5 Penny Stocks That Have Started To Turn Heads In February
Penny stocks are typically regarded as high-risk stocks and for good reason. However, at the same time, it should be noted that there are potentially high rewards to be had as well. That is, if an investor is able to discover promising stocks. But of course, this relies heavily on the ability of a business to execute on its business model.
Then again, there are also times where a company is just in the right place to take advantage of market momentum. For instance, the big concern over the coronavirus has certain penny stocks soaring earlier this year. Though most of that has subsided, it doesn’t change the fact that any company with an antivirus drug caught attention. We even saw company’s that sold medical masks scream to new 2020 highs.
Needless to say, if you can handle high volatility, you might want to take a look at some low priced stocks. Here’s a list of penny stocks that could be on investors’ radars before next week. The biggest question is will they be stocks to trade or fade?
Penny Stocks To Trade [or fade]: Avanex Life Science
One of the penny stocks that have made significant moves in recent days is that of Avanex Life Science (AVXL – Free Report). Earlier this week, the company announced that the United States Food and Drug Administration awarded fast track designation to its product AVANEX 2-73. It’s meant for people suffering from Rett Syndrome.
This was a significant development for the company. So, it came as no surprise when the penny stock started rallying. Since the end of January, shares have jumped from $2.86 to highs this week of $4.59. That is a great 60% move but Friday’s trading should be taken into account. Sure, the stock made new highs but heavy consolidation before the lunch hour saw shares slide to lows of $3.87.
This is still higher than where it started the month. But it may simply be a stock to watch for now considering this pull-back. The main point is to make sure this doesn’t turn into a major sell-off on a “buy the rumor, sell the news” move. The company just reported Q1 results that showed an EPS beat against estimates. Furthermore, the company will also be presenting at net week’s BIO CEO & Investor Conference.
Penny Stocks To Trade [or fade]: Plug Power
Another penny stock to watch is Plug Power (PLUG – Free Report). This was one of the top penny stocks on Robinhood this month and it continues to be a focus. Back in January, the company announced that it is trying to hire as many as 50 new people this year in order to further expand its business. In order to accomplish that, Plug Power has made Tammy Kimble the new VP of Human Resources and also hired the services of a new talent acquisition manager.
Furthermore, in the same month, it closed a contract with a “Fortune 100 logistics company” for $172 million. Though the logistics company wasn’t named, it’s still a significant deal for the company. The developments resulted in a rally in PLUG stock and remains a penny stock to watch this month.
On Friday, the stock saw a slight pullback but maintained its level above $4. While volume was a bit lighter compared to its previous day, PLUG stock managed to recover from its intraday low of $4.13 by the close.
Penny Stocks To Trade [or fade]: ADDvantage Technologies
Next, ADDvantage Technologies (AEY – Free Report) has made rapid gains over the past week. In fact, it hit its 52-week high on Thursday and continued further on Friday, posting new highs of $3. Earlier on in May of last year, the company announced that it received approval from its shareholders to sell its cable TV arm for $10.3 million.
However, more near term achievements could have also been key catalysts for the move. In December, the company reported a 101% increase in its fiscal 2019 full-year revenue. Furthermore, its EPS and Sales were both up from the same period in 2018.
Heading into next week, hopes appear high as ADDvantage is set to report its fiscal 2020 Q1 results on the 13th. Keep in mind that results come after the close. So if you don’t read about this company between now and then, be aware of this fact. Given the strength of its previous earnings, I’m sure expectations are in line but anything can happen.
Penny Stocks To Trade [or fade]: MoneyGram
Money transfer behemoth MoneyGram (MGI – Free Report) has worked to recover from last year’s beat down during the second half of the year. The company announced on Thursday that Brink’s Company has decided to invest in MoneyGram.
The investment is going to be an equity investment. But Brink’s Company is not going to take up a controlling stake in the money transfer firm. Furthermore, MoneyGram announced that it had launched an online presence in Singapore. According to the World Bank, Singapore is one of the largest send markets in Southeast Asia. It’s responsible for more than $7.2 billion in outflows annually.
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The updates proved to be a positive trigger for MGI stock, and it rallied by as much as high as $2.64 this week. With Friday seeing a pull-back, was this just a short-term catalyst for the stock or is MGI setting up for a move higher next week?
Penny Stocks To Trade [or fade]: Isoray
Isoray Inc (ISR – Free Report) has emerged as anther penny stock to watch right now. Earlier this week, the company made an announcement with regards to an important collaboration. Isoray announced that it had reached an agreement with MIM Software, and the two are going to work on an all in one program for the treatment of head or neck cancer.
“Our initiative with MIM Software represents another step forward in the treatment of hard to treat cancers…We believe this new brachytherapy treatment package will make an important contribution to achieving that goal because it expands physician and patient access to a cutting-edge approach to the treatment of head and neck cancers.”Lori Woods, Isoray CEO
It is an important development and one that could open up fresh opportunities. The market thought so as well, and ISR stock has continued to rally during the second half of the week.