Today’s 5 Best Stocks Under $5 feature highlights a number of companies that are offering groundbreaking solutions to small-business problems, as well as one biopharma firm that, like many of its competitors, has set its sights on creating procedures and medicines that could one day offer a cure for some of the most deadly forms of cancer.
Here’s a look at this week’s best-performing inexpensive stocks:
Best Stocks Under $5: RADA Electronic Ind. Ltd. (RADA)
3/27/15 Closing Price: $2.40 (+42%)
RADA Electronic Ind. Ltd. (NASDAQ:RADA) is an Israel-based electronics contractor that develops, manufactures and sells data recording and management systems to the defense and airline industries.
On Monday of this week, RADA announced that it had been selected by Lockheed Martin Corporation (NYSE:LMT) to provide Lockheed with RADA’s Multi-Mission Hemispheric Radar (MHR) system, to be used in combination with other sensors in Lockheed’s high-energy laser weapons system testing.
The good news blasted RADA stock up more than 70% on 19 million shares in one day alone. However, RADA has pulled back every day since then, setting up an interesting new entry point for aggressive traders
Best Stocks Under $5: Great Basin Scientific Inc (GBSN)
3/27/15 Closing Price: $2.73 (+29%)
Great Basin Scientific Inc (NASDAQ:GBSN) is a molecular diagnostics company that manufactures test kits and analyzing devices for the detection of Clostridium difficile, a bacteria that has emerged in recent years and has caused tens of thousands of deaths across hundreds of thousands of patients.
GBSN closed its final public offering on March 6, 2015, at which time Series E preferred stock and Series C warrants were sold. The stock and warrants convert to common stock shares and can be separated after March 27, 2015. That deadline more than likely is what caused GBSN stock to rocket higher today, as there was no other news.
Best Stocks Under $5: Lime Energy Co. (LIME)
3/27/15 Closing Price: $3.56 (+26%)
Lime Energy Co. (NASDAQ:LIME) works with U.S. utility companies and other small- to medium-sized businesses, designing and implementing energy efficiency programs.
On Tuesday, LIME announced it had acquired EnerPath, a software company that works with utility companies on implementing energy efficiency programs. In doing so, LIME expanded their ability to bring these energy-efficiency programs to hundreds of thousands of new businesses, and create much more revenue for itself going forward.
LIME did not provide details on the acquisition, other than to say that it will be accretive to LIME in 2015. LIME stock blasted higher by more than 40% this week before pulling back about a third of its gain today.
Best Stocks Under $5: Cellectar Biosciences Inc (CLRB)
3/27/15 Closing Price: $3.16 (+15%)
Cellectar Biosciences Inc (NASDAQ:CLRB) was formerly known as Novelos Therapeutics, Inc., and is a biopharmaceutical company that develops compounds to identify and treat cancer cells.
“(Cellectar) expects to complete a phase II imaging trial of I-124-CLR1404 in patients with glioblastoma this year.
Also on this year’s agenda are obtaining data from a proof-of-concept trial of its therapeutic agent I-131-CLR1404 in multiple myeloma and initiation of a proof-of-concept trial of its tumor margin illumination agent – CLR1502 – for image guided surgery.”
It was a big week for CLRB stock, but the stock has some overhead resistance at $3.50, so it would be prudent to either wait for a pullback or be a buyer above $3.60 a share.
Best Stocks Under $5: Quantum Fuel Systems Tech Worldwide Inc (QTWW)
3/27/15 Closing Price: $2.80 (+19%)
Quantum Fuel Systems Tech Worldwide Inc (NASDAQ:QTWW) designs and produces natural gas fuel storage systems and vehicle control systems to automotive equipment manufacturers.
On Tuesday, QTWW reported that it received an order for its fully integrated Q-Cab Lite CNG storage system from Dillon Transport, a company with which Quantum has also filled previous orders.
That news propelled the stock higher almost every day this week. However, QTWW stock is quite volatile and lightly traded, and is still sitting below both the 50- and 200-day moving averages. So investors are cautioned not to chase an overextended price on this one.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.
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