Are These On Your List Of Penny Stocks This Month?
Have you been searching for different names to add to your list of penny stocks this month? I can understand your uncertainty. There’ve been so many of these stocks under $5 that look good on paper but simply break down too quickly. If you’re like many new traders, looking at premarket penny stocks can be a curse and a blessing.
First, stocks trending during premarket tend to have “something going on”. Yesterday we talked about penny stocks with unusual volume and discussed how irregularities can give a “heads up” that “someone” is looking at “something”. Is that always the case, no but typically, unusual activity generally stems from some type of catalyst.
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Next, when it comes to premarket penny stocks, you also have to consider other factors. Sure, the stock might be moving higher but how high is it above “yesterday’s” price? I’m talking about penny stocks gapping up. When shares close at 1 price and open considerably higher or lower the next morning, this is called a gap. It’s great for traders who owned shares prior but can be dangerous for those getting hyped up on the day of the gap.
Trading Penny Stocks Premarket
The main reason being, gaps tend to result in 1 of 2 scenarios. You usually either see a “gap and trap” or a “gap and go” with both scenarios having consequences. A gap and trap refers to penny stocks gapping up, traders get hyped up, there’s FOMO building up, they buy the penny stocks, only to see the market open and sellers step in strongly.
Congratulations, your FOMO just created a bag holder. The gap and go on the other hand is the ideal scenario. This is when traders buy penny stocks around the gap price and instead of sellers stepping in, there is more buying activity than selling. This typically happens with thinly traded, low float penny stocks.
As you know, high volatility can produce big swings. So if you’re in a “gap and go” scenario, understand that as quickly as a stock breaks out, it can break down as well. With this in mind, let’s take a look at a few active penny stocks at the end of the week. Will they be on your list of penny stocks to buy or ignore?
Penny Stocks To Watch: Color Star Technology Co. Ltd.
Color Star Technology Co. Ltd. (HHT Stock Report) has been on our list of penny stocks to watch for a few days now. Ever since there was another big surge in coronavirus cases in the U.S. virtual learning & entertainment stocks have received more attention. We first discussed it on Monday as we started seeing higher searches for stocks in this space.
The company offers online and offline education services. Last week, Color Star announced a Framework Agreement with Moremoon Cartoon Cultural Diffusion (Shenzhen) Co., Ltd. Among several initiatives, the company looks to offer multiple varieties of products on its “Color World” Platform. But the platform, as you’ll see, was designed for more than just e-learning. On Wednesday, Color Star announced that it plans on hosting the “Color World” online concert on September 9th, 2020. The “live events” arena has dramatically changed thanks to COVID-19.
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On July 17, Color China Entertainment Limited its wholly-owned subsidiary, entered into a cooperation agreement with Shenzhen Yuren Production Culture Media Co., Ltd. Music producers Nianhe Li and Peirong Qiu, and music instructor Muheng Shen will each serve as a “Star Teacher” on Color World. With the online star teaching model, Color Star plans to offer live music courses. HHT stock has surged along with other EdTech penny stocks this week. One of the big questions I have is whether or not this is just a fad or is an actual trend emerging?
Penny Stocks To Watch: Foresight Autonomous Holdings Ltd.
Foresight Autonomous Holdings Ltd. (FRSX Stock Report) has been one of the penny stocks to watch for a few months now. Ever since March, FRSX stock has been on an aggressive bullish move. But things started really heating up in June.
That was when the company announced that it started developing a mass screening solution for detecting COVID-19 symptoms. It’s based on visible-light and thermal cameras. The company also submitted a patent application to the U.S. Patent and Trademark Office for a system and method for the detection of people infected with the COVID-19 virus.
The day of that update, FRSX stock popped and dropped. It saw a high of $1.95 but sunk to a low of $1.03. Since then, shares have jumped back up to over $1.50. Friday, Foresight came out with another update to its COVID progress. The company announced that it will begin a pilot project for its prototype COVID-19 symptom detection mass screening solution. The technology will be evaluated for several months by Meuhedet, one of Israel’s largest health maintenance organizations.
“This first pilot project with a leading Israeli HMO validates the need for Foresight’s new screening solution in high-traffic areas such as health clinics. Based on the large number of Mehuedet clinics throughout Israel , a successful pilot project may lead to further evaluation and future commercial orders.”
Haim Siboni, CEO of Foresight
Penny Stocks To Watch: MicroVision Inc.
Shares of MicroVision Inc. (MVIS Stock Report) was a top penny stock to watch this year. We first starting covering this company back in mid-April. MVIS stock traded around $0.25. The penny stock has rallied to levels not seen since 2017, this week. During premarket trading on July 17th, MVIS broke above $2.70 for the first time since October of that year.
The “unusual thing” here is that there hasn’t been much coming from the company. There’s been a lot of hype and speculation floating around. But to date, none of them have been confirmed. The company hasn’t even tweeted anything since late June. MicroVision is the creator of PicoP® scanning technology. It’s a mini laser sensing and projected display solution.
With M&A heating up, some had speculated that MVIS could follow a similar trend. But so far, nothing has been solidified from what we can see. Its technology can be used in products for interactive projection, consumer light detection and ranging (LiDAR), automotive LiDAR, and augmented and mixed reality. As tech stocks continue to be a big market focus, how will this translate to MicroVision stock?
