U.S. market indices were relatively flat this week, but 9% higher for the month of October.
It was a week filled with scrutiny for earnings reports and comments from the Fed. Many of the companies beat the analysts’ expectations on earnings, but a larger-than-usual amount missed expectations on revenue, causing investors to fear a slowdown may be ahead.
The Fed held steady on rates this month, but gave investors a bit of stomach churning in their carefully worded hint that December could be different.
There were fewer-than-normal sub-$5 stocks making large gains, but here are the ones that shone brightly this week:
Best Stocks Under $5: Jaguar Animal Health Inc (JAGX)
10/30/15 Closing Price: $3.89 (+94.5% for the week)
Jaguar Animal Health Inc (NASDAQ:JAGX) is a small stock that was first mentioned in this space about a month ago following a big rise in stock price. The company makes gastrointestinal products for both pets and commercial production animals.
JAGX was the leading small stock this week, surging much higher after announcing a study at Cornell University that demonstrated that JAGX’s Neonorm Calf product was effective in optimizing intestinal microbiome profiles in pre-weaned dairy calves. This is vital to the maintenance of good health in calves’ digestive track.
Also boosting JAGX stock this week was their announcement that the U.S. Patent and Trademark Office (USPTO) has given them Notices of Allowance for two patent applications that are now pending. The patents are for Jaguar developed treatments for obesity and insulin resistant diabetes in dogs and cats.
As I mentioned a month ago, this is not the most exciting stock story in the world, but after a pullback in recent weeks, JAGX stock has now jumped above its 50-day moving average at $3.09, broken through previous resistance at $4, and looks to go a lot higher.
Best Stocks Under $5: Fusion Telecommunications Int’l, Inc. (FSNN)
10/30/15 Closing Price: $2.67 (+23% for the week)
Fusion Telecommunications Int’l, Inc. (NASDAQ:FSNN) is a New York-based company that offers Cloud services to companies.
FSNN stock had a big week after announcing that a large wine and spirits retailer in the Mid-Atlantic region has selected the company to link all 15 locations it operates to the Fusion Cloud system. That contract is for three years and will be about $360,000 in total revenue.
On Thursday, FSNN stock hit resistance at its 200-day moving average at $3.07. A pullback to at least $2.60 could be expected from here.
Best Stocks Under $5: Immunomedics, Inc. (IMMU)
10/30/15 Closing Price: $2.99 (+26% for the week)
Immunomedics, Inc. (NASDAQ:IMMU) is another biopharmaceutical company, one that is developing monoclonal antibody-based products to treat cancer and autoimmune diseases.
There was not a lot of news for IMMU this week, other than announcing they will host a conference call and audio webcast on Nov. 5, at 10 a.m., to discuss first quarter fiscal year 2016 financial results. The company will report its earnings after the closing bell on Nov. 4.
However, what really moved the stock this week was a report from optionMONSTER.com that someone had purchased about 4,400 new January $2.50 calls at $0.45 each on Oct. 20. This much bullish action led to speculation that the company’s next earnings report may be better than expected.
However, it can also be noted that in purchasing options on a small -riced stock, when word gets out, the subsequent increase in price alone can make it a profitable activity for the call buyer. As this is being written, the bid/ask on the January calls is currently .55/.95, with a midpoint of .75.
Best Stocks Under $5: Nymox Pharmaceutical Corporation (NYMX)
10/30/15 Closing Price: $3.33 (+11% for the week)
Nymox Pharmaceutical Corporation (NASDAQ:NYMX) is another small stock that has been highlighted in this space before. The New Jersey-based biopharma company had a big week after reporting statistical significance in an 18-month follow-up trial of fexapotide triflutate, a drug used for low-grade, localized prostate cancer.
One of the major side effects from other types of treatment for prostate cancer is the loss of sexual functioning after treatment ends. However, in nine studies so far, the treatments performed by Nymox have shown no adverse effects on sexual functioning or testosterone levels.
The company says it will report long-term results again in the fourth quarter.
Best Stocks Under $5: RiT Technologies Ltd. (RITT)
10/30/15 Closing Price: $1.95 (+11% for the week)
RiT Technologies Ltd. (NASDAQ:RITT) is an Israeli company based in Tel Aviv that provides products to enhance security and network utilization in data centers and communication rooms.
This week, RITT soared after reporting second-quarter earnings, as well as six-month earnings. Earnings per share rose from a loss of 20 cents a year ago to a gain of 1 cent a share.
Company revenue increased 172% to $4.5 million, a huge increase over the $1.7 million in the same quarter, 2014. In the six-month period, revenue was $7.9 million, a 115% increase from the $3.7 million achieved in the same six-month period of 2014.
Clearly, the company is moving forward in its fundamentals.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
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