Are These The Best Stocks To Trade Before The End Of February 2020?
It goes without saying that investing in penny stocks comes with a certain level of risk. But at the same time, these cheap stocks can often generate substantial returns in a short period of time. Over the years, plenty of investors have managed to make handsome returns by trading penny stocks.
Just like it is the case with blue-chip stocks, much of the success in finding the best penny stocks to trade depends on research. You should also have a good feel of the market. For example, this morning we saw a number of marijuana penny stocks soar on the back of big news coming from one of the larger, sector-companies. At that point, it would have been good to know that a particular announcement was a key catalyst to the broader sector move.
Meanwhile, after the open bell, some of the penny stocks that were trending higher pre-market dropped. That’s simply because of bad fundamentals and the fact that hype couldn’t drive the stock up more than negative sentiment drove shares lower. Besides that, it’s important to have a good understanding of any upcoming catalysts.
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These can be in the form of earnings, corporate presentations, and even industry conferences. With this in mind, here is a look at five penny stocks that could be tracked by investors at this point. Will they be the best penny stocks to trade before the end of February 2020?
Penny Stocks To Buy [or sell]: Himax Technologies
The first penny stock that could be under consideration of investors is that of Himax Technologies (HIMX Stock Report). On Thursday, the company provided projections for its fiscal first quarter, while presenting its fourth-quarter earnings. That proved to be the trigger for the mini-rally in the stock.
“Looking at the overall company, historically, the first quarter has seasonally been the lowest quarter of the fiscal year, often down by over 10% on a sequential basis. At this time, we expect to deliver a sequential sales increase in the first quarter. The strength we are seeing in Q1 is expected to extend into Q2 and throughout 2020, despite the coronavirus impact.”Jordan Wu , President and Chief Executive Officer of Himax
Himax reported that it expects a loss per share of 0.5 and a profit of 1.8 cents per share. It expects the revenues to rise between 1% to 10% in the first quarter sequentially. HIMX stock has been one of the best penny stocks to watch since the end of November. At the time, shares traded around $2.15. They have since jumped to highs of $5.10 during Thursday’s pre-market session marking a move of 137% so far.
Penny Stocks To Buy [or sell]: Soligenix
Another one of the best penny stocks to watch since late-November has been Soligenix (SNGX Stock Report). It has emerged as another promising penny stock after the company had a major breakthrough. On Thursday, the United States Food and Drug Administration designated Soligenix’s product, Rivax, for fast track review. That led to a 4% rise in the stock price.
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The medicine in question is meant to prevent intoxication from ricin. It goes without saying that the fast track designation is a major win for Soligenix. After the rally yesterday, SNGX stock has maintained its trend while volume has also picked up a bit. If you look at the chart, you’ll notice a pattern could be forming called a wedge. This appears to be more of a symmetrical wedge chart pattern than a descending or ascending pattern in my opinion.
It’s important to keep in mind the company’s ongoing Phase 3 study of its oral mucositis treatment, dusquetide. Final topline results are expected next quarter. With the granting of this Fast Track designation, there could be a few things at play to keep track of. Tie in the current chart pattern that typically occurs prior to a new trend (up or down) and SNGX could remain one of the top penny stocks to watch right now.
Penny Stocks To Buy [or sell]: FTS International
One of the penny stocks under $2 that has emerged as one of the biggest gainers this week is FTS International Inc (FTSI Stock Report). Back on Wednesday, the company released its financial results for the fourth quarter. FTS reported a loss of $13 million. In the prior-year period, FTS had generated a profit.
The loss per share stood at 12 cents, and that proved to be better than analysts’ estimates. Wall Street had been pegged FTS at losses of 19 cents a share. Sales of $142.3 million also beat estimates of $140.54 million from analysts. That seemed to be a positive trigger. On Thursday, FTSI stock soared by as much as 128.5%.
As a result of these latest developments, one analyst decided to adjust the rating and target on FTSI stock. Stifel Nicolaus raised its rating from Hold to Buy. It further announced a target price of $3 per share. That helped carry over the penny stock’s momentum for the second day in a row. FTS stock jumped to highs of $1.65 on Friday. That helped extend the move for the last 3 days to over 200% and more than 165% since the start of the week.
Penny Stocks To Buy [or sell]: Blink Charging
The other penny stock that could be worth including in the watch list is that of Blink Charging (BLNK Stock Report). It has made significant gains over the course of the past few days. Earlier this week the company announced a new CFO, Michael Rama.
But what really got shares moving was reports relating to Tesla (TSLA Stock Report). Last week we mentioned this penny stock Blink Charging and how it could potentially benefit from the rise in Tesla stock as well as the company’s growth.
Late this week an article on Electrek cited the fact that Tesla has begun adding 3rd party charging stations to its in-car navigation. For companies like Blink, this news is well-received. Barring an actual statement mentioning the company name, third party providers are apparently being utilized in Tesla’s network according to that article.
This comes after a big announcement at the end of January. InterEnergy engaged Blink Charging and purchased over $1million in electric vehicle charging equipment. InterEnergy will use it for operations in Panama and the Dominican Republic with an initial order of 200 Blink charging stations. Thanks to progress like this, Blink has continued to enjoy a bull market this year.
Penny Stocks To Buy [or sell]: Cellectar Biosciences
Cellectar Biosciences Inc (CLRB Stock Report) has emerged as another interesting penny stock to watch over the last few months. It’s almost funny at this point but coincidentally, shares of CLRB stock have also been climbing since late-November. Cellectar stock has rallied by as much as 173% over the course of the past three months. On Thursday, CLRB stock rallied by another 6%.
Back in January, the company announced that the FDA had granted orphan drug status to its product CLR 131. The product is meant to treat Lymphoplasmacytic Lymphoma and was in Phase 2 clinical study at the time.
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“The orphan designation from the FDA for LPL represents the sixth for CLR 131 and underscores Cellectar’s commitment to develop therapies for rare cancers with limited treatment options and high unmet need,” stated James Caruso, president, and CEO of Cellectar Biosciences. “CLR 131 has demonstrated encouraging results in our ongoing Phase 2 CLOVER-1 trial in select B-cell lymphomas, which includes LPL patients. We look forward to sharing Phase 2 LPL clinical data in the near term.”