Are These On Your List Of Penny Stocks To Buy?
This week I think we’re seeing a rebirth of interest in penny stocks. There were a few days where the overall volume in small-cap stocks was weathered. Trading action was light and you could see that at a higher level view by looking at the small-cap and micro-cap indexes.
Last Friday, however, the trading volume was clearly different compared to the 4 days prior. Something to consider is that people may be taking a little time to brace themselves for the next few months ahead. Though many schools aren’t going back to in-person classes, the school year is beginning.
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What’s different about right now is that more parents are becoming homeschool teachers in addition to their jobs. What’s more, is that we’ve got a higher risk in smaller cap stocks. So it makes sense as to why some traders are taking a pause before going full steam ahead. Nevertheless, this week has seen a bit of an uptick in trading volume so far. It has also seen numerous penny stocks break out over 100%.
Are Penny Stocks On Your Watch List This Week?
If you remember, last week, we saw a few of these big movers. But compared to the last few months, the frequency was much lighter. Again, this week, we’re seeing more frequent, triple-digit movers come to light which may tell us that interest in small-caps is back. It’s important to note that volumes are still a bit lighter compared to May-mid July.
In this light, make sure you understand that it could lead to higher levels of volatility; i.e. bigger swings in shorter time frames. So keep your head on a swivel heading into the last few days of August. The biggest question you need to answer is whether or not these are penny stocks to buy or avoid after their recent moves.
Penny Stocks to Buy [or avoid]: Viveve Medical Inc.
Viveve Medical Inc. (VIVE Stock Report) is one of these big movers I was talking about. This morning the penny stock no only gapped up, pre-market, it raced to early highs of $1.44 at the open. Following an initial morning pullback, VIVE stock started trading around $1.10, which acted as morning support. If you look at the stock’s chart, you’ll see that it thought it actively trades, its previous trend doesn’t compare to today. In fact, Tuesday marked one of the biggest trading volume days VIVE stock has seen.
Was there a catalyst? Early during premarket trading, Viveve made a big update. The company announced positive primary efficacy data from its three-arm, five-month Stress Urinary Incontinence (SUI) feasibility study.
“The fact that we now have a true inert sham treatment tip provides us more confidence that our upcoming pivotal PURSUIT Trial can achieve its primary efficacy endpoint and position Viveve for a potential SUI indication in the United States”
Scott Durbin, Viveve ‘s chief executive officer
This compared Viveve ‘s Cryogen-cooled Monopolar Radiofrequency treatment and a cryogen-only sham treatment to an inert sham treatment. These targeted mild to moderate SUI in women. Additionally, Viveve reported positive outcomes from an in-vivo preclinical study that was conducted to validate its new inert sham tip for use in the upcoming pivotal PURSUIT Trial in the U.S.
Penny Stocks to Buy [or avoid]: iBio Inc.
iBio Inc. (IBIO Stock Report) is no stranger to big moves. As one of the penny stocks to watch for months now, we’ve seen IBIO skyrocket well beyond the upper limits of penny stock territory. After pulling back for the better part of the last month, IBIO stock appears to be mounting a rally this week. Shares have now bounced back 63% from last Friday’s close. There hasn’t been any news from the company in a few weeks, however, coronavirus “fever” remains a hot item for traders.
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You may recall that we discussed iBio on Monday. One of the big headlines of the week was convalescent plasma stocks. While IBIO isn’t necessarily a primary member of the club, there was a little bit to “chew on” in light of that development. The connection specifically comes from its contract development and manufacturing unit. It utilizes iBio’s FastPharming platform to produce vaccine antigens, enzymes, blood factors, and cytokines, among others.
Aside from this speculative topic, iBio has gained plenty of attention from its main target candidate, IBIO-201; namely the application to COVID-19. In fact, earlier this month, the company cited new information from its preclinical studies of IBIO-201. It showed anti-SARS-CoV-2 spike titers 21 days after immunization. Furthermore, early testing in mice showed the presence of antibodies that interfered with the binding of SARS-CoV-2 spike proteins, according to the company.
iBio said it plans to conduct additional testing of its vaccine candidate. That would also include additional evaluations of neutralizing titers in multiple assay formats. Considering the market is still hungry for coronavirus vaccine stocks, will IBIO be on the list of penny stocks to buy or avoid before next month?
Penny Stocks To Buy [or avoid]: VivoPower International Plc
Another one of the penny stocks we picked up on this week was VivoPower International (VVPR Stock Report) this came after the company’s latest round of earnings. More importantly, it came after the management conference call after the closing bell on Monday.
What’s more is that if you’ve read our articles for at least the last 18 months, you’ll remember when we first started to follow VivoPower. Back in June of last year, believe it or not, VVPR stock had hit the radar. Specifically, VivoPower had just announced that it won major contracts in Australian Solar and data centers. This boosted the company’s order book to more than $51 million at the time.
Fast-forward a little over a year and VVPR stock has climbed from around $1.11 to highs this week of $4.82. As far as earnings went, the company experienced record annual group revenues. These came in at $48.7 million, up 12% year-on-year. VivoPower also saw a large improvement in an adjusted net after-tax loss.
It came in at ($1.7) million and adjusted EPS of ($0.12) per share. Despite reported a loss, it’s considerably lower than what was reported for Fiscal 2019. Last year VivoPower reported an adjusted net after-tax loss of ($8.9) million loss and ($0.66) per share for FY19.
What’s more is that management specifically said, “Our primary goal is to consummate our first EV and sustainable energy solution orders. Obviously, in terms of announcing this, we are very confident that’s going to happen in short order,” as far as something to look at for potential future catalysts among other things.
