These Penny Stocks Have Been Trending This month
One of the best things about penny stocks is that there is always the possibility to make big gains quickly. Over the years, many people have made considerable amounts of money by simply trading these cheap stocks. Based on this, millions of investors try to discover promising penny stocks. Though it sounds easy, it’s not as simple as it may appear.
The best way of discovering such stocks is by watching the market every day and looking out for the latest movements in different sectors and industries. Many times you’ll hear the term: sympathy play.
This refers to stocks that benefit from moves in larger companies. For example, when Tesla was skyrocketing earlier this month, shares of electric vehicle companies’ stocks like Nio (NIO – Free Report) followed suit.
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Similarly, as we saw with marijuana stocks earlier this week when one company came out with very positive earnings, a slew of other stocks mimicked the move. That often has proved to be a highly effective strategy. On that note, here is a look at a few penny stocks that could be worth tracking before the end of the month.
Penny Stocks To Watch #1 Plug Power
The first stock that could be added to a penny stocks watch list by investors is Plug Power Inc (PLUG – Free Report). The stock has made significant gains recently. The company is involved in making hydrogen fuel cell systems. In 2019, PLUG stock gained as much as 208% and it emerged as one of the more remarkable turnaround stories in the year.
Experts believe that it is one of those penny stocks that could have a high upside in the long run and much of that is due to the willingness to replace fossil fuels with renewable energy like hydrogen fuel. The company also recently signed a deal for $172 million from a “Fortune 100” company for its GenDrive fuel cell power and other related services. This has boosted sentiment around the company so far this month.
Penny Stocks To Watch #2 Himax Technologies
The other penny stock that has moved up recently is Himax Technologies (HIMX – Free Report). It managed to record significant gains in recent weeks. After the stock slumped in the summer of 2019, it managed to rebound strongly. Much of it is due to the fact that the company turned a profit in its recent quarter.
Revenues came in at $174.9 million, an increase of 6.5% sequentially. That’s compared to the guidance of flat to the previous quarter. Gross margins were also up. The third quarter’s margins were 19.5%. This quarter, the company expects that figure to come in at 20.6%.
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Since then, HIMX stock has been on a recovery phase and since December it has managed to gain as much as 80%. The formal results will be released later in February on another corporate conference call.
Penny Stocks To Watch #3: Seneca Biopharma
Seneca Biopharma (SNCA – Free Report) has been a penny stock to watch since late November. At the time, shares hit 52-week lows of $0.70. But since then, the biotech penny stock has managed to rally in a significant manner. This week, shares soared after the company released big news.
Seneca reported that it would present at 2 big investor conferences between January 12 and January 15. What may have acted as a catalyst for Friday’s big move was the information in a Januar 16th 8-K filing.
Other than updated presentation slides, the filing revealed that Seneca “representatives are also conducting one-on-one meetings with potential joint venture and strategic partners.” Needless to say, shares have soared to highs o nearly $3 so far this week. Can that continue into the second half of January?
Penny Stocks To Watch #4 Moneygram International
Finally, money transfer giant Moneygram International (MGI – Free Report) climbed after the company made a major announcement. Moneygram announced this week that the number of transactions completed in December rose by as much as 2% year on year.
Moneygram revealed that the rise was primarily driven by the worldwide direct digital arm and the international walk-in segment. In addition to that, Moneygram announced that in December, the company completed the highest number of international transactions for the month, ever.
The beleaguered stock hasn’t had the best 4th quarter. Mid-September saw shares trading as high as $6.70. But as we see the company’s stock no trades below $3. MGI stock soared 23% to $2.80 in Thursday’s trading session. So the question now is can Moneygram finally begin to turn things around in 2020?