These Penny Stocks Had The Best 3-Month Rally This Year
The idea of penny stocks and long-term gains doesn’t really match up for most. Usually, when you think about finding penny stocks to buy, you’re aiming to buy and hold for maybe a few days at most. But for many of the traders in the stock market today, that hasn’t been the case.
Sure, we’ve seen our share of parabolic movers that rally 1,000% in 48 hours. The penny stock gods know more than enough about UONE and UONEK from earlier this week. But the facts remain, if you want to make money with penny stocks, you don’t always need that short term breakout. Sometimes it pays to be patient.
I’m talking about swing trades. This involved buying penny stocks, holding them, maybe trading around a core position, then completely selling out several days or weeks later. Believe it or not, there are more penny stocks to swing trade than anyone may imagine. Honestly, just take your favorite scanner and check out stocks under $5 that are near their 52-week highs.
While this isn’t how I arrived at this list of penny stocks, it is a less complicated way to simply prove there’ve been many penny stocks to swing trade. Needless to say, if you’re looking at a few longer-term penny stocks right now, understand that you’ll probably encounter some volatility along the way. What goes up, usually comes down – to a point – but if there’s truly a strong trend and a company’s executing on its business plan, there are plenty of chances to see a potential “swing situation”. With this in mind, what do you think? Is this a list of “swing” penny stocks to buy or avoid heading into the end of Q2?
Penny Stocks To Buy [or sell]: Sunworks Inc.
Sometimes it doesn’t take much for penny stocks to rally. A little “good news” and possibly meaningful filings can be all it takes to become a catalyst for a jump in the share price. Sunworks Inc. (SUNW Stock Report) had one of those today and, no, it wasn’t news. Sunworks filed its Proxy Statement on June 17th. This is to call for a shareholder vote on several topics. One of these is to approve an amendment allowing the company to reduce its authorized share count.
Now, why could this be important? For starters, think of Authorized Shares as the absolute max number of shares that can be issued by a company. Once a company reaches that ceiling, they’ll either have to start buying shares back or increase the Authorized share count. One of the big reasons to have a higher Authorized share count is to give enough slack to raise additional funds. But herein lies the concern. With small-cap stocks, a typical financing allows for dilution risk to present itself. But in this case, Sunworks actually wants to reduce its A/S.
So it’s no wonder why we saw such optimism in the stock market today. SUNW stock rallied to highs of just under $0.79. It also continued to trade around that level after the market closed. We’ll have to see if shareholder approve that move for the company but until August 26, 2020, we won’t know for sure. That’s when its shareholder meeting will be held. Since the start of Q2, SUNW stock has climbed as much as 119%.
Penny Stocks To Buy [or sell]: Orion Group Holdings
Orion Group Holdings (ORN Stock Report) is a specialty construction company. Shares have been trending higher for most of the second quarter. One of the initial highlights was its quarterly earnings beat in April. Contract revenues were $166.6 million , up 16.4% from $143.1 million for the first quarter of 2019. Operating income was $4.4 million for the first quarter of 2020 compared to operating loss of $6.2 million for the first quarter of 2019.
Furthermore, Orion reported a net income of $2.7 million ($0.09 diluted earnings per share) for the first quarter of 2020. This compared to a net loss of $7.9 million ($0.27 diluted loss per share) for the first quarter of 2019. By all intents and purposes, a well-rounded quarter for the company.
May saw things heat up even more. During the middle of the month, the company came out with big news for 2020. The company’s concrete segment was awarded a contract for the construction of a multi-use tower structure located in Houston, Texas. The work was expected to begin in May and will completion slated for the second half of 2021. The important part of that deal is its value. Orion said that the contract award totaled approximately $30 million.
This month, momentum didn’t stop either. Orion came out with another follow-up to that big milestone. On June 17th the comapny made its next announcement and one to keep under consideration. Orion announced contract awards totaling approximately $17 million. Specifically, its Marine segment was awarded two separate contracts to provide dredging services in the Corpus Christi Ship Channel in Corpus Christi, Texas.
The work for both projects will begin immediately and is scheduled to be completed in early 2021. In light of the latest developments, ORN stock continued on its bull run. Shares spiked in after-hours trading on Wednesday. Can this continue into the rest of the second quarter? Shares have climbed over 85% this quarter based on Wednesday’s aftermarket finale at $4.69.
Penny Stocks To Buy [or sell]: Biocept Inc.
Biocept Inc. (BIOC Stock Report) has been one of the top penny stocks to watch this quarter as well. Like we discussed above, BIOC stock’s latest move hasn’t been all rainbows and roses. If you were to have “held on for the ride,” BIOC shares climbed from $0.272 on April 1 to highs of $0.7661. While that 180%+ jump might seem easy, pull up a chart and you’ll see just how whipsawed it was with this penny stock. Needless to say, the bigger picture, overall trend has been bullish for the most part.
The last update showed that Biocept was moving its corporate offices and lab to a new location in San Diego. “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.
[Read More] These 3 Penny Stocks Are Up Over 200% This Week
On top of this, BIOC stock has found itself floating amid speculative interest. This has stemmed around the company’s website, mainly. But what is important to point out is the technical levels of historic resistance on the BIOC stock chart. We discussed it a few weeks back how the 200-day moving average was only tested but not broken above for the better part of the last year. Starting this week, BIOC stock not only broke above but has maintained trading levels above its 200DMA for the first time since 2017.
Seriously, take the chart out a few years and you’ll see the 50DMA was the main “resistance level” on the chart, after that the 200DMA was close behind it. For the last 5 sessions, BIOC stock has held trading levels above this point. The company was recently granted a Canadian patent titled “Methods and Reagents for Signal Amplification”. Will this be enough to trigger another rally for BIOC stock?