Will These Top Penny Stocks Make New highs In Q1 2020?
New investors may sometimes feel overwhelmed at the sheer range of stocks that are available in the market. While it’s perfectly natural it’s important to understand how to find the best companies to watch. Penny stocks are a category of stocks that are high risk and high reward. They typically represent companies in the early development stages. While most of these companies may simply be working toward revenue, others focus on building assets to create the proper framework for success down the line.
While many penny stocks return gains within a matter of days or even hours, others will go on more sustained moves. Obviously this depends a lot on the execution of the companies’ business plans. It is necessary for investors to keep an eye on the market in order to discover the right penny stocks to watch. I say “watch” instead of “buy” because as good as a single company may appear, other market conditions could impact that stock.
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Recently we saw marijuana penny stocks take off. This was due to one of the larger sector stocks, Canopy Growth (CGC – Free Report) reported better than expected operating results. This has continued to push some pot penny stocks higher including one of those mentioned in this article. Needless to say, there are several industries that are outperforming the market. This could warrant a much closer look at certain penny stocks this quarter.
Top Penny Stocks To Watch This Quarter #1: International Land Alliance
International Land Alliance (ILAL – Free Report) has been one of the penny stocks to watch over the last few months. After shares hit lows of $0.27 in September, shares of ILAL stock managed to steadily rise above $1. In fact, earlier this year the penny stock reached highs of $1.41. International Land Alliance is a real estate development company focused on building out a footprint in Baja California, Mexico. Given the performance of real estate stocks in general, the outperformance compared to the market won’t go unnoticed in my opinion.
The Pacer Benchmark Industrial Real Estate Sector ETF (INDS – ETF Report) returned 57% versus the broader-market SPDR S&P 500 ETF’s (SPY – Free Report) 38% since January 2, 2019; that’s just one example. For International Land Alliance, the company has executed on several milestones. First, it announced it has completed site preparation for Costa Bajamar Oasis, its new residential project at the Bajamar Ocean Front Golf Resort. Furthermore, International Land Alliance announced that Valle Divino, one of its newest communities, has opened pre-sales. These are just a few of its current holdings.
According to the company its projects have a total appraised value of over $27,000,000 with a reported revenue potential of more than $60 million. Considering the market cap is under $25 million, this alone could become a point of focus from a value perspective in my opinion. Beyond that, the GAAP value versus the appraised value is also an eye-opener. For 5 of its projects, in total, International Land Alliance has a GAAP value of just $4.2 million. Shares have climbed from lows of $0.88 last Thursday to highs of $1.10 one week later.
Top Penny Stocks To Watch This Quarter #2 New Age Beverages
As discussed earlier, marijuana penny stocks have started to creep up after Canopy’s last update. New Age Beverages (NBEV – Free Report) has been no different. In fact, compared to other pot stocks, NBEV stock has outperformed many of its lower-priced peers. Since the start of February, shares of New Age Beverage stock jumped more than 50% to highs this week of $2.65.
One of the biggest developments to note outside the industry press is New Age’s last announcement. This week the company reported that it launched its CBD beverage “Noni+CBD” in Japan. This was through its network of more than 50,000 independent distributors.
This is the first CBD beverage from any major company to obtain approval by the Japanese Ministry of Health and the Japanese Narcotics Control Division according to the company. Thanks to this update and the latest from companies like Canopy, NBEV stock reached new 2020 highs.
Top Penny Stocks To Watch This Quarter #3 iClick Interactive Asia Group Limited
Another penny stock to watch is iClick Interactive Asia Group Limited (ICLK – Free Report). The China-based company handles enterprise data solutions and online marketing. It announced on Tuesday that its key investors had converted bonds into shares.
“This early conversion sends a clear signal to the market that our important investors have the utmost confidence in our ability to execute and unlock shareholder value, would like to support our development, and believe the stock is currently underpriced. This transaction will also serve to substantially reduce the debt on our balance sheet, availing capital to promote the growth of our core business, as well as various new corporate development initiatives,” said Jian “T.J.” Tang, iClick’s Chief Executive Officer, and Co-Founder.
The two institutional investors converted a total of $30 million worth of bonds into ordinary Class A shares. The market recognized the significance of the news. Aside from reaching new highs of $4.50 on Thursday morning, there could be a technical chart formation to note.
Below, you’ll see that the 50-day moving average (yellow) has started to cross above the 200-day moving average (red). This pattern is known as a golden cross which is traditionally a bullish indicator in the presence of high volume. So it could also be something to take notice of if ICLK stock is on your penny stocks watch list right now.
Top Penny Stocks To Watch This Quarter #4 Chesapeake Energy
On the other hand, investors looking for penny stocks could also take a look at Chesapeake Energy (CHK – Free Report). The company is all set to announce its financial results for the fourth quarter on February 26.
According to consensus estimates, the revenues could decline year on year. Analysts expect the decline in earnings is owing to lower revenues when compared to the prior-year period. Despite these expectations, the stock actually enjoyed a rally this week.
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Shares of the energy penny stock have been climbing steadily ever since hitting 52-week lows of $0.4288 on Monday. Because this stock tends to trade with energy prices, it’s important to monitor the sector closely. Chesapeake has made strides to clean things up. But there are still a number of doubts from investors when it comes to its fundamentals. Needless to say, with most energy stocks higher right now, CHK stock could be one to tentatively monitor.
Top Penny Stocks To Watch This Quarter #5 Zomedica Pharmaceuticals
Finally, Zomedica Pharmaceuticals (ZOM – Free Report) has become a top penny stock to watch during the latter half of February. Shares slid to new 52-week lows of $0.12 following the announcement of a discounted offering. However, what has followed has been nothing short of impressive. The stock broke above $0.38 for the first time since November 2019.
Several things have happened since announcing the raise, which included reporting the closing of said raise. Furthermore, Zomedica reported that it had filed a U.S.patent application. This covered methods for five fecal parasite detection assays detecting infections in cats and dogs. It’s designed for use alongside the ZM-020 pathogen detection device.
Dr. Stephanie Morley, DVM, Zomedica’s President said, “We believe that ZM-020 has the potential to make the diagnosis of fecal and urinary pathogen infection in cats and dogs easier, faster and more accurate than is currently possible at the point-of-care.”
While this move is exciting, you shouldn’t forget about the 20,833,334 that were issued in exchange for the $2.5 million in capital. Granted, the penny stock has traded much more than that already this week. In any case, it’s a 196% move in a short period of time with cheap stock potentially available for sale after the raise conducted at $0.12. For now, it has become one of the penny stocks to watch.
Disclaimer
Pursuant to an agreement between Midam Ventures LLC and International Land Alliance (ILAL), Midam is being paid $225,000 for a period from January 31, 2020, to May 18, 2020. We may buy or sell additional shares of International Land Alliance (ILAL) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about International Land Alliance (ILAL). Click for full disclaimer.
