This week’s 5 Best Stocks Under $5 unsurprisingly features a couple of healthcare small-caps that zoomed up this week, though we also got some niche businesses — including a forex trading service.
Here’s a look at the best low-priced stocks that really turned it on this week.
Best Stocks Under $5: MELA Sciences Inc (MELA)
3/13/15 Closing Price: $3.04 (+64%)
MELA Sciences Inc (NASDAQ:MELA) is a medical device company with a non-invasive test called MelaFind, for the detection of melanoma, without having to biopsy lesions unless a melanoma is suspected from the test.
This week, MELA stock was up significantly, and on strong volume, after HC Wainright reaffirmed its Buy rating on it. MELA stock had big up days on both Monday and Wednesday. Some of that may have been due to short covering, as there was a substantial amount of short interest on MELA stock in recent weeks.
Best Stocks Under $5: Sterling Construction Company, Inc. (STRL)
3/13/15 Closing Price: $3 (+15%)
Sterling Construction Company, Inc. (NASDAQ:STRL) is a transportation and water systems construction company with infrastructure projects throughout the western and southwestern regions of the U.S. Many of their projects include major highways, light railway, and bridges.
STRL stock was battered from $9 to $2.50 between November and March, due to an earnings report that failed to match street estimates, along with a downgrade from D.A. Davidson & Co. But this week Sterling named Paul J. Varello, who was elected as acting CEO in February, as its new permanent CEO. Varello, who had previously been Chairman of the board, resigned that position, and the board elected Milton L. Scott to that post. Investors were happy with these changes.
Mr. Varello, in a gesture to stockholders, is taking a salary of only one dollar per year, but will receive 600,000 shares of restricted common stock and options as compensation.
Best Stocks Under $5: Synthetic Biologics Inc (SYN)
3/13/15 Closing Price: $2.89 (+16%)
Synthetic Biologics Inc (NYSEMKT:SYN) is a biotech company that develops drugs to combat specific pathogens that cause problematic infections and diseases.
This week it was no sin for investors to like SYN stock, as it bolted up amid news that they will soon be showcasing their recent research on SYN-004, a drug which helps the gastrointestinal tract maintain its natural microbiome to prevent C. difficile infection, a potentially deadly side effect of intravenous antibiotic therapy.
The presentation will be held during Digestive Disease Week 2015 from May 16-19, in Washington D.C.
SYN stock has now doubled since the end of January.
Best Stocks Under $5: FXCM Inc (FXCM)
3/13/15 Closing Price: $2.58 (+18%)
FXCM Inc. (NASDAQ:FXCM) is a provider of online foreign exchange trading and services. FXCM stock is up big this week after posting adjusted fourth-quarter earnings of 27 cents per share that beat the analysts’ estimates by 10 cents a share.
In January, FXCM stock collapsed after it suffered huge losses when the Swiss National Bank removed the cap on the French franc’s value. FXCM received a bailout of $300 million from Leucadia National Corp. (NYSE:LUK), which owns investment bank Jefferies Group LLC. FXCM also announced this week that they have repaid $12 million of that bailout thus far.
Best Stocks Under $5: Chanticleer Holdings, Inc. (HOTR)
3/13/15 Closing Price: $2.28 (+13%)
Chanticleer Holdings, Inc. (NASDAQ:(HOTR) is not a name that many investors are familiar with, but they are an investment consortium that bought and owns the rights to expand a restaurant internationally that goes by the very well known name of Hooters.
This week, HOTR stock is up nicely after announcing their intention to acquire BGR: The Burger Joint, a fast growing hamburger restaurant in the areas from Maryland and south into Virginia. The closing of this acquisition would add 20 more restaurants to HOTR’s portfolio, along with another 80 franchise locations that are now under development.
HOTR is financing the transaction by a special oversubscribed sale of common stock to current shareholders at $2.00 a share, about 15% below the current price.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.