These Penny Stocks Rallied Hard But Can Gains Hold?
The market over that last week has been on an absolute tear. The SPY has set new highs in the last 2 trading sessions. The best part is that it’s already gapping up again to put in another high on November 5th. All this bullish momentum in the overall market only benefits investors looking to make money trading penny stocks too.
The SEC’s penny stock definition is any equity traded below $5. This low price allows investors with small or large portfolios to get in on the action. If traded properly, penny stocks can lead to substantial profits in very short spans of time.
When I say properly, I mean that the investor or trader did adequate research before investing their money. To get you started with this research, here is a list of penny stock for November 5th.
- 4 Penny Stocks To Watch In November After Latest Milestones
- Top 10 Penny Stocks On Robinhood To Watch For November 2019
- What Are Penny Stocks And Are They Worth Buying?
They’ve all rallied hard this month but before you make a choice to buy, you’ve got to decide if the trend is sustainable. Just as penny stocks can breakout explosively, they can also implode just as quickly.
Penny Stocks To Watch: Agile Therapeutics Inc. (AGRX)
Up to bat first is on this penny stocks watch list is Agile Therapeutics Inc. (AGRX Stock Report). The company is a women’s healthcare company that looks to fulfill unmet women’s health needs. The company’s lead product is known as Twirla and since the end of October, AGRX stock has been in rally mode.
Twirla is a patch designed to provide a contraceptive option that is needed weekly instead of a daily pill. In addition to Twirla, Agile has 4 other treatment plans undergoing clinical trials.
We have talked about this penny stock’s price before in our article, “3 Penny Stocks To Buy Or Sell Before Friday? 1 Up 110% This Quarter.” Over the last 4 trading sessions, Agile’s stock has flown nearly 380% on outrageous volume numbers.
On top of that, since October 29, AGRX stock has moved up by more than 557%. Will this momentum slow down? The penny stock was up an additional 20% during premarket trading hours on November 5th.
Penny Stocks To Watch: FlexShopper Inc. (FPAY)
The next company on this list is very interesting. FlexShopper Inc. (FPAY Stock Report) is a financial technology company that provides brand name durable goods for consumers on a lease-to-own basis. These goods and services are offered through its website and its patent-pending LTO payment method.
The company recently reported its Q3 financial results and they appeared to be received very well by investors. This helped drive strong stock momentum this week. The company’s revenues increased 52.4% and its gross profit rose 84.4% year over year.
Furthermore, FlexShopper was able to reduce the average cost to acquire a new customer from $133 to $67. This penny stock news has led to a steep 32% premarket gain on November 5th. However, it’s clear that selling pressure has made its way into the market after the open. Can today’s gains hold or is FPAY stock set to return back toward its previous levels?
Penny Stocks To Watch: IVERIC bio Inc. (ISEE)
Wrapping things up, we have another healthcare company. IVERIC bio Inc. (ISEE Stock Report) is a biopharmaceutical company that develops treatments for retinal diseases with unmet medical needs. The company has quite a bit going on in its pipeline. It has 5 gene therapies in their research and preclinical stages. Furthermore, it has 2 therapeutic plans in phase 2 clinical trials.
IVERIC has a couple of things going for it that are bringing investors to the biotech penny stock. First off, the company is expected to report its financial results on November 12th.
More recently, the company also granted Dr. Abraham Scaria a non-statutory stock option to purchase 300,000 shares of common stock. These developments have led to an early 14% gain during premarket trading hours.
This company has been on the radar since the end of October. In our initial article, “5 Penny Stocks That Are Rallying This Week; 1 Up 296% Since January,” we discussed its pipeline progress.
IVERIC announced that its C5 inhibitor, Zimura, met its primary endpoint in its phase 2b clinical trial. Zimura reduced the rate of geographic atrophy for patients with dry age-related macular degeneration.
Can gains hold or is ISEE stock topping out here? Comment below.
Penny Stocks Pro Tip: Look At 52 Week Ranges
In a bunch of articles on PennyStocks.com, we talk about companies that break out big. You’ll probably notice too that we reference things like 52-week lows or 52-week highs. Why is this important? Well, you may or may not want to use these levels to determine if a penny stock is worth buying.
The thought is that penny stocks hitting 52-week levels are due for a reversal. These can be bullish or bearish reversal patterns. In the case of a few of the companies on this list of penny stocks, you can clearly see how aggressively they’ve moved up from 52-week lows. Is this always the case? No, and penny stocks can always go higher or lower to mark new 52-week levels.
But just like other things like technical indicators or penny stock chart patterns, these can be an indicator of “hey you, look at me.” Just like we talked about in the article, “How To Make Money With Penny Stocks,” there are plenty of things to look at to finalize a good list of penny stocks to buy.
Don’t Just Use Penny Stock Indicators By Themselves
But at the end of the day, these indicators are simply a gauge to help. You need to also take into account things like market events and company news or filings. Take, for instance, the former penny stock Tandem Diabetes Care Inc. (TNDM Stock Report).
Since May of 2018 up until September of the same year, TNDM stock made new 52-week highs almost every other day. If you had relied solely on the 52-week high as a gauge to sell, you would have missed a monster move. In fact, if you were looking at TNDM stock at 52-week lows at the time in February, you would’ve caught this stock at $2.14. Today shares trade over $60 and it has even seen as high as $74.81.
So where these levels are good things to note, they aren’t the end-all, be-all for making your buy or sell decision. However, you can’t argue with the fact that so many penny stocks that have hit fresh 52-week lows recently have rallied strongly. Can the trend continue?