Penny Stocks To Watch Before August
The next few weeks are big for earnings. While some are literally betting on options strategies, other traders are focusing on a different type of low priced investment “option”. I’m talking about penny stocks. There’s likely to be plenty of sector news headlines to pick through. Additionally, we’ve also got to take into account things like coronavirus, any trade war talks, and possible shutdowns in light of COVID-19.
What I will also say is that when it comes to penny stocks, corporate headlines tend to play a role as well. I referenced general “news headlines” above. But something that we’ve seen a lot of lately is company-specific-news triggering big moves in penny stocks. These can be big moves up as well as down. Therein lie the opportunity and the risk when it comes to trading penny stocks.
How To Use Penny Stock News
We might see a surprise announcement about key trial data. We also might get a surprise fundraising headline. Both pieces of news could be good or bad depending on the details. This is why it’s important to actually read the full news release and not just glance at the headline. If a company reports “positive phase data” but in the actual body of the release, discusses adverse effects in some patients, which could be a negative in the longer-term.
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Similarly, when you see financing headlines, it might say something like “at the market offering”. This isn’t necessarily bad until you see that the “market price” was based on a certain date in the past. For penny stocks that are already up big in a few days, that “market price” could be much lower than the current market price.
So, in the spirit of headline catalysts, it’s never a bad idea to take some time and actually read through the full announcement before making a final decision. With this in mind let’s take a look at a few penny stocks that could be on watch lists this month.
Penny Stocks To Watch In July #1: Fandom Sports Media Corp.
Earlier this month we started following Fandom Sports Media Corp. (FDMSF Stock Report) (FDM). One of the clear trends we’re seeing is the impact on the economy from the stay at home orders. This hasn’t just been from a medical perspective but from a social one as well. Here’s where things stand right now: no live sports, entertainment, etc. Where are people looking now? Esports have started growing in popularity especially recently.
If you look at things like the VanEck VideoGaming ETF (ESPO) the move is clearly bullish this year. Even with the market dip in March, ESPO is up more than 40% year to date. That same trend also holds true for other esports ETFS like Roundhill’s “NERD“. It has climbed from under $17 to more than $23.55 on July 21st.
In light of this, companies like Fandom are taking full advantage of the trend. This week the company signed a LOI with Esportz Entertainment Corp. It is an online Esports news, and entertainment network. The LOI contemplates assessing synergies for potential collaboration and/or a joint venture.
The gamification of “gamification” is also where Fandom is focusing. It looks to leverage its blockchain and in-app currency to further monetize the Fandom userbase. Users will be able to earn Fancoins™ from viewing sponsored content, prerecorded ads, and in-stream ads from global brand partners.
Streaming platforms will also be able to white label Fandom’s proprietary micro-payments eco-system and iGaming revenue can be driven by a proprietary database and user-interface for in-game wagering. The company is also evaluating acquisition opportunities in both Esports and iGaming verticals.
Penny Stocks To Watch In July #2: Zomedica Pharmaceuticals
One of the more volatile penny stocks on the list is Zomedica Pharmaceuticals (ZOM Stock Report). We covered it a few times in February but started paying more attention to ZOM stock starting in late-April. At the time, shares were trading around $0.17 and Zomedica had just announced that it completed the verification of TRUFORMA™. This is its point-of-care diagnostic biosensor platform. It had also completed the first assay, Canine total T4 (“tT4”) thyroxine.
Raising money has continued to act as one of the negative catalysts for the company. Just look at the last time it announced a raise and you’ll see shares slid. But like most times, the company reports specifics on its use of funds. With the latest raise, Zomedica said it intends to use the net proceeds from the offering primarily for the continued development of its TRUFORMA™ platform. That raise, by the way, was for $30 million. In any event, the company further expanded on that statement this week.
Zomedica announced that it successfully implemented its first completely remote installations of TRUFORMA™. The company also mentioned that this was in response to the COVID-19 crisis. Remote installation enabled Zomedica to move forward with validation testing with its clinical College of Veterinary Medicine partners at Auburn, Mississippi State, and Purdue Universities.
Zomedica said it also recently completed verification of canine cortisol for use with its TRUFORMA platform and will be adding that assay to its ongoing validation studies. After the news came out on July 21, post-market, ZOM stock started to climb. Will this momentum continue?
Penny Stocks To Watch In July #3: Inpixon
Inpixon (INPX Stock Report) hit the watch list toward the middle of May. This was after two key developments from the company. First, Inpixon announced Q1 results for 2020. The company followed up with another announcement on the availability of its Workplace Readiness Dashboards™.
That sparked a rally that saw INPX stock jump from around $1.29 to highs of $2.16 by early June. But as we’ve seen, INPX hasn’t had the best last few weeks. Heading into the last half of July, however, the last few sessions appear to have been more bullish. Inpixon stock has moved up from around $1.15 last Tuesday to aftermarket highs of $1.60 on July 21st. The only new update in July was a business update on July 8th.
Some of the specifics included acquiring an exclusive global license to market, distribute, and develop statistical engineering software. Inpixon expects it to add annual revenue of $3.5 million. Furthermore, a marketing initiative, Reclaim Your Workplace, according to the company, generated “strong traction for the adoption of its technology and solutions.” While this is still yet to be seen, INPX stock seems to have started to trend this week. As states continue attempts at the reopening, is INPX simply benefitting from speculative momentum?
Penny Stocks To Watch In July #4: TherapeuticsMD
Back at the end of April, were following some of the developments of TherapeuticsMD (TXMD Stock Report). The company had announced that the United States Patent and Trademark Office issued a patent. It covered the labeled indication for ANNOVERA®. This is the company’s long-lasting, patient-controlled, procedure-free, reversible prescription contraceptive option for women. We quickly watched TXMD stock jump from around $1.20 to highs of $2.24. Though shares pulled back during the weeks to follow, they seemed to find a support level in line with the 50 Day Moving Average.
Take a look at the chart below and you’ll see that I’m talking about. This was a previous level of resistance that TXMD stock was unable to break and hold above for any sustained level of time since October of 2019. In addition to this, TXMD stock has managed to “ride this 50DMA trend”. However, something new happened recently from a technical perspective.
That “something” was TXMD tested its 200 Day Moving Average while also closed above it on July 21. In fact, since the beginning of July alone, this penny stock has jumped as much as 95.6% so far. The big question for technical traders now is can TXMD stock push through and hold above the 200DMA or will it act as resistance?
Earlier this month, TherapeuticsMD announced an arrangement with Nurx expanding access to ANNOVERA®. Nurx is an online practice for women’s health with access to 300,000 patients across the country. Aside from that, it’s the only recent company update. Clearly, though July 21st saw one of its highest volume days in the last month. Will TXMD stock be one to watch heading into the rest of the month?