Weekend Penny Stocks To Watch Before Monday
I know it’s the weekend but money doesn’t sleep; it just takes a breather on Saturday and Sunday. That also goes for penny stocks. But that doesn’t mean you can’t take these days to do some research and prepare for the week. They for the most part, the world is your oyster on the weekends.
You can catch up on all the juicy rumors on social media and you can take time to really dive into corporate filings. The weekends also give you plenty of time to review countless penny stock charts. So instead of Netflix and chilling all day, use these precious hours to put a solid list of penny stocks together for the week ahead.
Will all of the names on your penny stocks watch list be trending on Monday? Chances are, probably not. But I’m willing to bet that at least some of them will be. Something we always preach on PennyStocks.com is to know why a stock is moving. Understand the underlying catalyst so you can properly plan out your trade. Is it based on news, rumors, filings, social media posts, etc.?
Knowing really is half the battle. As we saw last week, some penny stocks broke out big on unsubstantiated rumors but then fell just as quickly when the trading public got frustrated with the speculation. Meanwhile, other stocks took off and continued to trade strongly into the weekend after new corporate communications emerged.
No matter the case, just understanding why certain stocks are moving can give you the edge when it comes to making money with penny stocks. Here are a few names that gained ground late Friday afternoon. Will they be the best penny stocks to buy next week or should you push them off to the side?
Penny Stocks To Watch: Ocwen Financial Corporation
Ocwen Financial Corporation (OCN Stock Report) is a non-bank mortgage servicer and originator. As we’ve seen in the financial sector this year, things have gotten beaten up. But on Friday, OCN stock managed to take off after the company released a new update. Ocwen reported its operating results for the first quarter of 2020.
Surprisingly, the company came through with “palatable” results based on the market’s reaction. I say that because of how so many financial and real-estate sector stocks were beaten up early on in 2020. For starters, Ocwen reported a net loss of $25.5 million, or $0.19 per share. This compared to a net loss of $44.5 million or $0.33 per share for the three months ended March 31, 2019. So when you talk about earnings results, despite reporting a net loss again, it does show Ocwen managed to improve on that note.
What’s more is that the company grew its owned-servicing portfolio to $77.2 billion. However, the company hesitated on issuing forward guidance amid the current COVID-19 pandemic. Glen A. Messina, President and CEO of Ocwen said it best, “While we are operating in an environment with increased risk, we believe there are increased opportunities in both origination and delinquent servicing.”
“We expect to have adequate liquidity to operate our business and originate approximately $25 billion in new servicing additions with a target 50/50 mix of owned servicing and sub servicing.”
Penny Stocks To Watch: Nokia
Shares of Nokia (NOK Stock Report) continued the multi-week climb that began earlier this year. After reaching new 52-week lows last month, NOK stock has rebounded by more than 50%. If you’re searching google for things like “5g stocks”, “5g stocks to watch”, or “5g stocks to buy” NOK stock may be one on the list. Why? Over the last several months the race for 5g has really started to heat up. Nokia has been on the move building its 5G network and even recently announced a bump in profit thanks to demand for its new high-margin 5G telecom equipment.
Nokia has been a company we’ve monitored closely for a while. Despite having and overall bearish trend (until recently), NOK stock has shown enough volatility to attract traders. In our last article about Nokia, we discussed a few things the company had going for it. These were likely some of the potential catalysts behind the latest move including earnings.
Key milestones included 5G deal momentum continuing, with 70 commercial deals and 21 live networks. The company also reported that it is starting to work with ExteNet Systems to bring high-speed internet to Cal.net in rural California.
This past week Nokia announced that it has commenced a tender offer to purchase for cash up to the Maximum Acceptance Amount the EUR 500,000,000 1.000% notes. These are due 15 March 2021 issued under its Euro Medium Term Note Program. Given the race for 5G and the growing popularity of 5g stocks, is NOK on your list of penny stocks this week?
Penny Stocks To Watch: Verastem Inc.
Verastem Inc. (VSTM Stock Report) is another one of the penny stocks that caught some attention late last week. The company develops drugs to aid patients suffering from cancer. Its first commercial product, COPIKTRA (duvelisib) is indicated for the treatment of adult patients with relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma.
As we discussed on Friday, VSTM stock is another one of the penny stocks that has jumped, dipped, and repeated. Its most recent jaunt saw shares rally from around $0.85 in November to highs of $4.67 just a few weeks ago. This past week VSTM stock closed things out at $1.98 following highs of $2.04 just before the bell.
The company announced its Q1 financial results for 2020. That seems to have been a catalyst for a bit of positive sentiment in the market. What’s more, is that Verastem is one of the few companies actually issuing some guidance right now. As a result of its new strategic direction, Verastem Oncology expects to reduce its operating expenses by approximately 40% for 2020 compared to 2019.
Based on its current operating plans, the Company expects its R&D and SG&A expenses for the full year 2020 to be in the range of $70 million to $85 million. Verastem is guiding that 2020 COPIKTRA revenues may be approximately $16 million.
Penny Stocks To Watch: Kitov Pharma Ltd.
One of the penny stocks that saw a few big volume days last week was Kitov Pharma Ltd (KTOV Stock Report). If it seems familiar, you’re likely a long-time reader of PennyStocks.com because it was one of the more actively covered stocks last summer. However, since then, things have flipped and flopped with KTOV stock presenting more of a popular penny stock to trade than anything else.
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With this in mind, Kitov Pharma focuses on treatments for people with cancer. The company is currently advancing NT-219 in combination with cetuximab as a third-line or second-line treatment option for the treatment of recurrent and metastatic squamous cell carcinoma of head & neck cancer.
Kitov has been fiercely raising money over the last few months. It came in the form of exercised warrants in April. This month the company closed a $10 million offering. Kitov said that it intends to use the net proceeds of this offering to fund the development of its oncology drug candidates and acquisition of new assets among other things. With the raise officially closed, it should be important to find out the price of the raise to understand any potential dilution risk presenting itself right now.
Based on its filings, it looks like the raise was at $0.40/share. The total offering consists of roughly 25 million shares. What’s also interesting to note is a recently submitted 13G filing last week. It shows that Sabby Management holds a larger stake in KTOV stock right now. After Friday’s close, we can clearly see KTOV had one of its most actively traded sessions in recent history. Will this translate into more momentum heading into the new week?