Will These Penny Stocks Be On Your List Next Week?
Well, another wild week for penny stocks is in the book. I for one cannot believe how many crazy breakouts we saw in just 5 days. As euphoria swept across the stock market today and throughout the week, I watched in sheer amazement. We didn’t just see a few hundred percent gainers. We saw penny stocks rally thousands of percentage points. There were also penny stocks continuing multi-week and multi-month bull trends.
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One of the big “push/pull” events in the market was coronavirus and the reopening of the economy. At the start of the week, we saw massive buying seemingly trigger another bullish trend. But as investors ignored certain fundamentals and let emotions dictate the pace, we’ve seen how quickly that trend changed. The broader markets saw their worst day since March. Don’t forget that March was some of the worst performance in decades.
So it will be interesting to see what if anything transpires over the weekend. No matter what, small-cap and micro-cap stocks were on fire this week. LFIN, IMRN, WAFU, JFIN, and ENOB were just a few examples of parabolic penny stocks. Other cheap shares also performed incredibly and it was almost overwhelming the amount of penny stock breakouts the market saw.
While this isn’t the norm as far as frequency goes, it does go to show you that no matter what the broader markets are doing, penny stocks beat to the sound of their own drum. This is why investors that can handle a bit of risk continue to seek out new opportunities. With this in mind, will some of these penny stocks be on your research list this weekend?
Penny Stocks To Watch: GNC Holdings
Shares of GNC Holdings (GNC Stock Report) has been one of the penny stocks to watch for most of the second quarter. During the final days of April, we took a closer look at GNC stock. This came as preliminary talks were in place about how and when to start reopening the economy. The brick and mortar retail sector took a big hit with some companies not even surviving let alone trying to avoid bankruptcy.
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In the case of GNC, the company recently reached an agreement with required lender groups. This was to extend the springing maturity dates for certain loans. As a result of discussions with its lenders, GNC entered into amendments to its loan agreements.
In a late-breaking update on June 12, GNC came out with more lender-related news. The company confirmed that it reached an agreement with required lender groups to extend the springing maturity dates for certain loans. As a result of discussions with its lenders, GNC entered into amendments to its loan agreements to extend from June 15, 2020 to June 30, 2020 the dates on which, under certain circumstances, the respective springing maturity dates for the term loan facility, FILO credit facility and revolving credit facility may accelerate. As a result, GNC stock started to climb during after-hours trading. Can this continue into the week ahead? Since the end of April, the penny stock’s climbed as much as 207%.
Penny Stocks To Watch: Biocept Inc.
Biocept Inc. (BIOC Stock Report) has been another steady mover since mid-March. BIOC stock hit 52-week lows of $0.2112 on March 17 and it has bounced back ever since. While there was a day that BIOC stock gapped up huge during April, the overall move has seen shares climb as high as $0.597. Shares closed the week just over $0.55 with momentum continuing into the post-market session.
A week ago, Biocept came out with a formal update. The company said that it is relocating its corporate offices and CLIA-certified, CAP-accredited high complexity laboratory to a new location in San Diego. The move is expected to be completed by 2020 year-end.
“This location is well-suited to meet our commercial, development and administrative needs and aligns with our strategy of supporting growth while reducing rent expense and other facility costs,” said Tim Kennedy, CFO and Senior Vice President of Operations of Biocept. However, considering the recent attention back on coronavirus, companies like BIocept could be back in focus this month. The biggest question: how will that translate for BIOC stock next week?
Penny Stocks To Watch: ElectraMeccanica Vehicles Corp. Ltd.
ElectraMeccanica Vehicles Corp. Ltd. (SOLO Stock Report) was one of the breakout penny stocks to watch this week. Sunday we mentioned it as one of the names to know. Specifically, we noted that it might find itself benefiting from the likes of Tesla (TSLA Stock Report), Nio Inc. (NIO Stock Report). Considering the recent IPO of Nikola Corporation (NKLA Stock Report) eyes have turned toward EV tech.
ElectraMeccanica builds the all-electric SOLO, a single passenger vehicle. This week SOLO stock jumped to highs of $3 after the company provided an update related to its ongoing search for a U.S. based assembly facility and engineering technical center. On February 27, 2020 the Company announced its engagement with BDO USA’s Site Selection & Business Incentives Practice to lead the search. Following the initial review, the Company has narrowed its list to the following five states: Arizona, Colorado, Florida, North Carolina, and Tennessee.
The stock dropped after ElectraMeccanica announced a financing for “up to $20 million” at $2. Considering shares were at $3, it wasn’t a surprise that the penny stock dropped after the news broke. However, at the end of the week, the company reported the financing was closed. Considering that $2 now is actually a premium to the current market price, trader turned bullish on the penny stock after hours on Friday. Will that keep up next week?