Are These On Your List Of Penny Stocks To Watch?
What are penny stocks? Seriously, if you’re reading this article, what’s your definition of penny stocks? Is it based on something you personally stick to or is it based on the standard definition? If you’re like me, I like to use the official one from the Securities And Exchange Commission. It says that penny stocks are shares of public companies trading for less than $5. While some people may have a different opinion, at the end of the day, it opens the field for finding cheap stocks to buy.
So with that being said, let’s get to work. What kinds of penny stocks are the best ones to buy? Obviously, stocks that turn profitable trades are at the top of the list. But it also has a lot to do with your personal trading strategy. Honestly, when you decide the type of trader you are, you’ll start to more easily find the best penny stocks to buy for you. Are you a day trader? This is someone trading penny stocks, buying and selling in the same day. Are you a swing trader?
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This is someone who is looking for penny stocks to buy “today” with the intention of selling them at a later date. This could be a day later or a few weeks later. On the other hand, you may also be a scalper. This is someone trading penny stocks quickly. I’m talking buying shares at one price and then selling them shortly after to capture quick moves in prices. In all cases, you can design specific strategies in order to find the best penny stocks to buy for you, personally. With that in mind, are any of these on your list this week?
Penny Stocks To Buy For Under $3.50: Polar Power inc.
Shares of Polar Power Inc. (POLA Stock Report) caught fire on Tuesday. This came after post-market momentum on Monday took the stock from a close of $1.37 to aftermarket highs of $1.85. The main driver behind the penny stocks move was its latest filing. While there was no announcement made by the company, Polar Power reported quarterly results on Monday evening.
During the first quarter of 2020, the company increased revenues by 226% as compared to the fourth quarter of 2019. It also reduced its workforce to levels that match corresponding labor hour requirements. During the same period Polar Power also reduced inventory.
“In addition, during 2020, we expect to be able to use our current inventory assets, which were in excess of $15.0 million at March 31, 2020, to satisfy current and future purchase orders. Conversion of these inventory assets is expected to yield additional liquidity, further strengthening our balance sheet. With an average of 44% in material costs, our current inventory can support more than $35 million in revenues.”Polar Power 10Q June 29, 2020
POLA stock has jumped huge on June 30th. In this case it’s important to understand the market psychology here. First-off, the penny stock doesn’t trade much as it is. On a “good day” it maybe trades 100,000 shares. Tuesday it traded more than 72 million shares. With less than 15 million shares outstanding, this could see volatile swings. As we’ve seen with different breakout penny stocks and low floats, eager traders feeling the “FOMO” can quickly turn into bag holders. So if POLA stock is on your list, keep this in mind.
Penny Stocks To Buy For Under $3.50: Shiloh Industries Inc.
As we have clearly seen, the electric vehicle industry is red hot right now. It’s not just about Tesla anymore. We’re seeing plenty of start-up EVs captivate traders on a weekly pace. So it makes sense that auto makers, battery makers, electric charging companies and others are gaining this month. The proposed public merger with Tortoise Acquisition and Hyliion is adding more fuel to the fire. On Tuesday, Shiloh Industries Inc. (SHLO Stock Report) was the latest of the stocks under $5 to get its time in the spotlight.
In the company’s corporate overview, it discusses the use of its components in electric vehicles. Specifically, “Shiloh lightweight products enable range expansion by
reducing power consumption [and are] propulsion agnostic (EV, HEV and ICE).” But aside from this piece of info, Shiloh, on a higher-level view, has focused on renewable energy use at its actual facilities.
“Our product strategy benefits our customers and the environment by reducing vehicle weight and utilizing more sustainable manufacturing and supply chain processes,” said Ramzi Hermiz, president and CEO, in press release earlier this year. The company has set the goal of carbon neutrality by 2035. SHLO stock traded its highest single-day share volume of the year on June 30 without any news or filings posted.
Penny Stocks To Buy For Under $3.50: Westwater Resources
When discussing low float EV-related penny stocks, you can’t ignore a company like Westwater Resources (WWR Stock Report) in my opinion. The company is an explorer and developer of US-based mineral resources essential to clean energy production. It’s been very quiet for the better part of the last few weeks.
But if you look back to the start of June, you’ll see a big spike. This came after the company announced that independent testing of its ULTRA-PMG™ battery graphite material has shown resistivity values as a conductive additive.
What does that mean? As Christopher M. Jones, President and Chief Executive Officer, said, “This milestone achievement is a critical step in developing our battery graphite business,” and that, “Successful performance testing demonstrates that we can manufacture our ULTRA-PMG™ as a premium-grade, conductive enhancement material for all types of batteries at larger scale.”
Currently, the outstanding share count on WWR stock sits below 8 million shares. By most definitions, that suggests a low float scenario. So, like POLA, if WWR stock is on your list right now, be aware that volatility could play a big role in trading action.
Penny Stocks To Buy For Under $3.50: NovaBay Pharmaceuticals
Aside from EV’s, COVID-19 is also playing a big role in the stocks market recently. Statewide mandates for face coverings are spiking. White House health advisor Dr. Anthony Fauci said he has “no doubt” that Americans who aren’t wearing face masks are increasing the risk of spreading the coronavirus. In light of this, it doesn’t seem out of the question that face mask stocks have gotten some attention.
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NovaBay Pharmaceuticals Inc. (NBY Stock Report) for instance, has been on top of a few PPE penny stocks lists lately. Novabay sells the popular KN95 face mask on its site. What’s more is that last month, NovaBay also entered into an agreement with TLF Bio Innovation Lab, LLC. The terms of the agreement have TLF acting as manager for a market “relaunch” of a product called CelleRx. It’s described as a lifestyle hygiene product. The company was also working on a point of care test. The test uses a drop of whole blood for the detection of COVID-19 antibodies.
We’ve seen House Speaker Pelosi get behind mandating the use of masks and how it’s “overdue”. Even Vice President Pence isn’t fighting against states imposing certain ordinances to wear masks. He recently took that “back seat” stance in the case of Texas and its local ordinances. With this kind of push behind face mask-wearing, will NBY stock continue to hold a spot on a list of PPE penny stocks to watch?