Will The Holiday Spirit Spark A Bullish Or Bearish Trend With These Penny Stocks?
We’re in the final stretch of 2019 and penny stocks continue to present new opportunities for investors. For so long, these cheap stocks have gotten a bad rap by some. This may simply be based on misunderstanding the market, in general. Are these stocks volatile? They definitely are. But who’s to say the same volatility can’t be seen in some blue-chip stocks?
The main point is that with penny stocks, the swings come quicker in most cases. Where a large-cap stock might take a few months to jump 20-50%, penny stocks can see that in a day or a few weeks. As an investor or trader, you should have a good understanding of what it is that you’re actually buying and invest accordingly.
As a general rule of thumb, these lower-priced stocks require more daily or hourly attention. The swings in price can come quickly so you’ll want to be prepared to capitalize on opportunity and/or avoid losses.
Learn The Basics Of Penny Stocks First
When it comes to penny stocks to trade, keeping a close eye on the market and watching the latest moves is a good way of identifying opportunities. It can also help you understand if there are possible risks that could trigger a sell-off in a penny stock. If you’re just getting started, it’s very important to learn the basics of trading before jumping in headfirst. If this is you, then do yourself a favor and check out some of the basics on PennyStocks.com to get started.
[Read More] Learn How To Make Money With Penny Stocks
After you’ve got a handle on the market and maybe you’ve paper traded to perfect your strategy, it’s time to put together your penny stocks watch list. On that front, here are a few names that have attracted attention lately. But are they the best penny stocks to trade this week or should you avoid them?
Best Penny Stocks To Trade [or avoid] #1:
One of the penny stocks that have been in focus over the past week was Himax Technologies, Inc. (HIMX Stock Report). The company is engaged in making display drivers. Himax is looked upon as one of the stronger, small-cap companies in the sector. In its latest financial report, the company reported as much as 47% of its total revenues were generated by display drivers for large screens.
Out of that, 30% of the revenues were generated by small screen display drivers. Both businesses are currently in a bit of trouble due to the global demand deficit for mobile phones, televisions and LCD screens. In November, Himax reported that its WiseEye ASIC platform would be optimized for machine learning and smart devices.
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“The demand for battery-powered smart devices with AI-enabled intelligent sensing is rapidly growing, especially in markets such as home appliances, door lock, TV, notebook, and building control or security,” said David Lyou, executive vice president of Himax Technologies, in a press release. Given that shares of HIMX stock have held a 4-day uptrend since pulling back from 4th quarter highs, will this be one of the best penny stocks to trade this week?
Best Penny Stocks To Trade [or avoid] #2:
Nio Inc. (NIO)
The other penny stock that is in focus is that of Chinese electric vehicle manufacturer Nio Inc – ADR (NIO Stock Report). This is on the list of penny stocks on Robinhood to watch for December based on its popularity among app users. On Friday, the stock dropped by as much as 7.70%.
But it should be noted that in the past two months, NIO stock experienced a strong rally. Prior to that, the stock had performed poorly and reached historic lows back in October. However, the prospect of a resolution in the trade U.S.-China trade war has renewed interest in Chinese stocks.
That being said, the company faces stiff competition from rivals in the electric vehicle segment. Even if its prospects improve, it might find it difficult to completely turn itself around. Of course, the opposite could be true as well. The company saw better than expected figures from its recent delivery results. On top of that Nio has revamped some of its leadership team.
Best Penny Stocks To Trade [or avoid] #3:
Clovis Oncology (CLVS)
Last but not least, Clovis Oncology Inc (CLVS Stock Report) proved to be one of the stars of November. In fact, it’s well outside of the realm of the definition of a penny stock. But since we’ve been covering it for quite some time, it’s worth mentioning it as one of the top penny stocks on the list.
Back in November, the company announced that its medicine rucaparib has been awarded reimbursement by the Italian Medicines Agency (AIFA). Due to the development, the medicine will now be one of the treatments for platinum-sensitive high-grade epithelial ovarian, fallopian tube or primary peritoneal cancer. The stock gained over 480% in the last few weeks since hitting 52-week lows of $2.93. Can the trend continue or will this become a penny stock once again?