Looking For Penny Stocks To Buy Right Now?
There’s no question that penny stocks are money-makers for traders. Where else can you leverage small sums of money and turn it into something big? Case in point, Bit Digital Inc. (BTBT Stock Report) was $0.50 in March. A $500 position would have 1,000 shares of that penny stock; big deal right? This week BTBT stock reached highs of $12.45 so far. That means the $500 position is now worth over $12,000. Formerly known as Golden Bull Limited, the company mines bitcoin. Obviously, the excitement surrounding bitcoin and blockchain stocks is helping drive momentum in this niche.
Could BTBT shares have made such a move had it not been for the industry strength? It’s tough to say. But I’m sure it didn’t hurt. This brings me to another point. Finding and following trends is a great way to find penny stocks to add to your watch list. It’s like we’ve seen with all of the electric vehicle penny stocks recently. Industry strength can play a big role in your trading and for good reason.
Why follow stocks in an industry or sector that’s getting beaten up or sold off? If the US dollar climbs, would you look at gold stocks? Not likely. Another example of this is marijuana stocks. For the better part of the last few years, these stocks have been getting slammed. There’ve been a few sparks of excitement but while pot stocks were selling off, things like EV stock were taking off hugely.
So what are some trends we’re seeing right now? Tech, biotech, and resource companies are among the top trending areas of the market right now. Here are a few that’ve taken off at the start of the week. However, just because there’s momentum “today” it doesn’t mean it lasts. With this in mind, are these penny stocks to buy or should you avoid them entirely?
Penny Stocks To Buy [or avoid] #1: Conformis Inc.
Conformis Inc. (CFMS Stock Report) recorded its highest share volume day of the entire year on Monday. By mid-afternoon, more than 17.9 million shares had traded and CFMS stock hit a high of $0.895. The medical device company came into the new week shortly after the commercial launch of its Cordera Match Hip System. This device is also 510(k) cleared by the FDA and is one of the multiple products planned using the company’s Cordera Hip System.
“Over the next year, we plan to launch multiple product extensions featuring the Cordera™ stem. With this first offering, surgeons who like to operate with the Cordera™ stem will benefit from the significant value provided by Conformis’ personalized surgical plan and best-in-class PSI guides, all delivered through a safe, sterile, and efficient model for hospitals and ASC sites of care.”
Mark Augusti, President and CEO
Other than that, there weren’t any new headlines this week. Not that long ago, Oppenheimer weighed in on Conformis. The firm gave an Outperform rating and a price target more than 280% higher than current trading levels, $3.
Penny Stocks To Buy [or avoid] #2: American Resources Corporation
Another one of the penny stocks breaking out this week is American Resources Corporation (AREC Stock Report). News came out today that the company would be ringing the closing bell on Nasdaq Tuesday afternoon. While this headline isn’t a massive material event, it does signify a milestone for the company. That milestone is the start of operations at its mining site, Perry County Resources. The company is also commemorating the lunch of its critical and rare earth mineral subsidiary, American Rare Earth LLC.
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It’s been a year of implementing a restructuring program to restart the mining site. American Resources is also planning to restart its other four operating complexes including its McCoy Elkhorn complex currently slated to resume operations in the second half on 2021. American Resources expects its 2021 revenue to range from $55 million to $75 million thanks to the restart of Perry County.
This year has been a big one for rare earths. This came after an executive order from the White House was signed. It was put in place to address the potential threat to the domestic supply chain of “critical minerals” from foreign adversaries. What’s more, is that AREC could also be an “unsung” electric vehicle stock to watch right now considering the industry hype. Many critical elements, rare earths, and graphene have applications in electric vehicles.
Penny Stocks To Buy [or avoid] #3: Mannkind Corporation
Mannkind Corporation (MNKD Stock Report) is one of the penny stocks that started the week off slow but has since gotten a nice boost in Monday’s afternoon session. After dropping as low as $3.28, shares rallied swiftly to highs of more than $3.50. The penny stock has been on the rise since March. In fact, after hitting 52-week lows of $0.80, MNKD stock has climbed as high as $4.21 this month.
The company reported Q3 earnings at the beginning of November, which sparked the latest uptrend. Mannkind’s Afrezza net revenue increased $7.3 million year-over-year for the third quarter. Furthermore, its year-to-date revenue jumped to $22.1 million; up 31% year over year. Afrezza® has been the high point this year. it’s the only ultra rapid-acting inhaled insulin, delivers glucose management in the moment for adults living with type 1 or type 2 diabetes.
The company also said that it’s on track to finish its Treprostinil Technosphere development activities by the end of this quarter. Partnered with United Therapeutics, it is conducting clinical studies in patients with pulmonary arterial hypertension. Another big win recently came with the acquisition of QrumPharma. The company is developing inhalation treatments for severe chronic and recurrent pulmonary infections. The $3.5 million acquisition now gives Mannkind direct access to QrumPharma’s platform. This includes QRM-003, which has both an orphan drug and is a qualified infectious disease product for the treatment of pulmonary nontuberculous Mycobacterial infections.
Penny Stocks To Buy [or avoid] #4: Neovasc Inc.
Neovasc Inc. (NVCN Stock Report) is another one of the penny stocks with a bullish tone coming from analysts. HC Wainwright has a Buy on the stock along with a $5 target. This puts HC’s NVCN stock forecast over 360% higher than current levels. What makes things a bit more interesting right now is the technical set-up on the NVCN stock chart. This is the second session in a row that shares tested the 50-Day Moving Average. Most of 2020 has seen this level act as a considerably strong level of support and resistance. The penny stock firmly broke below the 50-day back in October after reporting earnings and, moreover, a tough decision from the FDA. The Administration voted against the effectiveness and relative benefits of its Neovasc Reducer. This is the company’s treatment for patients with refractory angina pectoris.
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Fast-forward to this month and the Reducer product has completed the first 3 implants in France. “France is one of the largest markets in Europe, and it represents a meaningful growth opportunity for Reducer,” commented Fred Colen, President and Chief Executive Officer of Neovasc.
EuroIntervention, the official journal of EuroPCR and the European Association of Percutaneous Coronary Interventions published a peer-reviewed study recently. It announced the outcomes of patients undergoing Neovasc Reducer™ implantation in the company’s REDUCER-I trial. The article, entitled “Coronary Sinus Narrowing for the Treatment of Refractory Angina A Multi-center Prospective Open-label Clinical Study (The REDUCER-I Study)”, is the latest of numerous publications supporting the safety and effectiveness of the Reducer. Considering the recent progress of the company abroad, and the outlook from analysts, will it be on your list of penny stocks to watch?
