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5 shares under $5 with massive growth potential

There certainly isn’t much you can buy for $5 these days. If you go to one of Retail Food Group Limited’s (ASX: RFG) Gloria Jean’s cafes it might just be enough to get you a large latte.

Alternatively you could skip the coffee and buy a slice of one of these companies with massive growth potential instead.

a2 Milk Company Ltd (Australia) (ASX: A2M)

This dairy company has been growing at an explosive rate. Last week the company released its first quarter update which revealed a 40% increase in sales on the prior corresponding period. Strong sales growth in China and the UK, as well as an improvement in the United States helped drive the strong result. I believe the company is positioned for strong long-term growth that makes it a great investment today.

Bionomics Ltd (ASX: BNO)

Although this biopharmaceutical company has a strong pipeline of drugs which I believe could transform the company into a major player in the industry, there is one drug in particular which has caught my eye. Its BNC210 drug for the treatment of anxiety has produced positive phase II trials recently. Results show that the drug suppressed activation of the amygdala and outperformed the current standard of care, Ativan.

Dorsavi Ltd (ASX: DVL)

In FY 2016 dorsaVi reported a 122% jump in sales thanks to the growing popularity of its patent protected technology that serves the organisational health and safety, clinical, and elite sports markets. The award-winning technology tracks, measures, and assesses movement. Businesses use this to prevent work injuries, clinics use it to treat back pain, and sports teams like the Golden State Warriors use its technology to assess injury risk.

Nearmap Ltd (ASX: NEA)

Quick-growing photomapping software provider Nearmap is certainly one to watch thanks to its growth prospects in the United States. Although sales in the country still pale by comparison to its Australian sales, I have been impressed with its U.S. growth since introducing a paywall for its services. If the company can replicate its domestic success in the U.S. market, then investors will be rewarded handsomely.

Touchcorp Ltd (ASX: TCH)

Fintech company Touchcorp is a payment software solutions provider for a growing number of clients including Afterpay, 7-Eleven, and Optus. As well as having a strong domestic business, the company has been expanding overseas through deals with Cornèr Bank in Switzerland and Change Up in Scandinavia. Both of these deals are expected to provide Touchcorp with long-term transactional revenue streams. Half year revenue grew 20% and I expect an equally solid second half to the year.

5 stocks under $5

We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

*Extreme Opportunities returns as of June 5th 2020

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of A2 Milk, Retail Food Group Limited, and TOUCHCORP FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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