People will say what they want about penny stocks but there’s no denying that money is being made every day. If you look at recent trends in the stock market today, you’ll see that small-caps can react even more to certain catalysts than blue-chip stocks. For example, Gilead stock jumped 7% on results from its latest remdesivir study. While this is great for an $80 stock, penny stocks involved with coronavirus vaccines echoed this sentiment much greater.
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For instance, if you look at companies like ThermoGenesis Holdings, Inc. (THMO Stock Report), the latest move dwarfed that of Gilead stock. On March 27, we first began to monitor the developments of ThermoGenesis. At the time, THMO stock traded around $3.
Since then, a mix of speculation and “emerging growth” has fueled a rally that took this penny stock to highs of $13.50 this week. As an aside, anyone that says penny stocks aren’t worth your time has either gotten burnt by getting greedy or gotten burnt by believing too much of the hype and not doing their own research.
Let’s face it, penny stocks are inherently volatile as it is. A company’s story may look good but technically speaking, its stock could jump up big and then pull back just as big before continuing higher. If you aren’t built for volatility, then penny stocks are probably not the best route.
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But to say they aren’t worth the time is an obvious fallacy; THMO stock is just one of many examples as to why. It’s also important to keep in mind that investing in penny stocks due to the extreme volatility may not be as beneficial as trading penny stocks. At the end of the day, the decision is up to you but shorter-term timeframes tend to present more favorable opportunities than longer-term.
This isn’t to say that investing in penny stocks is always a bad thing. For instance, those who held shares of Enphase Energy (ENPH Stock Report) from the start of 2019 when it was still considered a penny stock are probably pretty happy. That’s because on January 2, 2019, ENPH stock traded under $5 a share. This year it’s climbed as high as $59.15.
Even on a smaller scale, we’ve seen the coronavirus trend turn stocks under $2 into forces to be reckoned with as many now trade above $10. Will this last after there’s a proven treatment or vaccine? Time will tell but the fact is, there’s been real opportunity to make money with penny stocks this year even though we’re only 4 months in. Keep this in mind when it comes time to add top penny stocks to your watch list.
Top Penny Stocks to Watch: Tetra Technologies Inc.
Tetra Technologies Inc. (TTI Stock Report) has been on the move all week. On Monday, TTI stock traded around $0.28. As of Thursday, Tetra shares traded as high as $0.62. One of the obvious hot topics right now is oil and gas. With that comes attention for cheap oil and gas penny stocks to buy. Additionally, you can’t ignore the “supporting cast” either. These are the “pick and shovel” businesses providing services to oil and gas companies.
Tetra Technologies is a diversified oil and gas services company, focused on completion fluids and associated products and services. We’re talking about things like water management, frac flowback, production well testing, offshore rig cooling, and compression services. Recently, CSI Compressco (CCLP) declared a cash distribution attributable to the quarter ended March 31, 2020.
During a time where dividends are being slashed (check out what Royal Dutch Shell just did today), this was a positive update from the company that expects earnings next Monday. CSI is managed by CSI Compressco GP Inc., which is an indirect, wholly-owned subsidiary of TETRA Technologies, Inc. Tetra is also expected to release earnings next Tuesday. TETRA will host a conference call at 9:30 a.m. Eastern Time to discuss the results. Brady M. Murphy, President and CEO, and Elijio V. Serrano, Senior Vice President and CFO, will host the call.
With oil prices rebounding Thursday, signs could point the oil sector heating up again. The global economy has begun moving towards a slow reopening, and inventory data shows storage demand for the commodity rising; though slower than expected.
Top Penny Stocks to Watch: Aytu Bioscience
One of the more popular penny stocks (possibly more infamous now) has been Aytu Bioscience (AYTU Stock Report). While the overall trend this week hasn’t been great, its intra-day chart has opened opportunities for the day trading community. After reaching a high of $2.13 this week, AYTU stock began to slide. But considering that it managed to hold higher lows than last week, it made sense that this slide could simply be profit-taking.
Whatever the case may be, Thursday has seen shares rebound. The move came after the company’s mid-day announcement on April 30. Aytu announced that it has received confirmation of export approval for product shipment by China’s Ministry of Commerce for the Company’s COVID-19 IgG/IgM Rapid Test.
Josh Disbrow, Chief Executive Officer of Aytu BioScience, commented, “The backlog of medical products being exported from China created a shipment delay, but Aytu’s next 500,000 rapid tests have now been cleared for shipment to the U.S. This export clearance from China, along with the additional supply we have secured through our new relationship with Biolidics, gives us great confidence in our supply chain and ability to provide these needed test kits to the U.S. medical community. Our shipments remain on track for delivery and, upon receipt, will be distributed to U.S. customers.”
This news comes just after the company signed an agreement with Sterling Medical Devices to finalize the development of Healight, a novel endotracheal catheter, as a potential treatment for coronavirus. After President Trump’s comments on UV light and COVID-19, AYTU stock has been one gaining in popularity at the end of the month. Can this trend continue into May?
Top Penny Stocks To Watch: Vislink Technologies
If you look at the week that Vislink Technologies (VISL Stock Report) has had, you might be shocked to see that the uptrend has upheld even after pulling back from Thursday’s $0.54 high. Since Monday, VISL stock has jumped over 170%. If you remember on April 27th, we talked about VISL stock as one to watch trading below $1. At the time it was floating around $0.20 but there wasn’t much news to speak of that might justify its initial jump.
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However, on Thursday, the company ended up finally reporting something. That something has been well-received so far. Vislink announced that it has been chosen by Italian Integrator NVP SpA to provide High Definition ‘Live’ On-Board Video Systems for the European Ferrari Challenge Race Series.
“Despite the current lockdown, a huge amount of work has been going on behind the scenes, with all safety precautions being strictly adhered, in order to be ready to bring audiences around the world, exciting ‘live’ On-Board footage,” said Raj Kotecha, Vice President for Strategic Accounts & Motorsport at Vislink. “We look forward to implementation as soon as the series gets the ‘greenlight’ to go racing again.”
Prior to this, Vislink was able to secure several contracts to supply communications and surveillance equipment. The company received a $400,000 contract to supply an airborne surveillance video downlink solution to a government agency located in the MENA (Middle East and North Africa) region. Vislink also announced receipt of a $180,000 order for satellite communications equipment for deployment in Asia. The biggest question now is whether or not VISL stock can continue higher. That’s after being denied at its 200-day moving average (red trend line) on Thursday.
