Penny stocks can flip on a dime (coin joke intentional). Based on this simple fact, investors trading penny stocks can make a lot of money. Most people will buy penny stocks during periods of high volume and following positive news. However, some investors will put money in a non-active stock. Why? They hope it has a significant spike on future penny stock news. Traders on May 21st saw both situations occur across three different sectors.
Consumer Penny Stocks – Big News
Stein Mart Inc. (SMRT Stock Report) is a retail company that sells clothes from popular brand names to up-and-coming designers. The company opened at $0.96 and climbed to the day’s high of $1.44.
This consumer penny stock saw a 50% increase after recently releasing news. Stein Mart announced it is installing Amazon Hub Lockers in 200 of its stores.
“We are thrilled to offer this innovative delivery experience to Amazon customers while introducing new shoppers to Stein Mart. Customer service and convenience are top priorities at Stein Mart, and the ability to give both to Amazon customers was a big factor in our decision to introduce this program.”Hunt Hawkins, Stein Mart’s Chief Executive Officer.
Biotechnology Penny Stocks – More Big News
Sesen Bio Inc. (SESN Stock Report), a biotech company, creates and sells targeted fusion protein therapeutics to treat cancer. On May 21, Sesen announced the acceptance of an analytical comparability plan from the FDA. The announcement supports the selling of the company’s main product, Vicinim ®. After the statement, the biotech penny stock saw strong premarket action and ended up having a 33% increase in price.
Dr. Thomas Cannell, President and CEO of Sesen Bio, stated “Gaining FDA agreement with our proposed Analytical Comparability Plan was the primary objective for yesterday’s meeting with the FDA. This is a very positive outcome and brings us one step closer to regulatory approval of Vicinium, and our ability to help save and improve the lives of patients.”
Blockchain Penny Stocks – Quiet Stock Making Noise
Xalles Holdings Inc. (XALL Stock Report), a business and government consulting service, helps design options for clients to maximize their financials. Xalles has a platform called X2X, which could make the company a blockchain penny stock as well. The company’s stock price grew by over 195%. This took place over the last 6 trading days with a move from $0.0056 to $0.016.
Its an announcement lining up the company’s plans for the remainder of 2019 helped act as a catalyst. The plans laid out new developments for 8 of its subsidiaries.
“We have a unique business model in place for the Fintech industry and we are excited to be able to make future announcements about our existing subsidiaries and new companies that we are working to acquire and bring into the current corporate structure.”Thomas Nash, CEO of Xalles Holdings