These Penny Stocks Are Moving Higher Right Now
Penny stocks are typically considered of momentum stocks by day traders. Looking for the right ones to buy or avoid comes down to your style of trading. If you’re a day trader or scalper, you’re probably holding shares for less than a few days; even a few hours. If you’re investing in penny stocks, then you’ve got your sites set on holding shares for more than just a few days.
Depending on that time frame, you’ll have a better idea of how to utilize the momentum in front of you. If it’s overly aggressive and the stock is parabolic – meaning it’s spiking higher quickly – a longer-term strategy might not be best suited. On the other hand, if the trading activity, price movement, and volume are relatively slow, steady, and consistent, then a short-term strategy might not be the best for that particular trade.
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Outside of that, you’ve also got to take into consideration what’s triggering the momentum. Are there news events, corporate filings, rumors, industry-related updates, or is it something else? There could also be analysts getting behind the stock in question. In that case, they’ll issue certain ratings like “Buy”, “Sell”, and “Hold”. If you were in the analysts’ shoes, how would you rate these trending penny stocks?
Penny Stocks To Buy [or sell]: MannKind Corporation
MannKind Corporation (MNKD Stock Report) is one of the penny stocks that’s been off and on different lists over the years. MannKind’s currently commercializing Afrezza® Inhalation Powder. It’s the company’s first FDA-approved product and the only inhaled ultra rapid-acting mealtime insulin in the United States, where it is available by prescription from pharmacies nationwide.
The sporadic nature of MNKD stock especially earlier this year made it attractive to short-term traders. While things have remained volatile, the general trend from May up to present shows the chart holding more of an up-trend alongside the 50-day moving average. From a technical perspective, while shares have consolidated about 20%, MNKD stock is up roughly 68% since mid-May.
August hasn’t been one of the most active months for news from the company. Early on, MannKind reported second-quarter results. Total revenues were $15.1 million for the second quarter of 2020, reflecting Afrezza net revenue of $7.0 million and collaboration and services revenue of $8.1 million. Afrezza net revenue increased by 15% compared to $6.1 million in the second quarter of 2019. Collaboration and services revenue for the second quarter of 2020 decreased $0.8 million compared to the second quarter of 2019.
This week, shares are spiking again with MNKD stock reaching highs of $2.12. Chief Commercial Officer, Alejandro Galindo, recently joined MannKind. This week a FORM 3 came out coinciding with both his onboarding and recent trading momentum. Will this trend continue?
Penny Stocks To Buy [or sell]: Ra Medical Systems Inc.
Ra Medical Systems Inc. (RMED Stock Report) hasn’t been a top performer for most of the year. However, at the start of the month, RMED stock began catching some attention and the volume shows this. On July 31, the penny stock dropped to new 52-week lows of $0.276. Since then, it has been on a slow, yet steady climb back. So far, month-to-date, RMED stock is up 22%.
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What triggered momentum earlier in the month? As you’ll see there wasn’t much news. However, in a string of Form-4 Filings, the company reported that management members, as well as council, purchased shares of RMED stock. In total, 40,000 shares were purchased at an average price of $0.35.
Then we saw Ra miss earnings. This triggered a slide back down to around that $0.30 level. Ra missed on EPS, posting a loss per share of $0.43 compared to an estimated loss of $0.22. However, Ra managed to beat on sales ($900k vs $550k). “I’m encouraged by our progress during the second quarter and recent weeks, particularly with our engineering efforts on the various DABRA catheter initiatives. We have added substantial engineering resources this year through hiring skilled personnel and engaging experienced consultants. I am confident we have the right team in place to achieve our engineering milestones,” said Will McGuire , Ra Medical Systems CEO.
Ra Medical commercializes excimer lasers as tools for the treatment of vascular and dermatological diseases. Something that the company has worked on this year is advancing its atherectomy indication trial and engineering efforts. While shares spiked on Wednesday with above-average volume, there weren’t any new updates or filings. The most recent filing was the company’s proxy for its October shareholder meeting.
Penny Stocks To Buy [or sell]: Evofem Biosciences
Compared to MNKD and RMED, Evofem Biosciences (EVFM Stock Report) has been much more consistent in its uptrend recently. Sure it had a rough first few quarters. But in Q3, so far, the stock chart has been relatively sideways up until the last week. Initially, EVFM stock dropped in early-June the company announced a $100 million offering, which equated to 28.5 million shares set for issuance at around $3.50.
Considering EVFM stock was trading around $5 just a day earlier, you can clearly see how the market took a discounted offering. The stock eventually dropped to lows of $2.73 later in the month and has traded in a channel between $2.80 and $3.40 since then. However, and this is a big “however,” EVFM stock has now gone, relatively unencumbered for the last 5 consecutive sessions. The penny stock has made higher highs and higher lows every day as well, during that period. Is this a bullish sign for EVFM?
It’s hard to gauge right now. There haven’t been any new updates since Q2 earnings were posted. But one of the main focuses of the company has been on its pregnancy prevention product, Phexxi. Something to note as potential speculation is what CEO Saundra Pelletier said. “We are now intensely focused on the successful commercial launch of Phexxi in September and ensuring the team’s ongoing excellence in execution with manufacturing timelines, payer coverage, sales force recruitment and the build-out of our unique telemedicine platform — the Phexxi Concierge Experience. It’s going to be an exciting third quarter.”
