Watch These 3 High-Risk Stocks

Chris Lau, Kapitall: These high-risk stocks have made big moves. Is it time for you to make a move?

High-risk stocks — stocks that make abrupt moves — are worth watching closely. They are good starting point for investors looking to play with stocks. Investors could even find some of the stocks to be undervalued. In that case, they do not become trades, but investments.

[Read more from Kapitall: Can You Profit from the Internet of Things?]

Energy Recovery, Inc. (ERII) rose 33% last week. The company makes desalination solutions, but is now selling its solutions to the oil and gas sector. Investors grew bullish in Energy Recovery after the firm reported quarterly revenues of $23.2 million, nearly double from last year. Profit soared to $14.5 million, up from $6.5 million thanks to costs staying the same year over year.

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Sangamo BioSciences Inc. (SGMO) rallied 24.6% last week after the biotech firm reported results from its HIV therapy. The firm uses gene therapy to insert corrective genes into patients. On March 5, Sangamo BioSciences said it can take T-cells from patients, modify them, and cause resistance to HIV infection. Gilead (GILD) is firm that should watch Sangamo closely. Gilead makes antiretroviral drugs used to treat HIV.

In the mobile applications segment, Sky-mobi Limited (MOBI) soared as investors recognized the firm’s 110 million user base and nearly 400,000 daily subscriber growth. Ski-mobi reported lower quarterly revenues in the third quarter. Smartphone revenue, which grew 65.8% to $10.7 million, was not enough to offset the total revenue decline. Gross margin was steady at 23.6%, compared to 23.3% the previous quarter. This is much lower than the 34.4% gross margin in the previous year.

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1. Energy Recovery, Inc. ( ERII): Engages in the development, manufacture, and sale of energy recovery devices and pumps primarily for use in seawater and brackish water desalination worldwide. Market cap at $242.5M, most recent closing price at $4.75.
 

 

2. Sangamo Biosciences Inc. ( SGMO): Engages in the research, development, and commercialization of zinc finger DNA-binding proteins (ZFPs) for gene regulation and gene modification in the United States. Market cap at $1.21B, most recent closing price at $19.61.
 

 

3. Gilead Sciences Inc. ( GILD): Engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. Market cap at $127.11B, most recent closing price at $82.87.
 

 

4. Sky-mobi Limited ( MOBI): Engages in the operation of a mobile application store in the People's Republic of China. Market cap at $221.09M, most recent closing price at $7.42.
 

 

 

( List compiled by Chris Lau, a Kapitall contributor. Data sourced from Zack's Investment Research and Yahoo Finance.)

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