5 Penny Stocks to Watch Right Now
When it comes to stock market investing, there is always an element of risk. This is true no matter how big a company one is investing in. With the case of penny stocks, that risk is even higher. The main reason is that these low-priced stocks are very volatile and can swing 50% or more in any direction. That move doesn’t happen within weeks; it can happen within minutes.
That being said, penny stocks can also bring in significant rewards. Just as quickly as they can shift to the downside, they can become explosively bullish. So, penny stock investment could be termed a high-risk, high reward space, and over the years, many investors have been rewarded handsomely. Here is a look at five penny stocks to watch that could be considered by investors.
Best Penny Stocks To Watch #1 Vaxart Inc.
The first penny stock that may be worth considering is Vaxart Inc. (VXRT Free Report). It has made a significant move this year already. At the start of 2020, the penny stock traded around $0.34.
Since then VXRT stock has exploded to highs of $1.20 this week. This 252% move didn’t come by chance. Aside from several key updates, the company has continued to update the market with big developments.
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This week, Vaxart reported announced initiation of a coronavirus vaccine program. In light of recent developments, the coronavirus has taken center stage in the market. “Vaxart’s proprietary technology has been clinically proven in humans, and the ability to make an oral vaccine to meet this current public health threat is very important to all of us at Vaxart,” said Sean Tucker, Ph.D., chief scientific officer of Vaxart.
Best Penny Stocks To Watch #2 H2C Holdings
The other penny stock that could be tracked by investors is that of H2C Holdings (HCHC Free Report). It made a major announcement with regard to recent disinvestments. The company holds a 73% equity stake in a Global Marine Holdings subsidiary. Now, it has decided to sell the entirety of its stake to J.F. Lehman & Company LLC.
“We are energized to start off 2020 with the completion of the sale process, and there is no question that our patience and persistence has been rewarded with a very strong outcome for HC2 stakeholders,” said Philip Falcone, Chairman, President and Chief Executive Officer of HC2.
A subsidiary of the company named Global Marine Systems Limited is also going to be part of the sale. H2C is going to get $250 million for sale, and it was no surprise when HCHC stock rallied. Percy Rockdale recently disclosed a 5% stake in the company. This came after H2C reported that it had inked a deal with beIN Sports to launch a new live sports OTA channel in December.
Best Penny Stocks To Watch #3 Groupon
Groupon (GRPN Free Report) has been a bit of a laggard from among penny stocks for quite a while. But 2020 has been a breath of fresh air for the stock. In 2020, GRPN stock has gained as much as 30.6% so far. Much of that rally is due to the fact that an activist investor has taken up a stake in the company.
MIG Capital, which is an activist investor based out of California, has taken up the stake in the company. Activist investors generally drive a company towards better performance. Therefore, there is some positivity around the daily deals company at this point. Analysts have also found favor with this penny stock. UBS upgraded Groupon to Buy with a price target of $3.50.
Best Penny Stocks To Watch #4 Himax Technologies
Himax Technologies (HIMX Free Report) has emerged as another impressive gainer among penny stocks over the course of the past month. The company is involved in the ultra-low-power usage image sensor space. Earlier this month, the company announced that one of its products, the HMO360 is now commercially available. The product in question is an ultra-low-power and low latency Back-Illuminated CMOS Image Sensor solution.
HIMX stock has rallied by as much as 40% so far in January, and on Thursday, it gained a further 5%. This came after Himax announced that it is going to release its fourth quarter as well as the full year 2019 financial results.
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Its results will be reported on a conference call on February 13. Furthermore, Himax stock has also attracted a favorable response from analysts after this last update. Lake Street raised its rating from Hold to Buy and gave a $5 price target.
Best Penny Stocks To Watch #5 EMX Royalty Corporation
Finally, on this list of penny stocks is EMX Royalty Corporation (EMX Free Report). It has managed to gain steadily over the past three weeks. During the period, EMX stock rallied by as much as 25%, and it generated further gains of 4% on Friday.
It announced that the property belonging to the company’s fully-owned Turkish subsidiary, Balya polymetallic, had been transferred to Esan Eczacibaşi Endüstriyel Hammaddeler San. Ve Tic. A.Ş. The property was earlier owned by Dedeman Madencilik San. Ve Tic. A. Ş.