Will These Penny Stocks Stay Under $2.50 In July?
No matter how you slice it, penny stocks come in all forms. Since the general definition is simply “stocks under $5,” you can find both “expensive” and “cheap stocks”. But the price shouldn’t dictate the value in my opinion. If you’ve got one of these low priced stocks under $3 for example, is it valued less than one above $3? I think that depends a lot more on the fundamentals than the price per share.
Regardless of the theory, the point of trading penny stocks for most is to make money quickly. Within the matter of a few hours or even a few days, stocks under $5 can see compounded percentage gains. Simple math already proves this to be the case. A stock trading around $1 only needs a 20 cent move to see a 20% gain. Meanwhile, stocks like Apple, for example, need to move a whopping $60 in order to do the same.
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Now, is there more risk with penny stocks than blue-chips? Most people would agree the answer is yes. If you can deal with a higher risk in exchange for a potentially higher reward, penny stocks might be something to take a look at. But going back to my original thought, just because stocks are trading for pennies, doesn’t necessarily mean they’re worth buying. With this in mind, here’s a quick list of penny stocks that can be bought for less than that Grande Frap you’re probably going to get tomorrow morning. Will they be the best penny stocks to buy? Let’s see.
Penny Stocks To Buy For Under $2.50: Ferroglobe PLC
Ferroglobe PLC (GSM Stock Report) has been pretty volatile for most of the year. After reaching highs of $1.20 in January, GSM stock dropped like a rock in late-February and into March. It saw a nice recovery going into June and then dropped again just before the start of Q3. That mainly stemmed from less than stellar earnings results.
In any case, we’re focusing on Ferroglobe in July during some of its most active trading all year. You may be looking at this company wondering what it does and if that might justify the recent surge of activity. I say this because there hasn’t been much news released in July. So let’s go over that briefly. The company supplies silicon metal, silicon- and manganese-based specialty alloys and ferroalloys. Its customers are in markets like solar, automotive, consumer products, construction and energy.
Don’t get me wrong, news can be a catalyst but so can sector updates. Unless you’ve been living under a rock, you’re probably well-aware of the electric vehicle and renewable energy boom the market saw recently. Everything from fuel cells to rechargeable vehicles are captivating attention. When you think about supply-chains, it doesn’t start with the finished product. With Ferroglobe producing raw materials, could it be feeling sympathy momentum right now? The penny stock closed around $0.50 on July 14th.
Penny Stocks To Buy For Under $2.50: Dolphin Entertainment Inc.
Dolphin Entertainment Inc. (DLPN Stock Report) is one of the penny stocks that’s been on our watch lists for some time now. In fact, since the beginning of June when DLPN stock traded around $0.90, it was gaining ground following its own updates. Through its subsidiaries 42West, The Door, and Shore Fire Media, Dolphin provides marketing and publicity services to many entertainment brands.
In mid-June, its Viewpoint Creative subsidiary completed a new image campaign for CBS News. Dave McCoy, Sr. Vice President of CBS News Marketing, said, “The final product was a spot that felt at once compelling and compassionate, while not just showing the people of CBS News were in this together with their viewers, it proved it.”
Then adding more fuel to the fire, Dolphin posted a Q1 EPS and Sales beat versus analyst estimates. Quarterly earnings came in at $0.01 per share which beat the analyst consensus estimate of $(0.05) by 120%. The company reported quarterly sales of $6.63 million which beat the analyst consensus estimate of $6.50 million by 2.06%. This week the company announced that it regained compliance with NASDAQ as well.
While this progress could be a high note, there is something else to think about if DLPN is on your list of penny stocks right now. In its earnings, the company did point out that as of March 31, 2020, Dolphin had a working capital deficit of $10,677,566. It said “therefore [Dolphin] does not have adequate capital to fund its obligations as they come due or to maintain or grow its operations.”
In any case, shares remain higher than where they were back in early June. Will DLPN stock be on your radar in July?
Penny Stocks To Buy For Under $2.50: iBio Inc.
iBio Inc. (IBIO Stock Report) is another one of the penny stocks that’s been on watch for quite some time. In fact, it’s been one of the top names to follow on our site ever since last December. But as we know, things picked up when it started getting mentioned alongside other coronavirus penny stocks.
Most recently the company is focusing on the development of a COVID-19 vaccine. Something else that has brought much more attention to the epicenter penny stock is getting added to the Russell 200 and Russell 3000 Indexes. Despite its CFO resigning, COVID-19 vaccine news has helped give companies, including IBIO a boost in the market this month.
Considering the Moderna (MRNA Stock Report) reported recent success in early trials, it could be sympathy momentum at work. It’s also worth mentioning that IBM Watson Health recently began offering its IBM Clinical Development (ICD) solution to eligible trial sponsor organizations as part of its efforts to help support the medical community to address the COVID-19 pandemic. iBio was a company selected to receive 18 months of use of the ICD solution, free-of-charge. Following upbeat sector news today, could IBIO stock be setting up for another move? Since the start of the year, shares are up 792% to date and have traded as high as $3.40 this year.