Penny stocks are starting to attract more investors lately. This could have a lot to do with the increased market volatility that the broader markets are seeing. But why buy penny stocks? Well, some assume a school of thought that if you are going to go into a volatile market, why not take a small piece of your portfolio and direct it toward the highest risk/volatility class out there? Needless to say, on a daily basis, there are countless penny stocks to watch.
But how do you find the best penny stocks to buy? It takes time and patience. If you work a day job, penny stocks are hard to trade for most. That has everything to do with time dedication. Of course, there are a few very good penny stock chat rooms available. But for the most part, penny stocks move quick. Sometimes, gains can come within the blink of an eye.
So it’s important to make sure you have time to watch the markets intently. If you don’t, you’ll want to focus on broader trends like charts showing multi-day price movement and consistent increases in volume. PennyStocks.com has a lot of educational material, just do a quick search if you’re new to trading penny stocks.
Though these are basic strategies, it should be a good place to start learning the ropes. On Friday, there are a few penny stocks to watch that have seen big action already.
Top Penny Stocks On Friday #1:
Tenax Therapeutics (TENX)
Market Cap | $8.67 Million
As one of the top penny stocks to watch on Friday, Tenax Therapeutics (TENX Stock Report) has caught an early stride. This comes after announcing an update to clinical developments. Let me first say that biotech penny stocks are infamous for big breakouts on even the slightest upbeat penny stock news.
So, it isn’t out of the ordinary to see a company like Tenax making early moves right now. But more importantly, what the company released gave positive insight into its clinical trial of levosimendan.
This drug targets heart disease. Right now the company is going through a multi-center, double-blind placebo-controlled Phase 2 trial. It looks to evaluate levosimendan in those with pulmonary hypertension and heart failure. Anthony DiTonno, CEO of Tenax Therapeutics, commented, “We are pleased with the progress made over the past few months to advancing the Phase 2 trial…Given the momentum in the quarter, we now expect full enrollment and top-line data in the HELP Trial in the first quarter of 2020. “
Second Penny Stock To Watch On Friday:
FuWei Films (FFHL)
Market Cap | $471.1 Million
Another one of the top penny stocks on Friday comes from Chinese company FuWei Films (FFHL Stock Report). You wouldn’t expect the excitement to boost Chinese stocks given the current trade war climate. Needless to say, FFHL stock is off to the races on Friday. In fact, this ran out of penny stock territory overnight. On Thursday, shares of FFHL closed near lows of $1.88 and on Friday, the stock opened at $3.26 (briefly). Within minutes, shares breached the $5 mark.
This is what happens when penny stocks release news afterhours. Just because the closing bell rings at 4PM EST, doesn’t mean you stop watching the market. Those who had access to aftermarket trading on Thursday could have reacted to the companies latest announcement. FuWei reported its quarterly and 6-month results, which seems to be the spark that lit this fuse.
FuWei reported 10.7% growth in sales compared to the same quarter last year. It also saw EPS come in at $0.04 per share versus last year’s period of a $0.4 loss per share. The company’s plastic film products are widely used for food, medicine, cosmetics, and even tobacco.
Penny Stock To Watch #3:
Fannie Mae (FNMA)
Market Cap | $3.89 Billion
As one of the lower-priced penny stocks on the list, Fannie Mae (FNMA Stock Report) actually holds the largest market cap on this list of penny stocks. This company was featured in an article on Thursday discussing the recent moves that the stock has been making.
[Read More] 2 Penny Stocks To Buy Or Avoid This Month: FNMA & FMCC
This has all stemmed from anticipation of the overhaul of both Fannie Mae and Freddie Mac (FMCC Stock Report). Ever since the government took over control, both sides of “the aisle” have been in contention to give it back to private shareholder control. The “how to” portion of that discussion has been the sticking point.
As of now, the plan has been passed to the White House and the markets are anxiously awaiting the results. Fox contributor Charles Gasparino, explained in an interview that, “The devil is in the details.” With housing being a big portion of the economy, both companies control a portion of this market.
“My guess is both the treasury department and the agency that has to implement the treasury’s recommendations, they want to reduce the footprint of Fannie and Freddie to do less of this stuff because they want it to be privatized. When the government is out, they’re going to reduce the footprint and they don’t want a remake of what happened in 2008.”
Charles Gasparino, Fox Business Interview, August 2019, @CGasparino on Twitter
