Are These On Your List Of Penny Stocks To Watch This Week?
I hope you’re enjoying your extended holiday weekend. As we prepare for the week ahead, there are several penny stocks gaining interest lately. The second quarter has most definitely seen some big runners so far. One of the things that have and likely will continue to drive momentum is coronavirus headlines. Earlier this year and even recently, COVID-19 has captivated headlines. The race is on for a vaccine or even viable treatment.
Right now may be one of those “pivotal” times to consider COVID news because states are beginning to ease lock-down restrictions. This has even seen some beaches and parks reopen for Memorial Day weekend. Needless to say, the “new normal” will probably be something we won’t immediately see.
Will Chinese Penny Stocks Last?
Furthermore, rising tensions between China and the U.S. have some traders on edge. In a new bill passed by the U.S. Senate, oversight has been boosted on companies based in China and other nations. This oversight could lead to the actual removal from U.S. exchanges as early as this week.
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If you’ve been trading semi-frequently this year, you’ve likely come across more than a handful of Chinese penny stocks. Many of them have been known for their swift breakouts and rapid break downs. More approachable by day traders, questions now arise as to whether or not these companies will even be accessible in the near-term.
Updates over the weekend even raised questions on the future of some of the biggest Chinese names in the stock market today. Companies like Baidu (BIDU Stock Report) and Alibaba (BABA Stock Report) were among the list of questionable names to stay or go. We’ll have to see what the new week brings us. Right now, however, let’s look at a few penny stocks that have attracted attention for different reasons recently.
Penny Stocks To Watch: Hexo Corp
Shares of Hexo Corp. (HEXO Stock Report) have seen a recent surge this month. While the marijuana penny stock is down from the start of Q2, recent sector interest has sparked a recovery in late-May. HEXO stock managed to jump another 20%+ on Friday. Earlier this month concerns were raised after Hexo announced a new financing deal to raise $50 million CAD.
Initially, the announcement sent a bit of a shock to HEXO stock price. But on Friday, the company announced the closing of the deal and shares began bouncing back. The company ended up raising $57,546,000CAD. Hexo sold 63,940,000 units of the company at a price of $0.90CAD per unit. This also included 8,340,000 units sold pursuant to the exercise in full of the underwriters’ over-allotment option.
Additionally, headlines regarding cannabis as a potential option to address coronavirus symptoms also reemerged. While the story was relatively older, a New York Post piece revisited the information. It also helped boost shares of Sundial Growers (SNDL Stock Report) this week as the lead investigator was linked to the cannabis company. This came just after Aurora Cannabis (ACB Stock Report) got marijuana stock investors excited after reporting better-than-expected earnings for the quarter.
Penny Stocks To Watch: Mitcham Industries Inc.
A relative newcomer to a list of penny stocks to watch, Mitcham Industries Inc. (MIND Stock Report) caught some attention last week. An initial spike in trading volume turned some heads on May 20th and what has followed is a multi-day uptrend. The company operates in two business segments, being the Marine Technology Products segment and Equipment Leasing. The Marine Technology Products segment is engaged in the designing, manufacturing, and sale of seismic and offshore telemetry systems.
The Equipment Leasing segment offers for lease or sale of seismic equipment to seismic contractors in the oil and gas industry. It generates a majority of the revenue from the Marine Technology Products. As you might have already gathered, MIND stock was caught in the oil sector meltdown earlier this year. Prior to 2020, shares were trading as high as $4.42.
A recent report from Transparency Market Research suggests that the rise in multi-client projects in Africa and Latin America “cement global prospects of marine seismic equipment and acquisition market” and new oil and gas reserves discoveries could also boost demand. The report titled “Marine Seismic Equipment Acquisition Market” actually mentioned Mitcham by name. It labeled the company a “well-entrenched player” in the space. Considering the recent resurgence of interest in oil and gas, could MIND stock continue this latest trend?
Penny Stocks To Watch: CHF Solutions Inc.
CHF Solutions Inc. (CHFS Stock Report) has been a very frequently traded penny stock lately. While the overall trend is flat, that hasn’t discounted the fact that intra-day swings have produced consistent swing in the market. Needless to say, some recent updates have helped fuel momentum in the market of CHFS stock.
For starters, earlier last week the company announced a publication highlighting the use of ultrafiltration for fluid management of critically ill patients suffering from COVID-19. “SARS-CoV-2 (COVID-19) and Intravascular Volume Management Strategies in the Critically Ill”1 calls attention to fluid stewardship in COVID-19 patients. It applies evidence-based resuscitation principles to the specific clinical features of COVID-19 patients. Amir Kazory, MD, FASN, FACC, a professor at the University of Florida, and one of the publication’s authors said, “The fact that a significant subset of these patients suffers from rapidly expanding lung lesions compromising their respiratory status makes it crucial to prevent pulmonary congestion and, if iatrogenic fluid overload develops, to efficiently treat it.”
Furthermore, CHF came out with aftermarket news on Friday that got the market excited. The company convened its 2020 Annual Meeting of Stockholders held on May 20, 2020. It will be adjourned until June 19 to solicit additional proxies for “proposal 3” in particular. This would grant the Board of Directors the discretion to implement a reverse stock split. The Board of Directors said it “believes approval of Proposal 3 is in the best interests of CHF Solutions and its stockholders”. That’s because a reverse stock split “may be necessary to maintain the listing of CHF Solutions’ common stock on the NASDAQ Capital Market”. Shares jumped above $0.40 after this news broke.
Penny Stocks To Watch: Centennial Resource Development Inc.
Centennial Resource Development Inc. (CDEV Stock Report) has seen its shares rally this quarter. After starting the month of April at $0.2615, CDEV stock has managed to break above $1 on multiple occasions. Similar to Mitcham, Centennial Resource is involved in the oil and gas industry. However, the company is an independent oil and natural gas company focused on the development and acquisition of unconventional oil and associated liquids-rich natural gas reserves.
Its assets are concentrated in the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of contiguous acreage blocks located in West Texas and New Mexico. Last week headlines were flying announcing progress being made by the company. First CDEV stock traded higher to start the week following aftermarket news on May 15 that triggered continued momentum on May 18th. The company announced that it terminated a deal between its subsidiary and WaterBridge Resources. This would have seen divestiture by its subsidiary of saltwater disposal wells and associated produced water infrastructure.
Centennial’s stock continued surging on Friday. This time the move came following a new regulatory filing came out. It showed funds affiliated with Riverstone/Gower Management recently purchased more shares of CDEV stock. The acquisition of more than 4.5 million shares since May 14th through May 21 helped boost confidence in the penny stock. All of the shares were bought through open-market trades ranging between $0.77 to $0.95 a share, according to Friday’s filing. Quarter to date, CDEV stock has climbed 286% after closing last week at $1.01