These 5 Penny Stocks Have Moved Up Big This Month
If you’re looking for what penny stocks to buy right now, you should probably start doing some research, right? I take a lot of time to sift through some of the top penny stocks in the stock market today to find a few breaking out big. Some of these breakouts were triggered by big news, and others simply jumped based on market speculation.
Something that has continued to drive speculative trading is the coronavirus. Now named COVID-19, the illness has swept the globe. New cases have spiked this week when many thought we were nearing an end to the outbreak.
“This virus is probably with us beyond this season, beyond this year, and I think eventually the virus will find a foothold and we will get community-based transmission,” US Centers for Disease Control and Prevention Director Dr. Robert Redfield said in an interview.
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Needless to say, that is one major force to reckon with. Now, before you say, “PennyStocks.com told me to buy penny stocks,” I’m here to say, this isn’t a recommendation to do anything; at all. But, that said, if you’re searching for some penny stocks to watch, at the very least, we’ve found a few that have started catching attention right now. Will they keep moving higher this month or are they set to slide?
Penny Stocks To Buy [or ignore]: SPO Global Inc
The first on this list of penny stocks is a name that you’ve most likely not heard of. SPO Global (SPOM – Free report) is a pink sheet listed penny stock that hasn’t traded more than 1.22 million shares in a single day over the last 13 months. Thursday, the penny stock traded more than 11.4 million shares. Given the fact that the average price was around $0.10 the daily dollar volume is over $1 million. It’s also important to note that shares opened for trading at $0.0399.
It’s easy math when you take into account the highs of $0.159, SPOM stock has skyrocketed nearly 300% from the open and almost 700% from its previous close. Pink sheet penny stocks can go on big rallies like this out of the blue without any catalyst. For SPO, there was actually premarket news that seems to have triggered some attention on the company.
SPO signed a definitive agreement to acquire Gerpang Healthcare Group of China. According to the press release, “Gerpang has a staff of over 220 people, more than 10 international and national patents, and an annual turnover of approximately RMB 1 billion”. That’s about $143.3 million in USD. Beyond some background information on the company’s business model, there wasn’t much information regarding guidance on a plan of action moving forward to leverage such an acquisition. Needless to say, Gerpang is a China-based healthcare company so it may have something to do with the excitement surrounding the news. With only 400,000,000 authorized and 36,129,614 outstanding shares, this could just be a case of a low float penny stock, taking off on a little bit of news.
Penny Stocks To Buy [or ignore]: Clean Energy
The other penny stock that made significant gains this week is Clean Energy Fuels (CLNE – Free report). The rally was particularly surprising since no material news about the company emerged yesterday. However, on closer scrutiny, it has emerged that Raymond James analysts issued a note in which he indicated that shorting the Clean Energy Fuels stock might prove to be “risky”.
That might have been one of the reasons for the 11% gains in the stock yesterday. Furthermore, speculation might be building as Clean Energy is set to release earnings in about a month. These are all, on the surface, specific events that could have helped boost shares. However, let’s not forget to do some traditional and easy diligence too.
What’s one thing to look at when it comes to penny stocks and big moves without news? Look at the filings. On February 12 an amended SC 13G came out. It was filed by Dimensional Fund Advisors LP showing a 5.3% stake in the company. A quick search shows that this is no small fund.
Dimensional has over $600 billion in assets under management. Could this have also been a reason why the market reacted the way it did this week? In any case, the next big date to consider if this is a penny stock on your watchlist will be March 10 for its earnings. Also, because CLNE can be closely correlated with the price of oil, it may be worth keeping track of the oil market itself, too.
Penny Stocks To Buy [or ignore]: Harmony Gold Mining
Investors might also track Harmony Gold Mining Co. (HMY – Free report). It managed to rally yesterday on the back of a major announcement. Yesterday it emerged that Harmony has reached a deal to acquire the South African assets of AngloGold Ashanti. It is a significant deal for Harmony and takes its total assets to a new level. This is likely a reason why the rally in the stock was triggered.
HMY stock jumped by as much as 10.50% yesterday. Considering the current move in gold, it could remain one of the gold penny stocks to watch this month. It’s also likely a breath of fresh air for longs of the stock. Harmony has gotten beat up for most of the year and actually hit new 2020 lows earlier in the week. Besides this update, HMY has been fighting to build its assets in the gold mining arena. This move for a play in African mining could be something to pay attention to.
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The higher costs of mining due to rising theft, black market operations, and more have caused an exit for many gold miners from Africa. “We don’t think it’s a bad thing to be the last man standing. We have a different cost structure to Anglo.” – Harmony Chief Executive Officer Peter Steenkamp said Wednesday on a conference call.
Penny Stocks To Buy [or ignore]: Northern Dynasty Minerals
Northern Dynasty Minerals Ltd (NAK – Free report) also made significant gains this week. This came after the company made an important announcement. Northern Dynasty announced that the preliminary form of the Final Environmental Impact Statement for southwest Alaska’s Pebble Project had been submitted by the US Army Corps of Engineers.
It has been submitted to agencies at the state, local, and federal levels. The important development led to a 12% rally in the NAK stock on Wednesday. The US Army Corps of Engineers’ website (pebbleprojecteis . com) forecasts that a Final EIS and Record of Decision for the Pebble Project will be complete by mid-2020.
So, while this is good news right now, it will be important to pay close attention as mid-2020 nears in my opinion. Besides that, there hasn’t been any other news or related filings to justify the build-up to this announcement. Since February 7, shares of NAK stock have climbed from $0.43 to highs this week of $0.66 following the news.
Penny Stocks To Buy [or ignore]: AGile Therapeutics
Finally, one of the penny stocks watched closely this month, Agile Therapeutics (AGRX – Free report) had a wild day on Thursday. Shares were halted multiple times due to volatility and circuit breakers. There hasn’t been any news to justify the move today. But if you’ve been a reader of PennyStocks.com for the last few months, this is nothing new for the penny stock.
Remember back in October when shares dumped to lows of $0.35? This was when speculators thought the company wouldn’t come out with good results for its Twirla product. By Halloween, shares recovered after the company announced a positive outcome from its meeting of the Bone, Reproductive and Urologic Drugs Advisory Committee of the FDA.
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The Committee voted 14 to 1, with 1 abstention, that “the benefits of Twirla (AG200-15) in the prevention of pregnancy outweigh the risks to support approval”. That saw shares rapidly reverse course. Furthermore, the FDA has assigned a PDUFA (Prescription Drug User Fee Act) goal date of November 16, 2019. This was then extended to February 16th. This could be a reason for the increased volatile. Also if AGRX is on your list, be aware of this date as it could be a make or break moment in the short term depending on the outcome, in my opinion.
