Are These 3 Penny Stocks On Your List This Week?
Penny stocks continue to flourish while the broader markets seesaw on April 1. Big names like Apple and Boeing are down big to start the second quarter. But that hasn’t put one bit of pause to the momentum that small-cap and micro-cap stocks are seeing. If you’ve been an active reader this week, you’ve witnessed some pretty amazing moves from penny stocks.
Yesterday we saw two triple-digit breakouts that continued into the Wednesday session. Furthermore, April 1 has shown to be another big day for cheap stocks. What’s more is that ever since the markets have dropped, some of the names trading as penny stocks are in uncharted territory right now.
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This could pose as another potential catalyst for the arena as well. Figure that $15 and even $30 stocks are now trading below $5. Those names likely had big institutional holders, funds, long-term investors, etc. holding positions. Such a dramatic drop has created a situation where more activity has come into play wich a lot owing to some of these investors buying more at extremely low prices.
While there’s no guarantee that things will go back anytime soon, we know all too well that lower prices mean higher volatility. So even if certain penny stocks are trading at $1, all it takes is a 30 cent move to equate to a 30% gain. Given this, let’s take a look at some names to know this week.
Penny Stocks to Buy [or sell]: Ampio Pharma
Over the last few weeks, Ampio Pharma (AMPE) has been climbing steadily. Shares hit a low of $0.31 on March 25 and reached highs today of just over $0.58. Coincidentally, this was right at its 50-day moving average which has been a relative level of resistance since late February.
Late last month Ampio announced that it’s preparing an expanded access FDA protocol to study the possible benefits of its Amion treatment via nebulizer to targeting Acute Respiratory Distress Syndrome induced by coronavirus. According to the company, “The anticipated aim of a preliminary protocol for FDA review would be to evaluate patients with moderate to severe ARDS, triggered by COVID-19, for reduced ventilator time; reduction in mortality and improvements in oxygenation parameters compared to non-Ampion treated patients.”
Given the state of concern over COVID-19, stocks dealing with treatment are definitely getting attention. Meanwhile, the FDA has accelerated testing for new treatments. Will Ampio be able to benefit from this latest push for novel therapies?
Penny Stocks To Buy [or sell]: AIM ImmunoTech
AIM ImmunoTech (AIM) jumped back up on Wednesday with the pending confirmation of a golden cross. This is when the 50-day moving average crosses above the 200-day moving average and is considered a bullish indicator for a stock. Trading volume has also been creeping up steadily over the last 3 sessions. While there’s no news on April 1st, AIM has reported key updates at the end of March.
First, the company announced that it’s seeking partners to test its Ampligen treatment for COVID-19. The company is targeting the United States, Europe, Asia and Argentina for its clinical trials and, as necessary steps before clinical trials could begin. The company recently said, “AIM intends, as a next step, to as rapidly as possible seek Institutional Review Board approvals and governmental authorizations to commence the clinical trials of Ampligen as both a protective prophylaxis and an early-onset therapy.”
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Furthermore, the company announced its 2019 financial results. These included cash and cash equivalents of $8.778 million and a better loss per share compared to 2018’s results. AIM reported a net loss of $2.62 per share. In the prior year, this figure was just over $9.75 per share.
Penny Stocks To Buy [or sell]: NovaBay Pharmaceuticals
Shares of NovaBay Pharmaceuticals (NBY) also shot up on April 1st. There wasn’t any news to go along with this move. However, NBY stock could have benefited from the recent surge in cases of coronavirus across the U.S. More states are enacting stay at home orders and quarantines. Meanwhile, things like facemasks are becoming scarce.
Novabay sells the popular KN95 face mask on its site. Last month, traders cited that the company now shows the sale of the masks online. This apparently has been enough to get the market excited about the company’s stock. It should however be pointed out that the company’s recent earnings weren’t that bright. In its 4th quarter, the company’s loss widened compared to the same period the year prior. Additionally, sales also declined year over year.
But it would seem that the company is leaning more heavily on its Avenova unit right now. Justin Hall, President and CEO of NovaBay Pharmaceuticals said, “Revenue and unit sales from this channel increased each successive month since our online launch in June. By the fourth quarter, 35% of Avenova revenue and 48% of Avenova units were from Amazon.com, up from 21% and 36%, respectively, from the third quarter.”
So while facemasks appear to be the attention grabber right now, its Avenova unit is actually steering the wheel. It will be interesting to see who the company capitalizes on this apparent surge of interest in facemasks and what the first-quarter figures will present to investors. For now, trading momentum has picked up, the price has broken above both the 50- and 200-day moving averages, and shares are approaching the $1 mark for the first time since March 25th.
Penny Stocks To Buy [or sell]: BOQI International
This penny stock took a little bit of time to develop its directional move on Tuesday. However, by power hour, BOQI International (BIMI) managed to break through it resistance and back above $3. It failed to continue up and through its 50-day moving average so that could be acting as a potential level of resistance currently. As of April 1, the 50DMA is around $3.34; the high of the day was $3.32.
Needless to say, BIMI stock had a news catalyst during the morning. The company announced a stock purchase agreement to spin off its energy business. If you remember from last year when we first put eyes on this company, BOQI was actually trading as NF Energy. Through the agreement and individual will be buying all shares of NF Energy for $10 million. The company can now focus on its medical business. This news comes on the heels of its previous update. Last month we followed BOQI as it reported a $19 million medical device purchase agreement with Shandong Forward Medical Group.
“The divestiture of the energy business aligns with BOQI International Medical’s growth strategy and allows us to further strengthen our financial position,” said Mr. Tiewei Song, Chief Executive Officer and President of BOQI International Medical Inc. ” Looking ahead, we remain focused on execution of our strategic priorities and integration plans to unleash the full potential of our consumer-centric health care model and create value for our customers and shareholders.”
