Are These On Your Penny Stocks Watch List?
I hope by now you know that you can make money with penny stocks. Not all of these cheap stocks are from companies with shoddy financials or questionable business practices. Even so, there are countless examples we can list from blue-chip names that have just as questionable practices or weak business models. But we’re not here to play a tit for tat game; we’re here to make money, right?
This week was already full of volatility as people try to speculate on what happens next between the U.S. and Iran; it’s only Monday. While that may take the bulk of mainstream media headlines, we’re after identifying the best penny stocks in the market.
With that, there are several key components to identifying such names. First, you’ll want to find these low priced stocks with higher trading volume. It’s also nice if that volume is consistent and not just intermittent.
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Next, you’ll want to take a look at companies that consistently report updates. At the very least, find companies that have up to date financials and disclosure statements. If you want to get a bit more detailed, see which sectors of the market are doing well. Right now, we’ve seen commodities like gold stocks and oil and gas stocks take much of the attention.
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But you can’t forget about biotech penny stocks or “wartime” stocks either. One of the sectors that hasn’t performed all that great is the marijuana sector. With many of these bottoming out, the focus has shifted away for now, but it may not be a sector to completely forget about either.
Now that you’ve done that, it’s time to make your list of penny stocks. Here you’ll pick the top names you feel could have potential. Maybe it’s something you found in a filing or some market chatter shifting focus to a certain company.
You might also want to take a look at news outside of the financial realm to see if some companies are doing big sales deals with non-public groups. There are plenty of ways to find penny stocks to make money with, it just comes down to research. With this in mind, here are 4 names that have caught attention this week.
Rolls-Royce Holdings plc (RLLCF)
If you trade penny stocks on Robinhood, this may not be available to you. Rolls-Royce Holdings plc (RLLCF Stock Report) has caught attention over the last few days. On Monday, shares of the company known for its luxury automobiles reached levels not seen in recent history. It’s important to note that the main exchange for Rolls isn’t the OTC but the London exchange. So, news may be hard to find if you’re just looking at mainstream outlets in the U.S.
However, a quick search shows that the company recently unveiled an initiative to build the world’s fastest electric airplane. Rob Watson, Director of Rolls-Royce Electrical said: “Building the world’s fastest all-electric aircraft is nothing less than a revolutionary step change in aviation and we are delighted to unveil the ACCEL project plane. This is not only an important step towards the world-record attempt but will also help to develop Rolls-Royce’s capabilities and ensure that we are at the forefront of developing technology that can play a fundamental role in enabling the transition to a low carbon global economy.”
Was this the source of the monstrous volume that the stock saw recently? That’s a good question. Considering the fact that the move began last week, it’s important to search for more details. Keep in mind that Rolls doesn’t just make luxury cars, it’s also been known as an aerospace stock due to the build-out of plane engines.
Last week the company reported that it’s ready to proceed with the production of its new “Pearl 15” turbofan. It will power Bombardier’s new Global 6500 and 5500 twinjets following FAA certification of the engine on December 20. Will this be enough to see shares continue to “soar” this week?
Zion Oil & Gas (ZN)
We couldn’t have a list of penny stocks like this without a name in energy. Zion Oil & Gas (ZN Stock Report) has been on a steady climb since hitting 52-week lows of $0.12 in December. Monday, however, was a much bigger day than the stock has seen in quite some time. The initial move started in the morning, turned sideways during lunch, and broke higher during power hour. By the end of the day, shares reached highs of $0.556 before the closing bell.
As discussed above, oil & gas stocks have caught a lot of attention lately. Middle-Eastern turmoil tends to send this sector in one direction or another in dramatic fashion. As far as Zion is concerned, the company isn’t just rising from the sector surge.
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At the end of the year last year it began sourcing a drilling rig for its 2020 exploration plans. “We view this as an opportune time to move forward with our 2020 plans for further oil and gas exploration in onshore Israel,” said Zion’s COO Robert Dunn in a statement.
McDermott International (MDR)
Another energy penny stock on the list, McDermott International (MDR Stock Report) saw another big day on Monday. Shares jumped from $0.68 at the open to highs of just under $0.94 before closing just shy of $0.93. Similar to Zion, McDermott has benefited from the rising tensions in the Middle East.
The company has been fighting for resolve and talks for a bankruptcy loan with lenders. Reports have said the company will file for bankruptcy “within weeks”. The company has stumbled ever since reportedly losing on some big natural gas projects in the past.
HPS Investment Partners and Baupost Group lead the group of lenders who are in talks to supply some $2 billion to keep the company running during bankruptcy. Despite the nice day it had Monday, is MDR stock beginning to truly turn around? Or is this just a quick head-fake for the time being?
Tonix Pharmaceuticals (TNXP)
This name was one to watch since our December update on Tonix Pharmaceuticals (TNXP Stock Report). The biotech penny stock hit fresh 52-week lows but soon after saw a huge surge in trading momentum. At the time, TNXP stock reached highs of $1.72 the following day before settling back down around $1.10 for the weeks to follow. Though shares were still higher than those 52-week lows, it’s become a “watch and wait” game.
This quarter, the company plans to give interim results of a RECOVERY trial of its TNX-102 SL for the treatment of posttraumatic stress disorder. Depending on the outcome, topline results would follow in Q2. That was from back in December. So what could be pushing things along this month?
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Well, what’s something that’s said often in our articles? Do your research and look at more than just headlines. The company filed an 8K showing an updated corporate presentation that contains new information being shown to prospective investors.
Whether or not it was entirely the cause behind Monday’s move is yet to be seen. But if you’re interested in reading the full presentation, you can do so directly on PennyStocks.com by going to the TNXP profile page and checking the most recent filing, here.