5 Stocks Under $5 That Have Tripled in 2011

by: Alex Shadunsky

These five stocks have been on amazing runs in 2011, each up more than 200% since January 1.

Majesco Entertainment (NASDAQ:COOL) is a provider of video games for the mass market, focused on developing and publishing a wide range of casual and family oriented titles on leading console and portable systems. Its diverse product portfolio provides us with multiple opportunities to capitalize on the large and growing installed base of digital entertainment platforms and an increasing number of digital entertainment enthusiasts. Over its 22 year history it has developed strong retail and distribution network relationships that enable us to sell its products to major U.S. retail chains.

The stock is up over 300% this year, boosted by the company’s financial results as its games, especially Zumba Fitness, have been popular. For Q2, the company’s revenues nearly tripled to $32.1 million and the company was able to earn an income of $0.05 a share vs. a loss of ($0.04) a share the previous year. The company said its results were driven by the success of Zumba Fitness. The game continues to sell well, nearly seven months after its launch, and is also off to a great start in Europe. At the end of Q2, the franchise sold over 2 million units worldwide. For FY11, Majesco expects revenue in a range of $110 to $120 million and non-GAAP EPS of $0.30 to $0.35.

Evergreen Energy (EEE) was founded in 1984 as a cleaner coal technology, energy production and environmental solutions company primarily focused on developing and marketing K-Fuel. Today, Evergreen Energy is comprised of two discrete clean energy business units that own two proprietary and potentially transformative technologies: K-Fuel and the GreenCert suite of software and services. K-Fuel, its patented clean coal technology, significantly improves the performance of low-rank sub-bituminous and brown coals and lignite yielding higher efficiency by applying heat and pressure to low-rank coals to reduce moisture. The efficiency increase is variable depending on the type of coal we process. Its GreenCert software suite provides power generators with operational intelligence analytics that identify fuel and operational efficiency opportunities, and address new regulatory pressures regarding environmental emissions.

The stock is up 235% YTD with the bulk of the gains coming in the earlier part of the year after the company was able to execute on a number of strategic objectives including raising additional capital.

Vaughan Foods (OTC:FOOD-OLD) is an integrated manufacturer and distributor of value-added, refrigerated foods. The company distributes fresh-cut produce items along with a full array of value-added refrigerated prepared foods multiple times per week. Vaughan sells to both food service and retail sectors. Its products consist of fresh-cut vegetables, fresh-cut fruits, salad kits, prepared salads, dips, spreads, soups, sauces and side dishes.

The stock is up over 220% YTD. It was boosted after the company sold itself. Vaughan Foods agreed to be acquired for $18.25 million in cash by Reser's Fine Foods. Vaughan's Board of Directors unanimously approved the transaction, which is subject to approval from Vaughan's stockholders and other closing conditions, and is expected to close in the early fall 2011. Under the terms of the agreement, Vaughan will become a subsidiary of Reser's. Immediately following the closing, Vaughan stockholders will receive $1.58 per Vaughan share, which represents a 285% premium to the Vaughan closing stock price on May 13, 2011, the last trading day prior to the execution of the Term Sheet, when agreement was reached regarding the transaction consideration.

TeamStaff (TSTF) serves clients throughout the United States as a full-service provider of logistics and healthcare services support. TeamStaff specializes in providing high quality healthcare, logistics, and technical services to the US Departments of Defense and Veterans` Affairs.

The stock is up 220% year to date, with the company being awarded two contracts that has provided a boost to the stock. On May 17, the company was awarded a single source Blanket Purchase Agreement for the procurement of integrated medical support for the Department of Veterans Affairs` Consolidated Mail Outpatient Pharmacy program. The maximum total value under this award is expected to be approximately $140,000,000 against the Company`s Federal Supply Schedule, Professional and Allied Healthcare Staffing Services GSA VA V797P-4348a and pursuant to site-specific task orders expected to be rendered by the VA.

The second contract was awarded last week by the Navy. The company said that it received an Indefinite-Delivery/Indefinite Quantity (ID/IQ) prime contract award from the Naval Surface Warfare Center, Dahlgren Division. This contract will allow TeamStaff to compete for prime Task Orders issued under SeaPort-e`s Multiple Award Contract vehicle.

Accelr8 Technology (AXK) is a developer of innovative materials and instrumentation for advanced applications in medical instrumentation, basic research, drug discovery, and bio-detection. Accelr8 is developing a rapid analytical platform for infectious pathogens, the BACcel system, based on its innovative surface coatings, assay processing, and detection technologies. In addition, Accelr8 licenses certain of its proprietary technology for use in applications outside of Accelr8’s own products. Although it has been a controversial stock, it is up over 300% YTD.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.