4 Penny Stocks To Watch After Big News In June 2020
Penny stocks have a tendency to react to the news. Headlines can play a big role in the direction of the market. As you’ve seen with the broader stock market today, economic news, geopolitical updates, and financial headlines have already moved markets early on. When you talk about stocks under $5, news can become a much bigger catalyst but why?
Aside from the fact that lower prices stocks move quickly, penny stock news doesn’t necessarily have to be “groundbreaking” to see a reaction in the market. Think of it as a jumping point for speculation. I can think of several examples where headlines included words like ‘COVID-19’, ‘FDA approval’, ‘record revenue’ and the like.
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But when you actually read the full press release, the finer details don’t reveal much more than a simple progress update. Something to consider is that the new generation of traders is more likely to read the headline than the full release – I blame social media.
Is Penny Stock News Good Or Bad?
For you as a savvy trader, understanding the full scope of a press release can give you an advantage. How? Well, if there’s an exciting headline but lackluster information within a press release, you might expect an initial breakout for a penny stock. But as people actually read and understand the rest of the story, there’s a high likelihood that shares might pullback.
On the flip side, if there’s a headline that doesn’t have many “hype words” but the details show some material advances for a company, then you might expect a rally to come later on after traders have had time to digest that info.
There are countless examples of this type of instance with penny stocks in June, already. I bring this up because this list of penny stocks includes several names making moves on recent news. As you look into these trending penny stocks, make sure you take everything into account and not just the headline.
Will these penny stocks experience a long-term breakout? Let us know in the comments section
Best Penny Stocks To Watch: Heat Biologics
We first followed Heat Biologics Inc. (HTBX Stock Report) as it had just closed out its week at $0.33. This was during the early days of coronavirus penny stocks actually becoming a buzzword among traders. Since that time, the HTBX stock price has climbed as high as $1.25 and continued holding gains above $0.50 after pulling back in late-March. Again, something to consider when taking into account speculative headlines or ominous tweets from small-cap companies.
As far as Heat is concerned, the company managed to live up to the hype a bit and came out with formal press releases confirming its involvement with COVID-19 treatments. Late last month the company reported that it is collaborating with Waisman Biomanufacturing to establish a partnership for the manufacture of Heat’s COVID-19 vaccine. Waisman specializes in the manufacture of cellular therapeutics and other biologics for early-stage clinical trials.
This week hasn’t been too kind to HTBX stock. Shares slid during the first few days of June. But on the 4th, that may have started to change. In a press release, Heat Biologics announced said that it’s on track to complete potential COVID-19 vaccine development in July.
“We remain on track to complete design and development of our COVID-19 vaccine in July, and expect that our gp96/nCoV-2 expressing cell line will be available for clinical-grade manufacturing with our partner, Waisman Biomanufacturing, in early August.”
Jeff Wolf, CEO of Heat Biologics
Best Penny Stocks To Watch: Cinedigm Corp.
With companies like Genius Brands (GNUS Stock Report) shedding some serious light on entertainment stocks this quarter, investors are thirsty right now. Like we’ve seen in other sectors such as cannabis and even gold, once one penny stock makes a big move, traders search for something similar. While two penny stocks are usually not identical, it doesn’t stop investors from looking for “sympathy plays”. In this case, Cinedigm Corp. (CIDM Stock Report) has found itself getting thrown into the mix.
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Earlier this week, we caught up on the details of this company and saw the progress it has made recently. First, Cinedigm acquired all North American distribution rights to Cotton Films’ EVERYDAY MIRACLES in late-May. Following this, the company announced a strategic partnership with SpringServe, the leading ad serving platform for over-the-top and connected TV. It also expanded its distribution of “The Bob Ross Channel” on Roku (ROKU Stock Report) this week.
What’s added more fuel to the fire is the latest update on a partnership with Vewd. According to Cinedigm, Vews is the world’s largest Smart TV over-the-top provider and will now offer Cinedigm’s portfolio of entertainment networks. As part of the agreement, Cinedigm’s networks will be available on an install base of more than 300 million Smart TVs and connected devices.
“With Global ad-supported OTT revenues surging to $53 billion globally over the next five years, our focus is on rapidly expanding our distribution footprint to maximize growth.”
Erick Opeka, President of Cinedigm Networks
With this type of progress is the just the beginning for CIDM stock’s latest bull-trend or are shares due for a pull-back? Since we started following this company, CIDM has climbed from $0.91 to over $3.50 during premarket trading on June 4.
Best Penny Stocks To Watch: Titan Medical Inc.
Unlike the previous penny stocks mentioned above, Titan Medical Inc. (TMDI Stock Report) hasn’t established much of a long-term trend. If anything, the “trend” is a sporadic move around days of news. TMDI is an example of one of the penny stocks that has responded quickly, but fleetingly to headlines. However, that doesn’t mean Titan Medical stock is bad (or good), it just means that day trading penny stocks like this has been more beneficial than “going along for the ride”. Will that trend change? That’s a good question and one that we’ll have to observe the stock market for.
This week, Titan is back on the move again after releasing its latest update. The company announced that it has entered into a development and license agreement with Medtronic plc (MDT Stock Report) to further the development of robotic assisted surgical technologies. The company also has a separate license agreement with Medtronic in respect of certain intellectual property of Titan. The big highlight of this update: Titan will receive a series of payments totaling up to $31 million for Medtronic’s license to such technologies based on reaching certain milestones.
But wait, there’s more. Under the terms of the separate license agreement, Medtronic has licensed certain robotic-assisted surgical technologies from Titan for an upfront payment of $10 million. If you remember back in March when we first started discussing Titan, the company announced a $1.2 million offering at $0.17. Since then, shares have climbed as high as $0.96 during premarket trading on June 4th. Can this trend continue throughout the month?
Best Penny Stocks To Watch: SuperCom Ltd
Shares Of SuperCom Ltd (SPCB Stock Report) also took off during premarket hours on June 4th. The company announced an award for a new 5-year contract with the national government of Latvia. It will deploy its enhanced PureSecurity Electronic Monitoring Suite, including both RF House Arrest and GPS tracking. One of the things I can say from watching certain penny stocks over the last few days is that the SpaceX launch helped shed some light on companies involved with satellite systems and aerospace-related products/services.
This news comes on the heels of a previous June release from SuperCom. The company annoucned on June 1st that it shipped equipment for two new pilots in the Middle East of its COVID-19 citizen quarantine and containment tracking technology solution. This shipment follows the previous shipments of similar equipment for two other recently announced pilots.
SuperCom’s COVID-19 quarantine technology solution is made up of products in its PureHealth technology suite. It includes the PureCare smartphone and additional security accessories. The PureCare smartphone is easy to operate and carry, providing a familiar form factor for those requiring its use. The PureCare smartphone is infused with software that provides citizens with an interface that allows them understand things like location restrictions. We discussed this unusual focus for the company earlier this year. It seemed as a way to simply play off of COVID-19 hype but like other companies, SuperCom has stuck with the initiative.
