These Penny Stocks Gained Momentum In November But Are They A Buy Right Now?
What’s at the top of the news flow today? China and U.S. tariff concerns. Yet again we see that markets are up in arms about the trade talks between the two countries. As a result, blue-chip stocks slid before the open. But one area of the market that may get overlooked is penny stocks.
These cheap shares tend to beat to the sound of their own drum. Though some may echo similar sentiment as broader markets, most will move based on their own catalysts. Needless to say, you shouldn’t ignore what’s happening across the market.
For example, when most Chinese stocks drop, some penny stocks will follow suit. Furthermore, when other sectors like Biotech, which is hot right now, breakout, many small-cap stocks also follow. Keep this in mind when looking for penny stocks to buy.
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Pay attention to corporate news, filings, and even rumors to help you find potential land mines that could disrupt a would-be successful trade. Given this, there are a few penny stocks investors are watching after recent bullish moves in the market.
Penny Stocks To Watch: Xunlei (XNET)
The first penny stock to include in the watch list is Chinese blockchain and shared cloud computing firm Xunlei Ltd (XNET Stock Report). The stock has rallied after it emerged that the company has forged a significant partnership. Xunlei has partnered with a subsidiary of China Tower named Shaanxi to create an edge computing project.
It goes without saying that it is a significant development and hence, it was no surprise when the Xunlei stock rallied by as much as 11%. In addition to recent trends, we’ve been following this penny stock since mid-August.
We first noticed irregular momentum and discussed several factors in the article “3 Penny Stocks To Buy Or Sell This Week After Yield Curve Concerns?” The initial move this summer came after Xunlei delivered strong quarterly results for Q2. Does this growth seem like a trend to pay attention to?
Penny Stocks To Watch: SAExploration Holdings (SAEX)
Another penny stock that enjoyed a rally on Tuesday is the SAExploration Holdings Inc (SAEX Stock Report). The company is involved in both oil exploration and seismic data technology. SAExploration made a significant announcement yesterday.
It announced that the signing of a range of contracts in Canada, the Middle East and Alaska. These are valued at $130 million in entirety. The news sent the stock soaring and it gained as much as 82% on Tuesday.
However, as we cited SAEX as one of the active penny stocks to watch, it’s important to note that this activity wasn’t necessarily bullish. In fact, after gapping up in the early morning session, shares of SAEX stock toppled over by the close. On November 20 the penny stock has held a level above its low of the week but can it hold? Compared to Monday, shares are still up over 100% despite the aggressive pullback from Tuesday highs.
Penny Stocks To Watch: Agile Therapeutics (AGRX)
On the other hand, women’s healthcare company Agile Therapeutics Inc (AGRX Stock Report) has been on a roll for much of the last three weeks. Its stock emerged as one of the leading penny stocks in the market.
Back on November 14, the company announced that the Food and Drugs Administration had extended the goal date for the Prescription Drug User Fee Act (PDUFA) of its contraceptive product Twirla.
The goal date has now been set on February 16 next year and the announcement further fueled the rally. Over the last three weeks, the stock has soared by as much as 378% and should be tracked closely by all investors. Additionally, the company continues to reach new milestones ever since dipping to 52-week lows of $0.35.
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At that point, it became a penny stock to watch after reporting a favorable outcome from the FDA Advisory Committee Meeting investigating its contraceptive product. We’ve discussed this in detail since then and shares of AGRX stock remained in an uptrend at the halfway point this week.
Penny Stocks To Watch: China Automotive Systems (CAAS)
Last on this list of penny stocks is China Automotive Systems, Inc. (CAAS Stock Report). The stock has been in the middle of an excellent rally over the past week and has gained as much as 63% since last Thursday. The most aggressive move came on Friday.
The company released its earnings for the third quarter on November 12 and managed to beat analysts’ expectations with regard to its earnings. As opposed to estimates of $0.01 worth of earnings per share, the company managed to clock $0.13 earnings per share. Since then, shares have climbed wildly to levels it hasn’t seen since late March. Can this trend continue into the end of the year?