
Best Stocks Under $5: Cyclacel Pharmaceuticals Inc (CYCC)
2/27/15 Closing Price: $1.50 (+90%)
Biotech small caps have been scorching for awhile, and this week was more of the same. Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC) is a small biopharmaceutical company that is working on antibody engineering to treat cancer, leukemia, and other serious diseases.
CYCC was one of the hottest biotech stocks this week. It recently announced a quarterly dividend of 0.15 per share on their 6% Convertible Exchangeable Preferred stock to stockholders of record as of April 17, to be paid on May 1st. The ex-dividend date is April 15.
Cyclacel also has been granted a 180-calendar-day compliance period until Aug. 3 for CYCC to be in compliance with the Nasdaq rule that shares of the stock must be above $1 for 30 consecutive business days. With the week that CYCC has had, the likelihood is great that CYCC will be in compliance well before that date.
Best Stocks Under $5: SFX Entertainment Inc (SFXE)
2/27/15 Closing Price: $4.75 (+32%)
SFX Entertainment Inc (NASDAQ:SFXE) is an electronic dance music live event producer. Shares were up big on Wednesday amid news that CEO Robert Sillerman wants to take the company private by acquiring all outstanding shares. Sillerman, who already owns almost 40% of SFX stock, has proposed a buyout in which he would pay $4.75 for the remaining shares.
However, many investors and analysts are not enthusiastic about the proposal, saying that shares are worth more than double what Mr. Sillerman wants to pay. The anticipation of the CEO having to pay a much higher price sent SFXE stock from $3.50 to $5.25 earlier in the week, before settling back to today’s closing price.
This story could get very interesting in the weeks ahead.
Best Stocks Under $5: Lincoln Educational Services Corp (LINC)
2/27/25 Closing Price: $2.92 (+30%)
Lincoln Educational Services Corp (NASDAQ:LINC) is a provider of career and skilled trade oriented post-secondary education, operating 31 campuses over 15 states. There wasn’t a lot of news on LINC stock this week, but an oversold bounce did lift LINC stock substantially over the past few days.
Because of the lack of recent news, investors are advised to use caution until after Lincoln releases earnings on March 10.
Best Stocks Under $5: Xinyuan Real Estate Co., Ltd. (ADR) (XIN)
2/27/15 Closing Price: $3.06 (+19%)
Xinyuan Real Estate Co., Ltd. (ADR) (NYSE:XIN) is a Beijing, China-based real estate company that develops residential and commercial (apartment) real estate properties for middle class consumers in selected Tier II and III cities in China.
XIN stock gapped up above recent resistance this week after posting good fourth-quarter, 2014 earnings on Friday. Revenue of $362.9 million was up 121.8% from the $163.6 million in the third quarter, and a 25.5% increase year-over year. Contract sales of $402.6 million were up 140% from the previous quarter and 6.6% year-over year. Net income was also substantially higher from the previous quarter, but a 24.7% decrease from the fourth quarter of 2013.
XIN stock had fallen from $7 per share to $2 a share in the 16 months ending in early February, but has bounced back nicely since then. This week’s performance was the best for XIN stock in almost two years, and should bode well for the stock going forward.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
More From InvestorPlace
- The 5 Best Vanguard Funds for Your 401k
- 5 Hot Stocks the Billionaires Are Buying
- 2 Asian Funds to Buy Now