Would You Consider These Top Penny Stocks To Buy Now Or Are They On Your “Sell” List?
No matter what you say about penny stocks, the fact is people are making money with them this year. These cheap shares have been among some of the top assets to trade during the first 6 months of the year. While penny stocks are known for their short-term bursts of momentum, 2020 has been different. We’re not just seeing 1 & 2-day rallies. Some of these stocks under $5 are actually going on to move for days; some even months. In fact, some of the top penny stocks for 2020 have rallied as much as $89 a share.
Don’t get overly excited right now. Please understand that this isn’t the case for all penny stocks, of course. But it does warrant reasons to look for lower-priced stocks to buy. A good understanding of market trends will help you zero in on the best names. Where penny stocks have tendencies to move without sector catalysts, it doesn’t hurt to have a little tailwind in play. What do I mean by this? Well, coronavirus, for example, was a tailwind that helped compound momentum for many biotech penny stocks this year. Without it, there may not have been the massive breakouts we saw early on.
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Similarly, with energy penny stocks, the recent news of Berkshire Hathaway’s $10 billion Dominion purchase hasn’t hurt sector stocks one bit. In fact, we have seen many surges to new yearly and all-time highs. With this in mind, will any of these names make your list of top penny stocks for July?
Top Penny Stocks To Watch: Bellus Health
You know what risks are involved with biotech stocks? One of the biggest is that a company misses an endpoint in a trial. Think of it as a “make or break” moment for a company and when there’s a miss, it can mean a big break…down. In the case of Bellus Health (BLU Stock Report), the stock went on one of the most epic rallies from 2018 to 2020. It moved up from $1.48 to highs of $12.03. Now, fortunately or unfortunately, that wasn’t one of the top penny stocks on our list simply due to an overall lack of trading volume at the time. But over the course of 2018-2020, even light trading in the stock saw it steadily rally 7X.
So why am I mentioning a $12 stock? Well, if you see what the company just announced, you’ll figure it out. On July 6, Bellus reported that it did not meet its primary endpoint in its Phase 2 RELIEF trial of BLU-5937. The drug was meant to treat chronic cough. In the trial, the drug was well tolerated, with no serious adverse events reported. However, it didn’t meet its primary endpoint of reducing placebo-adjusted cough frequency. When companies don’t meet endpoints, it’s also important to monitor how management responds. Is it a total loss and the company abandons the treatment altogether? Or is there hope?
Roberto Bellini, President and Chief Executive Officer of BELLUS Health said, “We believe the Phase 2 data support moving BLU-5937 forward into an adaptive Phase 2b trial enriched for higher cough count patients. We expect to begin this trial in the fourth quarter of 2020.” Will BLU stock be worth watching in July?
Top Penny Stocks To Watch: Gevo Inc.
Gevo Inc. (GEVO Stock Report) is one of the penny stocks we discussed this weekend. First off, we discussed that Gevo is focused on renewable chemicals and biofuels. Two things getting attention in the stock market recently are energy stocks and renewable energy in general. Not that a surge in EV stock would be a direct result but the sentiment could be felt for renewable energy stocks, overall.
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As of the last prospectus for that $18 million raise, the company listed several contracts with notable clients. These included Delta Air Lines, Scandinavian Airlines System, and HCS Group GmbH to name a few. Gevo also holds 118 patents and patent applications directed to its technologies and specific methods & products.
What’s more is that with less than 20 million shares outstanding, GEVO could be one of the low float penny stocks to watch. Shares have surged on Monday. After closing at roughly $0.49 last week, GEVO stock opened slightly higher at $0.5355 and has since ran as high as $0.64. This also came with some of its highest trading volume in recent history. Given the added interest in energy penny stocks, is this enough to justify putting GEVO on a list of penny stocks to watch? Or is this just a brief yet fleeting move in the general downtrend the stock has experienced in 2020?
Top Penny Stocks To Watch: Vislink Technologies Inc.
If you’ve been a long-time reader, you’ve definitely come across Vislink Technologies Inc. (VISL Stock Report) at one point this year. At the time, Vislink had secured several contracts to supply communications and surveillance equipment. The company received a $400,000 contract to supply an airborne surveillance video downlink solution to a government agency located in the MENA (Middle East and North Africa) region. Vislink also announced receipt of a $180,000 order for satellite communications equipment for deployment in Asia.
Vislink has continued building on its partnerships. The company and Movicom collaborated to expand the portfolio of small wireless wearable cameras for use in live sports production. The two previously worked together to provide “Refcams” last year for the Champions Hockey League. Over the weekend the company tweeted about a new software release for its HCAM camera transmitter. But aside from that, there haven’t been any new updates.
While that is the case, Vislink just held its annual shareholder meeting. Among votes for directors and ratifying the appointment of its public accountant, there was another key development worth noting. The company’s stockholders approved an amendment to the Certificate of Incorporation to effect the Reverse Split. The range that Vislink set forth was from one-for-five to one-for-fifty. If VISL is on your list of penny stocks right now, what do you think about this latest development?
Top Penny Stocks To Watch: Superconductor Technologies Inc.
Another one of the tech penny stocks on the radar recently has been Superconductor Technologies Inc. (SCON Stock Report). Since hitting 52 week lows of $0.122 in March, SCON stock has been on the move. There’ve definitely been big, good days and there’ve been some big, bad days. Overall, however, the directional trend has been bullish. On July 6, the penny stock reached highs of $0.58 as a number of communications stocks took off this month.
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Superconductor Technologiesproduces superconductor materials and related technologies. The company operates through the research, development, manufacture, and marketing of high-performance products used in cellular base stations segment. Its products include Conductus, Sapphire Cryocooler, Amplink, and Superplex.
While there haven’t been many new updates from the company, that hasn’t paused institutions from taking notice. At the end of June APEX Trading Group reported a 5% stake in the company. Furthermore, an 8-K was filed back in May discussing a merger deal amendment between Superconductor Technologies, AIU Special Merger Company and Allied Integral United Inc. The amendment to the Merger Agreement ensured that a failure to be listed on Nasdaq, by itself, would not be a basis for either party to not go through with the Merger.
The amended replaced the date July 6, 2020 with the date of September 21, 2020 for the merger’s close date. Whether or not that got lost in translation somewhere is in the air. However, the fact remains SCON stock has climbed on July 6. As the story develops, we’ll monitor progress. Just understand the full scope if it’s on your list of penny stocks right now.
Updated
Here’s an update on SCON stock. As of 4:05 PM EST Superconductor Technologies came out with a new update. The company and a wholly-owned subsidiary of Allied Integral United, Inc. entered into a Securities Purchase Agreement on June 30, 2020, which was consummated on July 6, 2020. Superconductor issued four million shares of its Common Stock (without any warrants). In exchange, it received a preferred equity interest in real estate that it values at $1.6 million. That implied a purchase price of $0.40 per share. The deal effectively gives SCON 50% ownership in a company that owns 100% of an LLC that holds ownership of a commercial office building serving as the corporate headquarters of Clearday. It seems like more dots to connect than needed but once you read through the specifics, it’s not that hard to break down. Shares continued trading higher after hours on July 6th. Will that continue into the rest of the week?
