Penny Stocks Making Moves Before Friday’s Opening Bell
What a week we’ve had. The market has seen historic moves and it’s still not over yet. The government and Federal Reserve are flooding money to protect against the COVID-19 potential fallout. Aside from that, even historically high jobless claims couldn’t slow things down. But while broader markets are seeing increased volatility, penny stocks are on fire. We’ve seen some of the most consecutive days of multiple 100%+ breakout stocks. While several have seen simple, 1-day moves, others have gone on to rally for days.
So what’s this mean? In my opinion, it could mean big things for low priced stocks. The simple fact that the market’s meltdown pushed some high-priced stocks into penny stock territory has opened the eyes of traders who otherwise would have written off the idea of investing in penny stocks. You can find hundreds of stocks that once traded above $5 trading below $2 or even lower right now.
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At the end of the day, the coronavirus has triggered a flurry of interest in penny stocks. The speculative nature of low-priced stocks has seen interest build due to even the thought of a company gaining exposure to things like coronavirus or other big industry events. We’ve seen biotech, commodities and even off-path sectors like food delivery benefit from measures being taken. Heading into the end of the week, where will the attention be next? Here’s a quick list of penny stocks to watch before the weekend.
Penny Stocks To Watch: IMC International Mining
IMC International Mining (IMIMF Stock Report)(IMCX) saw another big volume day in the market on March 26. Since Tuesday, the gold penny stock has jumped from lows of $0.25 to highs of $0.33 on Thursday. This 32% move came after the latest corporate call from IMC. On the call, incoming Chairman Greg Hawkins and current CEO Brian Thurston reported on the state of the current acquisition deal in process as well as gave guidance on a proposed timeline of development for the new property that would come along with it.
IMC is in the process of acquiring Thane Minerals and its Cathedral Property. Located in northern British Columbia, the property is host to past and planned production. Hawkins stated plans to begin exploration on the property by May with drilling beginning by the end of the year. Obviously, this is speculative based on the status of the coronavirus.
Rider: It is noted that the results of nearby or adjacent properties are not necessarily indicative of the potential of the Cathedral property and should not be understood or interpreted to mean that similar results will be obtained from the Cathedral property.
Needless to say, CEO Brian Thurstan addressed this explaining that the company doesn’t seem to be too concerned over COVID-19’s impact on business operations. At the end of the day, gold prices appear to be climbing and junior gold stocks can become a focus for the market.
Penny Stocks To Watch: iBio Inc.
iBio Inc. (IBIO Stock Report) continues to remain on a list of penny stocks to watch. This comes after a few updates from the company about coronavirus. First, iBio reported on Thursday morning that immunization studies for its SARS-CoV-2 Virus Like Particle program are proceeding at Texas A&M University System labs. Its IBIO-200 is being worked toward the advancement into clinical trials. We look forward to completing the preclinical immunization studies for iBio to determine the optimal combination of VLP and adjuvant to advance to human clinical trials,” said Dr. James Samuel, Head of the Department of Microbial Pathogenesis and Immunology at Texas A&M University.
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While this excited the market before the opening bell, shares of IBIO stock slide during the March 26 session. At the end o the afternoon, iBio announced further developments. This time it was the signing of the second statement of work where the company will help AzarGen Biotechnologies develop its rituximab.
This is for certain autoimmune diseases and cancers. According to the company, it ultimately plans to transfer its FastPharming manufacturing system to AzarGen in South Africa. We’ll see if this additional update could continue to turn heads to this biotech penny stock before the weekend.
Penny Stocks To Watch: Waitr Holdings
Waitr Holdings (WTRH Stock Report) has been on the radar for a few weeks now. The first spark came as delivery and food stocks like Blue Apron (APRN Stock Report) started to move higher. This move was based initially on speculation that similar companies would benefit from different lockdowns and “stay in place” orders across the country. Waitr in particular first started to move after reporting strong earnings for its Q4 and full-year results. Following this, WTRH stock benefited from the trend in food delivery stocks amid the growing pandemic in the U.S.
This week we saw shares pair gains from earlier this month as profit-taking took hold. But that might have changed toward the end of the March 26 trading session. From around 2:30 PM EST until the close, Waitr’s market saw a surge in trading. Within minutes, the penny stock rallied from around $1.10 to highs of $1.58 and closed the day at $1.45. Was it from the news release in the morning that maybe traders had missed? Not likely and here’s why I say this:
During the afternoon an Instagram post came out from New Orleans Saints Quarterback, Drew Brees. It showed that he’s committing $5 million to the state of Louisiana in 2020. He will be “mobilizing partnerships with” a number of local organizations including Waitr. Breese said that the organizations named would prepare and deliver over 10,000 meals per day throughout the state “for as long as it takes”. Can this type of exposure help WTRH stock continue to bounce back after its recent consolidation?
Penny Stocks To Watch: BIO-key International, Inc.
*UPDATED 3/27/2020 7:35AM EST* BIO-key International (BKYI Stock Report) is one of the penny stocks we’ve mentioned a few times in the past. The first time we came across the company was back in late-January (see: 5 Penny Stocks To Buy Or Sell Before The End Of The Week?). At the time, BIO-key was beginning work on biometrics for elections. Over the following days, we saw the stock jump from around $0.60 to highs of $1.14. It eventually pulled back but then made another run that we discussed earlier this month. This time it was to highs of $2.30.
Looking back at BIO-key on March 27 shows yet another big day of momentum. Something to also keep in mind is that this penny stock has a relatively low float. So, it could be a very volatile stock to watch right now. With less than 20 million shares outstanding and some sites showing a float of less than 10 million shares, things could get exciting to say the least. This time around, BKYI stock is moving after big news, once again.
BIO-key announced a deal to support the Nigerian Ministry of Labour. The program is designed to educate and create employment for 1 million college grads in Nigeria. The company looks to create a scalable and secure e-commerce platform to support industries in Nigeria. The sticking point: BIO-key expects to generate around $45 million in revenue from the contract in less than 2 years (18 months). As I said, the low float can open doors to BIG swings. We’ve already seen that BKYI stock is capable of dramatic breakouts and breakdowns since the end of January. So if this is on your list of penny stocks to watch, keep this in mind.
Penny Stocks To Watch: Smile Direct Club
Shares of Smile Direct Club (SDC Stock Report) skyrocketed on Thursday. There was no update as far as news is concerned. There weren’t any corporate filings released either. What there was, however, was a large options trade that seems to have sparked bullish sentiment around the stock. During the morning session, there were thousands of call options purchased with a $6 strike price and an expiration of April 9th and April 17th. The majority of the volume at one strike price was for April 17th as far as I can see.
Now if this seems like a foreign language, let me break down the basics. First, a call option is, at a very basic level, a bet that an investor makes assuming a stock will increase in price. The strike price is the level the investor thinks a stock can move to or past. The expiration date is the date the option expires. In this case, so much irregular volume to buy calls at $6 strikes was perceived as a bullish sign for the market in SDC.
While the stock shot to highs of $6.86, the move was parabolic and resulted in a huge pullback to a close of $4.85. Recently, SmileDirect got involved in the coronavirus arena. The company announced that it would be using its strengths to increase the production of 3D printed medical supplies. SmileDirectClub Chief Executive Officer David Katzman said, “Due to recent automations that increased our printing output capacity, we’re able to easily add this production to our current clear aligner therapy lines.” With numerous potential catalysts in play, will this help continue the momentum that SmileDirect stock is seeing right now? Feel free to leave a comment on your thoughts in the comment section below.
Disclaimer
Pursuant to an agreement between Midam Ventures LLC and IMC International Mining Corp. (CSE: IMCX) (IMIMF), Midam has been paid $200,000 for a period from January 7, 2020, to February 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to March 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to July 9, 2020. We may buy or sell additional shares of IMC International Mining Corp.(CSE: IMCX) (IMIMF) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about IMC International Mining Corp. (CSE: IMCX) (IMIMF). Full disclaimer here.
