It was a miserable week for U.S. markets, as indices were weighed down by sharp declines in crude oil prices back to 2009 levels, mixed economic data and uncertainty over what will come out of next week’s Fed meeting.
To wit, the S&P 500 was down 3.8% across the five days, with substantial declines bookending the week.
Nonetheless, some small stocks continued to do well despite the volatility. About a dozen sub-$5 stocks finished with double-digit gains this week; we’ll look at a few of the more outstanding performances:
Best Stocks Under $5: BioPharmX Corp (BPMX)
12/11/15 Closing Price: $1.82 (+56% for the week)
BioPharmX Corp (NYSE:BPMX) was the king of the sub-$5 stock group this week. The company announced a breakthrough in research on its minocycline treatment, called BPX-01, will be presented at the annual gathering of the American Society of Cell Biology on Monday.
BPX-01 is a treatment for acne that delivers an antibiotic to the precise layer of skin where the acne forms and develops. BPX-01 has been found to be effective without side effects that have been noted with other treatments in the past.
The potential market for this treatment is huge, with 40 million to 50 million Americans grappling with acne.
Today’s action wiped out months of a downtrend for BPMX stock, and brought the stock back up to its 200-day moving average.
Best Stocks Under $5: LightPath Technologies, Inc. (LPTH)
12/11/15 Closing Price: $2.32 (+29% for the week)
LightPath Technologies, Inc. (NASDAQ:LPTH) was higher this week after delivering a Street-beating earnings report. Profits of 6 cents per share beat estimates for 1 cent, and that came on $4.2 million in revenues, which beat The Street’s mark for $3.7 million.
Gross margins grew from 37.55% a year ago to 53.73% in this quarter.
Last week, LPTH — which provides optics and phototonic solutions for various industries — gave a presentation at the eighth annual LD Micro Main Event Conference in Los Angeles, CA.
LPTH stock had been trading sideways below $2 a share for several months until breaking out this week. Investors may want to wait for a pullback before entering a position, as the stock is pretty well-extended after running up for five consecutive days.
Best Stocks Under $5: Fusion Telecommunications Int’l, Inc. (FSNN)
12/11/15 Closing Price: $2.94 (+35% for the week)
Fusion Telecommunications Int’l, Inc. (NASDAQ:FSNN) is a cloud communications and computing firm that is based in New York. This week FSNN made big news by announcing the acquisition of Fidelity Voice and Data, a company that provides cloud connectivity, security and storage services to some 2000 businesses.
The news sent the stock soaring all the way to $5.40 before a pullback to $3.
Terms of the deal which closed this week were a payment of $30 million, of which $28.5 million was cash and the remainder in FSNN common stock. The deal is expected to add $18 million per year to Fusion’s bottom line.
Best Stocks Under $5: Sunedison Inc (SUNE)
12/11/15 Closing Price: $4.15 (+13% for the week)
Sunedison Inc (NYSE:SUNE) shone brightly this week after the renewable energy developer was able to change the terms of its acquisition of Vivint Solar Inc (NYSE:VSLR), SUNE will now pay $15.25 per share rather than $16.50 — it will pay 75 cents more per share in its stock, but will pay $2 less in cash. Blackstone Group LP (NYSE:BX) will probably become a major holder of the company upon completion of the deal.
In addition, SUNE announced today that it sold some wind-powered assets to Terra Nova Renewable Partners for the sum of $209 million.
Best Stocks Under $5: Recon Technology, Ltd. (RCON)
12/11/15 Closing Price: $1.83 (+16% for the week)
Independent oilfield services provider Recon Technology, Ltd. (NASDAQ:RCON) had a busy and profitable week. The China based company said they will acquire 100% of the equity in Qinghai Huayou Downhole Technology, a company that performs similar services as RCON.
RCON is making the purchase for $6 million, which includes $2.4 million in cash, with the rest in shares. The deal is contingent upon shareholder approval, which is expected to come in February 2016.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.
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