Are These On Your List Of Penny Stocks To Buy Or Avoid Right Now?
When it comes to penny stocks to buy, you’ve got a choice to make. Do you jump in head first or do you take time to research? Situationally, I know it can be hard but a good rule of thumb is that if a penny stock breaking out has a strong trend, that trend will be there at least 30 minutes to an hour later.
That assumes it takes you that much time to do some timely research, which I don’t think is out of the ordinary. Even if you do a quick search through headlines, filings, and a sift through social media, it should give you a good idea of what’s happening in the stock market on a particular day for particular penny stocks.
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Of course, this also assumes that you’re looking to trade instead of invest in penny stocks. In the case of the latter, some additional research and valuation models might suit you better. For the most part, however, people normally day trade or swing trade penny stocks. So certain factors might not matter as much.
Quick & Dirty Penny Stock DD
What are some things that traders look for? Well, if we’re talking short-term, most are looking for catalysts and irregularities. Catalysts can include industry news, company update, corporate filings, or opinion articles. Other potential catalysts for penny stocks could include things like buzz: what’s the retail market saying right now? Irregularities, on the other hand, typically deal with technical analysis.
Unusual trading volume, irregular changes in things like RSI, MACD, or Stochastics, etc. The “randomness” can indicate that something outside the norm is happening either with the company, its industry, or both. Think of irregularities like a “heads up” to pay attention to certain stocks and sectors. Furthermore, honestly speaking, you’ll likely see irregularities before you see catalysts in many cases. So, if you have 30 minutes to an hour to check these basic items out, it might give you a bit more to chew on versus simply blinding buying penny stocks without understanding what’s happening.
Another thing to touch on is that once you find target penny stocks to buy, you might also want to focus on the trend. More times than not, those “hot penny stocks” we see on the daily will jump big, then pullback before the next move higher. So if you find yourself with a little FOMO, that could be a sign to hold on a minute and observe the trend, the volume, and the quick DD you just did.
Taking a breath before jumping in can be the difference between buying at the top or entering at an optimal price point. Given that, are any popular names on this list penny stocks to buy, or are you avoiding at all costs?
Penny Stocks To Buy [or avoid]: Biocept Inc.
Biocept Inc. (BIOC Stock Report) has been on fire since March. Despite the short-term volatility spikes, BIOC stock has climbed back by as much as 363% from its 2020 lows. Even after dipping back down from its high of $0.978, shares are still trading around the low to mid-$0.080 range. This week alone, BIOC stock has managed to move as much as 25% and with considerably higher share volume than earlier in the year.
What’s been driving the move? Let’s go back to when we first started covering the company. It was before reaching 52-week lows but price wasn’t that far off. Since mid-January, we’ve been following BIOC stock closely. At the time, shares traded around $0.35. Its Target Selector™ is used to detect certain DNA attributes to suggest the presence of different mutations and became an immediate target of COVID-19 stock speculation.
Fast-forward to now and Biocept has continued making strides. At the end of June, the company was awarded Canadian Patent 2812291, entitled METHODS AND REAGENTS FOR SIGNAL AMPLIFICATION. The issuance of this patent increases Biocept’s total patent awards for use in its molecular diagnostics business to 40. The most recent focus in the stock market has been on the company’s Proxy Vote.
Advisors are even pushing shareholders to vote on a certain proposal on its proxy card. That item is a vote in favor of a reverse split. Citing the need to meet Nasdaq’s minimum $1 bid price requirement, Biocept has pleaded with shareholders to vote in favor of a reverse split in a range of 1:5 to 1:30. The deadline to register is July 29, 2020, at 5:00 p.m.
Penny Stocks To Buy [or avoid]: HTG Molecular Diagnostics Inc.
HTG Molecular Diagnostics Inc. (HTGM Stock Report) has been on the radar since late-March. This was just after the company reported its full-year 2019 earnings results. That included product-related services revenue of $14.6 million. Compared to the $9.1 million for 2018, HTG saw a noticeable 60% jump. While shares slid slightly from $0.37 at the time, overall it’s been a strong run for HTGM this and last quarter.
Last month the company announced the pre-launch introduction of its new HTG EdgeSeq Pan B-Cell Lymphoma Panel. HTG said it’s expected to be commercially available for purchase in kit form or as a service in HTG’s VERI/O laboratory starting in July 2020. Byron Lawson, Senior Vice President, and Chief Commercial Officer. “We are excited to expand the HTG EdgeSeq assay portfolio with this new RUO panel, which will include the cell of origin signature available in HTG EdgeSeq Reveal, HTG’s web-based biostatistical analysis software tool. Together we expect these tools to enable both HTG and researchers globally to develop molecular subtyping algorithms to potentially classify various aggressive lymphomas.”
Similar to Biocept, HTG also has a proxy vote coming up. While it aims to effect a reverse stock split of our common stock at a ratio between 1-for-7 and 1-for-15, it also wants to reduce its authorized share count. In the spirit of reverse splits, companies usually want a more attractive share price to attract institutional investment. In order to fulfill the need for new shares to be issued, you need a considerable level of shares authorized in order to issue new outstanding shares. But in this case, HTG wants to decrease the number of shares Authorized. Could this be a good or bad sign for investors? The annual meeting is set for August 19, 2020.
Penny Stocks To Buy [or avoid]: Bridgeline Digital Inc.
Bridgeline Digital Inc. (BLIN Stock Report) is a recent addition to the list of penny stocks to watch right now. It’s a lower float penny stock that started to see some unusual activity in the stock market this month. In May, BLIN stock saw a jump to highs of nearly $3 after posting its quarterly results. However, that move was fleeting at shares slid back to its 200 Day Moving Average almost immediately after.
Even with that as the case, if you take that day out of the equation, BLIN stock has been in a relatively consistent but quiet uptrend since mid-March. With less than 6 million shares outstanding it’s one of the smallest share structures amid this list of penny stocks. Obviously the float can’t be larger than the outstanding share count. So I like to go off of O/S instead of float figures because it varies depending on the source. The O/S is usually more consistent. Needless to say, BLIN stock is back on the move this week after another update.
Late in the afternoon on Wednesday, the company hit the market with news that piqued some interest. Earlier this afternoon, we published an article that included EdTech penny stocks and eLearning companies. It’s been a hot topic among traders and BLIN’s latest news touches directly on that. The company announced it entered into multiple agreements with a national professional association of healthcare professionals. This was for continuing education and certifications while expanding functionality to handle virtual events as a result of the COVID-19 Pandemic.
“Our Unbound platform can power any digital experience – addressing unique business requirements while providing ease of content publishing, compliance, and governance. Our software can handle complex workflows and transactions with ease while supporting third-party integrations for a more seamless digital experience” said Carl Prizzi, EVP of Product. Will this news continue acting as a catalyst this month?