Are These 5 Names On Your Penny Stocks To Buy List This Week?
Investing in penny stocks can often prove to be one of the most thrilling experiences for any investor. It goes without saying that the right investment can turn a small sum of money into a huge windfall. However, it should be kept in mind that penny stocks are highly volatile by nature. So, on the flip side, a bad investment can often lead to big losses as well.
One of the best ways of discovering profitable penny stocks is by watching the market closely. Once you find what you’re looking for, draw up a list of some of the more promising stocks that may be worth investing in. Sounds easy right? Well, there’s a lot more work that goes into a sound list of penny stocks than meets the eye. One of those things is monitoring which stocks are making big moves and understanding why.
One of the more important things that investors need to keep in mind with regards to penny stocks is the fact you can win and lose big. I can’t stress this enough. Taking care of your loss management skills is just as important as maintaining a winning strategy. Will every trade be a winner? Most likely not, however, it’s better to break even or cut losses quickly than hold the bag on a bad stock. This means to do a few things. One of them is to keep proper stop losses.
Penny Stocks With Big Moves This Week
Even if you’re an avid day trader, there’s no telling if or when a given stock will sporadically shift direction. When you have a stop in place, for instance, you’ll execute a trade automatically based on the limit price of the stop loss. So if your favorite stock all of a sudden drops, you’ve protected your capital but having your stop-loss trigger at a given price before all hell broke loose.
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But keep in mind that not all penny stock brokers allow for stop-losses to be placed on every company. Many OTC penny stocks will only be able to trade via limit orders. So in this case, it’s important to place mental stops and stick with them. What I mean by this is that if you can’t place an actual stop-loss order, write down your rock bottom price you’re looking to sell shares at. If the stock gets close, then it may be time to hit the sell button.
In any case, when you find active penny stocks, it’s important to understand what stoked the activity and whether or not the trend can continue. With this in mind, we’ve got 5 penny stocks to watch right now and a few have already made big moves this month.
Best Penny Stocks To Buy [or sell]: Novavax
The first penny stock to consider in this regard is that of Novavax (NVAX – Free Report). The penny stock made significant gains on Wednesday after it released a major announcement. The company reported that its product NanoFlu has been granted the vitally important Fast Track designation by the United States Food and Drug Administration.
The product is a flu vaccine candidate and it represents a major development for Novavax in its quest to bring the product into the market. It should be noted that NanoFlu is currently in a phase 3 trial that seeks to evaluate its immunogenicity and safety compared to the quadrivalent formulation of Fluzone. Phase 3 is a pivotal phase for any biotech company and will likely be something the market will monitor closely. One positive result or negative result can send shares hurling in one direction or another.
In the case of this news, it was also welcomed by traders. Since the start of the week, NVAX stock has rallied by as much as 22% emerging as one of the bigger penny stock gainers on Wednesday.
Best Penny Stocks To Buy [or sell]: Nio
The next one on the list of penny stocks is Nio Inc (NIO – Free Report). Shares soared yesterday on the back of major news with regards to the Chinese electric vehicle maker’s finances. For many months, the stock had performed poorly because of fears about NIO’s liquidity. At one point NIO stock traded as high as $10.64 before crumbling to lows of $1.19 just a few months ago.
However, on Wednesday, reports emerged that the company had secured financing for the year and the financing could be for as much as $1 billion. Trading volumes rose significantly and NIO stock managed to gain 14%. In addition, since October shares of NIO stock have exploded 269%. Is Nio finally beginning to turn a tide?
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Thanks to the added attention to the EV sector from companies like Tesla, China’s market could be ripe with potential. At the end of 2019, analysts from Bank of America upgraded their rating from “Underperform” to “Neutral” and increased the price target. Before this, the target was set at $2.10 but has since been boosted to $3.80.
Best Penny Stocks To Buy [or sell]: Cemtrex
Another penny stock to watch is that of Cemtrex Inc (CETX – Free Report). It jumped considerably this week after the company announced that it had signed an important contract. Cemtrex announced that it had signed a new video surveillance contract that is worth as much as $700,000.
The company will provide its services to correctional facilities in the Southern region of the United States. It marks a significant move for the company and one that could bring in more business in the future. But that wasn’t it from the company. This week was a busy one for big updates from Cemtrex. The company reported strong earnings results earlier in the week. Also, after the market closed on Wednesday, Cemtrex announced a 3-year share buyback plan.
Specifically, the company “may repurchase up to two million of its outstanding shares of each class, over three years, depending on market conditions.” CETX stock climbed by as much as 187% since the start of the week on the back of this news flow. However, shares consolidated heavily following the Thursday open. Also, keep in mind that the total outstanding share count as of right now registers below 5 million. Given the “low float” potential of this, it’s likely why CETX has seen such wild swings this week. Will Cemtrex be able to recover or is it time to put this on the list of penny stocks to sell, now?
Best Penny Stocks To Buy [or sell]: Fluent
The other penny stock that managed to break into a rally on Wednesday was Fluent Inc (FLNT – Free Report) after the company released the preliminary numbers for the fourth quarter and also for the full year. Fluent revealed that it expects its revenues for the fourth quarter to be in the $79.1M-$80.1 million range and the full-year revenues to be in the $280.8M-$281.8 million range.
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The full-year revenues reflect year on year growth of as much as 12% and in addition to that, the quarterly revenues figure is also higher than some analysts’ estimates. FLNT stock soared by 71% since the start of the week.
In response to the update, Ryan Schulke, Fluent’s Chief Executive Officer, commented, “The improvement in our core commercial trending we noted in early November gained considerable further traction as the quarter progressed, closing out the year on a particularly strong note. We look forward to discussing our final full-year results in March.”
Best Penny Stocks To Buy [or sell]: Mallinckrodt
Another penny stock that made significant gains this week was Mallinckrodt PLC (MNK – Free Report). The rally came after the company’s Chief Financial Officer Bryan Reasons stated that Mallinckrodt could pay off its debenture maturities for 2020. Reasons explained that based on the initial outcome of the meetings that have gone on, he’s optimistic about not needing to settle right away.
The comment was made at the J.P. Morgan Health Care Conference and MNK stock rallied significantly. Not only that but trading volumes have been well-above-average this week. In fact it gained as much as 83% since last Thursday.