3 Penny Stocks Trading Under $3 Right Now In May 2020
It has been quite a busy week for penny stocks. Rumors have boosted some, “reality” has crushed others. To the victors go the spoils – but I’m sure there are some average Joe’s in there to (insert dad joke). No matter what side of the coin you’re on, I’m willing to bet that those with a strategy had a better week so far. Emotions can always get the best of us and greed can play a big role as well.
But when it comes to penny stocks to watch, don’t forget your rules. Manage your risk and capitalize on your reward by cutting losses early and taking profit along the way. Heading into the end of the week, we’ve still got one more day left of trading and another opportunity to make money with penny stocks.
Some of the most exciting moves we’ve seen have come from news catalysts. Here’s a list of penny stocks to watch after some recent updates
Penny Stocks To Watch Under $3: Colony Capital Inc.
Shares of Colony Capital Inc. (CLNY Stock Report) are in foreign territory right now. For most of its “life” in the market, CLNY stock wasn’t one of the stocks under $5. But as a number of REITs and financial stocks got hit earlier this year, Colony Capital fell apart.
The company segments its operations into real estate equity, real estate debt, and investment management businesses. Colony Capital’s asset portfolio and total revenue generation are split primarily between its real estate equity and real estate debt divisions. The new penny stock dropped from over $5 to under $1.35 in March.
Since then, there’ve been several periodic jumps; each reaching a higher high then pulling back to a higher low. This week, CLNY stock found itself in the latest trough amid its general uptrend. Could that change before the weekend? Considering that Colony just announced a key development, that could be a potential catalyst to keep in mind.
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Digital Colony, the global digital infrastructure investment platform of Colony Capital announced a strategic recapitalization of Beanfield Metroconnect, an independent telecommunications infrastructure provider in Canada. The Company has acquired the metro network of Aptum Technologies, a global hybrid cloud and managed services provider. Shares of CLNY stock started trading higher during extended hours trading on Thursday. Will that continue through the end of the week?
Penny Stocks To Watch Under $3: Centric Brands Inc.
Centric Brands Inc. (CTRC Stock Report) saw its biggest share volume day of the year on May 7. The company felt the burn of the retail industry downtrend earlier in the year. Shares dropped from over $2.50 to under $0.50 late last month. Since then CTRC stock has been attempting a steady recovery. Centric Brands designs, develops and markets apparel products, which include denim jeans, casual wear, and accessories.
The company offers its products under various brands, such as Hudson, Robert Graham, and SWIMS. So Centric doesn’t focus on the average Jane and John Doe. These brands are a bit more pricey when it comes to retail apparel.
Amid a slew of changes in certain financing structures and management, CTRC stock has had its share of speculation. But no other source of speculation seems to have shined as bright is when companies announce one thing. What is that one thing? Exploring “strategic alternatives”. This has been a high sign for the public to think what they want about “what if the company does this” or “explores that”.
Centric even formed a special committee to address this in March. What’s more is that in a late April filing, it showed that multiple large funds hold a stake in Centric. But without much other news, it’s yet to be seen how things play out for CTRC stock. Is there a “strategic alternative” in the works or is this still just a speculative trend?
Penny Stocks To Watch Under $3: Forum Energy Technologies Inc.
Forum Energy Technologies Inc. (FET Stock Report) is the lightest volume name on this list of penny stocks. However, it could be worth a look considering it had post-market news on Thursday. Forum Energy product offerings for the oil and gas industry. Considering the momentum that sector is seeing, the “pick and shovel” stocks involved could have started seeing their day in the sun.
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What did Forum announce aftermarket? The company reported its earnings results. Net revenue came in at $183 million and EBITDA hit $1.3 million. The company was also able to reduce its net debt by $6.9 million from year-end 2019. But despite the stock’s move and the latest results, Cris Gaut, Chairman, and Chief Executive Officer, had a bit of a mixed picture painted in the Forum PR. He explained that “The recent unprecedented decline in oil demand and oil prices, associated with the coronavirus shutdown, is causing a collapse in drilling and completions activity, especially in North America.”
“We began to see the effect of this lower demand on Forum’s results in the first quarter 2020, but we expect a more significant negative impact on subsequent quarters this year. “
So, it will be interesting to see what happens next with FET stock. The CEO’s statements don’t necessarily inspire confidence initially. But if the oil industry can find footing, will it be possible for Forum to regain some ground? Leave a comment and let us know what you think.
