Looking For Penny Stocks To Buy? 5 Companies To Know Right Now

January 20, 2020

5 Penny Stocks To Buy Or Ignore This Week After A Big Month So Far

How do you make money with penny stocks? This is a frequent question that many new traders will ask especially if they have small trading accounts. For most, the idea of finding penny stocks to buy has everything to do with scoring a quick gain. But, similarly, these novice investors get caught in a trap.

What I mean by this is they treat penny stocks like some type of “bet”; either I win big or I lose big. But the fact of the matter is that penny stocks, just like blue chip stocks, can produce consistent profits if you treat them like investments as opposed to a roulette table bet.

Let’s face it. The average newbie trader might buy a penny stock, plan to start taking profit when they are up a small amount, and then move on. But the reality for so many of these same newbies is that once they’re up a considerable amount – even 20% – they let greed control the trade. “Well, if it goes up just a little more, I’ll make X.” This is a great dream but keep in mind that penny stocks are very volatile. Just as quickly as they rise, they can drop back to or even below your entry point.

The Basics Of Penny Stocks

So if you are new to penny stocks, keep the next sentence in mind. You can always find another penny stock to trade and you can always re-enter a trade if you see it as a potential winning trade after you sell out of it. All-too-often, people get emotionally attached to certain stocks.

But once you figure out how to remove emotion from trades, you’re more likely to make better decisions when it comes to both selling and buying penny stocks. With this, it’s also important to bring up the fact that research is key.

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If you’re looking for penny stocks to buy, make sure you do plenty of research to determine if there is a possible catalyst in play and furthermore, if there’s a possibility to see appreciation in the market. With this in mind, here’s a list of penny stocks to watch this week after a big month already

Click To Begin List Of Penny Stocks

Penny Stocks To Buy [or ignore] #5: Clearside Biomedical Inc.

First, on this list of penny stocks, Clearside Biomedical Inc. (CLSD – Free Report) was one of the names we’ve continued to watch. Ever since early September, this has been one of the top penny stocks to watch. At the time we first discussed the company, Clearside stock traded around $0.65. Since then we’ve seen this biotech stock rally as high as $3.95 in December. Recently, shares have begun to recover after pulling back earlier this month. On Friday (1-17) CLSD stock closed at $2.84.

Last week the company presented at the J.P. Morgan Healthcare Conference. In our article, “10 Penny Stocks To Watch This Week Presenting Key Data,” we discussed how speculation may play a part last week. Specifically, how in late-Dember, the company announced plans to resubmit its drug delivery technology in Q2, 2020.

There hasn’t been any follow up to the conference yet but it will be interesting to see what information was actually discussed. In addition, it’s also important to note that the most recent SEC filing shows that the company is looking to raise some $6.8 million at $2.15 per share. Will this play a role during the weeks to come?

penny stocks to buy Clearside Biomedical (CLSD)

Penny Stocks To Buy [or ignore] #4: Kirkland’s Inc.

Next, Kirkland’s Inc. (KIRK – Free Report) closed last week in bullish fashion. After falling to new 52-week lows earlier in December, the stock has been on the move. Friday (1-17) saw shares reach highs of $1.63 before closing out at $1.60. Trading continued well-after the 4 PM bell as well.

A big concern recently was regarding the company’s business, in general. Profitability remained a key focus as well. Last week the company announced new management changes as well as addressed these fundamental concerns. The company’s President and COO, Michael Cairnes was ousted.

Furthermore, its sitting CEO, Woody Woodward assumed the President seat and now oversees operations. Kirkland promoted its VP of Supply Chain to Senior VP of that role and promoted current CP of Transformation, Jeff Martin, to SVP of Omni-Channel Retail.

Mr. Woodward said in a press release, “As we have outlined, our plan includes efforts to improve the relevancy and quality of our merchandise assortment, to operate with greater efficiency, and to lower our cost of goods as we evolve to a true omni-channel model that reinforces Kirkland’s value heritage. We believe the initiatives included in the plan are the right path for the future of the Company and look forward to providing updates regarding our progress in our fourth quarter earnings release and conference call.”

penny stocks to buy Kirklands Inc. (KIRK)

Penny Stocks To Buy [or ignore] #3: Party City

Believe it or not, there are companies that some wouldn’t consider penny stocks even though they trade below $5. In this instance, Party City (PRTY – Free Report), one of the most popular party supply chains in the world finds itself trading as a penny stock.

However, just because the price per share is low, doesn’t mean the company itself is hurting; or does it? Since seeing highs of over $22 in 2015, it has become a story of volatile moves in the market thanks to a slew of different “Unforeseen” developments and even SEC violations that lead to delisting in 1999.

If you were invested in this stock back then, I’m sorry to remind you about it now. However, those looking at Party City for the first time, now are seeing it during a bullish move. For the better part of the last few months, PRTY stock has been in rally mode. After hitting all-time lows of $1.52, shares have been climbing. In fact, that move saw the stock rebound by over 100%. So what has been happening with this party supply company?

Party City has begun to assess its current business model. Much of its challenges have come from its shortcomings in eCommerce. The company plans to close a number of stores to curb costs. In light of this, the company has sought out the help of a new CFO, former Chico’s (CHS – Free Report) CFO, Todd Vogensen. Will his vision be able to return the party brand back to its former glory?

Penny Stocks To Buy [or ignore] #2: Opgen Inc.

Another penny stock that has begun to turn things around after a huge drop in 2019 was Opgen Inc. (OPGN – Free Report). The company’s stock hit all-time lows of $0.92 in November. But, since then, shares have slowly started to claw their way back. After hitting highs of $2.13 on Friday, OPGN stock finished the week at $1.91; up over 100% from its all-time low.

Keep in mind that this could be a very high-risk penny stock. I say this because taking into account previous reverse splits, shares would have traded above $500 per share. Considering that its just under $2 right now, it would seem that dilution risk is alive and well with this stock.

If you can get beyond that fact, on the other hand, shares are climbing right now and might garner a bit more attention this month. In a January 15 filing, we can quickly see that the company has requested a special shareholder meeting. Its purpose is to approve a deal between OpGen and Dutch company, Curetis N.V. There has been several amendments to the initial notice over the last few months.

However, should the deal receive approval, it could see OpGen add valuable assets to its portfolio. The Curetis Group develops, manufactures and commercializes innovative solutions for molecular microbiology. These include platforms for comprehensive and rapid diagnosis of severe infectious diseases in hospitalized patients. In addition, Curetis has a comprehensive database of the genetics of antimicrobial resistance.

Penny Stocks To Buy [or ignore] #1: FuelCell Energy

Finally, one of the more popular companies on this list of penny stocks for the last few weeks, FuelCell Energy (FCEL – Free Report) continued its climb last week. Shares closed at $2.40 on Friday, which was just shy of its high of $2.42. This year, the energy penny stock already reached 2020 highs of $2.93 before pulling back during the first week of January. However, since then the stock has continued to inch higher.

The initial move came after a big corporate update from the company in November. We covered this in detail starting in late-October in the article, “5 Penny Stocks To Watch When You’re Short On Time.” Since then, FCEL stock has been on a rampage. Keep in mind that at the time, the stock traded between $0.23-$0.33. Fast-forward to this week and the penny stock is in a whole different realm.

So what has helped FuelCell Energy jump over 780% since then? Execution has become a key focus for the company. This includes executing from an internal fundamental aspect as well as an outbound growth initiative.

Back in November, the company inked a $60 million deal with Exxon Mobil Corp (XOM – Free Report). The deal focuses on FuelCell’s proprietary technology that uses a carbonate fuel cell to capture carbon dioxide streams from large industrial sources. Exxon aims to pilot test the technology at one of its sites.

On top of this, the company has launched commercial operations in California, as well as developing and successfully launching its 7-year extended life stack modules earlier this month. This week will be important as the company is set to deliver a 4th quarter and full-year financial results conference call on January 22.

penny stocks to buy now FuelCell Energy (FCEL)