Have You Looked As These 3 Penny Stocks This Quarter?
Investing in penny stocks can be a great thing but also something very stressful. If you’ve watched the stock market lately, you’ve seen it soar to fresh, new highs. That’s to this, eyes are on stocks (versus commodities or bonds) which is welcome news for high-frequency traders. One of the top things pro traders look for is volatility because this is what produces those crazy gains that investors like to see.
Before we get into some of these breakout penny stocks, we should address some concerns. These include all of the bad things you hear about penny stocks.
Q. Are All Penny Stocks Scams?
A. No, not all penny stocks are scams. However some people – usually large shareholders – can more easily manipulate certain penny stocks that have smaller share structures. As an investor, it’s important to take time and read company filings to get a keen understanding of the state of a given company. Most of the time, those who tell you to avoid penny stocks are those who’ve gotten burned by not doing enough research.
Q. Do All Penny Stocks Lose Money?
A. Though most are start-up phase companies, these companies are of all financial circumstances. Some are pre-revenue, some produce revenue, and many (like biotech stocks) carry a loss until they produce a marketable product. It’s up to you as an investor to understand company fundamentals in order to properly decide if it’s best to buy certain penny stocks.
Q. Can I Make Money With Penny Stocks?
A. Yes, you can make money with penny stocks. But it’s very important to understand the risks involved. You should also understand the specific market you’ll be trading in based on a given stock. Is the stock liquid or is trading sporadic? More liquid stocks allow traders to enter and exit easier than less liquid stocks. Is the company’s float and/or outstanding share count high or low? Lower floats and outstanding shares can equate to erratic price movements in certain penny stocks.
Also keep in mind that just because a company is considered a penny stock, it doesn’t mean it’s not worth taking a closer look at. Large banks like Bank of America and others actually take time to research and analyze micro-cap and small-cap companies. They also give ratings and price targets so it would seem there is much more to these cheap stocks than may meet the eye.
Now that we’ve got some of those questions addressed, you know research is key. Also, watching market movement is important as well. With this in mind, here is a look at three penny stocks that have taken off this quarter.
Best Penny Stocks to Buy [or sell]: Clovis Oncology (CLVS)
The first penny stock to consider is Clovis Oncology Inc (CLVS Stock Report). It has been in the middle of a highly impressive rally ever since releasing its quarterly results. The company managed to limit its losses for the quarter to $1.89 per share, as opposed to analysts’ estimates of $1.71 per share.
Moreover, the revenues from its only commercially available product, Rubrace, rose by as much as 65% to hit $37.6 million. Analysts had estimated sales of $36.61 million. Later in the month, Clovis announced the reimbursement for Rubraca had been set in Italy. CLVS stock has gained as much as 155% in November and has shown great momentum. Keep in mind that this is no longer a penny stock based on the price but one that we’ve followed for most of the month.
[Read More] Penny Stocks On Robinhood To Watch This Week
November 1 saw shares trading at a $3.22 opening price. Recent highs show the penny stock soaring to highs of $8.20 this week. Analysts following Clovis put a price target on the stock this month as well. Evercore ISI Group rated the company at “In-Line” and put an $8 price target on it.
Best Penny Stocks to Buy [or sell]: Hermitage Offshore Services (PSV)
The other penny stock that gained attention is Hermitage Offshore Services Ltd (PSV Stock Report). On Monday, the company announced that 509,783 common shares of Hermitage were purchased by Scorpio Services Private Limited for $0.89 each. Hermitage is an offshore support vessel company and at this point in time, the company owns 23 vessels. Out of those 10 are platform support vessels, while 10 are crew boats.
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The vessels are usually deployed on the West Coast of Africa or in the North Sea. The news about the sale of the company’s common shares resulted in a rally in the Hermitage stock on Monday and it rose by as much as 54%.
Shares of PSV stock opened the month at $0.79 and have since hit highs of $1.75 this week. Even though the company reported a Q3 loss, positive sentiment from Scorpio’s purchase has resonated. Shares have climbed by over 120% since the beginning of November. Also, those who saw it at 52-week lows have watched shares rally by over 215% in just a few trading sessions.
Best Penny Stocks to Buy [or sell]: Agenus (AGEN)
Last but not least; Agenus Inc (AGEN Stock Report) is another penny stock turning heads in November. Earlier this month, the company released its quarterly results. It generated losses of $0.33 a share, which managed to beat analysts’ estimates of $0.38 a share.
Additionally, the revenues of $19.94 million for the quarter were also 27.82% higher than what analysts had projected. Recently, the company passed on the rights to its product zalifrelimab to UroGen for an upfront payment of $10 million. The stock has rallied by 88% this month so far after starting November at $2.43 and hitting highs of $4.57 this week so far.
President and Chief Executive Officer of UroGen said that, “Together with our pipeline medicines, UGN-101 and UGN-102, that target low-grade upper tract urothelial cancer and low-grade bladder cancer, respectively, the addition of this new medicine targeting high grade urothelial diseases provides UroGen with a complementary pipeline that advances our vision to be a leader in uro-oncology.”
Since then analysts at B. Riley FBR reinstated a Buy rating on AGEN stock. The firm also gave a $6 price target.
