Are These Penny Stocks Going Higher Before The Weekend?
Penny stocks are once again in the spotlight at the end of the week. In what has been a monumental week for stocks under $5, we’ve still got one more session left before the weekend. Helping get things off to a running start: The U.S. jobs report. Stock market futures jumped sharply on Friday after better than expected job numbers.
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The Labor Department reported that U.S. unemployment came in at 13.3% for May. The estimate for that period was 19.5% and overall employment climbed by 2.5 million. Economists expected employment to decline by more than 8 million jobs. With these upbeat figures, the majority of the stock market is climbing on Friday morning.
“While not looking past the current pain, the hope is that from these moments of uncertainty, a path toward a more hopeful future (and more robust economic participation) will emerge.”
Willie Delwiche, investment strategist at Baird
With tailwinds of bullish sentiment boosting momentum on June 5th, are we looking at a strong close to the week? Here’s a list of penny stocks to watch before the weekend.
Penny Stocks To Watch #1: Foresight Autonomous Holdings
The race is on. The U.S. economy is on a collision course to re-open. Albeit in phases, many cities are beginning to reopen restaurants, salons, and the like. However, since there’s still a potential threat of COVID-19 returning. So when you talk about the “new normal” it will likely involve more testing, mass screening, and new technology to track things like temperature as well as other biological indications. Foresight Autonomous Holdings (FRSX Stock Report) designs, develops and commercializes sensors systems.
This morning, the company announced that it has started developing a mass screening solution for the detection of COVID-19 symptoms. It’s based on visible-light and thermal cameras. The company also submitted a patent application to the U.S. Patent and Trademark Office for a system and method for detection of people infected with the COVID-19 virus.
Our extensive experience with thermal imaging and AI can be invaluable when applied to a detection solution for early symptoms of the coronavirus. Several prospective customers have already expressed interest in evaluating our unique technology”, said Haim Siboni, CEO of Foresight. Shares of FRSX stock gapped up significantly on Friday so this will be something to keep in mind. As the stock closed around $0.91 on June 4th, the penny stock reached premarket highs of over $2.20.
If FRSX is on your list of penny stocks to watch right now, consider anyone who was looking at this previously could be up big right now and profit-taking risk is real. With the 200-day moving average sitting at $1.08 and previous resistance levels showing around $1.25, it will be interesting to see if FRSX can hold Friday’s gains and continue higher or if shares are set to slide back down.
Penny Stocks To Watch #2: Tuesday Morning
Bankruptcies have been a very frequent event this year. Due to COVID-19 companies like Hertz (HTZ Stock Report), J.C. Penney (JCPNQ Stock Report) and others are filing for Chapter 11 or even worse. But the recent surge in the stock market today and earlier this week has brought a glimmer of hope for beaten-down penny stocks. Tuesday Morning (TUES Stock Report) is one of these broken down stocks.
The company is an off-price retailer specializing in name-brand products for the home, including upscale home textiles, home furnishings, housewares, gourmet food, toys and seasonal décor. It offers them at prices generally below those found in boutique, specialty and department stores, catalogs and on-line retailers. Tuesday Morning operates 687 stores in 39 states. Late last month the company declared bankruptcy and said it would close 1/3 of its stores in a reorganization.
This week the company announced that it has obtained a commitment from BRF Finance Co., LLC, an affiliate of B. Riley Financial, Inc. (RILY Stock Report) for $25 million of debtor-in-possession financing. This was required by Tuesday Morning’s current $100-million DIP agreement with its existing lender group.
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The new commitment allowed it to secure commitments for a total of $125 million to support operations during Chapter 11 proceedings. Similar to how we discussed in an article on Thursday about Hertz, will this confirm a rebound in TUES stock price or is this just a short-term glimmer of hopium?
Penny Stocks To Watch #3: Oasis Petroleum
With a recovery in the economy, you would think travel could start picking up. What’s more is that aside from the jobs numbers, OPEC+ is set to hold a meeting this weekend. The biggest thing to consider here is that we don’t know if there will be another “surprise” so as for oil stocks, this could be one of the more “risky” scenarios going into the end of the week. Needless to say, oil and gas stocks are back on the rise on Friday. Oasis Petroleum (OAS Stock Report) has benefited early.
What’s Driving Oil Prices Right Now?
It has everything to do with speculation on what OPEC+ is expected to do. OPEC+ is set to extend production cuts to boost the oil market after a breakthrough in negotiations. The alliance meeting on Saturday is expected to see a the deal receive a formal sign off. The agreement, once ratified, will prolong the record OPEC+ production curbs for another month until the end of July, instead of easing them as previously planned. Ministers may review later this month whether a further extension into August is warranted, according to reports from Bloomberg citing a delegate.
“We’re reasonably optimistic on the outlook for oil in the second half of the year. Demand is likely to recover far more quickly than supply,” Isabelle Mateos y Lago, co-head of the official institutions group at BlackRock Inc., said. Given this as the case, small-cap oil and gas penny stocks might be on the list for Friday. Whether or not it remains on the list over the weekend will be up to how likely you think this deal is expected to go through.
Keep in mind that OPEC+ is used to drama. If you remember from earlier this year, there were expectations for certain countries to cut production but then we saw the likes of Russian and Saudi Arabia pull a complete shift. Will something like this be the case again or will it be a smooth deal on Saturday?
