Are These 5 Companies On Your List Of Penny Stocks This Week?
Penny stocks have easily become one of the most infamous classes of stock out there. Thanks to attention from movies like the Wolf Of Wall Street and Boiler Room, these cheap stocks have gotten a bit of a bad rap. But at the same time, people continue to buy penny stocks with one goal in mind: making money. But why penny stocks?
Everyone wants a deal. Think about it. When you go to a store and see a high-end item selling for less than retail, you can’t ignore the fact you’re getting a deal. Similarly, when it comes to small-cap and micro-cap stocks, a similar thought process comes into focus.
Buying low, selling high is one thing but buying very low and selling a little bit higher is something else and here’s what I mean. If you had a chance to buy shares of Apple at $100, you’d likely jump at the opportunity. And if you had the foresight in 2016, you would be in this situation.
Right now the blue-chip stock trades above $230 a share. So that move of $130 you would immediately realize would equate to a jump of 130 %. That’s awesome, right? Well, here’s where penny stocks come into play. Let’s say you see a tech stock trading at one penny.
Penny Stocks And Timing
Instead of waiting 3 years for the stock to move up $130 a share, you likely waited just a few days to see the stock move up just a little more than $0.01; $0.013 to be exact. So instead of spending years waiting and watching, you spent hours or days for a stock to move up less than 2 pennies versus more than $100. Starting to get it?
Now, this isn’t to say that there aren’t risks involved. In the same situation, if that stock dropped by a penny or more, your investment is worthless. This is why penny stocks require constant attention and due diligence. Being able to understand things like corporate filings, news, and even chart patterns can set you apart from the average Joe trader.
You’ll also want to have a top penny stock broker to ensure that your trades are placed immediately. The slow execution time of even a few seconds can mean the difference between a winning trade compared to just simply breaking even or losing altogether. With this in mind, let’s take a look at some stocks that have made a lasting impression so far this year.
Penny Stocks To Watch #5: NF Energy Saving Corporation (BIMI)
A few things caught my attention with this penny stock toward the end of the week. First, the volume and price movement was irregular. This means that based on its previous trading, volume (and price) was high enough that NF Energy Saving Corporation (BIMI Stock Report) stock found itself on several volume scans this week.
After taking a closer look, this company has very little in the way of news. The one thing that was recently announced was that the company engaged a new IR firm. That seemed to have corresponded to this latest pop in the stock.
The company itself is very disjointed. Prior to the IR news release, the company was expecting to acquire a Pharmacy. Previous to that, NF Energy was working to build energy-saving products for customers in China. Needless to say, it may not necessarily be the business model pushing momentum right now.
What’s more, is that BIMI has an extremely low float. This is based on information from Yahoo Finance and FinViz. These two outlets show BIMI’s float at less than 2 million shares. Why is this important? The lower the float, the fewer the shares there are in the retail market, and the higher the likelihood of a short term price spike. So far, this is what BIMI has seen. Can it continue this week? In any case, make sure to take into account the low float and such a stock can breakout just as fast as it can come crashing down. At the end of the day, no one ever went broke taking profit.
Penny Stocks To Watch #4: Stage Stores, Inc. (SSI)
One of the top penny stocks to watch this month, Stage Stores (SSI Stock Report) continued higher last week. We originally brought attention to this company during the second half of September (click here). Ever since then it has been a company to keep a close eye on.
What does Stage Stores do? It holds over 600 stores under a number of brand names. These include stores like Bealls, Palais Royal, Goody’s, Peebles and Stage. What initially sparked interest was when the company adopted a system-wide price shift.
Stage’s Gordmans stores implemented an off-price sales model. Based on the success, the company is making a corporate shift for all of its brands and is spending big bucks to do it. They’re going to spend roughly $30 million to do this.
Besides this news, the company officially regained compliance to continue listing on the NYSE. Exchanges have certain requirements of the companies listed and SSI didn’t meet certain criteria. Mainly the ability to maintain an average share price of $1 over a 30-day period. Now that things are back in motion, will SSI stock hold this aggressively bullish trend into the end of the year?
Penny Stocks To Watch #3: Teekay Tankers Ltd. (TNK)
An oil tanker company isn’t normally a mainstay on lists of penny stocks. But Teekay Tankers Ltd. (TNK Stock Report) has become a familiar face over the last few weeks. Teekay is part of a larger company, the Teekay Corporation (TK). Under the umbrella, Teekay Tankers and Teekay LNG Partners L.P. (TGP) act as operating arms to provide crude oil across the globe.
Shipping stocks and oil and gas-related names have been benefiting from the recent trade discussions. On Friday, TNK stock hit highs of $2.08 for the first time since May of 2017.
The parent company, Teekay Corporation helped boost some attention this week. The company announced a deal with the Chestnut Joint Ventures. This is a JV between Spirit Energy Ltd. And Dana Petroleum Ltd. The deal extends the employment of the Hummingbird Spirit FPSO unit through March 2023. This unit is on the Chestnut field in the North Sea and could present big opportunities for the company.
entered into an agreement with the Chestnut Joint Venture, a joint venture between Spirit Energy Ltd. and Dana Petroleum Ltd., to extend the employment of the Hummingbird Spirit FPSO unit (Hummingbird) on the Chestnut field in the North Sea until March 2023.
“The new terms of the contract extension are expected to provide more cash flow visibility and stability to the Company,” commented Kenneth Hvid, Teekay’s President and Chief Executive Officer. Can this move help the bull run continue this week?
Penny Stocks To Watch #2: Workhorse Group Inc. (WKHS)
A Trump tweet put this penny stock on the map this year. Workhorse Group Inc. (WKHS Stock Report) has been benefiting from a massive bull run that began in May. The company focuses on electric-powered vehicles including delivery trucks. In its most recent piece of press, Workhorse announced a partnership with Unmanned Systems Operations Group, Inc. This company handles unmanned mobile medical delivery logistics.
But through this new partnership, the two companies will team up to create an initial pilot drone delivery program in the San Diego area. The main goal is to be able to prove the concept and bring on additional healthcare organizations in the future. They will use Workhorse’s HorseFly™, which is a fully functional drone delivery system.
“This partnership represents a game-changing opportunity the broader medical field, which could set a new standard for more effective and timely patient treatment options empowered by drone logistics,” said USOG CEO Pharns Genece. Check out this article for more on the other projects Workhorse is doing.
Penny Stocks To Watch #1: Tsakos Energy Navigation Limited (TNP)
Shares of Tsakos Energy Navigation Limited (TNP Stock Report) hit their highest levels since June of 2018, on Friday. Another shipping and energy-related name, Tsakos ships crude oil and other products across the globe.
This week the company along with other LNG tanker companies will present at Capital Link’s 11th Annual New York Maritime Forum. Since the presentation for Tsakos will be Tuesday, it appears speculation has built up heading into the new week.
The company is no small fry either. It has a fleet consisting of 69 vessels. Among these, 48 trade in crude, 15 are for products, 3 shuttle tankers and 3 are LNG carriers. If you aren’t familiar with the term, LNG means liquefied natural gas, which is shipped using specialized tankers. With shares of TNP stock all gassed up, the big question this week is how far can this keep going?
Can You Make Money With Penny Stocks?
It would seem like an easy question to answer. But a lot goes into this type of answer. When it comes to penny stocks, you can definitely make money with them. You need to be well-educated on how to trade, first. One of the biggest risks that new investors face is not knowing the basics of penny stocks.
You may get lucky here and there but to become a consistently profitable trader, you need to treat it with as much respect as any other thing you want to find success from. This means studying up on news, financial reports, and even learning from other successful traders.
Where some fake gurus on twitter can imitate success by showing you stocks that are already at the top, real teachers will explain the ins and outs. They’ll teach you why it was good to buy penny stocks at certain levels. They’ll also educate you on how to trade based on certain market criteria.
The most important thing to understand with investing is how to manage risk. Never blindly go into a trade without knowing how or why a stock is moving. Also, make sure to pay close attention to other factors that may be in play. With Workhorse, for example, the US President made a tweet and the stock skyrocketed.
It could have easily come right back down thereafter but if you read more about the company, you would’ve likely seen the real business going on. This has been a big key to profitable trading.