One of the most important things that all investors know is that there is always the possibility of making hefty returns when it comes to penny stocks. Based on the definition of penny stocks, these stocks trade at less than $5 each, it is possible to buy a large number and then make profits out of even small moves.
However, penny stocks are notoriously volatile and there is not much activity at most times. This is compared to the activity that blue-chip stocks have, for instance. So, it’s necessary to choose carefully. One thing that investors who buy penny stocks should do is watch the markets closely. Look out for certain movements being made by specific stocks.
Since many penny stocks can be cyclical in nature, a keen eye is helpful in identifying potential levels of support and resistance. This could also help determine proper exit and entry point. Needless to say, if you can handle the risks, you might be cut out to handle handsome rewards as well. Here is a look at three penny stocks investors have on their watch lists.
Tech Penny Stocks To Watch #1 Cellect Biotechnology (APOP)
The first one of this list of penny stocks to watch in tech is Cellect Biotechnology (APOP Stock Report). Though it isn’t an IT style technology stock, APOP stock targets a tech of a different kind. The company focuses on stem cell technology. Based on very recent developments, shares of APOP jumped up big to kick-start the week.
Safety data from its ongoing Phase 1/2 clinical study of ApoGraft™ was reviewed by the Data and Safety Monitoring Board. The findings were enough to trigger a strong move for the stock. The Board unanimously recommended dose escalation. They also wanted to see the continuation of enrollment for the fourth and final dose cohort in the study. Shares were up as much as 119% from Friday’s closing price.
Tech Penny Stocks To Watch #2 Pixelworks
Video and pixel software and semiconductor manufacturer Pixelworks Inc. (PXLW Stock Report) also joins this list. PXLW stock has been one of the better performing penny stocks since it released its earnings earlier this month. Analysts estimated that the company was going to turn a $.02 a share loss.
However, Pixelworks actually managed to break even and that resulted in the rise in the company’s stock price. Since late July, the penny stock has gained as much as 24.5%. This move has helped Pixelworks stock remain on a number of penny stocks watch lists this month.
Tech Penny Stocks To Watch #3 TrueCar
TrueCar Inc (TRUE Stock Report), the online car shopping service, released its Q2 2019 earnings this past Friday. As with many occurrences of penny stock news, it proved to be a catalyst. This time it was actually a massive disappointment. The results failed to meet projections announced by the company previously.
On top of that, TrueCar also cut its projections for the rest of the year. It generated revenues of $88.1 million and made a $.02 a share loss due to a loss of partnerships in the quarter. The stock dropped by as much as 27% on Friday. But if you look at a penny stock chart for TRUE stock, you’ll notice that it has begun to bounce. The question now is how long will this bounce sustain itself?