Despite an erratic week in the general markets that saw the major indices struggling to overcome the threat of rising bond yields, mixed economic data and a Greek drama that just won’t go away, a good number of low-priced stocks held their ground pretty well.
This week’s best stocks under $5 is a somewhat diversified group that performed well after a variety of company announcements. The bio-pharmaceuticals continue to have weeks of major advances whenever major announcements are made, or even just putting out press releases about upcoming investment conferences.
Here now are the best of the little fellas, and why they are the best of the under $5 bunch for this week:
Best Stocks Under $5: Alliance One International (AOI)
6/12/15 Closing Price: $2.37 (+54.5%)
Alliance One International (AOI) is a Morrisville, North Carolina-based tobacco company that began the week on a good note, reporting adjusted fourth-quarter earnings of 12 cents a share on net income of $3.8 million. A year ago the company was not profitable, so this quarter impressed investors quite a bit.
However, for the year, AOI was still reporting a loss of $15.4 million, or 17 cents a share, on revenue of $2.1 billion. The stock is also quite extended, so investors should probably wait for a retracement of at least one-third to one-half of this week’s gains before entering any long positions.
Best Stocks Under $5: Rock Creek Pharmaceuticals (RCPI)
6/12/15 Closing Price: $2.82 (+41%)
Rock Creek Pharmaceuticals (RCPI) is a Sarasota, Florida-based pharmaceutical company that is focusing on developing treatments for inflammatory, neurological and behavioral disorders.
This week RCPI announced the completion of Phase I of its clinical trials for Anatabloc, an anti-inflammatory supplement molecular whose active ingredient is antabine citrate, which is found in various vegetables. The supplement had no adverse events or safety concerns reported on human subjects.
The company has previously had difficulty getting Food and Drug Administration approval for an anatabine citrate supplement. The testing is being conducted is in the United Kingdom.
Rock Creek expects to begin Part 2 of its study in the third quarter.
Best Stocks Under $5: Origin Agritech (SEED)
6/12/15 Closing Price: $2.72 (+38%)
Origin Agritech (SEED) is a agricultural biotech company founded in 1997 and based in Beijing. On Monday, the company announced that Dr. Gengchen Han, the chairman and CEO, will speak to a group of investors on June 16 in New York about future capabilities in corn seed development, pest resistance and corn breeding.
These days it seems like all a company has to do is announce they will present at a conference and the stock blasts higher. SEED was no exception this week.
Best Stocks Under $5: Aoxing Pharmaceutical (AXN)
6/12/15 Closing Price: $2.20 (+16.4%)
Aoxing Pharmaceutical (AXN) is a U.S. incorporated, but China-based pharmaceutical company that develops, manufactures and distributes narcotic, pain-management and addiction treatment prescriptions.
This week AXN announced that China’s Food and Drug Administration (CFDA) has given AXN subsidiary licenses to be the sole producer and distributor in China for Tilidine hydrochloride tablets for both a 50 mg and 100 mg tablet. Tilidine hydrochloride is a strong pain pill with quick acting analgesic effects that is used in serious injury and other emergency cases.
Chairman and CEO Zhenjiang Yue noted, “This approval is the culmination of 12 years of research, development and regulatory activities. Our entry into the market will be a significant breakthrough in China’s fight to treat pain.”
Best Stocks Under $5: DS Healthcare Group (DSKX)
6/12/15 Closing Price: $3.82 (+30.4%)
DS Healthcare Group (DSKX) is a manufacturer of over-the-counter tablets and other products for thinning hair and improved hair health. In Mexico, many of its products are not only recommended, but prescribed by physicians to their patients.
Their main product is called Integra, a tablet that contains Astressin-B, a complex peptide that reduces the effects of Corticotropin-releasing hormone (CRH) that is a major part of the stress response in humans. CRH has been found to have a direct impact on hair health.
DSKX’s Revita, a therapeutic shampoo product, got a major endorsement this week from Belinda Peregrin, a well-known 25-year-old Mexican singer-songwriter and actress, who posted an message to 3.6 million of her online followers, saying, “I love how much my hair grew with Revita.”
This week, DSK stock investors loved the publicity it generated as well.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
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