3 Penny Stocks That Hit It Big
You may be wondering if penny stocks are worth it or not. There’s so much misinformation floating around about these cheap stocks that it can make your head spin. But we’re here to clear the air and let you know that people can make money with penny stocks.
The biggest thing to understand is that these are just like any other investment and require your undivided attention. In many cases, penny stocks can break out within minutes without any rhyme or reason. Because these are relatively illiquid, even a small amount of buying can trigger a big jump for a stock.
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So if you’re wondering how “worth it” penny stocks are, you first should define how much effort you want to put into learning how to trade penny stocks. If you treat it like a lottery ticket, blindly buy penny stocks without research, and “hope for the best”, just know that you are relying on hope, not logic to decide your fate. There’s no guarantee that you will make money with any stock no matter the price. But the chances are higher if you are basing your investment on research and understanding of the market.
While the broader markets took a tumble, not all stocks dipped on May 1st. In fact, here’s a list of penny stocks that have hit it big recently. Were they worth it for investors? You tell me.
Penny Stocks To Watch #1: Agile Therapeutics
Shares of Agile Therapeutics (AGRX Stock Report) have been on a steady climb since mid-March. After pulling back from initial 2020 highs this year, AGRX stock ended up bouncing back. But it wasn’t as aggressive a bounce as it saw during January and early February. Over the last few weeks, we’ve managed to keep this on the list of penny stocks to watch especially considering its latest announcements.
The majority of the focus for this company is on its female contraceptive, Twirla. The company has been raising additional money and working close with the FDA to button up final details for its drug. Recently, analysts at H.C. Wainwright reiterated their Buy rating on the penny stock. However, the firm also lowered its price target from $7 to $6. Next week the company reports first quarter 2020 results on May 5 after the market close.
Aside from that, there hasn’t been much more to speak of. So it may appear that the latest trend AGRX stock has experience could be based on speculation ahead of earnings. The Twirla product has been a big focus for Agile and I’m sure investors are waiting to find out some additional specifics related to corporate performance and 2020 outlook. Since March 12, AGRX stock has jumped as much as 98% with trading continuing into the aftermarket hours on Friday.
Penny Stocks To Watch #2: Ritter Pharmaceuticals
Ritter Pharmaceuticals (RTTR Stock Report) is another one of the penny stocks that has more or less “quietly” made a climb higher since March. I say “quietly” because there hasn’t been a major parabolic move. The uptrend has was more consistent than anything. On March 16, RTTR stock hit lows of $0.17 and as of May 1, the penny stock reached highs of nearly $0.42. What’s more is that RTTR has begun trading tightly between to major moving averages both acting as support and resistance for some time now.
Take a look at the 200 day moving average (red line) and the 50 day moving average (yellow line). For most of the year, the 50DMA has acted as support with nearly each time RTTR tested its 200DMA, it failed to break above. In both cases, when RTTR stock dipped below the 50DMA or pushed above the 200DMA, neither time has the stock sustain levels outside of this channel. What this could suggest is that these are time-tested support and resistance levels. Now it’s starting to see a “squeeze”. In this technical situation, one may assume a directional move could be on the horizon (in either direction). So if you’re a technical trader, that is something to keep in mind.
This week the company reported financial results for the first quarter ended March 31, 2020. But much of the focus recently has been on the company’s pending merger. Will this be a potential catalyst? “We are entering the home stretch in our effort to complete the potential merger with Qualigen , a transaction that we believe could provide meaningful value for Ritter stockholders,” said Andrew J. Ritter , Ritter Pharmaceuticals’ Chief Executive Officer. “We encourage those who have not yet voted to take a few minutes to vote by phone, internet or mail on this important transaction as the meeting date is less than two weeks away.”
Penny Stocks To Watch #3: MicroVision Inc.
Finally, MicroVision Inc. (MVIS Stock Report) continued its 5-day climb on Friday. Shares of the penny stock rallied from an open of $0.248 on Monday to highs of $0.53 on May 1. This 114% move came as the company reported it will deliver first-quarter results next week.
Earlier in April we reported on MicroVision. At the time, the stock was trading around $0.21, not far off of where it started this week. Similar to this week, shares of Microvision climbed for no apparent reason. A few weeks prior, the company announced that it would hand off the production of certain components the company was making. It would give the task to its “April 2017 customer”. The agreement still allows Microvision to profit from each component shipped via a royalty.
“We are pleased to complete this agreement to support our customer’s needs which provides manufacturing stability while at the same time reduces our cash requirements. The agreement with our April 2017 contract customer is expected to generate the same gross profit dollars that we would have earned if we continued to be responsible for the production.”
What’s may be more important to note is that the company is “exploring strategic alternatives”. Earlier this month the company retained Craig-Hallum Capital Group LLC to serve as its financial advisor as it explores various licensing and other strategic alternatives. The company said this includes a potential sale or merger of the company.