3 Penny Stocks To Trade Or Fade Right Now
Love them or hate them, penny stocks are red hot right now. The cheap shares of small companies are attracting major interest from retail traders in 2020. Whether you’ve just started trading or you’re a seasoned vet, you’ve probably heard of the “war stories” about penny stocks. Some traders have lost money and won’t ever trade these again while others continue to make money with penny stocks, consistently.
What’s the difference? Well, we can only consider luck as a factor a few times in my opinion. But if traders can continue to consistently place winning trades on their own, there’s likely a system or plan in place. That’s the biggest asset for successful traders. Now, there is a caveat here and that is a recent trend in “following the leader”.
How To Trade Penny Stocks [The Right Way]
There is a whole slew of new “gurus” out there beating the drum and saying “hey look over here,” but therein lies the problem. If that person isn’t trading one day or completely falls off the planet, it’s invaluable to know how to trade penny stocks on your own.
This week we’re seeing a ton of big events; historic even. On Monday tech stocks took the NASDAQ to another all-time high. Meanwhile, we have more record coronavirus cases in several parts of the country. How do you use this information? That’s all part of building your strategy. Furthermore, what about penny stocks with news updates?
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When companies come out with an update how do you dissect that news to understand if it will trigger a longer- or shorter-term move? More questions to take into consideration. Needless to say, we’re still in the early days of the second quarter and a few months away from the U.S. elections. Will things get even more wild? There’s a good chance more volatility can come into play and if/when it does, you’ll want to be ready.
Penny Stocks To Trade [or fade]: Trinity Biotech
Trinity Biotech (TRIB Stock Report) was one of the biotech penny stocks we’ve watched since late March. TRIB stock managed to reach highs of $1.73 before consolidating back to around $1. From there, it has been in a strong uptrend and even reached a new 2020 high of $2.83 on July 6.
Trinity was initially working on development of its ELISA Test for detecting antibodies to viruses that cause COVID-19 in human blood. Progress a bit more to recently and Trinity is in the validation phase with its Covid-19 IgG ELISA antibody test. Trinity said it anticipates submitting the validation documentation to the FDA and gaining Emergency Use Authorization by the end of last month month. However, this is yet to be seen so far.
What Happened With TRIB Stock?
Something else to note is that the company filed a registration statement on July 6. It looks like Trinity wants to raise up to $200,000,000. As far as use-of-proceeds are concerned the company outlined a broad array. “Except as otherwise provided in the applicable prospectus supplement, we intend to use the net proceeds from the sale of the securities covered by this prospectus for potential future acquisitions and for general corporate purposes, which may include the repayment of debt, continued product development and commercialization.”
While TRIB stock dropped to lows of $1.99 after hours, it also bounced back above $2.60. Considering all of this, do you think this is one of the penny stocks to trade or fade this week?
Penny Stocks To Trade [or fade]: Chembio Diagnostics
Chembio Diagnostics (CEMI Stock Report) is another one of the coronavirus penny stocks to watch recently. If you’ve been following along so far in July, CEMI stock was one we followed up on last week. This was a big winner during the first quarter. Coronavirus had just begun to hit the stock market scanners and CEMI stock traded around $3.20. COVID-momentum helped trigger a run to highs of $15.89. Of course, as you can see, things settled back down and profit-taking saw CEMI drop back to reality. But it also showed that it wasn’t done with its overall uptrend either.
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We made a point last week to point out a potential catlayst date. While it didn’t seem like a big update, we highlighted Chembio’s new that it “will issue, after the U.S. financial markets close on Monday, July 6, 2020.” What was the reason? The press release would discuss its current “plans for COVID-19 product development and regulatory approvals” among other things. So, while it was an announcement about an announcement, we clearly see what has happened on July 6.
What Happened With CEMI Stock?
After the close, Chembio announced a few things. First, it received a contract from the Biomedical Advanced Research and Development Authority. The contract aims to assist Chembio in developing a COVID-19 point-of-care antigen system using Chembio’s proprietary DPP technology and requesting a U.S. FDA Emergency Use Authorization for the system. The award totals $628,071 and distributions come in periodic funding over the next several months, according to Chembio.
Furthermore, it announced its preliminary estimates of revenue results for the quarter ended June 30, 2020. Chembio said that total revenues for the three months ended June 30, 2020, are expected to be in the range of $4.5 million to $4.7 million. These are subject to increase by up to an additional $2.5 million of revenue with respect to products that were shipped outside the United States during the quarter. In light of this, CEMI stock was moving higher after hours. Can that continue this week?
Penny Stocks To Trade [or fade]: CleanSpark Inc.
The third coronavirus penny stock on this list is CleanSpark Inc. (CLSK Stock Report). It’s been one to watch since early April. Initially, the company took its software focus and announced that its subsidiary, p2klabs, engaged AlertNest. This was to help design a mobile app to keep people informed about local updates on coronavirus. It also took a step outside of its main focus announcing a joint venture with members of its multinational supply and distribution channel partners to secure medical supplies.
But more recently the company has refocused on its main business model. It’s not just software but software for energy customers. As we know, energy penny stocks are gaining a lot of attention right now. CLSK could be benefiting from both sector momentum and interest after recent news.
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Late last month, CleanSpark announced the successful commissioning and deployment of its mPulse software on a comprehensive off-grid installation system. Good Energy Solar engaged CleanSpark to deploy its team and produce a project feasibility analysis using the company’s microgrid Value Stream Optimizer platform.
What Happened With CLSK Stock?
So that’s kind of where it was and where it’s been. Now let’s look at the present. This week CLSK stock continued its uptrend and reached a high of $3.24. The move came as the company continued to update the public with new milestones.
At the start of July, the company reported the release of enhanced features and modeling tools to its mVSO (microgrid Value Stream Optimizer) software. This is a SaaS-based product used by solar developers, battery suppliers, and engineering, procurement, and construction companies. The firms use it to model the ideal mix of distributed energy assets aimed at cost savings, energy resiliency, and sustainability.
“We anticipate that these features will increase demand for our mVSO software, which we believe will create additional pull-through sales of our patented microgrid controls software,” explained CleanSpark’s CEO Zach Bradford. In addition to this, CLSK stock, from a share structure perspective could also be among the low float penny stocks to watch. With fewer than 15 million outstanding shares, this falls into that range. After July 6th’s jump, will it be on your list of penny stocks to trade or fade right now?
