Any Of These 6 Penny Stocks On Your List This Month?
When you really boil it down, penny stocks are like most high-risk investments. The rule of thumb is “don’t risk more than you can afford to lose.” But doesn’t this mentality open up your thinking to more of a lottery ticket than an investment?
I ask this question because this is usually the “safe bet” to approaching penny stocks. At the end of the day, however, the way you trade these cheap stocks shouldn’t come down to an all or nothing mindset. I think this is where new traders tend to get hung up and rightfully so. In my opinion, the whole point of investing is to make money. While you should never risk more than you can afford to lose in any investment, penny stocks require a bit more attention to detail.
Where you can typically invest in blue-chip stocks for a longer-term, penny stocks need more attention. You need to constantly monitor the progress of the company as well as the industry. Basically, where you could buy shares of Apple, Amazon, or Facebook and not have a need to look at them for weeks or months, penny stocks are different and rightfully so.
A small $0.30 drop in one of those large caps I mentioned doesn’t break the bank. But a $0.30 drop in a $1 stock could be a big cut to your portfolio. That’s why, no matter what your style is for trading penny stocks, always make sure to take profit where and when you can. So where should you start?
Best Penny Stocks To Buy [or avoid] Right Now
I think putting together a proper list of penny stocks is best. Do your research on them, narrow down some choices, then watch the market closely to decide when or even if you should buy penny stocks you’ve chosen.
Don’t get me wrong; research takes time. Maybe you’ve spent hours putting together the perfect list of penny stocks. But the market may not always stay in the trend you think it will. Furthermore, certain industries may also shift direction without notice. We saw that this week after marijuana penny stocks finished out strong on Friday.
But, had you decided to make those the top penny stocks to buy today, you might’ve been a bit let down by some. Though most of them didn’t retreat from Friday’s close, many also remained stagnant. On the other hand, we’ve seen other industries, like gold, for example, surge on Tuesday when Friday’s session was a bit more sideways.
[Reead More] Penny Stocks To Buy Right Now Or Avoid At All Costs?
At the end of the day, it’s important to pay close attention to current events of the day and week. it may not help you make money with certain penny stocks. But it could help you avoid taking a loss if you would have gotten into a losing trade. With this in mind, let’s take a closer look at a few penny stocks that have begun to trade higher this week.
IMC International Mining
Gold prices surged on Tuesday and in line with this, gold stocks followed suit. Some of the biggest names in the industry broke new 52-week highs. Barrick gold stock, Yamana gold stock, and others all lead the rally for the sector. As such, junior gold stocks have also followed the trend. IMC International Mining (IMCX – Stock Report) (IMIMF), for example, has been a popular gold penny stock to watch this year. Not only that, but its last update could position it for a big acquisition too.
Last week, IMC International announced a letter of intent to buy Thane Minerals; owners of the Cathedral Property in British Columbia, Canada. The area that the property is located in is considered the Quesnel Terrane. It hosts past and planned production. Also, the fact that it’s a relatively untapped piece of land in a very prolific part of Canada has put attention on this pending deal.
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.
In addition to that, the company is bringing on Greg Hawkins, a mining industry vet since 1969. He’s been involved with companies that were part of multi-million and billion-dollar buyouts. With gold prices surging and a potential acquisition deal on the table, IMC International has managed to make a strong move this year already. Could that be set to extend further before the end of the 1st quarter?
SPO Global Inc.
We actually began monitoring this penny stock on February 13th. SPO Global (SPOM Stock Report) has been trading higher ever since and on well above-average momentum. One of the key points we mentioned is that the share structure at the time showed only 400,000,000 authorized and 36,129,614 outstanding shares. Considering that as the case, the lower float and higher trading activity could have helped fuel this rally.
On top of that, SPO had also released an update that might have also help trigger the initial rally. The company announced the signing of a definitive agreement to acquire Gerpang Healthcare Group. The China-based Group focuses on biopharma R&D along with medical software sales. It also sells medical supplies and dietary supplements.
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. So assuming the mix of news, low float, and higher than average trading momentum, it would seem to have been a perfect storm early on. However, it’s important to note that just as quickly as low float penny stocks can move up, they can also drop. So congrats if you have made this a winning trade (789% since 2/13), but also keep in mind the high-risk situation as well.
Aduro Biotech
No list of penny stocks would be complete without a biotech penny stock. Aduro Biotech (ADRO Stock Report) has performed well since the start of February. At the time, shares traded around $1.75 and have since run to highs of $3.63 this week. The 107% move didn’t come without its own set of catalysts either.
First, the company announced that it achieved a development milestone under its collaboration with Merck. This was for the initiation of a Phase 2 trial of MK-5890 in non-small cell lung cancer. As a result, Aduro earned $10 million.
On top of this, the company also saw the analyst community get behind the company. Analysts at SVB Leerink lifted their price target from $3 to $7. It also maintains an “Outperform” rating on the stock. Since the initial announcement was made on the milestone payment, ADRO stock had been moving higher. Late last week, Renaissance Technologies LLC reported a larger stake in the company. This came just after BlackRock In.c had done the same about a week prior.
MoneyGram
Money transfer giant MoneyGram (MGI Stock Report) has been on a bit of a roll so far this month. Since February 3, it has gained as much as 49%. Last Thursday, the company announced the launch of a new service. MoneyGram customers will be able to send up to $10,000 to a mobile phone number directly. The service has been christened FastSend and could emerge as a game-changer in the money transfer space.
“A text is sent to the receiver notifying them that they have funds immediately available for deposit. The receiver then logs in, adds their debit card, and the funds are transferred into their bank account within minutes.”
MoneyGram Corporate Statement
As one of the top penny stocks to watch late last year, the recent uptrend is a breath of fresh air for some. MGI stock further extended gains this week after hitting highs of $3.15. For those looking at the company right now, the next event to watch will be the company’s Q4 and full-year 2019 earnings results. MoneyGram has set February 25 as the release date and management will host a conference call to discuss the results prior to the market open.
Senseonics Holdings
Another of February’s top penny stocks to watch has been Senseonics Holdings (SENS Stock Report). Shares have quietly risen since the start of the month while the company has reported several key developments. This includes inking a deal with Companion Medical.
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Through the partnership agreement, the companies will integrate Companion’s Eversense CGM glucose data with its InPen system. The set-up should allow for a more relevant insulin dose information for better diabetes management.
“By partnering with Companion Medical, multiple daily injection patients using the InPen System will be able to take full advantage of the convenience of insightful and comprehensive insulin data integrated with their Eversense CGM data, giving them a more complete picture and meaningful information at their fingertips.”
Tim Goodnow, PhD, President and CEO of Senseonics
Following this, Senseonics announced a positive coverage decision for Eversense CGM from Cigna. Any insurance provider offering coverage for a platform is likely not bad news. In line with this, the latest announcement that Cigna is now providing coverage for the Eversense® CGM System was well-received by the market. After these latest updates, could this help SENS stock hold this month-long uptrend?
Aurora Cannabis
Finally, just like biotech, no list of penny stocks would be complete right now without some marijuana penny stocks. On Friday, most of the sector was on fire after Canopy Growth (NYSE:CGC) reported better than expected earnings. While Canopy is red on Tuesday, shares of other companies like Aurora Cannabis (ACB Stock Report) are moving higher still.
While there were no new updates from the company, the cheap pot stock managed to secure highs of $1.66 before the close. If you’ve been paying attention to PennyStocks.com, you’ll see that Aurora is still the most popular penny stock on Robinhood right now and continues to gain attention from retail investors.
As of February 18, ACB stock on Robinhood shows that more than 660,000 accounts hold shares of the pot penny stock. This is almost 11,000 more than there was at the start of the month. In our article on the top 10 penny stocks on Robinhood for February, Aurora showed just over 649,000. Could this indicate underlying interest in pot stocks heading into the election year and can ACB continue higher the rest of the 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.
