It’s Not ‘Tomorrow’ Yet But Take A Look At These Penny Stocks To Watch
Penny stocks are wild. One minute you can be up 50%, the next you might be down 75%. That blink of an eye shift is what makes people love to trade penny stocks. But that’s not to say all of these cheap stocks are bad. You just need to understand how to manage risk the right way.
You’ll typically want to have somewhat of a stop-loss set to protect against these sporadic dips. However, if you’re not familiar with this class of stock, you need to know a few things. First, stop-losses can’t be used for every kind of penny stock. Brokers don’t typically allow things like OTC penny stocks to have formal stop-loss orders placed due to volatility. However, NASDAQ and NYSE listed shares are usually allowed by brokers to have clients put a stop loss in place.
Needless to say, it’s about managing risk and understanding how/when to sell or buy penny stocks. But what are some ways to track penny stocks? Pay attention to the news. It’s just as simple as that most times but take a look at what just happened in world news. Rockets hit an Iraq base where US troops are located, today.
That could signal the time to start to focus on certain industries: Oil & Gas stocks, Energy stocks, Gold stocks and maybe even Biotech stocks. So, heading into Wednesday, could these be some of the best penny stocks to watch at the open?
Penny Stocks To Trade [or avoid]: Chesapeake Energy (CHK)
As I said, energy penny stocks and oil & gas penny stocks may be a likely focus considering the circumstances. Certainly, for Chesapeake Energy (CHK – Free Report) the overall trend has been a good one for weeks now. Ever since late November, CHK stock has been on the rally path. Of course, this came after a terrible 2019 year, overall.
Even before this news broke, shares of the energy company spiked after its own news came out. Chesapeake announced the finalization of the results of its tender offer, on behalf of Brazos Valley Longhorn, L.L.C. and Brazos Valley Longhorn Finance Corp. Chesapeake accepted for purchase approximately $616.2 million aggregate principal amount of Notes that were validly tendered and not validly withdrawn.
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After this came out, the stock ended up jumping a little over 6% from the open. That move continued much higher after the other news broke after the closing bell. Can this trend continue Wednesday?
Penny Stocks To Trade [or avoid]: Camber Energy (CEI)
Next, Camber Energy (CEI – Free Report) also saw a bullish day in general. But shares rallied much higher after the close. This week the company regained trading compliance with the NYSE and can continue listing on the exchange. Also, thanks to the boost in attention around energy penny stocks, CEI stock benefited too.
Late in the afternoon on Tuesday, an 8K filing showed certain Preferred Holders along with the company agreed to unwind a July 8, 2019 acquisition. This corresponded to what the company previously announced in a press release earlier this month. Needless to say, the excitement didn’t stop after Tuesday’s 40% move. The energy penny stock continued much higher after the bell.
Overall, the shares of the company have managed to rally by as much as 550% since early December. Now that figure may continue to grow, assuming the aftermarket print of $4.39 remains intact on Wednesday. But, of course, we’ll see what happens overnight.
Penny Stocks To Trade [or avoid]: Gulfport Energy Corporation (TUSK)
One of the top penny stocks to watch for a few weeks has been Gulfport Energy (TUSK – Free Report). Shares of the energy company managed to scramble to fresh 2020 highs of $2.69 on Tuesday. This followed news of the company appointing a new Board Member, Alvin Bledsoe.
“Al is an experienced finance and public accounting executive with strategic planning, managerial and leadership expertise, having led the development and execution of market and sector strategies for clients in the energy, mining and utilities industries for PwC.”David M. Wood , President and Chief Executive Officer
Though shares were not trading after hours, it’s interesting to note that TUSK stock has managed to move up by more than 100% since mid-November. This was on a relatively consistent move up. What I mean by this is that the triple-digit increase didn’t come overnight or within just a few days. Needless to say, it is another energy name and could be something people pay attention to early on Wednesday.
Penny Stocks To Trade [or avoid]: Denbury Resources (DNR)
Are you starting to see a trend? Denbury Resources (DNR – Free Report) was one of the top penny stocks to watch in December. It has been on the move ever since. The company has been on a cost-cutting and business expansion mission for the last few months.
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In its most recent update, Denbury reported that it agreed to sell half of its near 100% working interest in 4 Texas oil fields. The deal saw the company offload this interest for some $50 million in cash consideration. While this announcement was made in late December, the deal itself is expected to close by “early March” of this year.
Chris Kendall, Denbury’s President, and CEO, said, “This transaction provides a significant opportunity to expand the value of our portfolio and highlights the premium value of our oil-rich conventional assets. Through partnering with the experienced Navitas team, we expect to accelerate conventional exploitation of unproven oil resources across these fields, while providing Denbury additional flexibility for our 2020 capital plans and debt reduction efforts.”
Penny Stocks To Trade [or avoid]: Yamana Gold (AUY)
How can you have a “wartime” stock list without gold stocks? Now I’m not saying this is wartime, but the threat of attacks like this usually see heads turn toward safe-haven stocks. Yamana Gold (AUY – Free Report) has traded relatively sideways for a good few months. The range-bound penny stock has seen shares trade tightly between $3.13-$3.78 until recently.
This month, AUY stock broke the upper resistance and began trading between $3.82 and $4.04 until late in the day on Tuesday. Following the close of the market and that news out of the middle east, shares spiked big. During after-hours trading, the gold stock reached highs of $4.15.
This would essentially set a new 52-week high should it be a level that the stock trades at early Wednesday morning. Needless to say, it’s likely that at least a few of the gold penny stocks will be of interest at the open on Wednesday. That, of course, depends on what also happens overnight.