No matter how experienced you are, penny stocks are most likely something that you’ve encountered one time or another. These low-priced, high volatility stocks attract investors from all walks. Whether it’s an experienced investor or a brand new day trader, there’s something about these stocks that keep things exciting.
The first thing to do is put together a list of penny stocks to watch. Hopefully, you do this after taking plenty of time to research certain companies. You’ll want to read through past news, filings, and even check to see if there are any upcoming investor conferences.
Furthermore, we’ve got other things to continue factoring in. One of them is the coronavirus. It almost seems like as soon as the market is “content” with the data, investors pull an about-face the next day. This has continued to make for a volatile market and impacted several sectors. These include gold stocks, biotech, and even financials. It remains something to keep in mind in my opinion.
In any event, this is a shortlist of penny stocks to watch this week after momentum started to come into the market. But will they be names to have on your list of penny stocks or avoid altogether?
A Name To Have [or avoid] on Your Penny Stocks List: IMC International Mining
First, IMC International Mining (IMCX – Free Report)(IMIMF) has remained one of the top penny stocks to watch amid the recent surge in gold prices this year. Unlike some of the larger gold stocks, IMC International has benefited much greater in comparison. It’s also echoed the move seen by a number of junior gold mining and exploration stocks.
With gold futures making a move higher on February 11, IMC could continue to be one of the top penny stocks to watch right now. On Monday, the gold penny stock had a tough morning but by the end of the day, it made new highs for its Canadian listing, IMCX. Shares also rebounded in the US.
Since the start of the year, IMC has been on a consistent uptrend moving from $0.25CAD to new highs this week of $0.50CAD. The company’s stock didn’t start trading in the U.S. until much later in the year, however, it has managed to make a considerable move as well. Much of the excitement driving the gold sector seems to have had a strong impact on IMC.
In addition to that, the recent focus on its Bullard Pass property in Arizona has some watching and waiting in anticipation to see what comes next. Previously published reports have shown that the property could be “one of merit”. Furthermore, Arizona geological data states that “the mineralogic and structural similarities of the Bullard and Copperstone districts suggest that potential exists for a major gold deposit in the area of the Bullard district”.
Rider: It is noted that the results of nearby or adjacent properties are not necessarily indicative of the potential of the Cathedral property and should not be understood or interpreted to mean that similar results will be obtained from the Cathedral property.
A Name To Have [or avoid] on Your Penny Stocks List: HC2 Holdings Inc.
HC2 Holdings Inc. (HCHC – Free Report) has been one of the top penny stocks to watch this year. Since the start of January, HCHC stock has skyrocketed. At the time, it traded around $2.15 and since then the penny stock managed to reach highs of $4.
The last week or so has been monumental as shares essentially have gone parabolic. But this also creates a bit of risk in my opinion. Overextended charts have a tendency to correct at times. Those corrections can be very aggressive. If you’ve been following the story around Tesla (TSLA – Free Report) then you know this scenario all too well. However, this week, HC2 came out with news that it’s in talks to sell two of its subsidiaries.
“We have always believed that we have aggregated a very attractive group of assets, but it is now time to harvest certain of these assets to accelerate our debt reduction plan and further close the gap between our market value and the net asset value of our underlying portfolio companies.”
Philip Falcone , Chairman, President and Chief Executive Officer of HC2
A Name To Have [or avoid] on Your Penny Stocks List: Allied Healthcare
Allied Healthcare (AHPI – Free Report) is another company that could be on watch lists this week. The penny stock had a run earlier in the month. That move saw shares jump from around $1.20 to highs of $5. What I can tell you is that this move happened quickly and resulted in an aggressive pullback. This is the scenario I was referencing when I mentioned “parabolic” and HCHC. So it’s important to manage your trade along the way, I.E. take profit where you can.
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In any case, AHPI stock did pullback to lows of almost $2 but now has started to reverse course once again. On Monday, the penny stock managed to bounce back to highs of $2.67 before closing at $2.54. So what has driven this move? Remember our first article on coronavirus penny stocks? Like many healthcare companies, Allied may have benefited greatly from the search for “gold” in coronavirus-related names.
The company sells respiratory products and other healthcare items. Beyond its relation to treating symptoms of the virus, AHPI hasn’t released any news and its last filing was a Form4 filing on January 3rd indicating one of its directors had picked up shares of AHPI stock. Can the hype last?
A Name To Have [or avoid] on Your Penny Stocks List: FuelCell Energy
Next FuelCell Energy (FCEL – Free Report) has continued to be one of the penny stocks to watch over the last few months. Shares broke out to new 2020 highs in January but when many energy stocks were hit with bad news, FCEL followed suit. That is, until this week.
Shares of FCEL stock managed to rebound strongly on February 10 and that has continued on the 11th. The energy stock hit highs of $2.13 during premarket trading on above-average trading volume. Something that we’ve noted numerous times with this company is that it is tightly aligned with the energy sector. It’s also a company that doesn’t always publish a news release but rather simply posts SEC filings. So this is where I looked first. Sure enough, FuelCell’s disclosure statements show a few new filings.
First, a PRE 14A is just the notice of an annual meeting of shareholders and what’s on the docket for that meeting. Aside from the appointment of new directors, there’s something in there to be well-aware of which is a vote to increase the number of authorized shares of common stock of FuelCell Energy, Inc. from 225,000,000 shares to 337,500,000 shares.
Many times companies will increase the authorized because they are running out of shares to issue. Whether it’s executive compensation or an attempt to raise more money, this will be a tactic used. It’s not always a bad thing but it does raise some questions as to potential dilution. This is something yet to be seen however but an item to keep in mind down the road. The other filing was a 13G which indicates a large shareholder adding to or taking a position in the company. This filing shows Lawrence I. Rosen holding a 5.2% stake in FCEL.
A Name To Have [or avoid] on Your Penny Stocks List: Sprint
Last but not least is Sprint (S – Free Report). We’ve followed this saga for a while now. We actually were some of the first to take a little heat and discuss the potential of this company becoming a penny stock. After proving that as the case, Sprint seems to be doing the necessary things to right some of its wrongs. The merger between the company and T-Mobile (TMUS – Free Report) has also been hanging in the balance.
Read More On Sprint
- Can These 3 Penny Stocks Turn Around In February?
- Sprint (S) Joins The List Of Penny Stocks; Now What?
After hitting lows of $4.26 earlier this month, the stock has been steadily climbing back amid optimism that a merger would go through. Most recently we mentioned Sprint as one of the penny stocks on Robinhood to watch this month specifically for this reason. Late yesterday, the Wall Street Journal noted that a U.S. District judge is expected to rule in favor of a Sprint & T-Mobile merger.
This was according to sources close to the matter. Furthermore, the race for 5G has been a big focal point for a positive result of this merger. But it’s likely that the offer on the table might be cut based on the lack of performance of Sprint. Needless to say, speculation has been in the driver’s seat or this stock so if it is on your list of penny stocks right now, make sure to keep all of these outliers in mind.
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 for full disclaimer.
