5 High-Growth Stocks Under $5 With Bullish Short Trends

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 |  Includes: AONEQ, GLUU, MCHX, MERU, MOBI
by: Kapitall

Do you prefer low-priced stocks? If so, it's important to keep in mind that some stocks are priced low for a reason, while others are simply trading at low prices. For ideas on how to weed out potential value traps, we ran a screen.

We screened for stocks trading under $5 for those that are high growth, with 5-year projected EPS growth above 20%. We then screened for those with bullish short trends, with significant decreases in shares shorted month-over-month.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks are value traps, or simply low-priced stocks? Use this list as a starting point for your own analysis.

1. A123 Systems, Inc. (AONE): Engages in the design, development, manufacture, and sale of rechargeable lithium-ion batteries and battery systems primarily in the United States. 5-year projected EPS growth rate at 22.50%. Price at $1.85. Shares shorted have decreased from 21.37M to 20.00M over the last month, a decrease which represents about 1.78% of the company's float of 76.99M shares.

2. Glu Mobile, Inc. (NASDAQ:GLUU): Engages in the design, marketing, and sale of casual and traditional mobile games worldwide. 5-year projected EPS growth rate at 33.75%. Price at $3.85. Shares shorted have decreased from 7.60M to 6.68M over the last month, a decrease which represents about 2.05% of the company's float of 44.88M shares.

3. Marchex, Inc. (NASDAQ:MCHX): Operates as a call advertising and small business marketing company. 5-year projected EPS growth rate at 23.25%. Price at $4.42. Shares shorted have decreased from 2.91M to 2.44M over the last month, a decrease which represents about 2.62% of the company's float of 17.92M shares.

4. Meru Networks, Inc. (NASDAQ:MERU): Engages in the development and marketing of a virtualized wireless LAN solution. 5-year projected EPS growth rate at 28.33%. Price at $4.85. Shares shorted have decreased from 2.74M to 2.19M over the last month, a decrease which represents about 5.91% of the company's float of 9.30M shares.

5. Sky-mobi Limited (NASDAQ:MOBI): Engages in the operation of a mobile application store in the People's Republic of China. 5-year projected EPS growth rate at 25.00%. Price at $4.15. Shares shorted have decreased from 578.92K to 404.39K over the last month, a decrease which represents about 2.41% of the company's float of 7.25M shares.

*Short data sourced from Yahoo! Finance, all other data sourced from Finviz.

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