Penny Stocks To Watch This Week
Where can you find penny stocks to buy? Personally, I look at a bunch of places. I’ll look to see what the retail community is saying. I’ll run a few scans for intra-day and weekly irregularities in volume. Other things I’ll do include looking for upcoming news/results/meetings as well as sift through corporate filings. But first, I’ll look for technical patterns. This is why irregular volume is one of the first things I mentioned. When it comes to penny stocks, trading volume plays a big role especially if you look for short-term breakouts.
Since these cheap stocks are so thinly traded, it doesn’t typically take billions of shares traded to see a dramatic spike. Sometimes it can simple be a matter of a few million shares that triggers a big move. Here’s where you’ll hear people talking about low float penny stocks. Generally speaking, the lower the float, the quicker the move in the market. This can go for directional moves up and down. However, it does make for a very exciting time.
We’ve seen plenty of examples of low float penny stocks breaking out when there’s big volume. Most recently, Urban One (UONE Stock Report) exploded from under $2 to over $54 within the matter of 6 trading sessions. Before the rally, the stock barely traded but now it’s trading millions of shares a day.
Albeit shares have halved from those highs, the fact remains, UONE stock is considerably higher right now than where it was on June 12. Heading into the final days of the quarter, think about things like these when you’re putting together your watch list.
Penny Stocks To Trade [Or Fade]: Novan Inc.
Shares of Novan Inc. (NOVN Stock Report) has been spiking lately. While it’s been one of the penny stocks we’ve discussed for a few months now, there hasn’t really been a firm trend; besides sideways. But that isn’t necessarily a bad thing as day traders continue to watch the penny stock for intermittent spikes.
Last week we saw shares jump to highs of $0.89. This came seemingly out of nowhere. But it did follow a proxy statement that was filed earlier this month. One of the topics to vote on was the approval of a reverse stock split. The company said the ratio would be no less than 1:2 and no more than 1:15. Regardless of that fact, shares spiked for a few days and have come back down. However, this week there is something to point at for recent momentum.
If you are hunting for patents, you might have come across one for Novan. The company was issued a patent on June 23 titled, “Nitric Oxide Releasing Pharmaceutical Compositions”. It was granted by the Canadian Intellectual Property Office. If you’re not familiar with Novan, the company focuses on its Nitricil technology. Most recently it was looking to use it as a potential topical, oral, or nasal treatment for COVID-19. Furthermore, on Tuesday, the company presented at the Life Sciences Investor Forum. It will be interesting to see what, if anything, comes of today’s events both related to the conference and patent.
Penny Stocks To Trade [Or Fade]: Globus Maritime
The famous or infamous Globaus Maritime (GLBS Stock Report) has been a curse and blessing for some. During times where oil prices are jumping, GLBS stock and other shippers like SHIP, TOPS, etc. tend to move in sympathy with the sector. But then again Globus has been one of the risky penny stocks to watch considering all of the financing the company has done and the prices it does them at. Considering the just last week the company priced a 34.3 million share offering at $0.35, it wasn’t a shock to see shares drop.
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But once again GLBS has hit the main stage so to speak. A social media frenzy ensued with another industry-related stock, SHIP. That seems to have triggered a tidal wave of momentum in shipper penny stocks. Shares of GLBS have managed to climb to highs of $0.445 on Tuesday with heavier volume coming in as well. If you look at the company’s recent filings you’ll notice that Ionic Venturs LLC reported a 9.99% stake in the company. On top of that Empery Asset Management also built a 7.37% stake in Globus.
Due to the simple fact that this sympathy move could be based on a social media mention, it could be a short-lived breakout. But all the same, if momentum continues, do you think penny stocks like GLBS can maintain the current trajectory?
Penny Stocks To Trade [Or Fade]: Genius Brands International Inc.
Guess who’s back (for now)? Genius Brands International (GNUS Stock Report) caught a gust of momentum after its latest announcement on Tuesday. Don’t get me wrong, GNUS stock is still trading considerably higher than where it was at the end of April. But the huge pullback from $11.73 hasn’t left the greatest taste in traders’ mouths in June. Needless to say, the company came out with notable news on June 23.
The company announced that it has come to an agreement with all of its existing senior secured convertible noteholders. They will see the noteholders pre-pay their Notes for an aggregate of $4 million, three months early and then have the noteholders convert all of their $13.75 million of debt to equity. The Company has agreed to register for resale the shares issued upon conversion of the notes. Genius Brands explained that the result will leave the company debt-free and with $55 million of cash on the balance sheet.
Andy Heyward, Chairman & CEO of Genius Brands, said, “This is a win-win for all parties. The Company today is debt free and holding $55 million in cash…We are delighted that our existing senior secured debt holders had the confidence in the Company to pre-pay the $4,000,000 Note obligation and to then convert their entire debt into equity right away.”
Something to note is that the issuance to the Holders will be for an aggregate of 65,476,191 shares of common stock. That wasn’t specifics in the PR but you can find it in the corresponding 8K from June 23. Could that pose dilution risk? Comment below with your thoughts.