U.S markets had a rough week, as concerns over a global slowdown, a few tepid U.S. economic reports, falling oil and commodity prices, and an ongoing concern about the Federal Reserve and the future of interest rates all converged to keep markets under water for most of the week. But Friday’s Dow Jones Industrial Average gains pared some of the earlier losses.
Despite the rough patches, it was a fairly good week for the sub-$5 group, particularly the low-priced biopharmaceutical sector. Several biopharma stocks comprise the five best list this week, even after Hillary Clinton made headlines by saying she will put the kibosh on high drug costs if elected President.
Here now, are the five best stocks below $5 this week, and why they were jumping up in price.
Best Stocks Under $5: ATA Inc. (ADR) (ATAI)
9/25/15 Closing Price: $2.50 (+6% for the week)
ATA Inc. (ADR) (NASDAQ:ATAI) is a Chinese computer-based testing service that is used by a number of different industries for licensure and certification tests.
This week, ATAI submitted an application to be able to list its stock on the New Third Board, which is an over-the-counter stock exchange in China. ATAI feels that listing on this exchange will help it raise capital from capital markets to be able to expand and grow in the future.
Also this week, ATAI announced its board of directors has approved a share repurchase plan to begin today. ATAI can repurchase up to $3 million of issued and outstanding American Depositary Shares from Friday through March 31, 2016.
However, ATAI stock has not performed well lately, falling from $6 per share in June to its current price.
Best Stocks Under $5: Jaguar Animal Health Inc (JAGX)
9/25/15 Closing Price: $3.70 (+8%)
Jaguar Animal Health Inc (NASDAQ:JAGX) is a San Francisco-based company that develops and sells treatments for gastrointestinal problems in animals. While that doesn’t sound very exciting, this week JAGX stock was a big winner for shareholders.
Jaguar announced it has begun a study to determine the safety, tolerability and efficacy of a new product called Neonorm Foal Plus, for use in horse foals with secretory or watery diarrhea. The treatment includes probiotics and an anti-secretory formula.
JAGX stock has been cut in half since June. However, this week’s announcement should give the stock some new life for awhile.
Best Stocks Under $5: Biocept Inc (BIOC)
9/25/15 Closing Price: $2.68 (+16%)
Last week was not a very good week for biotech stocks. So it’s interesting that Biocept Inc (NASDAQ:BIOC), a molecular diagnostic firm working on developing assays for liquid biopsies, rallied more this week than the previous one, even though the only recent news on the stock was from the previous week.
On Sept. 14, BIOC announced it has formed affiliations with two preferred provider organizations (PPO’s), Stratose Inc and Galaxy Health Network, who will now be able to access BIOC’s non-invasive liquid biopsy testing.
This move gives BIOC an additional 12 million members who have coverage for these tests through their healthcare plans, for a total of 31 million members.
Best Stocks Under $5: Aware, Inc. (AWRE)
9/25/15 Closing Price: $3.36 (+15%)
Aware, Inc. (NASDAQ:AWRE) stock was a strong stock this week. The provider of biometrics software products and solutions reported that Certisign, the biggest supplier of digital certificates in Brazil, has licensed several of Aware’s products in building a cloud-based biometric services platform.
Potential customers for Aware’s biometric identity proofing and authentication services include banks, stores, health care providers, and government agencies.
AWRE stock has been a laggard this year, but has now climbed back above its 50-day moving average.
Best Stocks Under $5: CVSL Inc (CVSL)
9/25/15 Closing Price: $2.39 (+10%)
CVSL Inc (NYSE:CVSL) is a multi-faceted home furnishings company that direct sells to customers. This week, CVSL reported earnings that weren’t great, but were certainly better than the year-ago figures.
For the quarter ending June 30, 2015, CVSL reported a loss of 5 cents per share — two cents better than a year ago. Revenue of $32.74 million was well ahead of 2014’s revenue of $19.37 million. CVSL stock rallied this week on that report.
CVSL stock rallied from $1.00 per share in June to $2.90 per share this week, before pulling back to its current price. The stock continues to be quite volatile.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
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