While Wall Street was edgy with concerns about stalemated talks between Greece and the eurozone, small company stocks below $5 improved their performance this week. Medical sector stocks continue to fare well, but some other sectors got in on the action this week as well.
Best Stocks Under $5: Turtle Beach (HEAR)
6/26/15 Closing Price: $2.47 (+30.7%)
Turtle Beach (HEAR) is an audio technology company based in Valhalla, New York, that makes audo products for various entertainment companies. HEAR stock rose sharply this week after it announced a new partnership with Amplified Resource Group.
HEAR is developing a product called HyperSound Clear that uses Hypersound technology to improve sound clarity and speech quality for hearing-impaired people for television, music and video games.
Under the terms of the partnership, Amplified will add HyperSound Clear to its product line as soon as it is ready to be marketed. Turtle Beach is showcasing the HyperSound Clear product at the Hearing Loss Association of America convention in St. Louis.
Best Stocks Under $5: Internet Patents (PTNT)
6/26/15 Closing Price: $3.09 (+23.9%)
Internet Patents (PTNT) owns and licenses a portfolio of patents for e-commerce, computer and network security, and other technologies. It’s an extremely small company with very few full-time workers.
Nonetheless, this week PTNT bolted up after its subsidiary, Prism Technologies, won a $30 million verdict in a patent infringement lawsuit against wireless phone giant Sprint (S). The jury ruled in Prism’s favor after after a six-day trial in Omaha, Nebraska. The award was based upon a “reasonable royalty” for patent infringements from February 2012 through December 2014.
This is the fifth time that Prism has sued one of the large wireless carriers. One settlement was already reached with AT&T (T), and three other lawsuits are still pending.
Prior to this week, PTNT stock had been slowly drifting lower over the last few years. Since it remains to be seen how it will use the patent infringement money, or whether it will win their other pending lawsuits, investors are urged to be cautious with this stock.
Best Stocks Under $5: Kelso Technologies (KIQ)
6/26/15 Closing Price: $3.15 (+27.3%)
Kelso Technologies (KIQ) is a company that supplies railroad equipment and tank car service equipment for loading and unloading of hazardous materials while being transported across the U.S. and Canada.
This week KIQ stock got a boost after the Association of American Railroads (AAR) approved the design of its new vacuum relief valve for trial tests. The valve is designed to protect rail tank cars from imploding due to the effects of vacuum pressure.
However, testing may take up to two years to complete, so this is not a stock that is likely to benefit right away from the trials.
Best Stocks Under $5: Bioline RX (BLRX)
6/26/15 Closing Price: $2.55 (+20.3%)
Bioline RX (BLRX) is another biopharmaceutical company with a specialty in creating treatments for unmet medical needs. Many of their products target cardiac, viral and blood disorders.
This week BLRX stock gained solid ground after the company announced on Monday that its celiac disease treatment candidate BL-7010 has tested positive for safety concerns, and it will present the results this week at the 16th annual International Celiac Disease Symposium in Prague.
In addition, coverage on BLRX stock was initiated this week by analysts at JPMorgan & Chase (JPM), with an outperform rating and price target of $5.
Best Stocks Under $5: Penn Virginia (PVA)
6/26/15 Closing Price: $5.18 (+29.1%)
Penn Virginia (PVA) is an independent oil and gas company based in Radnor, Pennsylvania. PVA stock made a big move this week after Reuters reported on Thursday that oil giant BP (BP) offered $8 per share in a takeover bid. In fact, shares were halted at one point with the stock up 20%.
The Proactive Investors website reported that PVA rejected the offer, calling it undervalued, and said PVA stock is worth $10 a share. Other oil companies, such as Exxon Mobil (XOM) and Chevron (CVX), are also rumored to be interested in acquiring PVA.
It should be noted that many companies reject initial offers to deflect criticism that they did not try to get full value for their shareholders.
PVA stock was $18 a share in early 2014, but has been declining ever since. Billionaire investor George Soros, who owns 8% of PVA, has been pressuring the company to find a buyer in recent months.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.