Will These 3 Penny Stocks Head Higher in November?
Over the years penny stocks have often managed to generate substantial returns for investors. So, investors still look for the next big thing from these cheap stocks. Since penny stocks are generally low priced, there’s the added advantage of buying those stocks in bulk. Now, why would someone want to buy penny stocks in bulk?
Besides simply being able to do so with minimal capital, a small move of a few pennies can mean compounded gains for investors. Think about it like this: If a penny stock trades at $0.10, it only needs to jump 2 cents to see a 20% move in value. For a blue-chip stock like Twitter or Facebook to do the same, these would need to move 600 to 3,800 cents respectively.
However, this doesn’t mean to gamble your money in penny stocks. Just like all things worth investing in, stocks of all price ranges require diligence. This means knowing more than just the trading symbol of a stock. You should understand things like company fundamentals, sifting through corporate news, and doing as much as you can to get a full scope of a company.
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This process will at least help you put together a list of penny stocks to start with. Then you can boil that down to the ones that meet your specific criteria. Here is a quick look at three penny stocks that can be bought for under $2 right now. Will that be the case later this month? That is completely up to market conditions and what the companies do.
Penny Stocks To Buy For Under $2: Urban Tea (MYT)
The first penny stock under $2 on this list is Urban Tea Inc (MYT Stock Report). The company retails baked products and specialty teas. It made a major announcement this week that helped boost attention on the penny stock. On Thursday, Urban Tea reported that it had successfully picked up a 51% stake in Hunan 39 Pu Tea Co Ltd.
The acquisition is an important one for the company since 39 Pu Tea is engaged in tea production, research, and development, as well as distribution. The acquisition is definitely strategic in nature. It could help Urban Tea in the long run.
After having gained as much s 115% through October, the Urban Tea stock rose even higher following the latest news. Keep in mind that MYT stock has been rallying ever since reporting its quarterly results last month. In total, shares have jumped by more than 180% this quarter. Now, will this continue in November or has the penny stock topped out?
Penny Stocks To Buy For Under $2: Milestone Scientific (MLSS)
The other penny stock that has enjoyed a sustained rally for the past three months is Milestone Scientific Inc. (MLSS Stock Report). Back in August, the company announced that it had inked an exclusive distribution agreement with Paragon Care Limited.
By way of the agreement, Milestone will distribute the Paragon product CompuFlo Epidural System. And if you’ve been a loyal reader of this site, we’ve been covering the progress of MLSS stock for quite some time. Overall, this has been one of the top penny stocks to watch this year. It has jumped as much as 300% since January 2.
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Paragon is one of the biggest medical equipment and device companies in Australia and it goes without saying that this deal is a significant one for Milestone. Since August, the stock has been on a tear and has gained as much as 145%. This is a stock that should definitely be watched closely.
Penny Stocks To Buy For Under $2: Aclaris Therapeutics Inc (ACRS)
Last but not least, Aclaris Therapeutics Inc (ACRS Stock Report) has been another significant gainer in this particular category. Its upward move has sustained over the past month. Back in October, the company announced that its product Rhefade has been sold to EPI Health in a deal worth $55 million.
The company got $35 million straightaway and $20 million is tied to certain targets. The stock has rallied by as much as 60% over the course of the past month. Furthermore, Aclaris benefited greatly from recent earnings results reported in November.
Dr. Neal Walker, President and Chief Executive Officer of Aclaris said, “With the success of our two pivotal Phase 3 trials for A-101 45% Topical Solution, which has the potential to be the first FDA-approved prescription treatment for common warts, we believe this program will be of interest to potential commercial partners. In September, we presented our new focus on immuno-inflammatory diseases at our R&D day. We look forward to reporting the results of our Phase 1 trial for ATI-450 by the end of the first quarter of 2020 and providing further updates on the execution of our new strategy.”
