Top Traded Penny Stocks This Week
No matter how you slice it, penny stocks are highly volatile equities. One day a stock can be up 200%, the next it can give back all of those gains, then by the third day, shares could be even higher. This is the nature of the “beast” that are stocks under $5. Why mention this?
Well, the basic reason has everything to do with how people are trading penny stocks. You’ve got to understand that with all of the hype that comes with cheap stocks, FOMO is a big factor to consider. It can be very exciting to buy a stock and see it jump 50% or more, but if/when greed factors in, that can result in traders losing some or all of their gains.
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Many traders who “stay away from penny stocks” were typically burnt in the past. They either bought too high, held too long, or sold too soon. While it’s never the best idea to hold onto losing trades, understanding why a company is gaining attention is important. Case in point, we saw plenty of coronavirus penny stocks breakout then break down only to break out even higher later on. This is extreme volatility and can be your biggest ally or worst enemy.
Do You Know How To Trade Penny Stocks?
It’s very important to know how to trade penny stocks the right way. Having a tiered trading strategy can help you stay in winning positions longer, cut out of losing positions quicker, and even maintain a small core if or when penny stocks race higher. It doesn’t have to simply be “buy a whole position at one price and sell the whole position at another”.
Understanding how to trade “with” a stock can allow you to take advantage of those big multi-week moves, while at the same time capitalizing on short term breakouts. We won’t get into this type of strategy here but you can access some advanced educational material via certain sites focusing on trader education.
Best Penny Stocks To Watch: Algernon Pharmaceuticals
Algernon Pharmaceuticals (AGNPF Stock Report) (AGN) has been on the move for the better part of the last few months. The company’s focus is on repurposing drugs to address unmet needs and it’s most recent venture has Algernon right in the crosshairs of COVID-19. The company’s NPP-120 (Ifenprodil) is the target right now. Algernon has filed new intellectual property rights globally for NP-120 (Ifenprodil) for the treatment of respiratory diseases. It is also working to develop a proprietary injectable and slow release formulation.
An independent study published by the American Society of Microbiology in mSystems showed the treament could hold promise. The study found that Ifenprodil significantly reduced acute lung injury and improved survivability in an animal study with H5N1 infected mice. H5N1 is the most lethal form of influenza known to date with an over 50% mortality rate.
Where timing comes into play is after its last few updates Algernon announced late last month that it has received a No Objection Letter from Health Canada to proceed with a NP-120 (Ifenprodil) COVID-19 Phase 2b/3 multinational clinical trial. The same study protocol is being prepared for submission to the U.S. FDA and Australian regulatory authorities.
This news came on the heels of Algernon’s receipt of regulatory and ethics approval for Phase 2 Ifenprodil COVID-19 human study in South Korea. The company has even received positive feedback from the U.S. FDA for a new intravenous formulation of the treatment. Since the start of the 2nd quarter, AGNPF stock has managed to climb nearly 190% from $0.167 to highs of $0.4867 last week. It closed at $0.30 on Monday.
Best Penny Stocks To Watch: Kopin Corporation
Kopin Corporation (KOPN Stock Report) has been quietly – and I mean quietly – made a move over the last 45 days or so. After hitting 52-week lows of $0.19 on March 16, KOPN stock started climbing. But that climb came with daily volume levels of less than 200,000 shares. Compared to some of the best penny stocks out there, that volume is very low. Nevertheless, KOPN managed to steadily climb to highs of $0.67 on May 4th. Even with that light volume, the penny stock rallied over 250% during that time.
Why is Kopin Corporation on the list of penny stocks on Tuesday? The company released a business update on May 5th showing strong growth and operating results. First quarter revenue increased 42% with its defense product revenues jumping 144%. During premarket trading on the 5th, KOPN stock jumped to highs of $0.8125 and traded more than 1.1 million shares before 8:30AM EST.
Dr. John C.C. Fan, CEO of Kopin commented, “Revenues increased by approximately 42% in the first quarter of 2020, driven by both defense production and funded development programs. We continued to ship under the FWS-I and F-35 Joint Strike Fighter programs and we recently announced another follow-on order for the F-35 program, which includes shipments into 2021. We also saw continued progress on our defense development programs, where we have more than 10 programs in various stages of development,” he continued, “We also are partnering with various defense contractors on other opportunities and we expect to make a number of announcements in the coming months.”
Best Penny Stocks To Watch: Tetra Technologies
Unlike Kopin, Tetra Technologies’ (TTI Stock Report) rise hasn’t come quietly over the last few weeks. After sinking to 52-week lows of $0.22, TTI stock managed to recover to highs of $0.62. This move came as oil and gas penny stocks began to climb. Since Tetra is an oil and gas services company, it makes sense that shares made this move. Over the last few days, TTI has treaded water but definitely pulled back from those highs and volume started to tailor off as well. But on Tuesday, Tetra Technologies stock jumped during premarket trading.
Why is Tetra Technologies stock up today? Before the open, the company made an announcement. Tetra reported its first quarter 2020 results. The company showed a consolidated net loss before discontinued operations of $10 million in the quarter 2020. That was compared to a loss of $114 million in the fourth quarter of 2019 and a loss of $19 million. Additionally, Tetra’s adjusted per-share earnings before discontinued operations and excluding special items, was $0.02 in the first quarter. That compared to earnings of $0.03 in the fourth quarter 2019 and a loss of $0.08 in the first quarter of 2019.
Where many companies have been reluctant to speak about forward-looking operations, here’s what Brady M. Murphy, TETRA’s CEO said, “Despite the challenging economic outlook for 2020, especially for oil and gas, we expect the non-oil and gas industrial business to hold up well for the foreseeable future. In the second quarter, we expect to benefit from the seasonally strong Northern European industrial chemicals business, which is expected to contribute up to $10 million of cash from operating activities.”
Best Penny Stocks To Watch: Hertz Global Holdings
Shares of Hertz Global Holdings (HTZ Stock Report) saw a massive dip during premarket trading on Tuesday. Shares reached new lows of $2.31 as the company dealt with bankruptcy headlines. Hertz added another consulting firm to advise and aid with its next steps.
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In a report from the Wall Street Journal, it cited the company’s business took a hit from plunging demand for car rentals. This came amid stay-at-home orders and travel restrictions due to the COVID-19 pandemic. Last week, the WSJ said the company missed a lease payment. The bankruptcy filing is aimed at restructuring $17 billion in debt, the report said.
However, a new 8K filing on May 5th may shed some positive light on the situation (as positive as it can be). The company entered into forbearances and limited waivers with certain corporate lenders and holders of the Company’s asset-backed vehicle debt. The forbearances and waivers provide Hertz with additional time through May 22, 2020 to engage in discussions with its key stakeholders. The goal is to develop a financing strategy and structure that better “reflects the economic impact of the COVID-19 global pandemic” and Hertz’ ongoing operating and financing requirements.
This news came as a positive to HTZ stock. Shares jumped from those $2.31 lows to back above $3. The big question (and feel free to comment) can Hertz get it s act together by May 22?