penny stocks to watch

Like any normal market stock, penny stocks can set new highs over the time span of a month. The difference, however, is that those trading penny stocks could see the whole month’s move happen in a single day. Here are some of the penny stocks to watch after making new highs in May:

Healthcare Penny Stocks

Obalon Therapeutics Inc. (OBLN)

I reported on this stock earlier in May (see: One Biotechnology Penny Stock Is Up Over 100% On May 22nd; Obalon Therapeutics, Inc. (OBLN))Obalon Therapeutics Inc. (OBLN Stock Report). Even on that day, shares were up significantly higher and that move hasn’t stopped.

Obalon is a healthcare company that specializes in helping people who are overweight. To do this, the company created a one-of-a-kind swallowable gas-filled balloon that treats obesity.

OBLN Stock Chart

Obalon recently had an offering that resulted in the sale of 5 million shares of common stock. The offering was valued at $3 million, $.60 per share. Due to this news, this healthcare penny stock has seen multiple large jumps over the last week.

The stock had a jump on May 29th the penny stock jumped 91% from $0.77 to $1.47. In addition, on May 30th the stock price reached a new high of the month at $1.92, growing an additional 60%

Outlook Therapeutics Inc. (OTLK)

Another penny stock that I’ve watched this month has been Outlook Therapeutics Inc. (OTLK Stock Report). I initially discussed it in my article as a stock to watch based on its recent milestones (see: Are These The 2 Best Penny Stocks To Watch On Robinhood?). Outlook is a biopharmaceutical company in late clinical stages of getting their monoclonal antibody approved for sale. The company’s drug would provide treatment for macular degeneration, diabetic macular edema, and other diseases. In May the biotech penny stock had fallen down to $0.85 but rallied from May 15th to May 20th to put in a new high of $3.35.

OTLK Stock Chart

The strong push came thanks to Outlook’s Q1 financials and future business plans. They had a $28.4 million public offering, their ONS drug entered Phase 3 of its clinical trial, and the FDA accepted ONS’ IND application.

“The financing we secured in the equity offering announced in April has provided us with the capital needed to complete enrollment in our two Phase 3 clinical trials. This was an important step in our strategy and to maintain the positive momentum behind our clinical development program for ONS-5010,” stated Lawrence A. Kenyon, CEO, CFO, and President of Outlook. 

Technology Penny Stocks

Eltek Ltd. Manufactures (ELTK)

Eltek Ltd. Manufactures (ELTK Stock Report) is a technology company that specializes in producing electronic products such as advanced circuitry solutions. At the beginning of May 2019, Eltek’s share price stuck below a $1.50 but the release of their financials bolstered the stock at the end of the month. The stock grew from $1.50 to $11.29 in the second half of May. So for those looking at this stock and saying “it isn’t a penny stock,” at this price, you’re right. But just days ago, that was actually the case. 

Eltek reported their gross profits increased to $1,539,000 in 2019 while it was only $444,000 in Q1 of 2018. Additionally, they turned a net loss of $670,000 to a net profit of $242,000. These financials both support the current move and could lead to future one’s if investors stay confident.

ELTK Stock Chart

“We are glad that this quarter’s results reflect the implementation of the first stage of our turnaround plan, which we started during the last quarter of 2018. We continue in our efforts to further increase operating efficiencies, to improve customer satisfaction, to formulate a more effective sales strategy and continue implementing our plan to reach sustained profitability,” explained Eli Yaffe, CEO of Eltek.

ADDvantage Technologies Group Inc. (AEY)

ADDvantage Technologies Group Inc. (AEY Stock Report) is another technology company that focuses on selling hardware for TV’s and phones internationally. This company’s stock was very similar to Eltek’s in that it remained under $1.30 until it caught a little momentum on May 14th. The real move that established this month’s high came on May 30th however.

AEY Stock Chart

ADDvantage announced that 99% of their shareholders approved the sale of their cable TV company, Leveling 8 Inc. The sale will bring ADDvantage $10.3 million over the next 5 years.  As a result, the company’s stock shot up from $1.30 to $1.98 establishing an affirmative monthly high.

AgEagle Aerial Systems Inc. (UAVS)

AgEagle Aerial Systems Inc. (UAVS Stock Report) creates and sells analysis technologies to advance agricultural practices and yields. This tech penny stock traded very well on 2 separate occasions during May. The trading session on the 30th brought the highest single-day volume along with another price high. The penny stock traded from $0.31 to $0.54 on news of a new technology provided by AgEagle.

UAVS Stock Chart

The new product is called HempOverView. It is meant to make hemp farming in the US more efficient as the industry grows.

“While this exciting new industry is likely to yield greater tax revenues for states – particularly given increasing demand for high-quality hemp used in production of CBD products, state regulators will also have to contend with complex challenges and emerging issues that come with regulating a new industry. Growers need to be licensed, crops need to be monitored and inspected, and enforcement operations must be established to ensure compliance with anticipated new state and federal mandates.”

Barrett Mooney, CEO of AgEagle
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