Can These Penny Stocks Hold This Trend In Q3?
Penny stocks are well-known for their quick breakouts. But something you may not know is that many of them do more than just go straight up and come straight back down. While their gains may not be as swift, penny stocks can experience longer-term upswings. That’s thanks to corporate progress, industry growth, business growth, and even strategic investments made by institutions.
I’m sure there are many who wouldn’t mind a “lower stress” 100% move that comes over a few days or weeks, compared to a highly volatile move occurring within minutes or hours. The facts are, some traders can’t afford to stay glued to a screen all day. Family obligations, work, etc. can influence the amount of time someone spends at their trading terminal.
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Unlike popular opinion may suggest, all penny stocks that rally 100% or more don’t do it in as short of a time as you may think. Some will steadily climb for days, weeks, or even months. The end result may be the same as day trading penny stocks. But there’s something to be said about stocks that are sustainable in their price moves. In light of this, let’s take a look at a few penny stocks that made big moves throughout the month of June 2020.
China Pharma Holdings
(NYSEAMERICAN: CPHI)
Market Cap: $30.50 Million
Month-To-Date %: 72
As far as June goes, China Pharma Holdings (CPHI Stock Report) had one of its best months since the start of the year. CPHI stock was a big winner earlier in 2020. Shares kicked the year off at $0.24 and ended up running as high as $1.40 by the beginning of March. Then the penny stock came crashing back down. The crazy part is that the company didn’t put out much news at all. It was more speculation and hype than anything else at all.
In March, China Pharma eventually announced a new product: wash-free sanitizer. While this wasn’t a groundbreaking development in the grand scheme of things, the market took it in stride. The company has a specialty pharmaceuticals subsidiary based in China. Earlier this year China Pharma announced that its subsidiary launched mask product lines.
“The global outbreak of COVID-19 has led to a surge in demand for protective equipment such as masks. In this circumstance, we take the time to launch mask production lines, adhering to our corporate mission of providing basic medical protection measures to the general public, and fulfilling our social responsibility with practical actions,” said China Pharma’s CEO Li Zhilin in the April press release.
The most recent surge in COVID cases could be something to take under consideration. Furthermore, the fact that cities are enacting mask rules could mean higher demand for masks. In this case, CPHI stock could have benefited from recent headlines. The biggest question now, can CPHI continue this move heading into the third quarter?
Foresight Autonomous Holdings
(NASDAQ: FRSX)
Market Cap: $80.65 Million
Month-To-Date %: 84
Foresight Autonomous Holdings (FRSX Stock Report) has climbed as much as 124% and is currently up over 80% month-to-date. The Israeli company has started developing a mass screening solution for the detection of COVID-19 symptoms. This is based on visible-light and thermal cameras. In addition, Foresight said it has submitted a patent application to the U.S. Patent and Trademark Office for a system and method for detection of people infected with the COVID-19 virus.
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Our extensive experience with thermal imaging and AI can be invaluable when applied to a detection solution for early symptoms of the coronavirus. Several prospective customers have already expressed interest in evaluating our unique technology”, said Haim Siboni, CEO of Foresight, in a press release from earlier this month.
This helped trigger a move to those $1.95 highs this month. However, FRSX ended up doing a discounted share offering for $6.4 million at a price of $1 per share. As a result, the market pulled back briefly, but since then has been on the rise. This week, the company regained compliance with the Nasdaq minimum bid price requirement and further announced a new VP of Strategic Partnerships In North America and Europe.
Alain Charlois will be responsible for developing new business opportunities and identifying potential strategic partners in the Advanced Driver Assistance Systems and autonomous driving markets in North America and Europe. “I believe a lot more could be done with advanced computer vision and ADAS technologies to enhance drivers’, pedestrians’ and cyclists’ safety” said Mr. Charlois. Overall, shares of FRSX stock have been in an uptrend since the middle of March & are up227% month-to-date.
SiNtx Technologies
(NASDAQ: SINT)
Market Cap: $26.29 Million
Month-To-Date %: 227
SiNtx Technologies Inc. (SINT Stock Report) has been on a steady incline ever since late March. As I discussed above, penny stocks can experience consistent moves. From March 19th to June 19th, SINT stock managed to make a steady move of 193%. That was a formidable move in just 3 months. However, June saw some of the biggest jumps SINT stock has seen in almost a year. The penny stock jumped to highs of $3.13 at the start of this week. We talked about the potential of the company over the weekend.
Specifically, we discussed what analysts think about SiNtx. According to the most recent info, the average analyst ratings put the penny stock at a “Moderate Buy“. Now, what do we already know about the stock market today? Coronavirus headlines are flooding the newsfeed right now. SiNtx focuses on silicon nitride and its applications. Specifically, silicon nitride and how it can be applied medically.
On June 20th, SINTX reported a coronavirus-related update. The company announced that in a controlled laboratory study, the SARS-CoV-2 virus was inactivated when exposed to SINTX’s sintered silicon nitride powder. This week the company announced the publication of study results from its silicon nitride. Specifically, the company reported positive testing results that showed anti-viral properties that could reduce the spread of COVID-19. Thanks to these developments, SINT stock is seeing another round of positive sentiment. Will that help continue the trend into next month? Leave us a comment below.
