5 Penny Stocks Trading Higher After News
Penny stocks aren’t for everyone, this is true. But you might want to look at these cheap stocks if you like higher risk. When it comes to these companies, a good rule of thumb is to never invest more than you can afford to lose. In this case, highly speculative and highly volatile stocks can become a curse and a blessing for any trader.
Imagine you had $100 you wanted/felt comfortable investing in penny stocks. In this example, this hypothetical stock trades around $0.10. Your $100 gave you 1,000 shares. Now, if that stock jumps by a mere $0.05, you just scored a 50% gain. But if it falls by the same amount or more, you just saw your investment cut in half. It can happen within the blink of an eye. This is why it’s always important to research the best penny stocks to buy.
While you won’t likely know which ones are the best penny stocks until they start making a directional move, you can filter out names that may lack in substance. This refers to things like updated financials, recent penny stock news, and even following the “rumor mill.” While rumors aren’t the best thing to base an investment on, it will help you understand why a particular penny stock could be moving the way it is. After you dig up some details, you’ll be better situated to make your investment decision.
If you’re new to trading penny stocks, feel free to check out some of our articles on penny stocks for beginners. In this article, however, we’re going to talk a little bit about a few stocks that have released updates and have made noticeable moves this month.
Penny Stocks To Buy [or sell]: Mallinckrodt plc
While we don’t discuss a lot of penny stocks in the chat room, Mallinckrodt plc (MNK – Free Report) was one that caught some attention this week. Like I said earlier, rumors can drive stock prices. But it’s important to understand the validity of such rumors. Case in point, earlier this month, the Wall Street Journal reported that Mallinckrodt said the drugmaker began talks of a potential bankruptcy of its U.S. generics business. The people “cited” with giving the information were “people familiar with the matter.” You can’t knock the WSJ for reporting on what information they have. However, it didn’t appear to come from the company.
The damage had been done, though, and MNK stock dropped from nearly $5 to lows of $2.52. What helped the stock recover was an actual piece of company news. The company announced that its subsidiaries reached an agreement in principle on terms of a global settlement. It would resolve all opioid-related claims against the company and subsidiaries. It would also exclude Mallinckrodt and its specialty brands-related subsidiaries from Chapter 11.
Following this, the company beat on its earnings too. All of this culminated in a strong reversal for the penny stock. In fact, before the market open on Tuesday, shares reached highs of $7.45. While the stock has traded sideways since dipping to $2.52, its worth noting how rumors and penny stock news swung the stock in very opposite directions within a matter of 24 hours.
Penny Stocks To Buy [or sell]: Vaxart Inc.
Vaxart Inc. (VXRT – Free Report) was one of the penny stocks to watch since late January. I agree with the sentiment that others have discussed with this company. There hasn’t been any news or filings from the company. So if you’re seeing VXRT stock for the first time, you probably are feeling like you’re missing something.
Well, you’re not. Just like rumors, speculation can also play a role with some penny stocks. In this case, Vaxart has benefited from the rising concerns of the coronavirus. In late January the company announced that it began a coronavirus vaccine program. A previous flue study showed that its tablet vaccine can protect through mucosal immunity. Sean Tucker, Chief Scientific Officer of Vaxart specifically said that this is “a potential key factor when targeting mucosal pathogens such as this new coronavirus.”
Beyond that, there haven’t been any new updates from the company on this front. With this as the case, it seems like the new data on more coronavirus cases has boosted interests in stocks like Vaxart for the time being.
Penny Stocks To Buy [or sell] AIM Immunotech Inc.
AIM Immunotech Inc. (AIM – Free Report) was sliding for most of the morning on Wednesday. But during lunch, the penny stock started making a strong push higher. Similar to Vaxart, AIM is in the coronavirus category right now. However, the company is actually putting on updates instead of living in a shroud of mystery right now.
Last week AIM CEO Thomas Equels appeared as a guest on FOX Business Network’s The Claman Countdown as well as Cheddar’s Opening Bell. The discussion focused on the potential role of its Ampligen drug treatment for the coronavirus. According to the company, the unique capabilities of the drug, there could be a combination treatment created using Ampligen & inactivated coronavirus.
“We believe the significant similarity of the Wuhan coronavirus to SARS suggests Ampligen has a high probability of a similar potential efficacy against the Wuhan coronavirus. Our analysis comparing key transcription regulatory sequences of SARS to the Wuhan coronavirus wherein we analyzed the similarity between SARS-CoV and the Wuhan coronavirus found significant and compelling similarities.”Thomas K. Equels, CEO
Penny Stocks To Buy: Agile Therapeutics
Another one of the penny stocks that’s been frequently discussed on the site since late-October is Agile Therapeutics, Inc. (AGRX – Free Report). The majority of the focus for this company is on its female contraceptive, Trwirla. The company has been raising additional money and working close with the FDA to button up final details for its drug.
February has been a big month for the company. It announced that Twirla received FDA approval as a transdermal system. The company also reported earnings this month. In response to the Twirla approval which has been long-coming, Dr. David Portman had this to say:
“Twirla is an important addition to available hormonal contraceptive methods, allowing prescribers to now offer appropriate U.S. women a weekly transdermal option that delivers estrogen levels in line with labeled doses of many commonly prescribed oral contraceptives.”
Portman was a primary investigator on the SECURE clinical trial. What’s more is that this week, shares moved high after an announcement that the company will ring Nasdaq’s closing bell on Feb. 26.
Penny Stocks To Buy [or sell]: Nokia
Finally, Nokia (NOK – Free Report) was on the list of top Robinhood penny stocks this month. Citing the race for 5G, the writer talked about U.S. Attorney General William Barr making mention of the company in topical discussions.
This week, however, different headlines triggered a move in the stock of Nokia. Headlines out of the U.S. and UK indicated a serious discussion in the fight for 5G. Robert Strayer, the US deputy assistant secretary or cyber and communication criticized the UK for allowing Huawei to participate in the kingdom’s 5G rollout. “If countries adopt untrustworthy vendors in 5G technology, it will jeopardize our ability to share information at the highest levels,” he said.
Strayer hinted at the fact that the UK might choose non-Chinese 5G operators. “Nokia, Ericsson and Samsung provide an equivalent quality in their product and don’t put individuals’ information and business information at risk.” Whether this will be enough to continue Nokia’s rise is yet to be seen. But it seems to have been enough to trigger momentum during Wednesday’s session.
About The Author:
Michael Edward is a former hedge fund trader. He eceived a Trader of the Year Award in 2008 and is currently the Head Trader for https://TrueTradingGroup.com.