Are These Low-Priced Names on Your List Of Penny Stocks This Month?
What is the definition of a penny stock? Is it based on the Securities and Exchange Commission’s range of $0-$5 per sharer? Should it go by some traders’ definitions of penny stocks with stocks trading under $1? Honestly, no matter how you cut it, low-priced stocks are known for one thing: volatility.
I tend to go by the SEC definition simply because it allows me to write about more penny stocks. But I can understand that as a trader, you might have certain metrics outlined in your strategy and that’s good too.
For all intents and purposes, we’ll be looking at a few penny stocks today. All of these are currently trading below $4 right now. Something else they’ve got in common is that momentum has been building to a point that can’t be ignored. But remember, with increased activity can come increased volatility. If you’re not used to trading wild swings, then it might be time to learn a bit more about penny stocks in the first place.
I’ve seen all too many new traders think that penny stocks are like a get-rich-quick lottery ticket. When, in fact, they should be treated like any other investment. Where these low-priced stocks carry higher risk, they can also bring higher rewards. But just because they’ve been marked as penny stocks doesn’t mean they are bad or shoddy companies.
Penny Stocks & Due Diligence
Something to know is that when you look at some of the filings from certain companies, you’ll find that there are big hedge funds actually investing in the future of them. Sometimes it’s for a few hundred thousand and other times it’s for a few hundred million. So where some may simply write-off penny stocks as a “nooby” trade, I’m sure the multi-million dollar funds have a totally different opinion.
Keeping this in mind, there are several penny stocks to keep an eye on. Some have benefited from the coronavirus while others are building momentum from other catalysts. All-in-all, it’s up to you to decide whether they are the best penny stocks to buy and put on your list right now.
Penny Stocks Under $4: IMC International Mining
IMC International Mining (IMIMF Stock Report)(IMCX) hosted its first conference call on Monday afternoon. Not only did the company interview the incoming Chairman, Greg Hawkins, its CEO, Brian Thurston also weighed in on key topics of interest. The main focus was on IMC’s latest plan of acquisition of Thane Minerals and its Cathedral property. Both Hawkins and Thurston echoed bullish, near-term sentiment for the project, citing the potential to begin exploration within months.
The Cathedral property is a relatively untouched piece of land in the mineral-rich Quesnel Terrane in British Columbia. Located between the Mt. Milligan and Kemess mines, Cathedral was said to have the potential for a similar resource profile. In light of this, it’s important to see what that could mean. The Mt Milligan copper-gold porphyry deposit contains a combined Measured and Indicated Mineral Resource of 243.9 million tons at 0.134% Cu and 0.226 grams per ton of gold, containing 717.7 million pounds of copper and 1,769,000 ounces of gold. As far as the Kemess Mine is concerned, it produced approximately 3 million ounces of gold and 700 million pounds of copper over the life of the mine.
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.
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Furthermore, the Quesnell Terrane itself has been a source of rich mineralization as a whole. It hosts past and planned production. With a focus on the near term and the stance that the company won’t bear the brunt of any coronavirus-related strain, IMC International could be one of the top gold penny stocks to watch amid the latest uptrend in gold prices this week.
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.
Penny Stocks Under $4: American Bio Medica Corporation
American Bio Medica Corporation (ABMC Stock Report) has been a very quiet company from a stock market perspective. But recently, the rise in coronavirus cases has caused a flurry of activity in related names. Particularly, companies with potential vaccines or rapid testing products are getting attention when it comes to coronavirus stocks. In line with this, American Bio reported big news and filed an 8-K supporting its latest update.
The company announced that it began offering Rapid Tests to detect COVID-19 in whole blood, serum, or plasma. However, according to the company, “The test has not yet been reviewed by the FDA, but is being offered under the March 16, 2020 guidance set forth by the FDA.”
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Something to understand is where the test is distributed. According to the company’s press release, the Rapid Tests aren’t available for consumer use. However, it can be used across markets including hospitals, clinics, and correctional institutions. Obviously, there are more steps the company needs to take. This includes a EUA authorization needed to be filed within 15 days of marketing, which is required by the FDA. However, in consideration of the latest focus on testing and its importance, it makes sense as to why ABMC stock began trending this week.
Penny Stocks Under $4: Fluidigm Corp.
Fluidigm (FLDM Stock Report) hit a new 52-week low last week. Since the beginning of the year, FLDM stock has gotten beaten up. However, this week may mark a turnaround. At the very least, March 23 saw shares rally back from those 52-week lows.
What helped trigger the 30%+ move? Well, there weren’t any new developments announced. As far as filings go, there weren’t any new items there either. Similar to American Bio, Fluidigm appears to have focused on testing. Given the circumstances of limited availability of tests, this could become a big focus. In line with this, it doesn’t appear as a surprise that Fluidigm benefited from this surge of interest in testing.
Last week the company announced that a consortium of medical schools led by the Icahn School of Medicine at Mount Sinai is utilizing Fluidigm ® microfluidics technology. Specifically, it’s being used to create a test for the early detection of COVID-19. Chris Linthwaite, President and CEO of Fluidigm said, “We believe the application of Fluidigm microfluidics technologies to epigenetic testing for COVID-19 has significant potential to increase the speed and capacity of these critical screening efforts.”
Penny Stocks Under $4: ADMA Biologics
ADMA Biologics (ADMA Stock Report) continued its 4-day rally on March 23. Similar to FLDM, ADMA stock reached new 52-week lows this month. After hitting $1.45 last Wednesday, ADMA managed to begin a reverse in its trend. Other than an update from H.C. Wainwright on its rating, there hasn’t been any new information from the company. The firm maintained its Buy rating but lowered the price target to $12.
So where does ADMA Biologics fall in the grand scheme of things? The company has a hyperimmune treatment, Asceniv, which was previously approved by the FDA. While it was approved as a treatment for primary humoral immunodeficiency disease, the company could look to use it for COVID-19.
In its earnings call earlier this month, CEO Adam Grossman weighed in on the potential. “I’ve talked about that ADMA has high titers to OC43 in ASCENIV, and we published this data and that OC43 is based on a couple of medical papers that I’ve seen from our med affairs department, OC43 does cross-react with the COVID-19.”
What’s more, is that there are other factors that could be at work as well. Early on in March, there was a flurry of insider buying. This week, more filings came out showing insiders are picking up shares. In a March 23 FORM 4, Joseph Edelman’s Perceptive Advisors showed a purchase of half a million shares of ADMA stock. This was done at an average price of $2.10. It also brought the firm’s total holding to more than 16.5 million.
Penny Stocks Under $4: IMAC Holdings
*Updated 8:03 AM EST 3-24-2020* This is one of the names that showed promise a few weeks ago. But since then, IMAC Holdings (IMAC Stock Report) has slid even further. After hitting new 52-week lows on the 19th, shares stagnated. In fact, for the last few sessions, IMAC stock has traded in a fixed, sideways trend. However, on March 24, the company came out with big news that could give a reason for investors to watch closer.
IMAC announced a new telehealth option to allow patients direct communication with IMAC medical professionals. The obvious need for medical attention is evident but with the current state of things, makes it even harder for some adults. While IMAC may not be on the same level as a Teladoc (TDOC Stock Report), telehealth has received a lot of attention lately. That’s both from a consumer-base as well as from the government.
Matt Wallis, chief operating officer of IMAC said, “The Center for Medicare and Medicaid Services, as well as most insurance companies, have strongly encouraged the use of telemedicine to help lessen the burden on the healthcare system. Through telemedicine, IMAC medical doctors and physical therapists will continue to assess patients’ health status and make recommendations to prevent decline in their condition for those patients that prefer to shelter in place at this time.”
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). Full disclaimer here.
