U.S. stock markets were a bit more stable this week, as reduced volatility in China and Europe kept U.S. markets on keel. Investors seemed to digest and analyze every bit of economic news, though, to determine what kind of effect it would have on the Federal Reserve and its potential decision next week to raise interest rates.
Low-priced stocks put in a good showing this week, and the biotech sector was once again the predominant force among sub-$5 stocks hitting the roof.
Here’s a look at this week’s five best stocks under $5:
Best Stocks Under $5: Envivio Inc (ENVI)
9/11/15 Closing Price: $4.07 (+120% for the week)
Telecommunications solutions company Envivio Inc (NASDAQ:ENVI) was the leading low-priced stock this week after it agreed to be bought out by Ericsson (ADR) (NASDAQ:ERIC) for roughly $125 million.
The deal has Ericsson paying $4.10 for every share of ENVI stock, and it’s expected to close some time during the final quarter of 2015. ENVI produces software that processes and distributes Internet video, and is expected to add to Ericsson’s pre-existing television and media business.
ENVI stock began the week around $2 per share, but more than doubled on Thursday.
Best Stocks Under $5: Vivus, Inc. (VVUS)
9/11/15 Closing Price: $1.77 (+54%)
Vivus, Inc. (NASDAQ:VVUS) is a biopharmaceutical company that, despite having Food and Drug Administration-approved drugs, has fallen on hard times since reaching prices near $30 in 2012, plunging 94% since then.
Well, perhaps better times are ahead.
This week, VVUS stock surged higher amid news that IEH Biopharma LLC, a subsidiary of Icahn Enterprises LP (NASDAQ:IEP), announced a tender offer for any and all outstanding 4.5% convertible senior notes set to expire in 2020. Each note converts to 67.3 shares of VVUS stock.
Activist investor Carl Icahn has announced he is willing to pay $680 for each company note, with the notes converting to to 67.3 shares of VVUS stock each. If Icahn converts all the notes, he would become the largest shareholder of Vivus at approximately 16.75 million shares.
Best Stocks Under $5: Medovex Corp. (MDVX)
9/11/15 Closing Price: $3.30 (+54%)
Medovex Corp. (NASDAQ:MDVX), a medical technology manufacturer based in Atlanta, announced this week that it would participate in the North American Spine Society (NASS) annual meeting, to take place in Chicago in mid-October.
In this annual gathering, spinal care professionals from all over the world come together to share the latest in innovations, information, practices, etc. This year, Medovex will host a surgical innovation lab to demonstrate its DenerveX System Technology, and to host various business meetings that they hope will prove lucrative for the company.
DenerveX is a patented system that is designed to eliminate pain associated with the facet joints of the lower back. These are the spinal joints that enable people to bend, twist and move their body flexibly. In persons with facet joint problems, inflammation or a destruction of cartilage can cause pain, which radiates into several other areas of the body.
MDVX stock came public earlier this year, pricing at $5.75 per share but recently touched lows around $2. However, it has been climbing aggressively but steadily back this week.
Best Stocks Under $5: One Group Hospitality Inc (STKS)
9/11/15 Closing Price: $4.29 (+36%)
One Group Hospitality Inc (NASDAQ:STKS) is a hospitality company that develops, operates, and provides food and beverage services for hotels, casinos, and restaurants throughout the U.S. and England.
STKS stock has been a market laggard over the last few years, but this week STKS surged higher on news that its subsidiary has finalized a management agreement to open its first Canadian location in Toronto in 2016. The restaurant will be located in Bloor-Yorkville, which is a high-priced area of luxury shopping, restaurants and hotels.
Investors should be cautious, as STKS stock is quite volatile, and the volume this week while rising in price was still very light.
Best Stocks Under $5: VolitionRX Ltd (VNRX)
9/11/15 Closing Price: $4.56 (+20%)
VolitionRX Ltd (NYSEMKT:VNRX) is a clinical-stage life sciences firm which develops inexpensive blood tests to detect and diagnose cancer and other serious diseases. The Singapore-based company was awarded its first U.S. patent this week for “Detection of Histone Modification in Cell-Free Nucleosomes.”
The patent, which is already in Europe, will expire in 2029 and is to detect epigenetic changes that affect chromosome structures seen in cancer patients by examining histone proteins in just a single drop of blood.
Also, in Belgium this week, the company reported results of a 4,800-subject retrospective colorectal cancer trial in various hospital centers throughout Denmark. Using their non-invasive NuQ blood testing device, they were able to detect 81% of colorectal cancers, and 63% of pre-cancerous polyps and high-risk adenomas.
VNRX stock has more than doubled within the past year.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
