Penny Stocks Gaining Momentum So Far in 2020
Investing in penny stocks can become one of the quickest ways to make money (or lose it) quickly. The fact that these stocks are defined as those trading below $5 a share, investors are able to pick up more than just a few shares. However, just because anyone can pick up an above-average amount of shares, it doesn’t mean it’s easy to trade penny stocks.
Just like any other type of investment, trading these cheap stocks involves risk. Those who treat any investment, let alone penny stocks, like the lottery will likely see similar results. But if you frequently win the lottery, feel free to send me an email.
In any event, you need to do your research and look at the finer details. Sometimes this involves looking at news and filings. But other times it involves looking at technical trends. Biotech stocks and mining stocks, for example, can go weeks or months without news. But that doesn’t mean trading completely stops in these stocks. Furthermore, market chatter can be enough to trigger a move as well.
How To Find Penny Stocks
We saw this earlier in the week when it came to gold stocks. The initial “chatter” had to do with what Iran’s retaliatory stance would be. The speculation ended up pushing many of these stocks higher. Obviously, there’ve been shifting tides since then, but overall, this sector remains a key focus for Wall Street right now. Aside from that, the general idea of research should involve a broad spectrum of information.
Market chatter is one aspect, but then you’ve got to consider that companies will also dictate the narrative without a formal press release or filing. How? Social media. In this day and age, the SEC has made it viable for companies to put out information via Twitter, for example. That “tweet” constitutes public information.
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No matter how you get your information, the key is that it matters. Being able to stay on top of current events and corporate events alike can be the difference between scoring big and being left behind. With these basics in mind, let’s take a closer look at a few penny stocks that have begun trending higher this week.
Penny Stocks to Buy [or Sell] For Under $2:
Trillium (TRIL)
First on the list is one of the penny stocks trading under $2. Trillium Inc (TRIL – Free Report) has seen a strong move over the last few weeks. During this time, the stock has managed to generate gains of as much as 425%. This week it gained even more traction on the back of encouraging data for one of its products.
On Tuesday, the company announced positive interim data on TTI 621. Soon enough the trading volumes on the stock rose significantly. “The program continues to demonstrate clear single agent activity across a range of hematologic malignancies, as well as a strong tolerability profile. We believe that TTI-621, even at these low initial doses, is the only anti-CD47 agent that has shown meaningful single agent activity, including complete responses,” said Dr. Jan Skvarka, President and Chief Executive Officer of Trillium.
The biotech penny stock gained as much as 29% from the opening bell following this update. Furthermore, that momentum hasn’t slowed down either. During premarket trading on January 9, shares of Trillium rallied even higher to $1.63. Given the circumstances, will TRIL stock remain one of the top penny stocks to watch this month?
Penny Stocks To Watch:
IMC International Mining (IMCX)
Another one of the names that have been added to a few penny stocks watch lists this week is IMC International Mining (IMCX – Free Report). This company has just begun trading publicly with the last few months and current information shows its most recent focus is on mining claims in Arizona. But that’s not the most important part for IMC.
The area in Arizona that it’s targeting has been shown to have the makeup and potential for gold discovery. Its Bullard Pass property has a history behind it suggesting there could be potential for “a major gold deposit.” According to a report in an Arizona Geological Survey, “the mineralogic and structural similarities of the Bullard and Copperstone districts suggest that potential exists for a major gold deposit in the area of the Bullard district”.
Rider: It is noted that the results of nearby or adjacent properties are not necessarily indicative of the potential of the Cathedral property and should not be understood or interpreted to mean that similar results will be obtained from the Cathedral property.
The previous history of the location shows production totals were 614,000 pounds of copper, 3,600 ounces of gold, and 15,000 ounces of silver from 17,000 tons mined. Previous to IMC, Freeport McMoRan and others targeted this region for gold production.
Rider: It is noted that the results of nearby or adjacent properties are not necessarily indicative of the potential of the Cathedral property and should not be understood or interpreted to mean that similar results will be obtained from the Cathedral property.
IMC, in particular, has staked 22 claims on the property and has staked additional claims to increase it to 171 claims. Thanks to the attention that the mining sector has received this week, it would appear IMC has benefited a bit. Could this trend continue through the rest of the month?
Penny Stocks To Watch:
U.S. Auto Parts Network (PRTS)
One penny stock that has been in focus in recent times is U.S. Auto Parts Network (PRTS – Free Report). It made significant gains recently after a leading firm gave it a buy rating. Analyst firm Craig-Hallum initiated coverage on PRTS stock and gave it the buy rating.
Craig-Hallum also set a target price of $4 for the stock. Soon enough, there was a rally in the stock. However, this isn’t just an overnight penny stock to watch. Shares of U.S. Auto have been on the rise since mid-October. Around that time, the penny stock traded under $1.50 a share but has since jumped to highs of $2.78 this week.
What has helped push things along, besides analyst ratings, has been execution. The company beat sales estimates in the 3rd quarter. But it did miss on earning’s estimates. Though this saw the stock tumble a bit, the company hasn’t wavered in its action plan to grow.
U.S. Auto has begun building its leadership team stronger. Most recently it appointed Icahn Automotive SVP David Morris as Chief Merchandising Officer. What will this mean for the future of U.S. Automotive moving forward?
Penny Stocks To Watch:
Camber Energy (CEI)
Camber Energy (CEI – Free Report) was one of the best penny stocks to watch earlier this week. Shares of the energy company rallied to highs of $4.10 on January 8. Keep in mind, though that the stock didn’t have the best 2019. In fact, CEI stock hit fresh 52-week lows of $0.50 at the start of December.
However, since the company has a hand in the oil and gas industry, the carry-over impact of that sector’s rally has positively effected the penny stock. In fact, since that early December low, shares have climbed by as much as 720%. But since it has become so associated with the directional movement of oil and gas stocks, can this trend continue as the sector has taken a breather over the last 24 hours?
Penny Stocks to Buy [or Sell] For Under $2: Advaxis (ADXS)
Finally, Advaxis Inc (ADXS – Free Report) made significant gains on Tuesday after the company reported a major announcement. Advaxis announced that the Investigational New Drug application for its product ADXS 504 has been approved by the United States Food and Drug Administration.
“With encouraging proof-of-concept data within our neoantigen program, we believe the ADXS-HOT program has potential to provide off-the-shelf, neoantigen targeted immunotherapies to a broad patient population,” said Kenneth A. Berlin, President and Chief Executive Officer of Advaxis. It was a major development for the company and it was no surprise that investors piled on to ADXS stock on Tuesday. But it’s also important to note that this could have been a case of buying the rumor/selling the news.
Shares of Advaxis retreated shortly after the stock made new 2020 highs. That drop hasn’t subsided yet either. However, Advaxis remains one of the more active penny stocks to watch right now. Given the fact that it’s still trading much higher than it was just a few weeks ago, does this signal its next, higher trading levels?
Disclaimer:
Pursuant to an agreement between Midam Ventures LLC and IMC International Mining Corp. (CSE: IMCX) (IMIMF), Midam has been paid $200,000 for a period from January 7, 2020, to February 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to March 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to July 9, 2020. We may buy or sell additional shares of IMC International Mining Corp.(CSE: IMCX) (IMIMF) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about IMC International Mining Corp. (CSE: IMCX) (IMIMF). Full Disclaimer Here
