Are These On Your Lis Of Penny Stocks To Buy This Week?
Despite unpopular opinion, penny stocks can be profitable. I say “unpopular” because if you ask the thousands of trader making money with penny stocks, they’ll argue in favor of these cheap shares until they’re blue in the face. Needless to say, you’ll always have the naysayers who wait in the wings for penny stocks to decline in price and say “I told you so”. But by that time, an experienced trader is likely already out of that stock and looking for more penny stocks to buy.
This quarter has been one of the most active periods all year for micro-cap stocks. We’ve not only seen month-long swings, we’ve also seen overnight breakouts. Keeping certain things in mind like share structure and current corporate events can help you move certain names closer to the top of you list of penny stocks. This week, optimism has continued to drive momentum in the stock market. The NASDAQ has reached another new all-time high. Meanwhile the economy has started to re-open. Albeit in stages, the sheer thought of “getting back to work” has investors bullish right now.
For instance, New York City went into its phase one of its coronavirus reopening plans Monday. This phase allows more businesses to resume operations, including construction, manufacturing, and retail, but only for curbside pickup. NYC Mayor Bill de Blasio said last week the city could go into phase two as soon as early July.
While we watch and see how things unfold, it’s also a good idea to track certain sector-stocks too. As they say, a rising tide lifts all ships. In this case, an active and bullish sector could compound whatever momentum is already in place. Here’s a list of penny stocks that can be bought for under $2 right now.
Penny Stocks To Buy For Under $2: Hexo Corp.
While you can’t argue the fact that marijuana stocks have gotten beaten up for over a year, you also can’t argue with the recent trend. As opposed to what some analysts may have thought in 2019, Q2 of 220 is seeing a resurgence in marijuana penny stocks. Several, like Aurora Cannabis (ACB Stock Report) have effected reverse stock slits to boost share price to “attractive levels”.
Other companies like Hexo Corp (HEXO Stock Report) saw some speculation that a reversal could be in the cards assuming it can’t meet the $1 minimum requirement of the NYSE. Needless to say, there’s more than just this type of chatter buzzing around the company. Furthermore, what Hexo has recently announced may have also helped boost momentum this quarter.
We started to pick up more frequent coverage on the company since the middle of last month and for good reason. This was when ACB stock rallied on better than expected Q3 2020 earnings. In fact, that ended up lifting most marijuana penny stocks. After raising $57.5 million later in the month and seeing the last bout of selling pressure, HEXO stock has maintained a stronger uptrend.
At the beginning of June, the company announced it received its Health Canada license amendment for the sale cannabis products for its cannabis manufacturing and processing facility in Belleville, Ontario. The updated licensing also encompasses the expansion of the licensed area to include the beverage production area dedicated to the Truss/ HEXO beverage division. Something to keep in mind, however, is that HEXO has certainly seen strong momentum but it is set to report earnings this week on the 11th. Is this latest move “buy the rumor/sell the news” or are investors starting to see more value in HEXO lately?
Penny Stocks To Buy For Under $2: Groupon Inc.
Investors seem to have a love/hate relationship with Groupon Inc. (GRPN Stock Report). Either that or they just love to hate the stock. Regardless of that, GRPN stock has been one to watch for most of the second quarter so far. After selling off in March with the rest of the stock market, shares have bounced. This took it from lows of $0.48 to recent highs of $1.78. Along the way, we’ve offered some resolve as to what to watch with this company as I’m sure our readers know.
Last week we revisited GRPN stock as retail stocks and consumer cyclicals started catching some stronger momentum. One of the potential drivers of the latest move could have stemmed from some M&A rumors.
According to reports from CNBC, the food delivery company was “fielding interest” from the likes of “at least two European food delivery companies”. Just Eat Takeaway . com and Delivery Hero were cited as the proposed suitors in the report. Shares of GRUB stock rallied as a result.
Suggesting that there could be a shakeup in the sector with regard to M&A could be one of the speculative things on the list when it comes to beaten-down stocks like Groupon. Similar to HEXO, Groupon is set to report earnings soon. June 16th is its date to report. While the sentiment is high for now, how do you think the market will react and what type of results do you expect Groupon to report?
Penny Stocks To Buy For Under $2: ElectraMeccanica Vehicles Corp.
If you’re not up on the latest sector trends, electric vehicles are starting to captivate an audience again. Not only have we seen the likes of Nio Inc. (NIO Stock Report) and Tesla (TSLA Stock Report) fly but new IPOs are coming out too. Most recently, “the new Tesla” hit the stock market via the IPO of Nikola Corporation (NKLA Stock Report).
This came after the business combination with VectoIQ AcquisitionCorp (f/k/a VTIQ). Nikola Corporation is a designer and manufacturer of battery-electric and hydrogen-electric vehicles headquartered in Phoenix, Arizona. This high action IPO has seen NKLA stock run from $31.25 on its IPO day to over $61.50 on June 8; that’s just 3 trading sessions.
The hype for EV stocks has grown. Over the weekend we talked about Electra Meccanica Vehicles Corp. Ltd. (SOLO Stock Report). The company’s flagship vehicle is the single-seat EV called the SOLO. Earlier this year, the company engaged BDO USA’s Site Selection & Business Incentives Practice to lead the search for an assembly facility location. The company said on Monday that it has narrowed its list to five states. This includes Arizona, Colorado, Florida, North Carolina, and Tennessee.
The proposed new U.S. facility is expected to employ up to 250 people and feature a state-of-the-art engineering technical center. It also includes plans for “multiple labs to support ongoing vehicle, chassis and power electronics testing”. SOLO stock has now climbed to a high of $1.64, up 60% since the start of Q2.