These Penny Stocks Wasted No Time Giving Investors Something To Watch
Penny stocks come and go. Some will go on longer-term runs while the majority will see much more short-term breakouts. The key to finding top penny stocks starts with research. Whether it’s finding the most active stocks today and putting them on your list of penny stocks to watch tomorrow, or it’s simply looking for penny stocks with news, research is important.
In the stock market today, we’re flooded with countless headlines. I understand how hard it can be cutting through the noise. But there are other things you can look at to help narrow down your search for the best penny stocks to buy.
The best suggestion is to use multiple points of research. Penny stock news is great but then make sure to look at financial statements, share structure, and track what other traders are saying. The last one isn’t as important but it will give a gauge of the level of “FOMO” in the market.
Fear Of Missing Out or “FOMO” can become a huge driver of a move. This involves newer traders, generally, seeing penny stocks breakout. They see more people on social media talking about it. As share prices increase and they continue to wait on buying penny stocks, emotions begin to take hold.
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This is when these trader “fear” missing out on a potentially big breakout. That FOMO buying can be a big factor in a continuation move or it can leave them holding a big bag too. Regardless of FOMO, my point is to do your research and keep emotion out of the trading strategy.
Penny Stocks To Watch In June 2020
We’re only 3 days into this new month as the second quarter starts winding down. But these first few days have seen some of the biggest movers of the year. We saw a few stocks under $1 rally above $8 in some cases. In other examples of volatile penny stock in June 2020, some traded below $0.50 and now are above $2. That’s not a big dollar value move but as far as percentages are concerned, we’re talking multiple triple digits.
Here’s a list of penny stocks to watch in June 2020 that have already started making big moves this week. Are they on your radar right now?
Inuvo Inc. (NYSEAMERICAN: INUV)
Market Cap: $41.16 M
Closing Price on 6/3/20: $0.6471
Shares of Inuvo Inc. (NYSEAMERICAN: INUV) had a great quarter so far. That momentum continued into June with INUV stock price seeing its highest levels since June of last year. Not familiar with INUV? The company is in digital publishing and advertising.
At the beginning of April, shares were trading around $0.205 and have since jumped to over $0.65 this week. While there’ve been a few periods of volatility, the overall trend has been bullish for sure. This week saw some of the biggest momentum yet. But here’s the thing, there hasn’t been any news or filings since last month. The last big headline was from May 18th when Inuvo announced a 300% increase in clients signing on to run Connected TV to message their IntentKeyTM identified audience segments. What does that mean?
Inuvo’s IntentKeyTM is a patented, machine-learning technology designed to mirror the manner in which the human brain instantly associates ideas, emotions, places, etc. It creates an accurate, high-definition picture of consumer intent and sentiment related to a particular topic or item. Inuvo explains that it uses IntentKeyTM to discover and reach “high volumes of incremental in-market and relevant audiences that are hidden from typical marketing approaches”. So in a word, Inuvo can better target consumers, which is a positive for advertisers.
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But aside from that and a few FORM 4s showing some insider buying at the end of the month, there’s not much else to speak of. Given the timing of this surge, could this be based on bullish speculation regarding economic recovery and more money to spend on advertising? You decide. For now INUV has continued to trade higher after hours on June 3rd.
Luckin Coffee Inc. (NASDAQ: LK)
Market Cap: $653.12 M
Closing Price on 6/3/20: $2.58
Luckin Coffee Inc. (NASDAQ: LK) hasn’t been the prettiest story. But ever since becoming a penny stock, LK has actually been one to watch. It’s crazy to think that this was trading above $50 earlier this year. But ever since we started watching around the time it reached 52-week lows, LK stock has been climbing, ironically. For a company that is apparently in line for delisting from NASDAQ, the market seems a bit more optimistic lately.
So what has changed if anything? That’s a tough question to answer due to an overall lack of newsflow from the company. Being a Chinese-based company, there is also the risk presented by the U.S. government. Wall Street’s top regulator is signaling support for legislation that could lead to the delisting of Chinese companies from U.S. stock exchanges. The whole issue stems from faulty financials. Whether it was caused by Luckin or Luckin was the final straw, now the fuse is lit and there could be a ticking timebomb to be aware of.
A bill passed by the Senate last month that would bar trading in securities of companies that fail to comply for three straight years. U.S. Securities and Exchange Commission Chairman Jay Clayton said, “This is a very sensible way to approach a problem that’s been around for a while. This is a problem that I believe needs to be addressed and I hope it can be.”
Even in light of this, LK stock has managed to climb more than 100% from its all-time low. Needless to say, the market still needs to find out what the real numbers are from Luckin. Is this momentum speculation based on that or just a technical move from day traders?
Dolphin Entertainment Inc. (NASDAQ: DLPN)
Market Cap: $17.92 M
Closing Price on 6/3/20: $0.8943
It seems like entertainment penny stocks are becoming all the rage lately. From INUV mentioned above to Genius Brands (NASDAQ: GNUS) mentioned countless times since the start of May, attention has certainly focused on this niche. Dolphin Entertainment Inc. (NASDAQ: DLPN) specifically produces and distributes digital entertainment content. Through its subsidiaries 42West, The Door, and Shore Fire Media, Dolphin provides marketing and publicity services to many entertainment brands.
Sticking with the trend of “no news” DLPN stock had a big day on June 3 without any apparent headline catalyst. There weren’t any updated filings to sift through either. But I am willing to bet that some sector sympathy from the aforementioned GNUS could be partially at play here. After seeing such a dramatic and explosive jump, I wouldn’t be surprised if there were traders looking for similar companies. With a smaller market cap, lower float, and relatively thinly traded market, DLPN stock could fit the mold.
But again, no news or updates so speculation might be a driving force right now. In its last update, the company announced it acquired the rights to Special Delivery. This is an original screenplay written by Brian Hurwitz, and has attached Vaughn Stein to direct. Emerson Davis, Dolphin’s Vice-President of Development and Production, is handling development of the project and will oversee production.
Aside from that, there’s not much more to go on. Considering DLPN doesn’t really trade, and with such a small share structure, we’ve seen first-hand how erratic penny stocks like this can react to good and bad information. So if DLPN is one of the penny stocks on your list, please be fully aware of the potentially highly volatile landscape right now for entertainment stocks without recent news or filings.