These Penny Stocks Jumped Big This Week But Can It Continue?
It is often noticed that a large part of investing success is dependent on the ability to enter a stock at the right moment. Although it is tough to accomplish, it can often prove to be a major factor. In the case of blue-chip stocks, it becomes a bit too expensive to enter a stock if it has already started soaring. But that is usually not the case with penny stocks.
These cheap stocks generally trade below $5. So even if they go up significantly by percentage points, they could still be considered cheap. What I mean by this is a $0.30 stock can increase 100% but still have a value of less than $1 per share.
This is the beauty of putting together a strong list of penny stocks. It isn’t quick and easy but it is simple. You need to make sure that you first have a plan to follow. Are you trading based on momentum or are you looking for fundamental catalysts?
Are you going to sell at a certain percentage point or do you want to invest for the long term? These are just a few questions that you should ask yourself when formulating a plan to buy penny stocks. With this in mind, here is a look at three penny stocks to watch after big moves this week.
Penny Stocks to Watch This Week #1: FuelCell Energy (FCEL)
One of the penny stocks that has been soaring since Wednesday is noted fuel cell industry leader FuelCell Energy Inc (FCEL Stock Report). Since hitting 52-week lows of $0.134in June, the company has been on a relatively upward trajectory.
This week the company announced another big-ticket deal. FuelCell reported that its partnership with energy behemoth Exxon Mobil Corp is being expanded. The focus is to develop carbon capture technology. The deal in question could be worth as much as $60 million. FuelCEll Energy’s proprietary technology will become a pivot for the project.
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Trading volume soared on Wednesday and FCEL stock gained as much as 101%. It goes without saying that many have added this to their penny stocks to watch list this week. However, given the aggressive gap up, can these gains hold for the rest of November?
Penny Stocks to Watch This Week #2: COMSCORE (SCOR)
On the other hand, the audience measurement company COMSCORE, Inc. (SCOR Stock Report) made a major announcement this week. That resulted in a highly impressive rally in its stock. In a new development, the company appointed a new Chief Executive Officer. Former Vice Chairman of the board Bill Livek now takes the spot of CEO.
It is an interesting appointment considering the fact that Livek had previously been the CEO of Rentrak. This was a firm that was actually acquired by comScore. Additionally, SCOR stock rallied on the back of positive earnings too. Results showed that the company beat its Q3 loss estimate even though it missed on revenue. The news seemed to fire up the penny stock as investors piled on to it.
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Shares gained as much as 26.50% on Wednesday and have displayed strong momentum. Thursday, however, has shown a slight pullback from earlier highs this week. Will this trend persist or can SCOR stock head higher to close the week?
Penny Stocks to Watch This Week #3: Office Depot (ODP)
Last but not least, Office Depot Inc (ODP Stock Report) reported its financial results for the third quarter on Wednesday. The company managed to surpass analysts’ expectations with regard to its profits.
The development resulted in a significant rally in the Office Depot stock and it soared by as much as 15.33%. In addition to that, the company also announced that it is going to be reorganized and a stock repurchase initiative is also being extended.
In a press release, the company stated that the repurchase program is increased to $200 million. Based on this, the company has roughly $190 million available for buybacks until 2021. If that wasn’t enough, shareholders saw the board approve a dividend of $0.025/share on its common stock. This is payable in mid-December for shareholders of record on November 22.
