It was a dismal week on Wall Street, with the major indices falling heavily along with crude oil prices. Even previously immune companies like Netflix, Inc. (NASDAQ:NFLX), Home Depot Inc (NYSE:HD) and Facebook Inc (NASDAQ:FB) were taking it on the chin.
It was also tough to find sub-$5 stocks that held up this week, especially with biotech stocks getting clobbered. However, there were still some issues this week in the small-stock world that ignored the free falling prices and bucked the trend with strong performances of their own.
Here then, are the best five stocks under $5 this week and their tales of glory:
Best Stocks Under $5: NVirnetX Holding Corporation (VHC)
1/15/16 Closing Price: $3.95 (+83% for the week)
NVirnetX Holding Corporation (NYSEMKT:VHC) is a software and technology solutions company that is based in Zephyr Cove, Nevada. This week, VHC was one of the biggest winners on all of Wall Street after announcing an update in their 5-year-old U.S. District Court patent infrigment lawsuit related to virtual private networks versus Apple Inc. (NASDAQ:AAPL).
The court ruled on all pending motions filed by both companies, so the case may now proceed to a jury trial beginning Jan. 25. In 2012, VHC was awarded $386.2 million from Apple, but that award was thrown out by the U.S. Court of Appeals in 2014, saying the verdict was influenced by tainted jury instructions.
Perhaps investors feel that the third time will be the charm for VHC.
Best Stocks Under $5: Code Rebel Corp (CDRB)
1/15/16 Closing Price: $3.67 (+51% for the week)
Code Rebel Corp (NASDAQ:CDRB) is a 9-year-old application software company. Code Rebel had a monster week, after announcing they have a non-binding letter of intent that will allow them to merge with Englewood, CO based Aegis Identity Software, a private company.
Under the terms of the agreement, Code Rebel will become the surviving company, with Aegis holding 60% of the CDRB shares and Code Rebel making an unsecured loan of $500,000. If the merger goes through, the loan is forgiven, but if the loan does not go through, then it is due as of June 30, 2016.
Best Stocks Under $5: Jaguar Animal Health Inc (JAGX)
1/15/16 Closing Price: $3.04 (+18% for the week)
Jaguar Animal Health Inc (NASDAQ:JAGX) is a San Francisco, California, company that has been featured previously in this space. Jaguar makes gastrointestinal medicinal products for domestic pets and farm animals, and is owned by Napo Pharmaceuticals, Inc.
JAGX made news last Friday, when it asked the Securities Exchange Commission (SEC) for permission to create a secondary offering for a sum of $12.65 million.
But JAGX stock did not really move until this week, when it had a real roller coaster ride. Between Monday and Wednesday, JAGX stock gained 67%, before giving back a good chunk of that gain on the last two trading days of the week.
The company priced an IPO last May at $7, and has traded below that price ever since. But it seems to be a company without a lot of competition, and is very involved in research and development into a specific medical niche of gastrointestinal health and disease in livestock and household pets. The secondary offering will be used for further R&D.
Best Stocks Under $5: Skyline Corporation (SKY)
1/15/16 Closing Price: $4.66 (+24% for the week)
Skyline Corporation (NYSEMKT:SKY) makes recreational vehicles and manufactured homes. This week SKY had an excellent performance after reported second quarter 2016 earnings of 20 cents a share, far better than the loss of 41 cents a share in the same quarter of 2015.
In addition, according to Insider Monkey, SKY saw some insider buying this past week, as CEO Richard Florea purchased 10,000 shares at $2.99 a share and Director John C. Firth bought 3000 shares at $3.00 each. Net sales were also up 18% year-over-year.
Best Stocks Under $5: Synutra International, Inc. (SYUT)
1/15/16 Closing Price: $4.87 (+23% for the week)
Synutra International, Inc. (NASDAQ:SYUT) is a Chinese based company that produces and sells nutritional products. Synutra flew higher this week after announcing they have a non-binding proposal to go private.
The proposal is from a group consisting of its CEO, Liang Zhang, along with a group of buyers. who will acquire all outstanding shares for $5.91.
SYUT’s board of directors will meet this week to consider the proposal and make a decision. Investors are acting like the proposal has already been approved, however it should be noted the board is saying that is not the case.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.