Top Penny Stocks Trading Higher This Month
No matter where you stand on the topic of penny stocks, one thing remains constant. There are winners and there are losers. At the end of every sale, there’s a buyer, and for every buy, there’s someone selling shares. The obvious goal is finding yourself on the winning end of the trade.
Simple economics suggest that more sellers and fewer buyers will result in lower prices while more buyers than sellers tend to result in the opposite. So why are penny stocks so risky, you might ask. Much of that has to do with the fact that these emerging stage companies generally have lower liquidity than their higher-priced peers. There are also plenty of other things to consider when it comes to penny stocks, like how they finance business operations.
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Due to the lower liquidity, lower market value, and early stages of development, your typical banks won’t usually lend as much money as independent funds. That additional money may also carry additional costs in the form of larger discounts. You’ll hear things like “convertible notes” and “debt” which all convert into a certain amount of shares that these firms can then sell in the market to make money on their investment.
This is where dilution risk also becomes a factor. So it’s important to be aware of things like this as well. If you can account for the risks and can handle volatility, penny stocks might be something to take a look at. Deciding which penny stocks to buy is the next step. Are any of these names on your list this month?
Top Penny Stocks To Buy [or sell]: Iconix Brand
Shares Of Iconix Brand Group (ICON Stock Report) spiked during the Tuesday session. ICON stock reached premarket highs of $1.80 trading on some of its highest single-day share volume all year. There weren’t any major headlines to accompany the move. However, there was an 8-K filing that showed some interesting information.
On July 31, 2020, Iconix and its indirect wholly-owned subsidiary, Iconix Luxembourg Holdings S.à r.l. completed the previously announced sale of Umbro China, Limited. Umbro China is a wholly-owned subsidiary of Iconix Luxembourg. The sale price was for approximately $62.5 million. The Umbro China Sale included the sale of the Umbro sports brand in the People’s Republic of China, Hong Kong, Taiwan and Macau. The company said that it anticipates using the net proceeds from the Umbro China Sale to repay amounts due under its existing financing arrangements, among other things.
Some of Iconix’s notable brands are Peanuts, Mossimo, Starter, Sharper Image, and London Fog. Furthermore, its retail licensees include Wal-Mart, Target, Kohl’s, and Kmart/Sears. Given these findings, is ICON stock on the list of penny stocks to buy this week?
Top Penny Stocks To Buy [or sell]: Alterity Therapeutics
Shares of Alterity Therapeutics (ATHE Stock Report) surged on Tuesday. The company announced that new clinical and experimental pharmacology data for its lead drug candidate ATH434 was selected for presentation at the 2020 International Congress of Parkinson’s Disease and Movement Disorders and the American Neurological Association’s 2020 Annual Meeting.
Additionally, Alterity will present cardiac safety data from its Phase 1 Study of ATH434. The company said this marks the first time such information will be shared with an international group of clinicians and researchers in the field of neurological disorders. Furthermore, Alerity said the new safety data reinforce previous safety findings from the Phase 1 clinical study, “namely, that ATH434 was generally well tolerated at all doses and had an adverse event profile comparable to placebo in adult and older adult volunteers.”
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In light of these findings, ATHE stock is taking off this week. But is it one of the penny stocks to buy or avoid? This is a good question to take into consideration. The penny stock gapped up to $6.12 during premarket trading on Tuesday. Due to the massive extension in stock price, though it’s a popular penny stock, some caution may be warranted. There’s also a lower-float scenario with ATHE as well so volatility has obviously played a role as well. Where do you think it will end up by the end of the week, are new highs in-store or is ATHE set to slide?
Top Penny Stocks To Buy [or sell]: Microvision Inc.
One of the penny stocks we’ve followed for a long time, now has been Microvision Inc. (MVIS Stock Report). 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. MicroVision is the creator of PicoP® scanning technology. It’s a mini laser sensing and projected display solution. Its technology has applications in light detection, augmented reality, and even interactive projection.
When you think about risks involved with penny stocks, the ones mentioned above are continuous. Some of the more sporadic risks come during earnings time. If the company beats earnings per share and misses sales, vice versa, or gives bad/good guidance, the reaction in the market can be aggressive. This week MicroVision reports second quarter results on August 5th after the closing bell. The company said that it will also host a webcast to correspond with the release.
For the most part, speculation has played the biggest role with MVIS stock this year. Whether it was rumors or simple tech sector momentum, MVIS stock has moved with the market. 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. No matter the case, we’ll likely get the tale of the tape on the 5th. With that in mind, where do you stand on this speculative penny stock?
Top Penny Stocks To Buy [or sell]: Precipio Inc.
Shares of Precipio Inc. (PRPO Stock Report) hit scanners recently after the company reported COVID news. If you remember, last week the company announced it entered into an agreement with ADS Biotec to distribute its FDA-authorized COVID-19 serology antibody tests. These recently received Emergency Use Authorization. Distribution of the product will take place in the US as well as in other markets worldwide, according to the company.
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What’s more is that even after falling back, PRPO stock is on the move once again. This follows a mid-day update from the company on Tuesday. Precipio announced it has completed the internal validation of the FDA-approved COVID-19 serology antibody test in its CLIA laboratory. It also said that the company launched the test commercially to its pathology customer base (phase 1). Upon obtaining further approval for expanded use by FDA, phase 2 will broaden our distribution to point-of-care healthcare facilities including hospitals, medical centers, urgent care facilities and physician practices, according to Precipio.
Similar to ATHE, PRPO stock is another one of the low float penny stocks to watch. There’s less than 15 million shares outstanding which suggests the float could be even lower. This was clear last week when PRPO stock rapidly surged to highs of $8. Following this recent news headline, is the next rally brewing or are shares set to keep sliding? Comment below if PRPO has been on your list since last week.
