While most of Wall Street focuses on large and mega cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the low-to-mid hundreds, all the way up to over $1,000 per share. At those steep prices, it’s pretty hard to get any decent share count leverage.
Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only make some good money but to get a higher share count. That can really help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.
We screened our 24/7 Wall St. research database and found five stocks trading under the $5 level that could provide investors with some incredible upside potential. While definitely suited for very aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.
This tiny micro-cap could very well be a solid takeover candidate. Axovant Sciences Ltd. (NASDAQ: AXGT) is a clinical-stage biopharmaceutical company that engages in the acquisition, development and commercialization of novel therapeutics in the fields of neurology and psychiatry. Its therapeutic focuses are Parkinson’s Disease and Lewy body dementia. It operates through the following geographical segments: United States, Switzerland, Bermuda and Other.
The company’s current pipeline of gene therapy candidates targets GM1 gangliosidosis, GM2 gangliosidosis (including Tay-Sachs disease and Sandhoff disease), Parkinson’s disease, oculopharyngeal muscular dystrophy, amyotrophic lateral sclerosis (ALS) and frontotemporal dementia.
Axovant is focused on accelerating product candidates into and through clinical trials with a team of experts in gene therapy development and through external partnerships with leading gene therapy organizations.
Jefferies has a Buy rating and a $3 price target, but the Wall Street consensus target is much higher at $5.17. The shares were trading on Friday’s close at $1.39 apiece.
This stock got hit back in February and could be offering a solid entry point. Inovio Pharmaceuticals Inc. (NASDAQ: INO) is a late-stage biotechnology company that engages in the discovery, development and commercialization of DNA-based immunotherapies and vaccines.
The company focuses on the development of SynCon immunotherapy, which helps break the immune system’s tolerance of cancerous cells, and Cellectra, which facilitates optimized cellular uptake of the SynCon immunotherapies.
Inovio announced last week that its investigational Ebola vaccine was able to elicit a strong antibody response in the majority of subjects in a Phase 1 trial. The vaccine, dubbed INO-4201, was given to 70 subjects either through a skin injection or an injection into the muscle.
Stifel’s Buy rating comes with a $7 price target, which compares with a consensus price target of $10.57. The shares closed at $3.62 on Friday.