Penny stocks experience positive and negative trends just like any other stock. However, not every stock can bring investors insane returns like trading penny stocks can. There are too many stocks to keep an eye on, here are penny stocks to watch and some to ignore.
Penny Stock To Watch #1: Durect Corporation (DRRX)
One of the first penny stocks to watch, Durect Corporation (DRRX Stock Report) is a biotech company focused on improving health solutions. Recently, the company has made strong overall improvements. This includes entering a license agreement with Gilead (GILD) for the development of an HIV injectable product.
Over the last month, DRRX stock price has been on the rise. It has increased by over 140% going from $0.70 to $1.61. This breakout move is significant because the penny stock had been stuck in a channel throughout all of 2019.
Penny Stock To Watch #2: DRDGOLD Limited (DRD)
What list of penny stocks would be complete without a gold stock or two? DRDGOLD Limited (DRD Stock Report) is a company in the gold industry. It produces gold in South Africa and is a world leader in surface gold tailing retreatment. The company has reached highs that it has not seen since early 2017.
Furthermore, the stock is experiencing unprecedented growth much like Durect Corporation. The growth has occurred over the last 3 months with the stock price increasing 160%. The volume has also picked up over these months.
Penny Stock To Watch #3: Eldorado Gold Corporation (EGO)
Eldorado Gold Corporation (EGO Stock Report) is another gold company that is primarily focused on gold mining properties. This stock is one of the most intriguing on this list. It was trading under $5 just a month and a half ago. But, during that time, the stock price has almost doubled and is currently trading at $9.43.
The company recently announced its Q2 financial and operational reports. Eldorado’s CEO and President, George Burns, commented on it stating, “It was a steady operational quarter with production and costs on plan. Two key milestones were achieved. We completed the debt refinancing, which de-risked our balance sheet, and we had a fantastic first quarter of commercial production at Lamaque.”
Penny Stocks That Haven’t Passed The Bar
We talk about it a lot on PennyStocks.com but let’s also show the risks of penny stocks. Can you make a lot of money with penny stocks? Of course, and it’s quite evident from the 3 penny stocks to watch, listed above. But you can also lose big money just as quickly. Here are 3 penny stocks you may want to avoid or at least be cautious of at this current moment in time.
Penny Stock To Ignore #1: ECA Marcellus Trust I (ECT)
ECA Marcellus Trust I (ECT Stock Report) is an energy company that creates natural gas wells for the Energy Corporation of America. To put it simply, this stock has had a rough month. The stock has fallen over 33% in August alone and has been on a decline since March.
The company has not had any significant news for months. This includes filings, internal company growth, or any product development. With all of these compounding factors, ECA Marcellus does not look like an appealing stock.
Penny Stock To Ignore #2: RTW Retailwinds Inc. (RTW)
Women’s apparel company, RTW Retailwinds Inc. (RTW Stock Report) sells its goods under New York & & Company. This company’s stock price has been falling since August of 2018 and it is continuing to get hammered. They recently announced their 2nd quarter results and while sales increased there were still major issues making this stock unattractive.
“We were disappointed with second-quarter results in our core New York & Company brand. While our traffic and eCommerce business improved sequentially from the prior quarter, and we delivered positive increases in new customer acquisition, we continued to experience decreases in brick-and-mortar traffic as well as decreases in basket size and ongoing weakness from our SoHo Jeans sub-brand.”Gregory Scott, RTW’s CEO
Penny Stock To Ignore #3: Abeona Therapeutics Inc. (ABEO)
Abeona Therapeutics Inc. (ABEO Stock Report) is a biopharmaceutical company looking to create gene therapy products for severe rare diseases. The company’s price has been falling for almost 16 months from almost $23 all the way down to $1.86.
What makes matters worse for Abeona is that they have been trying to improve their company. Unlike ECA Marcellus Trust I, Abeona has been undergoing clinical trials for their treatments as well as releasing their financials. Their financials show increasing losses per share along with increasing costs.