Penny stocks can make you a lot of money if you time it right. But to find the best stocks to buy, your list of penny stocks must be sound. When investing in cheap stocks like these, you’ve got to consider the risk and reward factors at play.
The fact remains that certain penny stocks to watch will simply move without any external catalyst. Others will skyrocket after a piece of penny stock news comes out. This is mostly seen from companies within the biotechnology and mining sectors recently.
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However, due to lower trading liquidity, penny stocks can take severe downturns as well. But as they say, without big risk, don’t expect big rewards. This week we’ve seen several penny stocks to watch and they’ve provided recognizable volume and price movement on Friday. Given this case, will these also be 5 penny stocks to buy next week?
Penny Stocks To Buy Or Sell #5: XR Energy Inc (XREG)
This is one of the smaller cap penny stocks to watch. You won’t find it on a list of penny stocks on Robinhood because it trades on the OTC Market. But all the same, full-service brokers will allow access to this micro-cap stock. XR Energy (XREG Stock Report) is, in my opinion, another anomaly in the market. I’ve covered a number of sub-penny stocks to watch this year and XREG stock appears to fit the build: no news, basic filings, and random occurrences of momentum.
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With XREG, you’ve really got to dive into the financials to get even a small glimpse of its business. It appears the company operates through “XR Energy of Texas, Inc.” according to its most recent disclosure. But let’s face it, no company tweets since 2014, no news that I can see since 2016, and recent filings showing about $60k in oil sales for the first 6 months of the year doesn’t put this on a scale of “strong companies” to watch in my opinion.
Also with about $300 in cash on the books, it’s hard to make a case that the company is “doing big things.” But in any case, XREG stock had its highest share volume day on Friday and hit highs of $0.0017. That’s up over 100% from its recently hit 52-week low of $0.0008.
Penny Stocks To Buy Or Sell #4: Kona Gold Solutions, Inc.(KGKG)
Another penny stock Robinhood traders won’t be able to buy anyway, Kona Gold Solutions, Inc. (KGKG Stock Report) saw a dramatic turn around on Friday. After hitting levels it hadn’t seen since late April, KGKG stock rallied from $0.0751 to $0.109; 44% in a day’s time. Was there a catalyst?
The company announced distribution through 15 new distributors in 14 states. The deal will see Kona Gold’s hemp energy drinks and CBD waters go on sale in new markets. The company is now partnered with 31 distributors and has distribution in 30 states. Chris Selinger, V.P. of Sales of Kona Gold Solutions, Inc. said, “With the opening of our South Carolina distribution center, we will have the capability and capacity to service our growing distributor network.”
Penny Stocks To Buy Or Sell #3: ESSA Pharma (EPIX)
This is the first on this list of penny stocks Robinhood traders will be able to buy or sell next week. ESSA Pharma (EPIX Stock Report) saw a similar move that KGKG stock did in that it was very quiet leading up to Friday and then EPIX stock took off. Again, a news catalyst could have been the trigger for this latest move.
ESSA announced a $36 million public offering for up to 18 million common shares. This puts the price per share at $2. EPIX stock got off and running after this news. From a close of $1.80 on Thursday to Friday’s $2.32 high, the biotech stock jumped 29% overnight. Can this same action continue into the week ahead?
Penny Stocks To Buy Or Sell #2: Aethlon Medical (AEMD)
One of the more popular penny stocks on Robinhood lately has been Aethlon Medical (AEMD Stock Report). This month the biotechnology company reported first-quarter earnings. the company missed its EPS estimates and recorded increased expenses compared to the same quarter last year. That was on August 14th and since then the market has been relatively quiet for the stock, until Friday.
This penny stock saw its highest share volume since mid-July with more than 460,000 shares traded and highs of $0.32. This is a price the stock hadn’t seen in almost exactly 1 month. Besides the earnings headlines, there hasn’t been any new news to warrant today’s momentum. Will it be a penny stock to buy next week?
Penny Stocks To Buy Or Sell #1: Wanda Sports (WSG)
This (former) penny stock IPO’d last month and managed to see highs of $6.24. That was also the all-time high. During the weeks to follow Wanda Sports (WSG Stock Report) stock tanked to lows of $3.54. However, since that time, shares of the Triathalon promotion company have started to climb. In fact, over the last 6 trading days, Wanda Sports stock moved from those lows to highs of $5.49 on Friday with increasing share volume.
Loop Capital, Morgan Stanley, Citigroup, and Deutsche Bank have all initiated coverage on the stock. All give it a “Buy” or “Overweight” rating for the penny stock. Wanda Sports is a unit of Chinese conglomerate owned by billionaire Wang Jianlin’s Dalian Wanda Group Co. The group is also the largest real estate development company and the world’s largest movie theater operator.