Fast Money Traders Share Their Under $5 Stock Picks

On CNBC's Fast Money, Tim Seymour recommended Avon Products, Inc. AVP as a buy. He explained that the stock is now priced as the company is going out of business, but that is not the case. The margins are going to improve and there is a possibility for a take out, thinks Seymour.

David Seaburg likes Arena Pharmaceuticals, Inc. ARNA, because it has a great pipeline and it could be interesting for companies that are looking to improve their pipeline.

Brian Kelly would take a long position in gold with NovaGold Resources Inc. (USA) NG. The stock has been bouncing off $3 and it has been recording higher lows, looking like it wants to break out, said Kelly.

Guy Adami thinks that Geron Corporation GERN is the best pick among the stocks under $5.