These Penny Stocks Rallied Big Last Month But Will It Remain The Case In December?
Let me ask you a question. Why would anyone buy penny stocks? They are highly volatile, they typically have lower liquidity & many lack the necessary reporting requirements. Not to mention that all of that together makes penny stocks incredibly risky. You can lose 100% of your investment within the blink of an eye.
Still here? Good, because as scary as some will make penny stocks out to be, if traded correctly, you can make a lot of money with penny stocks. The key is managing risk and being able to handle volatility in a way that opens opportunities to profit. Just as easily as you can lose 100%, you can make 100% or more with the right trading strategy in place. But I can’t stress how important it is to do proper research and treat penny stocks like any other investment.
How To Make Money With Penny Stocks
All too many people put these cheap stocks in the same category as lottery tickets. But the truth is that if you understand how to actually trade penny stocks, you can certainly win far more frequently than you do with lottery tickets. The long and short of it is that there are professional traders making a living by investing in and/or day trading these micro-cap stocks.
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At the end of the day, an investor needs to put in the hours to discover promising penny stocks in the market from among hundreds of other issuers. One of the best ways of going about it is by watching the markets closely and taking note of all the latest developments including industry updates and company news. Here is a look at 3 penny stocks that hit it big in November. Can that continue this month?
Penny Stocks To Watch For December: Pintec Technology Holdings (PT)
The first on this list of penny stocks is Pintec Technology Holdings Ltd (PT Stock Report). PT stock has recorded impressive gains ever since it made an important announcement on Thursday last week. Pintec is a Fintech solutions firm. Last month it announced that it will collaborate with the Industrial and Commercial Bank of China. The collaboration is aimed at using Fintech in order to improve lending to small businesses.
The announcement proved to be a major trigger for the Pintec stock. Shares soared by as much as 110% on Friday alone. Some extra food for thought: shares are up over 370% in the last 2 weeks.
Friday saw the highest share volume day the company’s had all year. But on Money, shares consolidated a big from those $1.89 highs. Though volume remained relatively high, can PT stock continue its trend in December?
Penny Stocks To Watch For December: Sorl Auto Parts (SORL)
The other penny stock that recorded significant gains recently was Sorl Auto Parts, Inc. (SORL Stock Report). On Friday, the China-based company announced that it is going to go private. Two directors in the company, the CEO and co-founder Xiao Ping Zhang and Ruili Group Co. Ltd are in the process of acquiring outstanding shares.
They have made an offer of $4.72 per share. This represents a premium of as much as 39% from Thursday’s closing price. The penny stock’s news triggered a rally in SORL stock. It shot up by as much as 31% since the beginning of last week.
In a similar fashion to PT stock, Sorl Auto Parts stock consolidated a bit on Monday at the start of December. Its share volume was also up above average but definitely not as much as it saw during the previous trading day.
Penny Stocks To Watch For December: Bat Group (GLG)
Finally, Bat Group Inc (GLG Stock Report) was another significant gainer among penny stocks after news. The company announced its financial results for the third quarter in mid-November. The company announced its results for nine months and three months leading up to the end of September.
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Year on year quarterly income rose by 301% to hit $.56 million, while the net loss dropped from $0.64 million to $0.39 million. The shares started climbing after the announcement and Bat Group gained as much as 100% in November.
GLG stock is the only one on this list of penny stocks that went green on December 2. This continues a run that began back in early August after GLG hit 52-week lows of $0.2803. Since then the stock has recovered by as much as 471% to highs of $1.60 on Monday.
