5 Best Stocks Under $5 This Week

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Many smaller stocks below $5, although highly volatile, continue to make large and significant gains on improved earnings, and other positive news accounts, and this week’s list is once again a rather diversified group. There are supermarkets, security companies, and of course, a biopharm stock in the mix of the best stocks under $5 for the week.

number 5 dollar bill

Here now are the best stocks of the small guys for this week:

Best Stocks Under $5: QKL Stores Inc (QKLS)

5/15/15 Closing Price: $2.77 (+17.4%)

QKL Stores Inc (NASDAQ:QKLS) was one of the best performing of the inexpensive stocks this week, until a mid-day selloff on Friday. QKL is a large supermarket chain in northeastern China and Inner Mongolia. On Thursday, QKL reported first-quarter financials that included a loss of $3.01 per diluted share. A year ago in the same quarter, QKLS lost $2.01 per share.

Revenue was up 7.7% from $86 million a year ago to $92.6 million in the first quarter this year. Obviously the Street was focusing on that.

It’s been a wild ride in recent months for QKLS, but the bottom line is that since December, shares have risen more than 80%.

Best Stocks Under $5: Viggle Inc (VGGL)

5/15/15 Closing Price: $3 (+26.6%)

Viggle Inc (NASDAQ:VGGL) is a New York-based entertainment and marketing rewards platform that reported fiscal third-quarter earnings on Monday. VGGL lost $1.24 per share, a huge improvement over the loss of $9.32 in the same quarter a year ago. But VGGL missed estimates on revenue and EBITDA.

VGGL’s revenue increased by 52% year-over-year to $5 million, as almost 1 million new users were registered during the quarter. However, analysts were looking for $7 million in revenue.

Investors reacted by sending VGGL stock up more than 50% in one day on huge volume. VGGL stock has nearly tripled since bottoming in March.

However, InvestorPlace.com Assistant Editor John Divine says that VGGL does not deserve the price rise, citing weak fundamentals, and cautions investors not to buy into the hype.

Best Stocks Under $5: LoJack Corporation (LOJN)

5/15/15 Closing Price: $3.75 (+23.8%)

LoJack Corporation (NASDAQ:LOJN ) is a maker of safety and security devices for cars and trucks.

On Wednesday, LoJack disclosed in an 8-K report that it is eliminating or realigning 35 jobs to operate more efficiently and better align its cost structure. Another 17 open positions will remain unfilled, it said.

LOJN reported earnings last week of 9 cents a share on $28.8 million in revenue. LOJN stock moved higher at the end of last week, and the ascension continued on into this week. LOJN stock has climbed 63% in the last seven trading days, so investors are cautioned to wait for a pullback in the stock price before entering long positions.

Best Stocks Under $5: Oncothyreon Inc (USA) (ONTY)

5/15/15 Closing Price: $2.43 (+38.9%)

Oncothyreon Inc (NASDAQ:ONTY) stock stormed higher this week. ONTY is a biopharmaceutical company that is researching and developing treatments for several different forms of cancer.

On Monday, ONTY reported adjusted first-quarter earnings that included a loss of 6 cents per share, which was better than analysts’ estimates for loss of 8 cents.

ONTY will be presenting before the American Society of Clinical Oncology at the end of May, and the company is expected to discuss recent results of its breast cancer treatment, ONT-380.

ONTY stock has doubled in the last week, so again investors should be cautious before placing long positions. A 50% retracement would not be unusual given such a sharp rise in such a short period.

Best Stocks Under $5: USA Technologies, Inc. (USAT)

5/15/15 Closing Price: $3.30 (+21.3%)

USA Technologies, Inc. (NASDAQ:USAT) is a electronic payment and wireless networking company headquartered in Pennsylvania. This week USAT stock blasted higher after reporting third-quarter adjusted earnings of 1 cent a share, topping the Street’s estimate for a loss of 1 cent a share.

Revenue of $15.4 million was also nicely ahead of forecasts for $13.3 million, and USAT said it expects full-year revenue to come in at $53 million.

USAT stock is up about 50% over the past 12 months.

As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/05/5-best-stocks-week-qkls-usat-lojn-onty-vggl/.

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