These Penny Stocks Saw Big Moves But Are They A Buy Or Sell After The Dust Settled?
One of the most important things to keep in mind with regards to penny stocks is that there’s the potential to generate enormous returns within a relatively short period of time. Hence, it is not a surprise that millions of investors are almost always on the lookout for the next big things in penny stocks.
However, it’s also true that one needs to do a lot of research in order to discover such stocks. So, it is important to watch the market closely. Look for trends and more specifically, find a weakness in trends.
This can help avoid losses sooner. With this in mind here is a quick look at 3 penny stocks that moved big this month. But after the big moves, are they still penny stocks to buy or is it time to sell?
Penny Stocks To Buy or Sell Before Thanksgiving Day #1 China Ceramics (CCCL)
The first penny stock to watch is China Ceramics Co Ltd (CCCL Stock Report). The stock made a major announcement on Monday. The ceramic tiles manufacturer announced on Monday that it is all set to enter the lucrative Malaysian market. Chine Ceramics announced that it has entered into a non-binding agreement with a contractor in Malaysia. It went on to reveal that the company’s cooling ceramic tiles, launched in August this year, are also going to be used.
The news was welcomed by the market and the stock rocketed by as much as 100% from Monday’s close to Tuesday’s high. However, as you’ll see, CCCL stock had consolidated significantly from these highs, on Wednesday. Though it maintained a higher trading level than earlier this week, is this a penny stock to buy or are traders going to sell this lower?
Penny Stocks To Buy or Sell Before Thanksgiving Day #2 Chico’s FAS
The other penny stock that made impressive gains on Tuesday was the apparel retailer Chico’s FAS, Inc. (CHS Stock Report). The company released its financial results for the third quarter yesterday and the numbers managed to surpass analysts’ expectations. The company reported losses of $0.04 per share, which surpassed analysts’ estimates of losses of $0.06 per share.
The revenues for the period came in at $484.7 million, which not only beat expectations by $11 million but also reflected a 3% year on year rise. That resulted in a significant rise in the stock as investors grew optimistic about Chico’s turnaround plans.
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Since late August, shares of CHS stock were in a bullish trend. After trading sideways or “channel-bound” for most of October, the penny stock broke resistance and hit fresh 8-month highs of $4.98. Despite these gains, can it hold the trend or are shares set to slide later on?
Penny Stocks To Buy or Sell Before Thanksgiving Day #3 Nio
Another penny stock that generated impressive gains in the month of November is that of Chinese electric vehicle manufacturer Nio Inc (NIO Stock Report). The company released the delivery data for the month of October in early November. The numbers were impressive as NIO managed to improve upon September deliveries by as much as 25.1% and that resulted in a significant rally in the stock. NIO stock rose by as much 66% in November so far.
Despite the battle NIO shareholders have had to endure this year, the 4th quarter has presented much bright potential in the eyes of the company. Increased delivery figures and better than expected climate for Chinese EV manufacturers has helped boost sentiment. However, something to note during the tail end of the year will come down to the overall performance for the year. So keep this in mind if NIO is on your penny stocks to watch list.