Sub $5 Stocks with Expected Return of over 50% in 2014: Investment Idea of the Day

Published:

Ubika Research has picked 11 stocks trading below $5 across sectors that have registered strong growth during 2013 and are likely to outperform their peers and broader markets by providing a price return of more than 50% in 2014, based on average price targets of analysts polled by Bloomberg. Moreover, these stocks have reported strong growth in sales and EPS during 2013 and are rated a Buy by majority of the analysts covering these stocks. Additionally, we note that the one month average trading volumes of these stocks are significantly higher than their three months daily average trading volumes reflecting a strong market interest. We note that these stocks have one-month average trading volume of over 100,000.

Company Name

Exchange

Ticker

Market Cap
(MN)

Last Price

Price Change
(1-Months)

Average Volume
(1-Months)

Average Volume
(3-Months)

Sales Growth
(2013)

EPS Growth
(2013)

Total Analyst Coverage

Consensus Target Price

Implied Upside

Baxano Surgical Inc

NASDAQ

BAXS

47.6

1.01

-15.8%

695,622

574,874

27.5%

22.7%

6

3.55

251.5%

Discovery Laboratories Inc

NASDAQ

DSCO

162.6

1.92

-17.6%

772,430

679,807

99.0%

13.7%

4

5.50

186.5%

Venaxis Inc

NASDAQ

APPY

46.7

2.10

-34.2%

1,117,026

782,642

127.0%

60.9%

4

5.67

169.8%

Peregrine Pharmaceuticals

NASDAQ

PPHM

298.3

1.69

-25.9%

6,094,578

4,517,920

42.3%

50.0%

4

4.17

146.5%

Pershimco Resources Inc

TSXV

PRO

63.6

0.32

-9.9%

132,162

102,738

263.3%

25.0%

4

0.70

118.7%

TherapeuticsMD Inc

NYSE

TXMD

687.4

4.74

-38.1%

1,766,691

1,297,239

129.8%

42.1%

5

9.67

103.9%

Fibrocell Science Inc

NYSE

FCSC

180.1

4.41

-28.9%

130,836

123,351

30.7%

58.8%

4

8.42

90.9%

BG Medicine Inc

NASDAQ

BGMD

37.7

1.35

2.3%

2,713,718

1,903,981

44.7%

50.8%

4

2.40

77.8%

Guestlogix Inc

TSX

GXI

115.2

1.26

-15.4%

482,677

446,581

18.3%

72.2%

6

2.16

71.3%

Flyht Aerospace Solutions

TSXV

FLY

83.0

0.51

-31.1%

1,886,623

1,282,000

23.7%

25.0%

3

0.85

66.7%

Enterprise Group Inc

TSX

E

144.0

1.04

-1.0%

2,385,912

1,911,708

88.3%

100.0%

3

1.57

50.6%

Source: Bloomberg
Market Cap & Last Price are in their respective currencies

Company Description:

Baxano Surgical Inc (NASDAQ: BAXS)
Baxano Surgical, Inc. designs, develops, and markets medical devices. The company’s product treats degenerative disc disease affecting the lower lumbar region of the spine.

Discovery Laboratories Inc (NASDAQ: DSCO)
Discovery Laboratories, Inc. is a biopharmaceutical company that develops its proprietary surfactant technology as Surfactant Replacement Therapies (SRT) for respiratory diseases. Through this technology, pulmonary surfactants have the potential to be developed into a series of respiratory therapies for patients in the neonatal care unit, critical care unit and other hospital settings.

Venaxis Inc (NASDAQ: APPY)
Venaxis Inc is a biotechnology company. The company’s lead product focuses on a blood-based test designed to help physicians manage patients with abdominal pain and suspected of having acute appendicitis.

Peregrine Pharmaceuticals Inc (NASDAQ: PPHM)
Peregrine Pharmaceuticals, Inc. is a biopharmaceutical company. The company is focused on the research, development and commercialization of novel therapeutics for cancer and a wide range of viral diseases.

Pershimco Resources Inc (TSXV: PRO)
Pershimco Resources Inc. is a mineral exploration and development company. The company owns interests in properties in Quebec, Canada and Northern Mexico.

TherapeuticsMD Inc (NYSE: TXMD)
TherapeuticsMD, Inc. is a specialty pharmaceutical company focused on creating safe and effective branded and generic prescription, and over-the-counter products targeted exclusively for women. The company is developing three advanced hormone replacement products designed to alleviate the symptoms of and reduce the health risks resulting from menopause-related hormone deficiencies.

Fibrocell Science Inc (NYSE: FCSC)
Fibrocell Science, Inc. is a biotechnology company that develops skin and tissue rejuvenation technologies. The company’s process multiplies the patient’s collagen producing cells and returns them to the patient’s skin to treat damage caused by aging, the sun, acne, and burns.

BG Medicine Inc (NASDAQ: BGMD)
BG Medicine, Inc. develops and markets diagnostic tests. The company develops biomarkers that predict a patient’s response to a drug therapy, determine the potential toxicity of therapeutic agents to patients, identify patients who have or are likely to develop a specific disease, predict a patient’s prognosis once a disease has been diagnosed, and monitor a patient’s disease progression.

Guestlogix Inc (TSX: GXI)
Guestlogix Inc. provides on-board retailing technology and solutions to airlines, railways and ferries.

Flyht Aerospace Solutions Ltd (TSXV: FLY)
Flyht Aerospace Solutions Ltd provides safety and efficiency solutions to the aviation industry. The company’s products include an automated flight information reporting system, as well as monitoring, management, and reporting tools.

Enterprise Group Inc (TSX: E)
Enterprise Group, Inc. is a pipeline construction and oilfield maintenance company. The company seeks business in Central and Northern Alberta’s oilfields.

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