Penny Stocks Have Tendencies To Skyrocket But They Can Return Those Gains Just As Quickly. Will These Be Penny Stocks to Buy Or Avoid This Month?
The big advantage of investing in penny stocks is the fact that there is always the possibility of making handsome profits. One of the most attractive things about penny stocks is that they trade below $5.
That may not seem attractive on the surface. But because of this low price, it allows investors to buy penny stocks in large amounts. Hence, if there is even a small surge, there is the possibility of making a significant return. That being said, it doesn’t always work out that way.
Therefore, it’s necessary to keep an eye on the market. Here is a look at four penny stocks that made big moves. But will they remain penny stocks to buy this month?
Penny Stock #3: T2 Biosciences (TTOO)
Shares of T2 Biosciences (TTOO Stock Report) took off this week. The biotech penny stock has been climbing consistently since the start of August. A few things are in play with this company. First, T2 announced that it was awarded a breakthrough technology contract with Premier. Members of Premier will be granted special pricing and have access to T2’s T2Bacteria Panel and T2Candida Panel.
Next, analysts at Janney boosted its price target on the company from $1 to $2. Despite this being the case, the analysts still left its rating at Neutral. Will this be enough to keep the momentum going for TTOO stock this month? So far shares have jumped from lows of $1.35 on Tuesday to highs of $2.15 during Wednesday’s premarket session.
Penny Stock #2: Francesca’s Holdings Corporation (FRAN)
Francesca’s Holdings Corporation (FRAN Stock Report) is a specialty retail company selling consumers items like clothing and jewelry. The company recently announced its Q2 financials and since then the company’s stock is booming. The stock is up over 100% from September 9th’s close jumping from penny stock prices to $13.40 during premarket trading on Wednesday. In addition, the stock has brought in an over 1,158% volume increase from its average volume.
Michael Prendergast, Interim CEO of Francesca’s, stated, “We are very pleased to see significant improvement in our comparable sales for the second quarter. After a long period of double-digit comp sales declines, we achieved considerable sequential improvement in our comp sales in each month within the quarter. Gross margin was impacted by aggressive markdowns on poor performing legacy products that we accelerated within the quarter. “
Penny Stocks To Watch #1 Chesapeake Energy Corporation
The other penny stock that enjoyed an impressive rally this week was Chesapeake Energy Corporation (CHK Stock Report). Although there was no company-specific news that could have resulted in the 20% rise in the stock price, there were other developments that could have resulted in the rally.
The OPEC has stated that it is going to keep rationing oil supply in order to control the stock price and that can only be a good thing for a company like Chesapeake. Furthermore, SunTrust affirmed its rating at hold and set a price target of $2.