Will These Volatile Penny Stocks Become Big Winners In June 2020?
Penny stocks and volatility go hand-in-hand. Where there are big price swings, there’s an opportunity to make money. If you’re just tuning in, this month has seen some of the most volatile penny stocks breakout into the thousands of percentage points overnight. In the latest “penny stocks news” you can use, “names” are meaning less and “potential” is taking a front seat.
Headlines have been driving trading action more than fundamentals. When it actually came to using a fundamental approach this month, the main focus was on the current flavor of the day. If there was remotely positive news, penny stocks jumped. Even if there was somewhat bad but not terrible news, traders used it as an excuse to buy penny stocks.
I’m not against making money. But if you’re going to blindly trade these cheap stocks because they put out news, be prepared for a wild ride. Smart traders not only understand a headline is out in the public but they also take time to read it. I can’t tell you how many times we’ve seen an initial breakout followed by an immediate breakdown. The psychology behind this is new traders saw the news and a little spark of momo, jumped in, and then those who’ve held shares longer than a day actually read the headline and take advantage of the move.
Volatile Penny Stocks To Watch In June
Simply put, if you held a penny stock overnight or over weeks/months and saw it up well-above your entry price, why wouldn’t you take profit. I won’t get too much into the fundamentals and psychology of trading in this article. But I feel that with the increased euphoria in the market and slew of new traders, it’s important to hit this point home.
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I know many will breeze right by this and look at the list of penny stocks. However, at least I’ll know a few of you were paying attention and formulate a new strategy in light of increased volatility. With this in mind, here’s a list of volatile penny stocks to watch right now. Let’s see where things end up at the end of June.
Volatile Penny Stocks To Watch #1: IZEA Worldwide
IZEA Worldwide Inc. (IZEA Stock Report) has been on the list of penny stocks to watch since May. At the time, we were in the thick of the coronavirus quarantine and “stay at home life” was getting very real. In light of this, companies, including IZEA used it to their advantage. Since May 4th, the penny stock has been on the move. Where shares of IZEA stock were trading around $0.31 it has jumped to more than $3.00 this week. In fact it set a new 2020 high of $3.13 on June 11. Not only is it up significantly from when we first started discussing it, IZEA stock is up over 390% in the month of June.
Toward the end of May, IZEA announced that it established a new relationship with a “Fortune 500 insurance company” for influencer marketing services. IZEA said it also expanded its relationships with a “Fortune 100 food manufacturer” and a leading “multi-billion-dollar furniture goods manufacturer,” among others. Earlier this week, the company announced it received renewed commitments from two global retailers. One retailer is a Fortune 500 company, the other a Fortune 10 company.
Something to note is that the company increased its ATM offering to $40M. This includes 4.45M common shares previously sold in the ATM offering for gross proceeds of $10M. Considering that boils dow to a price of $2.24, it doesn’t appear to be a massively steep discount to the current market price.
However, it does suggest dillution risk could be a factor. What many want to know is what the “special announcement” will be. IZEA said that it “plans to make” a special announcement that will also see a follow-up conference call on June 18th to further discuss. Considering the latest filing, do you have thoughts on what IZEA could have in the works? Comment below.
Volatile Penny Stocks To Watch #2: Amyris Inc.
Amyris Inc. (AMRS Stock Report) has been on the rise since mid-March. At the time, AMRS stock reached 52-week lows of $1.40 and just announced an update to its progress as well as the outlook for this year. CEO John Melo explained that the company was on track for the fourth consecutive quarter of product gross margin expansion.
“Our consumer brands are delivering very strong sales performance in the first quarter with expected gross margin around 67%.”
Since then, AMRS stock has climbed by more than 330%. The last two weeks saw the first major pullback in the penny stock’s chart. Here’s where the volatility came into play. AMRS announced a private placement of $200 million at $3 per share. Considering the penny stock was trading above $6 during the previous session, that was a significant discount.
[Learn More] Beginner’s Guide To Trading Penny Stocks in 2020
The obvious result: a drop in price back to the mid-$3 range. Despite this as the case, analysts from Oppenheimer lifted their price target from $8 to $9 and maintained an Outperform rating. This week AMRS stock is back on the rise following an update that the private placement is officially closed. Now, armed with a few hundred million in cash, will this be the next tipping point for AMRS stock?
Volatile Penny Stocks To Watch #3: Cocrystal Pharma Inc.
Cocrystal Pharma (COCP Stock Report) is another one of the volatile penny stocks to watch this month. The last time we talked about COCP stock it was trading around $1. The company had just announced the expansion of its agreement with Kansas State to include rights to more preclinical leads.
The goal was to further develop certain proprietary broad-spectrum antiviral compounds to treat coronavirus infections. Since then, COCP stock has climbed to new Q2 highs of $1.26 and firmly broken above its 200-Day moving average for the first time in months.
No news has come from the company this week. But on June 8th, the company provided written notice to A.G.P./Alliance Global Partners of its election to terminate the Amended and Restated Equity Distribution Agreement between the Company and AGP. You can find the details of this in the 8K filed on the 8th. With a new round of coronavirus cases coming to light, is it time to refocus on COVID-19 stocks this month?
In its corporate update, CEO Dr. Gary Wilcox reiterated his optimism about the company’s future and cash runway. He said, “The fundamentals of Cocrystal have never been stronger. Importantly, the Company has a strong cash position, with capital that we expect will be sufficient to fund our operations through 2021. Our pipeline of novel antivirals in development includes treatments for two of the most prevalent viruses affecting the globe: COVID-19 and influenza. By leveraging our novel platform technology, we believe Cocrystal is well positioned to continue addressing the shortcomings in the treatment of viruses with significant unmet needs, as well as develop safe and effective antiviral therapies for new or resistant viruses as they arise.”
