The markets are in turmoil but that hasn’t hurt penny stocks to buy one bit. In fact, while investors weigh the opportunity costs of staying in cash or investing in safe-haven stocks, others are focusing attention on small-cap stocks.
Needless to say, people are making money with penny stocks and the summer has been proof of that. Case in point, we’ve continued to see stocks trading below $5 soar to highs of $10 or more within the last few weeks.
How do you buy penny stocks? It’s simpler than you might think. With penny stocks being one of the riskiest investment choices you could make, a good broker is a must. Make sure that they allow you to buy penny stocks easily.
Also, check the fees associated. Some free applications like Robinhood allow you to buy penny stocks without fees. The downside is that you’re limited to penny stocks listed on the NYSE and NASDAQ; no OTC stocks for you.
Needless to say, I took a look at some of the most active penny stocks today. I’m not an advisor so there’s nothing I’m suggesting you do or don’t do with the stocks on this list. But we’ll take a quick look at some of these most active penny stocks this week and then you can decide for yourself:
Penny Stocks To Buy (or wait) #10: FitBit (FIT)
This has been one of the most popular penny stocks on Robinhood for months. Unfortunately, Fitbit (FIT Stock Report) has also been one of the most beaten-down penny stocks of the year. FIT stock started 2019 off at $4.87 and ran to highs of $6.96 by the end of February. Unfortunately, that was the last time this penny stock saw a meaningful rally.
On August 28, FIT stock hit new 52-week lows of $2.81 early in the morning but promptly rallied back to close near its high of day at $3.02. The company launched its fitness subscription business this week and wants to charge $10 a month for extra info on health.
Penny Stocks To Buy (or wait) #9: J.C. Penny (JCP)
We’re going to get the “former big dogs” out in the open early. J.C. Penny (JCP Stock Report) has also had a rough go of it in 2019. The once high-standing retailer has been cut down to mere pennies this summer. Much of the disappointment stemmed from the companies ongoing struggles to achieve growth. Even though there were some high points on the earnings report, the debt burden is a big concern for most.
On Wednesday, shares of the retailer took off. After hitting lows of $0.569, JCP stock jumped to highs of $0.6488 during regular hours. It continued higher after-hours to new highs of $0.70 within the hour after the closing bell. Reports of recent insider buying has also sparked interest in this penny stock this month as well. Does that make it one of the penny stocks to buy now or wait on?
Penny Stocks To Buy (or wait) #8: Nabriva Therapeutics (NBRV)
Biotechnology penny stock Nabriva Therapeutics (NBRV Stock Report) saw a drastic rebound on August 28. Though the stock didn’t hit new 52 week lows, it certainly came close to touching 2019 within 20 cents. But after being slammed for most of August, NBRV stock rallied after penny stock news hit the wires early on.
Nabriva announced that its CEO will give a company overview and update at the Morgan Stanley Global Healthcare Conference next month. The conference itself is one of the biggest in the industry, so Nabriva will be put in front of the masses. The company is still capturing attention following the recent approval from the FDA for its pneumonia treatment, Xenleta.
Penny Stocks To Buy (or wait) #7: Digital Ally (DGLY)
This has been one of the penny stocks to watch this week. Digital Ally (DGLY Stock Report) saw an initial spark in trading on August 27 following the release of favorable news. The company announced that it will be expanding its patent portfolio to include a patent allowing for “a device and software to interface with breath analysis devices and the Company’s digital video recording devices to capture meta-data for law enforcement officers when conducting traffic stops, specifically field sobriety tests.”
“We are very excited to continue to expand our patent portfolio to include the ‘732 Patent and to build on our patented VuLink technology. Along with the release of EVO-HD, our newest in-car video system, the ‘732 Patent solidifies our foothold in the law enforcement industry for many years to come.”Stan Ross, CEO of Digital Ally
Penny Stocks To Buy (or wait) #6: Community Health Systems (CYH)
The volatility in the market has helped the popularity of penny stocks lately. Now that people are used to volatility, it makes sense. Community Health Systems (CYH Stock Report) has been another beaten-down penny stock this year until August 28. After hitting new 52 week lows on the 27th, shares rallied big the next day. But there wasn’t any news so what happened?
A deeper dive into the world of Google produced an article discussing Community Health Systems. Specifically, it discussed how Quorum and CHS could be getting closer to resolving certain lawsuits related to the spinoff of Community Health from Quorum. “In the class action complaint, originally filed in 2016, shareholders argued CHS and Quorum overestimated Quorum’s future financial performance and underestimated its operating costs, which led to inaccurate financial guidance before the spin-off.”
Penny Stocks To Buy (or wait) #5: Chico’s Fashion (CHS)
Another apparel penny stock, Chico’s Fashion (CHS Stock Report) also took off after previously hitting 52-week lows on August 27. The company reported its second-quarter earnings on the 28th, which triggered an about-face in CHS stock. The retailer reported Q2 same-store sales at its Soma lingerie brand that topped expectations. This was, in part, a catalyst for the market.
Will it continue to be a penny stock to buy this month or will it fade before September? The company, whose portfolio includes its namesake as well as White House|Black Market and Soma, expects a sales decline for Q3.
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“We are seeing evidence of progress within our business and reported second-quarter results in line with our expectations. This performance was driven by sequential improvement at Chico’s and continued strong comparable sales growth at Soma of 10.9% in the second quarter. At White House Black Market, the changes we made in product, marketing, and in-store presentation are driving improved sales trends in August compared to our second-quarter results. We expect these improvements to continue benefiting the brand throughout the fall and holiday seasons,” said Bonnie Brooks, CEO, and President.
Penny Stocks To Buy (or wait) #4: Vical (VICL)
This has been one of the top penny stocks to watch this quarter. Ever since hitting 52-week lows of $0.6611 on July 24, Vical (VICL Stock Report) has been steadily increasing. VICL stock hit new highs of $0.93 on August 28 after seeing its highest volume day in 2 months.
Though there was no news published on August 28, momentum seems to be building after amended SCHEDULE 14A statements were filed. These were in relation to the proposed merger between Vical and Brickell Biotech, Inc. Needless to say, VICL stock rallied on the 28th in light of recent events. It has also continued an uptrend throughout the month of August. Does it make it a penny stock to buy? You decide for yourself.
Penny Stocks To Buy (or wait) #3: MDJM Ltd (MDJH)
This is one of the penny stocks that has been relatively quiet and under the radar in 2019. Shares of MDJM Ltd (MDJH Stock Report), honestly, don’t really trade. That changed on August 28. A little background before we get to the meat and potatoes of this stock. MDJM is a real estate services company in China.
This move seems to have been triggered by news from the company. MDJM inked a deal with Taida Zincheng Real Estate Co. The interesting part about Taida is that it plans to develop 359 units encompassing over 45k square meters in total. MDJM will act as the sole real estate services agency for the project. Can this news spark a longer-term rally with this stock?
Penny Stocks To Buy (or wait) #2: Intec Pharma (NTEC)
If you weren’t watching this penny stock today, you missed out on the biggest trading day this company has seen. Intec Pharma (NTEC Stock Report) traded more than 19 million shares and saw highs of $0.82. That’s a move of more than 70% from the start of the week. Why did NTEC stock jump today?
Insider buying appears to be part of the catalyst. Company Chairman Kozarich apparently purchased 100k share of stock at an average price of $0.459. This was revealed in a file posted Tuesday. As we’ve discussed in the past, insider trades can have a direct impact on market sentiment.
Just how much of an impact is up in the air. But apparently 100,000 shares of insider buying triggered a big price and volume breakout. Will it hold the trend to become a penny stock to buy later this week?
Penny Stocks To Buy (or wait) #1: Express (EXPR)
All of these premarket reports will show shares of Express (EXPR Stock Report) “sliding”. But take a look at any stock chart and you’ll see that the stock closed right near its high of the day. This was up 42% from its premarket lows. So what happened?
It’s true that Express came in with shoddy Q2 earnings. You name it, the financials weren’t great. Second-quarter comp sales were down 6%. Outlet sales were also down 2%, for total net sales down 4% to $472.7 million. That’s compared to the second quarter of 2018. But what may have had a positive impact on the market were comments from company CEO Tim Baxter.
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He said he’s prepping a turnaround. Baxter told investors he plans to get to “developing a corporate strategy, building the right leadership team and taking immediate action to change the trajectory” of the business. “We will take the necessary action to significantly reduce our operating expense in 2020.”