Epicenter Penny Stocks Are Benefiting From Current Market Conditions
Earlier this year we introduced readers to something known as epicenter penny stocks. Not familiar with this term? It was first coined by investor and FundStrat Head of Research, Tom Lee. He’s renowned for his bet against other analysts in March saying that instead of continuing lower, stocks were. in for a 25% rally “by April”. Obviously, in hindsight, his projections were on the money. His latest focus is on this new class he’s calling Epicenter Stocks.
There was a bit of confusion in June when we first published about this topic. Many had simply assumed that these epicenter stocks were only blue-chips. That might be true for Tom Lee’s epicenter stocks. However, we drilled down to see if there were other penny stocks that could fall into this category. What’s more, those stocks ended up having some of their best weeks and months since.
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“The market has moved with such vigor, but the economic data…has just been muddling and I think maybe today will be a call to action to get some money off the sidelines,” Lee said in an interview. “I think that’s where the dry powder is going to go. It’s going to seek cyclically sensitive stocks.”
But What Are Epicenter Stocks?
According to Tom Lee, epicenter stocks are things like consumer discretionary stocks, industrials, technology stocks, health care stocks, and energy stocks, which were hit earlier this year. In an interview with Yahoo Finance, Lee explained, “If we were to freeze all progress here, then epicenter industries are in huge trouble because no one is going to get on a plane, confidently go to a hotel, casino, theater. But if you think 12 months from now that technology and health care and re-engineering are going to make things safer, then the stocks that benefit from this really are the epicenter stocks.”
Here’s where you’ve got to keep long and short-term time frames in mind. The typical trader isn’t looking for ways of investing in penny stocks. They’re looking for ways to make money with penny stocks quickly. While “quickly” could be a few days or weeks, most aren’t considering years as part of their timeline initially. But that doesn’t mean that momentum for larger-cap epicenter stocks hasn’t trickled down to small-cap stocks. With this in mind, let’s take a look at some epicenter stocks to watch heading into August.
Epicenter Penny Stocks To Watch: Globalstar Inc.
Globalstar Inc. (GSAT Stock Report) has been one of the tech penny stocks to watch this year. After its sell-off in the first quarter, GSAT stock has steadily bounced back. It’s not currently back to even on the year (yet), however, there have been days where shares have jumped to highs of $0.60. This is the same level where the penny stock opened the year at and seems to be a level of resistance based on the unsuccessful attempts to break above that level in June and July.
Being involved with telecommunications technology it generates revenue from the provision of mobile satellite services, it may have been caught in the 5G cross-fire. A push for less foreign communications providers has also triggered some interest in companies like Globalstar.
The company previously announced the deployment of a new ground station with second-generation technology in Córdoba, Argentina. Globalstar said new infrastructure enables voice calls, two-way data communication, and an internet connection, extending Globalstar’s service throughout South America.
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The Argentina ground station will work in conjunction with Globalstar’s low earth orbit satellite network, directing satellite signals to Globalstar’s IoT, Duplex and SPOT products. With the race for 5G stocks continuing to heat up, GSAT has gotten placed on that list by several investors. Will August see more progress for this epicenter penny stock?
Epicenter Penny Stocks To Watch: Foresight Autonomous Holdings
Another technology penny stock, Foresight Autonomous Holdings (FRSX Stock Report) has steadily climbed over the last few months. This year we began following its progress starting in June. One of the things that Foresight handles is designing, developing, and commercializing sensors systems.
Back in June, the company announced that it has started developing a mass screening solution for the detection of COVID-19 symptoms. It’s based on visible-light and thermal cameras. The company also submitted a patent application to the U.S. Patent and Trademark Office for a system and method for the detection of people infected with the COVID-19 virus.
July has been a big month of updates for FRSX stock. First, it began a pilot project for its prototype COVID-19 symptom detection mass screening solution. This week, Foresight came out with a few more updates. This included an order for two prototypes of its QuadSight® four-camera vision system. According to the company, the automotive solutions business unit of a multi-billion dollar Chinese technology company was the customer.
On Friday, Foresight announced that its wholly-owned subsidiary, Eye-Net Mobile Ltd., received a notice of allowance from the United States Patent and Trademark Office. This was for patent application No. 16/496,826, for “system and method for preventing car accidents and collisions between vehicles and pedestrians.” According to the company, this patent serves as the underlying technology for Eye-Net Mobile’s cellular-based V2X accident prevention solution.
Epicenter Penny Stocks To Watch: Houghton Mifflin LLC
Houghton Mifflin LLC (HMHC Stock Report) has been in focus this month after recent decisions made by certain cities to forego in-person classes at the start of the fall semester. There’s been a lot more attention placed on eLearning, EdTech, and virtual learning technology stocks recently. Obviously, this is to be expected considering the constant headlines discussing the topic.
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Houghton Mifflin Harcourt introduced Teacher’s Corner this month. It focuses on remote education and includes features such as curated content, virtual events, and coaching. Earlier this week the company came out with more progress news. Essentially it was about research data compiled by the company suggesting virtual learning wasn’t going away anytime soon.
Furthermore, on Wednesday, the company announced the launch of HMH Anywhere™. It’s a digital platform and content solution that will adapt to wherever districts and schools are or will need to be this fall—fully online, fully in-person, or a hybrid model. According to the company, HMH Anywhere provides simple subscription access to one connected teaching and learning experience on HMH’s Ed platform.
It can be used for assigning and assessing work, measuring student growth, proficiency, and mastery. Virtual learning won’t likely go away even after classes are back in person. Will HMHC remain one of the epicenter penny stocks to watch next month and beyond?
Epicenter Penny Stocks To Watch: iBio Inc.
iBio Inc. (IBIO Stock Report) is returning to the list of epicenter penny stocks this month. The penny stock has managed to climb out of penny stock territory for about a week. However, heading into August, IBIO stock price is trading just below $5. When it was on the list of epicenter stocks to watch, Alliance Global Partners had just started the stock with a “Buy” rating. It also set a price target of $2.75 for the penny stock.
The company is working toward a COVID-19 vaccine. Something else that brought much more attention to the epicenter penny stock was joining the Russell 2000 and Russell 3000 Indexes. IBIO stock is also beginning to even attract attention from the likes of Jim Cramer. On CNBC’s “Mad Money Lightning Round,” he said that iBio has an interesting chart and that “He needs to do more work on the stock.”
Out of all of the penny stocks on this list, IBIO has been consistently covered the longest. It has been on the list since last December. While it has worked toward a coronavirus vaccine, it has also achieved strong industry relationships. For example, IBM Watson Health selected iBio to receive 18 months of use of the IBM Clinical Development solution, free-of-charge. iBio currently anticipates that data from the preclinical immunization studies of its two COVID-19 vaccine candidates, IBIO-200 and IBIO-201 will be available in Q3-2020. These are being conducted at Texas A&M University System laboratories.
