These Penny Stocks Are Trading Higher; Can The Trend Continue?
With the S&P hitting highs yet again this year, investors are continuing to apply heavy buying pressure. This buying pressure is leading to very high stock prices that might be out of range for new investors with smaller portfolios. If this describes you, let me introduce you to penny stocks.
The penny stock definition according to the SEC is any stock that is trading below $5. These cheap stocks have a lot of volatility which can lead to substantial profits in short time frames. However, these stocks have high levels of risk so you should do proper research.
You should also develop your trading strategies before throwing your money into the penny stock ring. Given the current market volatility, several small-cap stocks are starting to soar. Some of them we’ve even covered previously and are up big this quarter.
Penny Stocks To Watch #4: Xunlei Limited (XNET)
Kicking things off is a penny stock from the technology sector. Xunlei Limited (XNET Stock Report) is a technology company in the blockchain space looking to be a leading innovator. The company is China’s leading data transmission service provider. As of December 2018, Xunlei had around 128 million monthly unique viewers which makes sense given it is in one of the largest and fastest-growing markets.
Looking back on this company, it caught our attention multiple times since August. We first mentioned this company in, “3 Penny Stocks To Buy or Sell This Week After Yield Curve Concerns?” This was back on August 14th when the penny stock was trading at $2.65.
The next day, we labeled Xunlei a top penny stock to watch in our article, “Are These The Top Penny Stocks To Buy In August?” This was due to the company’s Q2 financials and recent price increases.
Since then the stock has managed to reach highs of $7.20 this month. Even after pulling back to lows of $4.55, XNET stock rebounded at the start of the week. The company announced this week that will collaborate with China Tower Corporation subsidiary, Shaanxi. The deal sees the two jointly agreeing to develop a computing project to deploy nodes to 10,000 cell tower stations. What could this latest deal do for these companies? Comment below.
Penny Stocks To Watch #3: Capstone Turbine Corporation (CPST)
Pushing forward, we have an energy company, Capstone Turbine Corporation (CPST Stock Report). It is a leader in producing low-emission, efficient, resilient microturbine energy systems. The company has shipped over 9,000 of these microturbine systems and they can focus on energy production from 30 kW’s to 10 MW’s.
Before entering November, we talked about the company in our article, “5 Penny Stocks To Buy Before Next Month?” Since then, CPST stock has actually ended up rallying. On Monday, shares reached highs of $3.49. This is up 56.5% since the end of October. This week has seen the penny stock reach these highs following some positive news.
It’s always a question of how long can it last when you talk about penny stock news so what did Capstone announce? The company secured a 1-megawatt flare gas project with Ecopetrol. They’re one of the top 25 oil companies in the world. Darren Jamison, Capstone’s President, and Chief Executive Officer said in a press release, “This order comes on the heels of a recent order of a 1 MW project secured by Supernova in September, and adds to their current 8.2 MW microturbine installed base.”
Penny Stocks To Watch #2: Protalix BioTherapeutics Inc. (PLX)
Wrapping things up is another biopharmaceutical company, Protalix BioTherapeutics Inc. (PLX Stock Report). The company primarily focuses on creating recombinant therapeutic proteins. Protalix does this through its plant cell-based protein expression system, ProCellEx. The company currently has 3 treatments undergoing clinical trials in its pipeline.
The biotech penny stock’s price moved up nearly 80% from November 15 to November 18 after hitting highs of $0.3478. This came on above-average trading volume after some recent penny stock news.
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Protalix announced that it has completed a successful Type B Pre-Biologics License Application meeting with the FDA. This meeting was for the accelerated approval pathway for pegunigalsidase alfa which is used for to treat patients who have Fabry disease.
“The confirmation by the FDA regarding the proposed BLA submission, together with the finalization of the BALANCE study enrollment (78 patients) and the very promising interim results from the BRIDGE study, are three recent significant consecutive milestones achieved with respect to our Fabry late-stage clinical program.”Dror Bashan , Protalix’s President and CEO
Penny Stocks To Watch #1: Waitr Holdings Inc. (WTRH)
We’ve talked a lot about stocks that hit 52-week levels and how these extreme levels can be signs to start paying attention to certain companies. Obviously, this includes both 52-week highs and 52-week lows.
In the case of Waitr Holdings (WTRH Stock Report), shares have started to reverse following 52-week lows. This hasn’t seen itself on much of any penny stocks watch lists throughout the year. There were glimmers of hope back in March but since then, WTRH stock has toppled.
At that time, shares were trading at prices above $14. Recent 52-week lows saw the stock hit $0.2125. But ever since, shares have recovered and on higher than average volume. The company’s Bite Squad app allows users to order food delivery from popular local and national restaurant chains. One problem though; the market has gotten eaten up.
So what’s happened recently? That’s a tough one. After inking a deal with Rally’s / Checkers the company reported lackluster earnings. This helped the stock reach those fresh 52-week lows. However, recently there hasn’t been much in the way of press besides class action lawsuits. What could be fueling this latest move? We’ll have to wait and see but until that time, it has found itself on a list of penny stocks that investors have started to watch this week. WTRH is up more than 75% in the last 3 trading sessions.