U.S. markets put investors through a roller coaster ride this week, as weakness in China’s manufacturing and the yuan, along with further depreciation of crude oil prices, injected a heavy dosage of fear into the markets. Friday finally started to see some stabilization after a strong jobs report and a rebound in the Chinese markets as well … but the broader indices tanked into the close.
Despite the decline in the general indices, the area of sub-$5 stocks had a superb week, with several dozen finishing with gains of double digits or more.
Here are the five best stocks under $5 that trounced the markets this week.
Best Stocks Under $5: American Electric Technologies, Inc. (AETI)
1/8/16 Closing Price: $3.40 (+62% for the week)
American Electric Technologies, Inc. (NASDAQ:AETI) was electric this week after entering into a new credit facility and being selected to provide a delivery solution for a new clean-power-generating facility.
On Tuesday, AETI reported an $8.5 million credit facility with Frost Bank of Texas, which the company says they will use to grow its power distribution business throughout Texas and Mississippi.
The very next day, they also announced their M&I Electric business had received a $7 million contract to provide a power delivery solution for a green-field power generation plant, to deliver energy from natural gas and steam turbines.
AETI stock had a monster day Tuesday, catapulting up from $2 to $4.30 intraday, before settling back at $3.50.
Best Stocks Under $5: eMagin Corporation (EMAN)
1/8/16 Closing Price: $1.97 (+38% for the week)
This week, the Hopewell Junction, New York-based firm signed a non-exclusive licensing agreement with an unnamed company, to sell its immersive virtual reality headset technology. Terms of the agreement include a $1 million upfront fee, plus the mandate to use EMAN’s 2000 x 2000 pixel full color headset displays.
The OLED technology is being trumpeted as a replacement to LCOS or LED systems, with better lighting, smaller size and the ability to prevent the user from becoming nauseous.
Best Stocks Under $5: General Steel Holdings Inc (GSI)
1/8/16 Closing Price: $1.75 (+34% for the week)
General Steel Holdings Inc (NYSE:GSI) was a stock that vaulted up so much on Monday that trading on it was halted. On Tuesday, the Chinese company said they would be selling their China-based steel manufacturing business and complete equity position in Shaanxi Longmen Iron and Steel for $1 million.
GSI needed the sales for capital and to reduce debts after undergoing severe losses from depleted steel prices in recent years.
Investors saw it as a much-needed shot in the arm. General Steel stock was at $7 a share in early 2014, but fell to less than a dollar recently. GSI shares shot up this week from $1.33 to a high of $4.91 before pulling back into the $2.00 range.
Best Stocks Under $5: Inventergy Global Inc (INVT)
1/8/16 Closing Price: $1.75 (+9% for the week)
Inventergy Global Inc (NASDAQ:INVT) had a busy but ultimately profitable week. On Thursday, the investment and licensing firm reported it had amended an earlier agreement with a patent partner that eliminated guaranteed minimum payments plus interest that INVT had owed, in exchange for future licensing and sales agreements between the two companies.
Under the terms of the agreement, Inventergy has now reduced some $17.3 million in debt, and avoiding $1 million in accrued interest and future interest payments. CEO Joe Beyers said the amendment will put his a company in a “stronger financial position” going forward. The partner’s name was not revealed.
At the beginning of December, INVT stock was selling for less than a dollar, but three strong spikes this month have pushed the stock up about three-fold in price. However, shares did hit a wall on Friday along with the rest of the broader market.
Best Stocks Under $5: Heat Biologics Inc (HTBX)
1/8/16 Closing Price: $2.89 (+18% for the week)
Heat Biologics Inc (NASDAQ:HTBX) was a hot stock this week after reporting they will be giving a presentation on immune system therapies against cancer at the Eighth Annual Biotech Showcase next week.
But the bigger news that propelled HTBX stock higher on Tuesday was the Form 8-K they submitted, canceling a previous agreement with Cantor Fitzgerald in which Heat Biologics was going to sell shares directly to them. Cantor had a “buy” rating and an $18 price target on HTBX stock.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.