4 Penny Stocks To Watch Early This Week
Are penny stocks a big part of your strategy to make money in the stock market? For many traders right now, stocks under $5 have become a bigger portion of certain investors’ portfolios. What’s the reason? Thanks to high volatility in the stocks market today, there have been countless examples of how penny stocks offer opportunity after opportunity. Now, let me also point out that these “opportunities” aren’t like “investing in Apple in the ’80s”.
What I mean is that every day, in general, there’s at least one cheap stock that goes on to produce big gains. Many times a stock sees a huge move up & by the end of the day, it’s back to where it started. In other cases, that penny stock can go on to run for weeks. But don’t forget that volatility between “now” and “later” can make for a stressful scenario.
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If you’ve followed small- and micro-cap stocks for the last few months you’ve seen something like this. In fact, a few of the penny stocks on this list experienced big jumps, and big drops, but overall, the general trend has been bullish. It all comes down to how you handle volatility and risk. The best thing I can say, especially if you’re new to penny stocks and trading: no one ever went broke taking profit. Leaving some money on the table or breaking even (cutting losses early) is better than taking a loss. With that in mind, are any of these on your list of penny stocks to watch during the first half of the week?
Penny Stocks To Watch: AYRO Inc.
Last week we discussed AYRO Inc. (AYRO Stock Report) as the EV sector continued surging. At the time, AYRO stock was trading around $2.90 and while there wasn’t any news, shares jumped to highs of $3.69 before closing at $3.27 on Thursday. This week, the penny stock is jumping once again. During premarket trading, shares hit early highs of over $5. It’s also worth noting this move, however. Don’t let FOMO be a reason to put this on your watch list without researching a bit more. That’s considering the fact that anyone holding shares from last Friday is technically up over 50%. Avoiding a sell-off is just as good as benefiting from a big rally.
Needless to say, this latest move came after AYRO’s first update since closing its $5.5 million financing in June. The light-duty EV manufacturer announced the completion of its factory expansion in Austin from 10,000 square feet to 24,000 square feet. This included new assembly lines and additional engineering and product development facilities. The company aims to accommodate new staffing in battery technology, powertrain, supply chain, service, and application services solutions.
Rod Keller Chief Executive Officer of AYRO also pointed out the market timing of AYRO. He also directed attention to its location amid the current rebirth of EV. “Our position within the electric vehicle market should be strengthened by our manufacturing capacity expansion and our presence in Austin. Tesla is on the verge of finalizing its newest and largest $1 billion “gigafactory” in Austin, while Hyliion, an Austin -based electric-powered heavy-duty truck company is expected to merge with Tortoise Acquisition Corp. later this year.”
Penny Stocks To Watch: Zomedica Pharmaceuticals
Another one of the penny stocks to watch since April has been Zomedica Pharmaceuticals (ZOM Stock Report). But just like I mentioned above, ZOM stock has been one of those volatile names that is “up” in general during that period. However, it hasn’t come without bit swings. Let’s look at this a big closer.
Zomedica stock dropped to $0.11 in early April and managed to rise to highs of $0.355 then drop to around $0.15. At the end of the week last week, the penny stock closed at $0.168, which was actually a decline from the previous session. The main factor that triggered a drop was the company’s news of raising capital. Zomedica reported that it priced a public offering for $30 million at $0.16 per share.
With the closing date of this financing expected “on or about” July 7th, it could be a reason to watch ZOM. Furthermore, Zomedica also has specific uses for this money. I’m saying this because there’ve been instances where companies raise funds for “general purposes”. That doesn’t really tell the public much. It simply says the company raise millions to keep doing what it’s doing in my opinion. In this case, Zomedica said it intends to use the net proceeds from the offering primarily for the continued development of its TRUFORMA™ platform.
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This includes making milestone payments, as they come due, under its existing license and collaboration agreements. The company also said it may use a portion of the net proceeds to repurchase some or all of its outstanding Series 1 Preferred Shares. Will the finance closing be another catalyst for ZOM or is this another short-term spike?
Penny Stocks To Watch: Safe-T Group Ltd
We talked about some low float penny stocks at the beginning of July. Safe-T Group Ltd. (SFET Stock Report) was one of them. In fact, if you’re a long-time reader, SFET has been one of the penny stocks to watch since March. At the time, SFET stock was trading around $1.55. The company just announced it was offering 3 months free of remote access service for COVID-affected organizations across the world.
SFET stock has been slowly creeping up over the past few sessions. Since March 16th, shares have steadily climbed from $0.93 to recent highs of $2.09. The exciting thing about low float penny stocks is that they can breakout quickly. A lower float means fewer shares out in the public’s hands. Therefore, supply and demand play a much bigger role. This week SFET stock is back in the spotlight after its latest update.
The company provided an estimated revenue range for the second quarter of 2020. It also gave an outlook for the six-month period ended June 30, 2020.
“On a preliminary basis, Safe-T expects to report revenue for the six-month period ended June 30, 2020 in the range of $2.15 million to $2.2 million…On a preliminary basis, Safe-T’s second-quarter 2020 revenue is expected to be in the range between $1.05 million to $1.1 million.”
That equates to an increase in the range of 162% to 168% in revenue, respectively for the 6 month period. That’s also compared to $0.821 million during the same period in 2019. As far as Q2 revenue, Safe-T essentially expects an increase in the range of 166% to 179%, respectively. That’s compared to $0.394 million in the second quarter of 2019.
Penny Stocks To Watch: LM Funding America Inc.
LM Funding America Inc. (LMFA Stock Report) is another one of the penny stocks spiking and dropping a lot lately. In June, traders saw shares jump from around $1 to highs of $4.89. The company provides funding to nonprofit community associations located in the states of Florida, Washington and Colorado.
Its products include Original Product and New Neighbor Guaranty. LM provides funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations. These typically arise from unpaid Association assessments. In any case, the company’s stock is seeing another surge during premarket trading on July 6. While there isn’t news this week, attention has built after its last update in June. The company announced early repayment of all principal and interest owed by Craven North America N.A. pursuant to Craven’s $1.5 million Promissory Note.
Similar to Safe-T, LM Funding could be another one of the low float penny stocks to watch. LMFA stock has less than 8 million shares outstanding. So if it’s on your list this week, keep that in mind. While breakouts can come swiftly, so too can breakdowns.
