Active Penny Stocks To Watch This Week
No matter how you feel about penny stocks or the stock market today, the fact is there’s money being made. While some equity classes may be riskier than others, if you can handle a little bit of that risk, the rewards can be great. One of the biggest drivers, of course, has been the coronavirus pandemic.
But as opposed to what popular opinion may suggest, it hasn’t solely been a focus on biotech penny stocks. The shutdowns resulting from this pandemic have actually become a source for innovation. Everything from entertainment companies to food delivery and anything in between are finding ways to interact with people “stuck at home”.
Penny Stocks To Buy Or Sell Right Now
We’ve also seen a slew of companies develop products, services, and technologies to address the period when people start going back to work. Thermal imaging and AI have started to make their way into the mainstream recently.
But again, something to keep in mind is that social distancing isn’t likely to go away when economies get back to business. It will probably be a very different “normal” so no doubt we could see a number of new industries and niches come about to account for this “new normal”.
With this in mind, it’s important to understand why certain penny stocks are on the move. If you think the current catalyst has some staying power, it might not be a bad idea to keep it on your weekly watch list. With this in mind, here are a few names taking off but will they be the best penny stocks to buy right now?
AgEagle Aerial Systems Inc.
AgEagle Aerial Systems (UAVS) is a company we discussed a few times last year as it climbed from around $0.30 in May to a high of $0.73 earlier this year. However, since those January highs, UAVS stock slid to as low as $0.1901. This month, however, is a totally different story.
Why has UAVS stock jumped so high in April? The company expanded the scope for its contracted commercial drone work. It received a follow-on purchase order from a “major eCommerce company” for commercial drone small package delivery vehicles. AgEagle Chief Executive Officer Barrett Mooney said, “We are thrilled to be expanding our relationship with this key client, which is keen on taking full advantage of AgEagle’s specialized expertise in the custom manufacturing and assembly of commercial drones.”
But that isn’t the only event that could be driving momentum. As discussed earlier this week, the next corporate event to keep in mind will come tomorrow. AgEagle is hosting a conference call on Thursday during normal market hours. The 11 AM call is aimed at discussing recent operational highlights and give a corporate update. In anticipation of this call, the market continues to see big action.
Shares of UAVS have climbed as high as $1.95 on April 29th. But the big question: is this buy the rumor/sell the news or can this massive move continue before May? It will definitely be something to keep in mind considering UAVS has jumped 160% since the start of the week. Read more on UAVS Stock.
Hertz Global Holdings Inc.
This is another one of the penny stocks that has gotten a fair amount of attention recently. Hertz Global Holdings Inc. (HTZ) was a fan-favorite after billionaire investor Carl Icahn took a position in the company. The coronavirus has certainly had its way with travel companies. While the initial focus was on airline stocks, investors soon figured out that if no one’s flying, not many are staying in hotels or renting cars. Even with the low price of gas, travel is nearly at a standstill right now.
Something that was a sticking point for me was the fact that the company apparently has hired debt restructuring advisers at White & Case LLP and Moelis & Co. citing people familiar with the matter, Reuters reported that the goals is to explore financial options amid falling car rental demand due to the COVID-19 pandemic. That didn’t seem to get a lot of attention – at least as much as “the billionaire” headline.
But guess what, this week, HTZ stock was rocked a bit after related news. The Wall Street Journal reported that the company was preparing for “possible bankruptcy”. Hertz explained that it failed to make lease payment to hold onto cash amid the coronavirus pandemic and was in talks with noteholders to discuss payment options. The Journal also reported that the company was talking to lenders on forbearance agreements to waive a default and attempt to avoid bankruptcy.
The biggest question for me is what will Carl Icahn’s next move be with this investment? Shares of Hertz stock reached new highs of $5.46 on Wednesday but then plummeted to nearly $3.50. Read more on HTZ Stock.
TherapeuticsMD Inc. (TXMD) have gotten a little beaten up since February. While earlier this year TXMD stock saw a surge of buying after stronger Q4 earnings, that momentum didn’t last for too long. After withdrawing its 2020 guidance, the penny stock began to slide. That drop took TXMD down to new 52-week lows of $0.85 earlier this month. However, over the last few weeks, it has started to creep a bit higher.
This week, things came to a head for TherapeuticsMD stock. The company announced that the United States Patent and Trademark Office issued a patent. It covers the labeled indication for ANNOVERA®, the company’s long-lasting, patient-controlled, procedure-free, reversible prescription contraceptive option for women. TherapeuticsMD has 30 days to submit the formal paperwork to have this patent listed in the U.S. FDA’s Approved Drug Products with Therapeutic Equivalence Evaluations.
In addition to this patent, which provides protection through 2039, ANNOVERA contains segesterone acetate, a “new chemical entity,” which qualifies ANNOVERA for FDA regulatory exclusivity through August 2023 under the Hatch-Waxman Act. To say that this was a big development apparently was an understatement based on the latest market trend. Shares of TXMD jumped above $1.50 for the first time since early March. Read more on TXMD Stock.