Will These Be The Best Penny Stocks To Add To Your Watch List Before Next Month?
Some of the best penny stocks to buy this year have actually been priced much higher than $0.01. However, since the definition of penny stocks according to the SEC is anything trading below $5, I think we’re safe. Regardless, people will say what they want about how risky penny stocks are.
But then again you have “blue chip” stocks like Beyond Meat (BYND), Uber (UBER), and even Haliburton (HAL) getting crushed this year after hitting 52-week highs. The fact of the matter is, there’s a risk with any investment. What makes penny stocks riskier is the low price. Where a $50 drop in something like BYND is a big drop, it’s not more than 35% at the current price.
Comparatively speaking, a drop of just $0.50 can mean a drop of 50% or more with penny stocks. Now that you understand the basics of risk, let’s talk about reward. Where a $0.50 jump for many penny stocks could mean a gain of 100% or more, that same increase for something like BYND is relatively meaningless.
Herein lies the appeal when it comes to finding penny stocks to buy. Though these breakouts can come within a few hours, other penny stocks go on multi-day and even multi-month bull moves. This month, there are several stocks that have continued higher for more than just a day.
Top Penny Stocks To Buy or Sell #5: Guardion Health Sciences, Inc. (GHSI)
The healthcare sector is huge and novel treatments or new drug developments can pose real potential for companies. With the case of Guardion Health Sciences (GHSI Stock Report), the penny stock has been reeling after announcing its latest development on new technology. Guardion focuses on ocular health and develops/distributes condition-specific medical foods. The company also has a subsidiary called VectorVision ® that focuses on contrast and glare sensitivity.
This is where Guardion seems to have started catching more attention. The company’s VectorVision CSV-2000 contract sensitivity test will be introduced at Vision Expo West this week. Compared to some of the more parabolic breakouts, GHSI stock has been in a more consistent uptrend over the last few weeks. Since September 10, shares are up by 48% after hitting highs this week of $0.37.
Top Penny Stocks To Buy Or Sell #4: Denbury Resources Inc. (DNR)
The next company on this list of penny stocks is Denbury Resources (DNR Stock Report). This is a familiar company that has been discussed over the last few months. Mainly, the surge in energy stocks has helped boost attention on DNR stock.
Thanks to some events in oil and gas over the weekend, most sector stocks are in rally mode. Furthermore, this speaks to the point discussed in several articles that even though a company may not report news, sector events can act as a catalyst for bullish momentum.
Denbury itself if an oil and natural gas company. It focuses in the Gulf Coast and in the Rocky Mountain region. Compared to some of its competitors, Denbury is working to stand out with a different type of practice. The company is pushing its CO2 enhanced oil recovery methods to differentiate it from other companies. Thanks to sector momentum, DNR stock is up by more than 80% since the beginning of August.
Top Penny Stocks To Buy Or Sell #3: Clean Energy Fuels (CLNE)
Another energy penny stock being watched this month has been Clean Energy Fuels (CLNE Stock Report). There are a few things going on with the company at this point. CLNE stock gained attention last week after its co-founder and oil & gas godfather, T. Boone Pickens passed away. The self-made oil tycoon and energy entrepreneur was honored by Clean Energy management for his role in bringing cleaner domestic natural gas to the transportation market.
Since the beginning of September, shares of CLNE stock have consistently climbed from $1.99 to highs of $2.40 during premarket trading on September 16. Similar to DNR, Clean Gas is benefiting from the rally that the oil and gas sector is seeing at the start of the week. Will it continue to be one of the penny stocks to buy before October?
Top Penny Stocks To Buy Or Sell #2: Basic Energy Services (BAS)
Yet again we see the fuel of oil and gas exciting traders. Basic Energy Services (BAS Stock Report) has seen a quiet and consistent climb for most of the month so far. At the beginning of September, shares of BAS stock traded around $1.29. This week BAS has already reached highs of $2.25.
Late last week the company announced that its President and CEO, T.M. Patterson would be “transitioning away from the company.” Furthermore, the company’s Charman of the Board, Timothy Day will also be stepping down. He will, however remain on as a director of the company.
This week a formal 8K filing confirmed the news from last week. As severance, he’ll get a nice check cut to him for $1.442 million before taxes.
Top Penny Stocks To Buy Or Sell #1: ElectroCore (ECOR)
The last company on this penny stocks watch list is ElectroCore (ECOR Stock Report). This is one of the more interesting companies on the list. Not only has it had little news lately but the chart has held a consistent uptrend since the end of August. What’s more interesting is that ECOR stock has closed green for 13 consecutive trading days. Forgive me if I’m a little skeptical but worth me taking a closer look all the same.
What does ElectroCore do? The company is a bioelectronics medicine company. ElectroCore focuses on stimulating different nerves to treat different type of ailments. What we can see is that the company reported earnings in August and showed a 52% increase in net sales as well as a jump in total months of paid therapy.
“As previously disclosed, beginning with the third quarter of 2019, the Company anticipates that its average quarterly cash burn will be less than $7 million at least through 2020.”
What’s important to note is that the company has put a registration statement in place where it can raise up to $50 million. Even though they say they aren’t expecting the cash burn to increase beyond $7 million per quarter, this isn’t a small sum to raise; even if it’s “up to” that amount. In any event, it has been a penny stock on the move for September. Can it continue higher?