3 Penny Stocks That Saw Explosive Moves This Week
If there’s one thing penny stocks are known for it’s big gains quickly. While many times you’ll find some of these cheap stock rallying 50% or even 100%. But when you talk about over 300% or even adding in a comma, most investors would think that is unheard of. This week has already been one of the most incredible weeks of the year so far. I know it’s only Wednesday but we’ve already seen more than just a handful of penny stocks skyrocket beyond the 1,000% mark. We like to refer to these as 10-baggers for those following at home.
I will say, however, this is quite the anomaly. Rarely do we see 1, let alone multiple 10 baggers within a short period of time list this. But the fact of the matter is that we are. Earlier this week, we talked about how Urban One (UONE Stock Report) rallied from just over $2 to highs of $40 this week.
That move was more than 1,700% within a matter 2 days. This means a $1,000 position could have been worth over $17,000 in less time than it takes to watch the full series of The Office. In case you were wondering, it would take four days, three hours and 30 minutes to watch all nine seasons of “The Office”.
All joking aside, when you come across breakouts like these you absolutely need to have a strategy in place. In most cases, the 1,000%+ moves come from penny stocks with very low floats. What does this mean? The lower the float, the fewer the number of shares actually trade-able in the market. That equates to big swings in price. So just as quickly as penny stocks can rise, they can also plummet. For this reason, you’ll want to have a clear strategy in mind before looking for low float penny stocks to buy, in general.
Penny Stocks To Watch #1: Atlas Financial Holdings Inc.
Finally, Atlas Financial Holdings Inc. (AFH Stock Report) has climbed agressively higher this week. AFH stock closed out its session last Friday at $0.394 and has since rallied to highs of $1.34 during the early morning session on Wednesday. While this is “only” a 240% move, Wednesday marks the first day of above average trading for the penny stock in quite some time.
Unlike the other two companies, Atlas Financial also had news this morning. The company announced that the previously disclosed sale of the stock, charter and state licenses of Atlas’ indirect subsidiary Gateway Insurance Company was concluded successfully with the necessary regulatory and court approvals. The sale is to Buckle, a technology-driven financial services company. The transaction closed effective June 16, 2020 . The amount of $4,200,010 , representing a portion of the purchase price.
“In the coming weeks, we will also continue to focus on becoming current with our financial reporting and then ultimately beginning to communicate our forward-looking strategy in an efficient and proactive manner,” said Scott D. Wollney, President & CEO of Atlas. Currently, AFH stock shows a total outstanding share count of less than 15 million shares. While this isn’t the lowest we’ve ever seen, it is on the lower end of the spectrum and something to keep in mind in my opinion.
Penny Stocks To Watch #2: Urban One Inc.
Earlier this week, Urban One Inc. (UONEK Stock Report) turned heads after skyrocketing over 1,730%. This came as a surge of interest focused on businesses that are owned by or in support of the African-American community. As we discussed, Urban One’s mission is “to be the most trusted source in the African-American community that informs, entertains and inspires” an audience by providing “culturally relevant integrated content through our radio, television, and digital platforms.“
In light of this, investors flocked to the previous penny stock. Not only did it break out more than 280% on Monday but it jumped another $33 on Tuesday. That took shares to new, all-time highs of $40 on record-setting volume. But there’s something else to Urban One, it also has non-voting shares trading under the symbol “UONEK”.
This simply means that shareholders of UONEK don’t have voting rights when it comes to corporate decisions. Nevertheless, the penny stock has mirrored the directional move of UONE and price has climbed by more than 640% since the start of the week. As of Wednesday morning, UONEK shares have pulled back from their $6.84 highs. Will it manage to bounce? We’ll have to see how the rest of the week goes.
Penny Stocks To Watch #3: Carver Federal Savings Bank
Shares of Carver Federal Savings Bank (CARV Stock Report) reached fresh highs of $$22.97 on Wednesday morning. The company’s shares broke out during premarket trading and continued higher at the open. While the UONEK rally was big, CARV stock has jumped over 960% within a day. The penny stock closed at $2.15 on June 16 and exploded to those early morning highs on the 17th.
This is another low float penny stock gaining attention this week. There hasn’t been any news from the company lately. However the surge in supporting African-American lead businesses is growing in popularity. According to the company, Carver Federal Savings Bank was founded in 1948 to serve “African-American communities whose residents, businesses, and institutions had limited access to mainstream financial services. In light of its mission to promote economic development and revitalize underserved communities, Carver has been designated by the U.S. Department of the Treasury as a community development financial institution.”
Furthermore, the company is among the largest African- and Caribbean-American managed banks in the United States, with nine full-service branches. Given this latest rally, will CARV stock continue higher or is a pullback in the works?