Are These 3 Penny Stocks A Buy Right Now; or Sell?
While most people are off of work on Veteran’s day, hustlers in the stock market are up bright and early. The markets don’t rest on Veteran’s day, but bankers do, and I won’t be one to complain about making money. If you are of the same mindset as me, you might want to take a look at some of the top penny stocks catching attention this week.
These cheap stocks have a long history of high volatility. This helps open to door to big profits in a short time span. For those trading penny stocks, this can be quite helpful when the broader markets consolidate. Quick jolts of momentum-fueled profits are great fillers while blue-chips readjust to current conditions.
However, this volatility can backfire on traders who don’t take time developing a game plan and researching. It’s essential to do this, or you could find yourself losing more money than you make. To help you get started with this research, here is a list of penny stocks to watch for today. But are they penny stocks to buy or sell?
Best Penny Stocks To Buy [or Sell]: Plug Power Inc. (PLUG)
The first company kicking off our list and week hails from the energy sector. Plug Power Inc. (PLUG Stock Report) develops cost-effective hydrogen and fuel cell power solutions. These solutions help increase productivity, lower costs for businesses, all while reducing a company’s global carbon footprint.
PLUG stock is gapping up during premarket trading hours on November 9th by nearly 5%. Although there is not a direct news catalyst, it is still experiencing this gap up. The energy technology penny stock recently announced some big news regarding its Chief Executive Officer. The company’s CEO, Andy Marsh, was named Executive of the Year at the 2019 Fuel Cell Seminar and Energy Exposition.
[Read More] Penny Stocks To Buy Or Sell: Plug Power (PLUG)
On top of that, analysts remain bullish on the penny stock. Monday saw Roth Capital raise its rating on PLUG stock from neutral to buy. There were no updates to the analyst’s price target for the stock. However, in this light, it appears sentiment continues to brighten.
Best Penny Stocks To Buy [or Sell]: TransEnterix Inc.(TRXC)
The next on this penny stocks watch list is TransEnterix Inc.(TRXC Stock Report). The company is a medical device organization utilizing robotics to improve invasive surgeries. As of now, the company’s primary focus is on commercializing its Senhance Surgical Robotic System. This system provides surgeons with haptic feedback and eye sensing camera control.
Unlike Plug Power, TransEnterix has quite a few things pushing its stock upwards early in the week. The healthcare penny stock is up by 23.5% in premarket hours thanks to some news that came on November 8th after the market closed. First, the company announced it is repaying its Hercules Term Loan.
In addition, TransEnterix appointed a new President and CEO by the name of Anthony Fernando. Later this week on November 12th, the company will have its Q3 results conference. Will TRXC stock be a bearish or bullish catalyst? Join the conversation on Facebook & Twitter.
Best Penny Stocks To Buy [or Sell]: Agile Therapeutics Inc. (AGRX)
Wrapping things up is one more healthcare company. Agile Therapeutics Inc. (AGRX Stock Report) is a women’s healthcare company that seeks to attack the growing unmet medical needs of today’s women. This was one of the top penny stocks on Robinhood to watch this week as well.
Its lead product candidate is known as Twirla and it is a once-weekly prescription contraceptive patch. This product is basically an alternative to daily contraceptive pills. It is currently in its Phase 3 clinical trial.
Regarding the company’s lead product Twirla, nearly 2 weeks ago Agile announced some significant penny stock news. It announced that the FDA gave a favorable outcome for Twirla at a meeting. After this was announced, AGRX stock price rose from $0.374 all the way to $1.166 on October 31st. Furthermore, the penny stock continued to climb reaching as high as $2.97 but has since decreased to $2.18.
Are Penny Stocks A Safe Investment?
When it comes to investing, there can be certain ones that are safer than others. Penny stocks don’t fall into that “safe” category. Due to several factors like lower reporting requirements, less publicly available information, high costs of raising capital, and extreme volatility, these cheap stocks are high risk.
But where there’s high risk, there’s also the potential for high reward. For instance, if you bought 100,000 shares of a $0.01, it costs you $1,000 (plus or minus a little for fees). For that same $1,000 you could buy about 4 shares of Apple (AAPL Stock Report). Here’s where the high risk comes into play.
While Apple Inc. tends to move about $1-$3 a day in either direction, that doesn’t equate to much in terms of percentage gain or loss. That’s only about 1% for those following at home. Keep in mind that Apple has a lot of things going for it.
Not only does it have one of the most sought after technology platforms, but it’s also revolutionizing how we use technology. The bottom line is that AAPL stock is not an emerging growth company.
Penny Stocks & Making Money
Why mention this? Let’s go back to the example of the $0.01 penny stock. It only takes a fluctuation of $0.01 for you to lose your entire investment if the stock turns down. Unlike Apple, there’s not a whole lot of wiggle room between maintaining your cost and losing it all. But then again, if that penny stock were to fluctuate $1-$3 to the upside, it could be a game-changer.
But let’s just consider a simple $0.10 move. Your initial $1,000 would now be worth $11,000 at a price of $0.11. While you would have had to wait years or longer or Apple to return that, the penny stock could have made that move within months or even days. So are penny stocks safe?
The short answer is ‘no’ but that doesn’t mean you can’t make good money with penny stocks. You just have to remember to have a plan while also understanding how to manage risk. Here are a few introductory articles if you’re brand new to this niche: