U.S. indices were fairly flat for the week ending Nov. 6, as angst over company earnings and revenue, plus the October employment data took central stage among investors.
But it was a surprisingly strong week for the sub-$5 stocks. Several dozen finished the week with better than 12% gains, and the large majority of these were in the health care or bio-pharmaceutical sector.
Best Stocks Under $5: Hutchinson Technology Incorporated (NASDAQ:HTCH)
11/06/15 Closing Price: $3.67 (+109% for the week)
Hutchinson Technology Incorporated (NASDAQ:HTCH) is a designer and manufacturer of assemblies for hard disk drives in Southeast Asia and the United States.
This week, HTCH was the biggest winner among small stocks, after announcing it is being acquired by TDK Corp. (FRA:TDK) in an all-cash deal for up to $4 per share. The $4 total includes both a share base price of $3.62, as well as additional money to go towards debt owed by the company.
The companies say the deal will close in early 2016.
Best Stocks Under $5: Genetic Technologies Limited (ADR) (NASDAQ:GENE)
11/06/15 Closing Price: $3.01 (+62% for the week)
Genetic Technologies Limited (ADR) (NASDAQ:GENE) is a molecular diagnostics company that has a risk assessment test for non-hereditary breast cancer called BREVAGenplus. In addition to asking patients questions regarding clinical risk factors, the test involves swabbing the cheek for a DNA sample to analyze specific genetic markers that would put a person at risk to develop breast cancer.
This week, GENE stock rose significantly after Phenogen Sciences, Inc., the U.S. subsidiary of GENE responded to changes in the American Cancer Society’s breast cancer screening guidelines, pointing out that raising the age for first mammogram makes the BREVAGenplus testing even more important than before.
Investors agreed with that point of view and sent GENE stock flying up the charts.
Best Stocks Under $5: Lantheus Holdings Inc (NASDAQ:LNTH)
11/06/15 Closing Price: $4.42 (+48% for the week)
Lantheus Holdings Inc (NASDAQ:LNTH) soared this week after reporting third-quarter earnings of 18 cents per share, well above the Zacks Consensus Estimate of 4 cents. Revenue of $74.1 million was slightly ahead of the Zacks forecast for $73.3 million.
Lantheus is another diagnostic imaging company. LNTH stock has had a tough time in recent months, falling from $8.50 per share to a recent low below $3. But the earnings report, which came out Wednesday, has spurred a huge comeback over the past week.
LNTH stock also got a boost this week by announcing the company will present new data on its Phase 3 study of flurpiridaz F 18 before the American Heart Association at a conference in Orlando, Florida between Nov. 7 and Nov. 11. Flurpiridaz F 18 is said to be a new type of improved radiopharmaceutical used in PET scans.
Best Stocks Under $5: BioScript Inc (NASDAQ:BIOS)
11/06/15 Closing Price: $2.75 (+40% for the week)
BioScript Inc (NASDAQ:BIOS) is an infusion and home care services company. On Wednesday, BioScript reported a third-quarter loss of 27 cents per share, or 18 cents on an adjusted basis. Wall Street analysts were expecting a loss of only 11 cents.
However, the good news, and what sent BIOS stock higher was revenue of $247.2 million in the quarter — well ahead of the $239.5 million the Street was expecting.
BIOS stock has lost about 55% of its value over the past year. Hopefully, this earnings report shows that the company is starting to turn around.
Best Stocks Under $5: Eyegate Pharmaceuticals Inc (NASDAQ:EYEG)
11/06/15 Closing Price: $3.30 (+25% for the week)
Eyegate Pharmaceuticals Inc (NASDAQ:EYEG) is another biopharmaceutical company that specializes in developing treatments for diseases of the eyes.
This week, EYEG got a big lift after announcing interim data from iontophoretic delivery of its treatment for Macular Edema, called EGP-437 ophthalmic solution.
The data showed the efficacy of the EGP-437 in being able to be non-invasively delivered to the back of the eye, which has elicited a positive response in some of the 19 macular edema patients treated.
Investors take note: The EGP-437 is the first and only product that EyeGate currently has in clinical trials, so EYEG stock could be quite volatile, depending on the results of the treatment going forward. EYEG stock was selling for over $6 per share just a few months ago. Although it was up big for the week, the stock was also down nearly 20% on Friday.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.
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