“5 Best Under $5 This Week” is a new weekly 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.
The stocks highlighted in this article have been among the top stocks below $5 for the week ending Feb. 13, and whose big gains have been accompanied by increased and heavy volume.
Let’s take a look at five of these recent high flyers, their current prices and their performance over the past five days (in parenthesis):
Best Stocks Under $5: Ballard Power Systems Inc. (USA) (BLDP)
2/13/15 Closing Price: $2.66 (+55%)
Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) is a fuel cell manufacturer that announced a new $80 million deal with Volkswagen AG (ADR) (OTCMKTS:VLKAY) this week for the “transfer of auto-related fuel cell intellectual property.” In addition, an engineering services contract between the two companies was extended for another two years. BLDP stock shot up like a rocket on the news.
There is some overhead resistance at the 200 day moving average, which sits at $3, and the stock, which pulled back more than 9% on Friday, still is a bit overextended. But long-term, Ballard — whose stock steadily fell from $6 to as low as $1.50 over the past 11 months — looks like it may have turned things around with this contract.
Once BLDP pushes through the 200-day moving average, the next resistance level could be as far off as $4.50 a share.
Best Stocks Under $5: Anthera Pharmaceuticals Inc (ANTH)
2/13/15 Closing Price: $3.84 (+52%)
Anthera Pharmaceuticals Inc (NASDAQ:ANTH) is a biopharmaceutical company that develops and commercializes products that treat inflammatory and autoimmune diseases. This week, Anthera announced that it had completed an interim analysis from Phase 3 trials with blisibimod, an experimental drug to treat systemic lupus erythematosus (lupus). Anthera plans to continue this trial until completion by mid-2015.
Another positive boosting ANTH stock was the announcement that Anthera has received formal notification from the Nasdaq stock market that it has regained compliance with the rule that ANTH must maintain a market value of $50 million or greater for 10 consecutive business days.
ANTH stock took off Tuesday, jumping from $2.60 to $3.20, and has not looked back since.
Best Stocks Under $5: Aeropostale Inc (ARO)
2/13/15 Closing Price: $3.63 (+45%)
As recently as 2013, Aeropostale Inc (NYSE:ARO) sold for as much as $22, and it’s such a well-known brand that it’s hard to believe that it sells for less than $4 today. However, the teen market is known to be fickle, and this mall-based clothing retailer has been struggling with poor sales for quite awhile. In 2014, ARO lost 74% of its market cap.
However, this week ARO stock has performed quite a turnaround after Aeropostale reported a Q4 2014 loss, and putting forth guidance that was far better than Wall Street’s estimate. ARO now expects their loss per share to range between 1 to 6 cents, while the Street was looking for a loss of 27 cents. In addition, to helpwith the turnaround, Aeropostale recently announced new managerial promotions.
Earnings are scheduled to be reported on March 12. Given the news this week, ARO stock could surprise again to the upside.
Best Stocks Under $5: CafePress Inc (PRSS)
Current price: $2.95 (+35%)
CafePress Inc (NASDAQ:PRSS) is an e-commerce platform company with a website, CafePress.com, that allows customers to sell customized products, gifts, and artistic endeavors on line.
On Wednesday, CafePress announced it had agreed to sell its art business to Circle Graphic Inc., a digital printing company, for $31.5 million in cash. The company’s art business accounted for 20% of its total revenue in 2014. The purpose of the sale was to streamline CafePress’ business, and rid the company of low-performing or discounted products. CafePress also said the sale would improve their ability to optimize its pre-exsisting business and increase stockholder value.
So PRSS stock, which traded for $16 in 2012, could be ready to rebound from its long decline. This week’s performance was by far CafePress’s best in years.
Best Stocks Under $5: Bellatrix Exploration Ltd (NYSE:BXE)
Current price: $2.78 (up 24.11%)
Bellatrix Exploration Ltd (NYSE:BXE), traded on both the NYSE and the Toronto Stock Exchange, is a Canadian based company which explores for and produces oil and gas. While a good week for oil prices boosted most of the energy stocks, there was more to the BXE stock performance than just that. On Monday, the company had coverage initiated on it by Canaccord Genuity with a “buy” rating.
Then on Wednesday, it was announced that on Jan. 31, value investor Seth Klarman, head of the Baupost Group, had purchased 21.8 million shares of BXE stock.
In November, BXE announced Q3 earnings of $44.9 million, a 52% increase over the same quarter a year earlier. Revenue of $137.4 million was up 101%. Clearly better times may be ahead for BXE stock.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned stocks.