These Could Be The Best Penny Stocks To Buy Or Sell Soon
I know we talk a lot about how great penny stocks can be. While this is true, making money with penny stocks isn’t as easy as it might seem. Besides doing a ton of research, digging into pages of corporate filings, and trying to follow the money of hedge funds, you need a strong stomach.
What I mean by this is that you need to be able to handle the fact that swings of 20% within a matter of minutes aren’t unusual. I’ve seen plenty of time in my own experiences that setting stop losses of 5 or 10% below your purchase price can simply lead to frustration.
If you’re new to penny stocks you might be asking why. The simple reason is what I discussed above. A cheap stock under $1 can dip 20% in one instance but then catapult 50% in the other direction. But since there was a stop-loss set 10% below your purchase price, the trade ended in a small loss in lieu of a significant gain.
Now, I’m not saying that you should set extraordinary stops because that is even riskier than anything. But what I am saying is that if you aren’t ok with holding a 5% or even 10% loss, it may be best to find stocks that don’t fluctuate as much. In any case, being able to plot trends and understand certain aspects of the market can help you make more winning trades.
Penny Stocks To Watch
The important thing to understand is that trading doesn’t have to be an “all or nothing” event. You don’t just need to buy a single position and then sell the whole position later on. You can do what some of the pros call “scaling up.” Then when it comes time to sell, you can “scale-out” of your position. This method helps you stay in winning trades longer while also avoid taking large monetary losses.
Case in point, if you like a certain penny stock you might enter the trade with a smaller, “starter position” to test your initial thesis. If you find that you’re correct and the stock starts moving up, then you might add to your position. On the other hand, if that same penny stock were to head in the other direction and all you had was a small, starter position, then at least the total dollars at risk wouldn’t break your entire cash account.
Read More
- Top Penny Stocks To Watch Before The Weekend; 2 Up Big In 2020
- Best Penny Stocks To Buy Right Now? 1 Up 417% Since November
- Best Penny Stock Brokers For 2020
It’s also good to pay attention to the market for a given penny stock. Are shares steadily moving up or is the stock constantly gapping? We saw this with Tesla on a larger scale and most of the time, parabolic moves aren’t sustainable. This week we saw the EV stock crumble. With this in mind, here are a few penny stocks to watch that have continued to post new highs while also showing consistent uptrends (v.s. parabolic ones). Will these be on your penny stocks watch list later in the month?
Himax Technologies
This is one of the top penny stocks we’ve discussed since October. At the time, Himax Technologies (HIMX – Free Report) was trading around $2.30. In our article, “5 Penny Stocks to Buy Before Next Month?” we pointed out the company’s focus on its earnings. Furthermore, the push for investors to search for semiconductor stocks has increased ever since the whole 5G focus. In any event, you see how well this penny stock has performed after hitting highs of $4.82 this week.
Once again, the stock is rallying heading into earnings. Next Thursday Himax reveals its results before the market open for both Q4 and full-year 2019. Today there was a 13G filed showing that Biing-Seng Wu and affiliated entities have upped investments into the company. He’s also the company’s Chairman.
From a technical perspective, there are a few things to pay attention to here. First, the RSI suggests HIMX stock could be in “Overbought” territory. However, the MACD is showing potential for more momentum with this latest signal-line crossover. Furthermore, the 50-Day Moving Average (yellow line) is crossing above the 200 Day Moving Average (red line).
This is a bullish signal called the golden cross and usually needs volume to confirm an underlying bullish trend. In this case, HIMX stock has seen above-average trading volume for most of 2020 so far. Considering the RSI, it may at least warrant having HIMX on watch to see if shares either head higher or pull back before earnings.
IMC International Mining
Next, IMC International Mining (IMCX – Free Report)(IMIMF) has been one of the top-performing gold stocks to watch this year. Since January 8, the penny stock has managed to climb from around $0.25CAD to highs this week of $0.435CAD. On top of that, the company’s stock has also begun trading in the US. This started on January 21 with shares trading around $0.25USD. Since then, IMIMF has steadily jumped to highs of $0.34USD this week. Though it was on lower volume than its Canadian listing, the fact that it continued to climb is notable.
If you look at the broader gold sector, many of the industry “leaders” have had a tough time. But for junior gold stocks, that hasn’t been the case. Obviously, for IMC International, the upward move in juniors has more investors looking at small-cap stocks than anything from what I’ve seen. The company’s initial focus has been on its Ballard Pass property in Arizona. But what’s also important to note is that IMC has openly stated that, “We are determined to expand IMC International Mining Corp.’s asset base and continue to investigate other opportunities worldwide.”
Needless to say, shares of IMC have soared simply with the current project in place. “Previous modern exploration work on the current Bullard Pass Property consisted of geological mapping, geochemical sampling, geophysical surveys, and a number of Reverse Circulation drill holes…District production totals were 614,000 pounds of copper, 3,600 ounces of gold, and 15,000 ounces of silver from 17,000 tons mined that occurred between 1933 and 1956.”
Selecta Biosciences Inc.
Another penny stock to watch, Selecta Biosciences, Inc. (SELB – Free Report) was one of the companies we’ve actively reported on since early November. Around that time it traded around $1.50 and since then, you can see how things changed along the way. This first look was just as the company was set to present its Phase 2 data on the SEL-212 therapy for gout.
After raising some $70 million and completing enrollment in a head-to-head COMPARE Trial of SEL-212, shares kicked into overdrive in December. What helped give things a further jump was the company’s deal to license Selecta’s ImmTOR immune tolerance platform. Asklepios BioPharmaceutical (AskBio) will give upfront payments and milestone payments of more than $240 million, plus royalties via this deal. Things have been relatively quiet on the news front lately.
[Read More] Best Penny Stocks To Buy or Sell For Under $4 Right Now?
But a quick look at the filings shows an S-3 registration statement on January 29 for certain shareholders to sell nearly $200 million at $2.29 a share. Of the 68.97 million being sold, 37,634,883 common shares are presently issued and outstanding, while 31,330,629 common shares are issuable upon exercise of warrants to purchase common shares. But the company won’t receive any of the money from this sale.
The technical trend appears to be similar to that of HIMX. That’s with regard to everything from the RSI and MACD to the Gold Cross pattern on the chart. The main difference is that the trading volume doesn’t appear to be incredible above-average. However, it has been much higher this year than at the end of 2020.
FlexShopper Inc. (FPAY)
The next penny stock that just hit 52-week highs was FlexShopper (FPAY – Free Report). We first started following this penny stock when it was trading around $1.52 back in July of last year. From time to time we’ve peeked in and this time it’s at new highs. After appointing a new CEO late last year, shares of FPAY stock seem to have started to break higher. Strong Q3 earnings didn’t hurt at all, either.
The biggest focus for the company recently has been on its offer to exchange shares for public warrants of stock. That offer expired this week. As a follow-up, the company reported that 5.3 million public warrants were tendered and not withdrawn. That resulted in the issuance of a little more than 3.2 million shares. What does this mean for the company? At the end of the day, the resulting issued and outstanding share count will be somewhere in the ballpark of 21 million. Considering that as the case, the share structure is still relatively small compared to the stock’s price.
From a technical perspective, both RSI and MACD are at bullish positions. MACD line is at the cusp of crossing above the signal line (blue line over the light yellow line), which is a bullish trend. Furthermore, the RSI is heading sharply toward 70; another bullish case. Furthermore, FPAY stock has managed to use the 50 day moving average as a potential level of support. Both times the stock has tested this, it has bounced higher. Will it manage to head higher in February?
MIND C.T.I.
Finally, MIND C.T.I (MNDO – Free Report) has reached fresh highs this week. This is one of the lower volume penny stocks on this list. However, you can’t ignore the move that it has made. With only 19.8 million shares outstanding, it doesn’t have the lowest float to consider however it isn’t a large one by any means. The Israel-based company develops and markets software solutions for its customers.
Since releasing its Q3 results, the company has been very quiet. No filings or news to speak of since November. Regardless, MIND put a lot of onus on its partnership with Defiance Holdings to support communications carriers. These include QualStar Communications, MetaLINK Technologies, and Ayersville Telephone.
On top of this, the technical trend has been bullish for quite some time now. This is also a good example of what a successful Golden Cross can become. As you can see the cross happened back in September and while the upward move didn’t happen immediately, MNDO stock did hold a level of support while both MACD and RSI quitely re-set and then began climbing.
After the last pullback in December, MNDO has been riding its 50 Day Moving Average as a level of support. Furthermore, the recent uptrend in both MACD and RSI could suggest underlying bullishness in trend. Obviously we can’t see the future, but this may be something to note heading into the rest of this month.
Disclaimer
Pursuant to an agreement between Midam Ventures LLC and IMC International Mining Corp. (CSE: IMCX) (IMIMF), Midam has been paid $200,000 for a period from January 7, 2020, to February 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to March 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to July 9, 2020. We may buy or sell additional shares of IMC International Mining Corp.(CSE: IMCX) (IMIMF) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about IMC International Mining Corp. (CSE: IMCX) (IMIMF). Click Here For Full Disclaimer
