These Penny Stocks Are Up Big In Q4 2019
Investing in penny stocks is not that different from investing in other classes of stocks. The same process to sell or buy penny stocks is the same you would for blue-chip stocks. However, the big differences come when you consider risk. Obviously, for companies like Facebook or Twitter, a small move is share price won’t dramatically affect percentage change. However, for penny stocks, even a slight $0.01 move could mean you lose a large chunk of your position’s value.
So how can you make sure you’re on the right side of this equation? One of the most important things to consider is research. When it comes to these small-cap, micro-cap, or even nano-cap stocks, publicly available information can be sparse.
Even corporate filings might not be readily available and sometimes this will open thoughts of following the herd. This could be a huge mistake as some “gurus” may actually already own a large position before they begin touting such a stock.
Do You Know How To Trade Penny Stocks?
When you’re making your list of penny stocks to watch, it’s imperative to have sound reasoning as to why they made it on your watch list in the first place. If the only reason you have is “because I saw it on social media,” you might want to take a closer look at a few other penny stocks to watch.
While it is true that penny stocks can often generate huge returns, these stocks are also highly volatile in nature. Therefore, even a small selloff can trigger a big fall. So, yes, research is very important. Understanding how to trade penny stocks is also critical. It’s better to take a small loss than hold on hoping a stock goes back up.
On the flip side, it’s better to take a 20% profit than hold onto a penny stock just to watch it fall back to where it was in the first place. At the end of the day, how you trade is up to you. But remember, the name of the game is making money with penny stocks. On that note, here is a look at three penny stocks that have made significant moves recently. Can they continue higher?
Penny Stocks Watch List [Company #1]:
PDL BioPharma
The first penny stock that could be under consideration is that of PDL BioPharma Inc (PDLI Stock Report). It made rapid gains on Monday after the company announced that it had completed its strategic review process. The company announced that it is going to stop its existing growth strategy, stop other strategic investments and try to unlock value from its existing assets. PDL’s reasoning behind this initiative is to give more value back to its shareholders.
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This proved to be a massive trigger as the stock rose by more than 22% on the back of the development. PDLI stock also held these higher price levels on Tuesday. Despite pulling back a bit, PDL stock still remains above $3.50. Compared to its price last Friday ($2.95), this could show stronger bullish sentiment at least for the short term.
The main reasoning is based on the fact that there wasn’t a complete sell-off after such a large price move. Obviously that’s something to be seen later in the week. But for now, both price and volume trended with above-average values.
Penny Stocks Watch List [Company #2]:
Eros International
The other penny stock that could be put into the watch list is that of Indian over the top platform Eros International plc (EROS Stock Report). This was one of the most frequently talked about companies this year as we’ve reported on the penny stock since August. This quarter, EROS stock has made significant gains.
The stock has jumped as much as 73% during the period and has shown impressive momentum as well. One of the bigger triggers for the rise of Eros is the collaboration that the company has struck up with Alphabet’s (GOOGL Stock Report) video-sharing platform YouTube. By way of that agreement, the company’s platform is going to be advertised on YouTube in order to get more customers to sign up. Since then, the stock has performed admirably.
“Amongst several initiatives we deeply invested in growing the base of paid digital subscriptions in India and this strategic alliance with YouTube and Google is another example to ensure we are able to move the needle for the growth of this business in India, whilst providing for a super value to our consumers.”
Rishika Lulla Singh, Chairman and CEO, Eros Digital
What’s more is that after shares tumbled from 2019’s second half highs, the company entered into a default judgment against certain individuals. Mangrove Partners, Manuel P. Asensio, GeoInvesting, LLC, and others were found to have manipulated Ero’s market. In light of this, Eros shareholders appear to be bullish during the last part of the 4th quarter.
Penny Stocks Watch List [Company #3]: IsoRay
Lastly, the IsoRay, Inc. (ISR Stock Report) has proven to be another one of the penny stocks to watch this quarter. Shares gained substantially over the past month. ISR stock gained as much as 100% during the period and over 120% since the beginning of Q4.
In its most recent quarterly report, IsoRay delivered losses of $.01 per share and beat analysts’ estimates of a $.02 loss per share. This was the first time in as many as four quarters that IsoRay managed to beat estimates and the rally in the stock was understandable.
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Speaking on the developments, CEO Lori Woods said, “These are exciting times for Isoray…Clearly, the strategies we’ve employed and the steps we have taken to establish Isoray’s leadership role in the prostate brachytherapy industry over the past year are resulting in accelerated organic growth and market share gains.”
