These Penny Stocks Broke Out After Big News
If there’s one thing about penny stocks, it’s that they’re very volatile. It’s almost a daily occurrence where we see these cheap stocks make explosive runs. Sometimes there may not even be an actual catalyst behind the move except for sheer market momentum.
However, when there is an actual corporate event, that can trigger a more than radical move for penny stocks. That, of course, can go both in favor and against a specific penny stock. So, it makes sense that when there is very positive penny stock news, the markets eat it up.
Case in point, January 14th saw several micro-cap stocks take off following big updates. What’s more, was that the news came after the market closed. So, besides a select group with access to after-hours trading, it’s more likely that people will be able to trade based on the news the following session (being Jan. 15). With this in mind, will these names be among the best penny stocks to watch?
Penny Stocks With News: Fluent, Inc.
First, on this list of penny stocks to watch, Fluent, Inc. (FLNT – Free Report) reported preliminary financial metrics for 2019. The data marketing company released its updated outlook as well as interim data that included revenue, and media margins.
As far as revenue’s concerned, the company expects full-year 2019 figures to show somewhere between $280.8 – $281.8 million. That would represent an increase of 12% growth compared to 2018. Furthermore, the company guided that its media margin would be in a range of $93-$94 million. That’s a considerable increase from previous guidance of $87-$88 million.
Also, keep in mind that the company is set to present at the 22nd Annual Needham Growth Conference on Wednesday morning before the opening bell. Could that also become a strong catalyst for the stock? Since making the after-market update, shares of FLNT stock skyrocketed from $2.19 at the close to highs of $3.83 right after the close.
Penny Stocks With News: Bellicium Pharmaceuticals
Next, Bellicium Pharmaceuticals (BLCM – Free Report) has been on the run since December 10 of last year. At the time, shares traded around $0.80 and since then it has run to recent highs on January 14th of $1.81. Though the penny stock didn’t have crazy aftermarket trading, the big run-up on Tuesday came during power hour. Sure enough, after the close, something came out from the company.
In an 8-K filing, Bellicium reported that its Vice President of Finance, Rosemary Williams was terminated. Her successor, David E. Strauss will begin acting as Director and Corporate Controller. Though a new Controller may not be groundbreaking news, it is still a material event for the company. Let’s also not forget that the company is still set to receive “undisclosed future milestone payments” from its licensure of CaspaCIDe to The University of Texas MD Anderson Cancer Center.
When and if then happens is still yet to be reported. However, the company already received a $5 million payment from the Cancer Center. The company’s CaspaCIDe is known as a “safety switch.” It’s essentially an enzyme that remains inactive unless a patient experiences a serious side effect, in which case the technology is designed to resolve such a side effect.
Penny Stocks With News: Organigram
We don’t hear much good news about marijuana stocks. That’s at least since the sector took a beating in 2019. However, Tuesday saw Organigram (OGI – Free Report) bring some light back to the darkness of the sector. Just one day ago, shares of OGI stock hit fresh 52-week lows of $1.89. On January 14th the pot stock scrambled to highs of $2.94 after some post-market news came out.
Organigram reported its 1st quarter fiscal 2020 results. Revenues came in at $25.2 million while EBITDA was recorded at $4.9 million. Compared to the same quarter in 2019, sales effectively doubled along with net revenue.
“Despite ongoing industry challenges, we are pleased with solid Q1 2020 results and our return to positive adjusted EBITDA during the quarter. Our team was also successful in shipping the first of our Rec 2.0 products as planned and on schedule in December of 2019.”Greg Engel, CEO of Organigram
However, you should also note that shares retreated following those $2.94 aftermarket highs. Despite favorable sales growth, there are a few things to note that could be behind the slight pull-back. First, its adjusted EBITDA was much lower this quarter compared to the same period last year. Attributed to SG&A costs, the company identified a reason why this was the case. Furthermore, this quarter, the company reported a net loss of 900,000 compared to a net income of $29.5 million in Q1 2019. But according to Organigram, these were “largely due to non-cash fair value changes to biological assets and inventories sold.”
Penny Stocks With News: Cemtrex, Inc. (CETX)
A familiar face on this list of penny stocks, Cemtrex, Inc. (CETX – Free Report) was a company we’ve sporadically discussed over the past year. It’s been known to break out big but also known to break down just as quickly. In this case, shares of CETX stock took off after the close on January 14th.
The company came out with its fiscal year-end results, ending September 30, 2019. Revenue came in at $39.3 million. Gross profit jumped nearly 100% from $8.22 million in fiscal 2018 to $15.56 million in fiscal 2019. However, the company did realize a larger net loss compared to its previous year. This came in at $21.86 million compared to a previous year’s net loss of $9.24 million.
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According to the company, it was mainly due to discontinued operations of its environmental products business and electronics manufacturing segment. All-in-all, the market reacted very favorably to the results as shares jumped to highs of $1.70 during after-hours trading. That’s up 44% from where it closed during the regular session.
Penny Stocks With News: Allied Esports
Finally, Allied Esports (AESE – Free Report) joins the list of all penny stocks making big moves on news right now. Unlike the previous two companies, Allied didn’t report anything like earnings or a big acquisition. But it did announce something to do with a large sum of money.
After the bell on January 14, Allied Esports announced that Brookfield Property Partners (BPY – Free Report) invested $5 million into the company. Through the deal, Brookfield will now bring Allied’s new on-mall esports venue concept to existing retail destinations. This will include complete broadcasting and streaming production capabilities.
In addition, the company explained that it will provide full food and beverage options on top of experiential retail. Thanks to that update, the market saw shares of AESE stock skyrocket to highs of $3.05 after the market closed. That’s 22% above its closing price during the general session. Can that continue into the week ahead?