Penny stocks are known for their risks and rewards. August has been a wild month for all stocks, including penny stocks. The crazy swings that the market has taken trickle down to the micro-cap and small-cap markets. So it’s important to know how to navigate these waters effectively.
However, you should also keep in mind that many penny stocks don’t follow the same trend as the broader markets. You can have the price of gold plummet but see a penny stock in the sector rally.
This is one of the big reasons why so many people choose penny stocks to buy as opposed to others like Facebook or Twitter. In general, this small market niche has been relatively insulated from massive shifts within the large-cap space.
Penny stocks, unlike larger stocks, can generate big returns on small moves in price. So it’s especially interesting to watch these cheap stocks. The reason being is that if the major markets are volatile, the smaller cap markets will be that much more explosive. Keeping this in mind, here’s a list of penny stocks to watch for Thursday:
Penny Stock #1: Waitr Holdings (WTRH)
One of the top penny stocks to watch on Thursday is Waitr Holdings (WTRH Stock Report). The company focuses on food ordering and delivery through on-demand apps. Its updated “Waitr” delivery application has officially been launched. But what has helped this penny stock, even more, came from the insider buying it saw this week.
The company’s Director, Tilman Fertitta bought 1 million shares of the food ordering and delivery company’s common stock. According to a filing with the SEC, his current holdings now top 4 million shares boosting his total holdings to 4 million shares.
This came as welcome news for WTRH longs that had to weather a bad storm this summer. Aside from being in a downtrend for most of the year, a bad earnings report triggered a massive selloff for the stock. It took shares down to 52-week lows of $1.31.
However, insider buying can be looked at as a vote of confidence by corporate leadership and a million-share buy certainly didn’t hurt. Shares continued higher during aftermarket trading. Can this penny stock head higher on Thursday?
Penny Stock #2: Carbo (CRR)
This is one of the penny stocks that few have really discussed, however, the latest moves in August are worth a closer look. Similar to Waitr, Carbo (CRR Stock Report) shares dropped for most of the year and reached 52-week lows at the end of July.
However, CRR stock has been steadily making a comeback ever since. After a rough few months, the stock has now snapped back to highs of $1.90. It also continued to trade even more after the closing bell on Wednesday.
What has helped with this move is CRR stock? After missing earnings and dropping to those lows, there hasn’t been much news flow from the company, so it’s difficult to say based on that. However, since the start of the month, Carbo has also seen its fair share of insider buying going on.
Again, insider buying is typically seen as a strong vote of confidence by retail investors. Certainly, when it comes to penny stocks to buy, knowing that management is getting into the mix of a “risky investment” has its pluses. Definitely note that we didn’t see any new filings today but there was significant share volume traded and CRR stock jumped 37.7% during the day. After closing at $1.77, this will be a penny stock to watch on Thursday.
Penny Stock #3: Leju Holdings Limited (LEJU)
Compared to the other two penny stocks on this list, Leju Holdings Limited (LEJU Stock Report) doesn’t trade nearly the same daily average volume of shares. But what it lacks in share volume, it has made up for in price movement. As I said earlier, penny stocks can move big even on small volume.
It’s important to make sure that there is enough volume to buy and sell the stock, however. In the case of LEJU, that choice is yours. What I can say is that LEJU stock has firmly solidified a move of over 50% in just 5 trading days.
So what happened? It’s important to point out that there was a gap in news from June to August. The stock started its run on August 15th. This move came four days before the company released earnings and it hasn’t stopped since.
Leju had reported improved second-quarter earnings per share and revenue over its previous 2018 second quarter. The stock has consistently moved up even after reporting earnings, however, the daily trading volume has slightly declined.
As to a continuation move for this penny stock, we will have to see what happens. That will be something to watch on Thursday.