Are These On Your List Of Penny Stocks Right Now?
This is an age-old question: can you make money in penny stocks? If you’re here right now, you probably think so or why else would you spend time reading about them? These “little companies” are well-known for their “potential” and with that comes plenty of speculation. It’s what drives momentum in most stocks under $5. There are also usually a few catalysts at work helping boost momentum too.
If you are looking to make money with penny stocks, there are a few things you can do to have better chances of profiting. First, and foremost, research is your friend. Doing a little extra work “now” can help later. It may help you take advantage of a great entry opportunity. It also might help you avoid jumping into a losing trade. The fear of missing out plays a big role for many traders.
Ask novice and even experienced investors and most will tell you that psychology is a big part of trading. Understanding trends is especially crucial when it comes to “FOMO”. The thought is “if I spend time researching, I might miss out on the big move”. But the fact of the matter is that if the catalyst behind the move is big enough and the trend is truly strong, then there should be opportunities to take advantage of the move when you’re done with your research.
Trading Penny Stocks
The next thing to focus on is how to trade penny stocks. Again, new traders tend to “dive right in” and buy their entire position at 1 price. The thought there is a simple “buy low” to “sell high”. But there are ways to trade penny stocks that allow you to avoid big losses while also taking advantage of longer-term breakouts. Let’s take Eastman Kodak Company, for example.
While shares have crumbled since last week, there were ways to trade that penny stock (at the time) to potentially take advantage of most if not the full move from penny stock to $60. The “buy all at one level” style typically involves more psychological factors. There are plenty of knee-jerk reactions while holding onto a single position and if the trade turns the wrong direction, there’s a lot more risk you have to consider.
Some traders deploy a tiered approach to trading. I don’t want to get too far away from the list of penny stocks. But let’s touch a bit on this topic. Tiered trading allows for scaling into positions and out of positions in pieces. It lets traders “test the waters” at first and then increase and/or decrease size as the trade develops. But no matter your style, it starts with research. Keeping this in mind, are any of these on your list of penny stocks this week?
Penny Stocks To Watch: Bridgeline Digital Inc.
Bridgeline Digital Inc. (BLIN Stock Report) is one of the penny stocks we’ve touched on here and there. The last time we took a closer look at it was in late July. It’s a lower float penny stock that began seeing some unusual activity in the stock market at the time. In May, BLIN stock saw a jump to highs of nearly $3 after posting its quarterly results.
Then in July we saw it jump to a high of $3.08 after announcing multiple agreements with a national professional association of healthcare professionals. This was for continuing education, certifications, and expanding functionality to handle virtual events as a result of the COVID-19 Pandemic. No terms of the deal were disclosed and that was really one of the hesitations among traders with BLIN stock I think.
Needless to say, it hasn’t left the watch list and this week we’re clearly seeing that. The BLIN stock price jumped to highs of $3.29. With a rise in tech stocks this year, BLIN seems to be in the cross-hairs of coronavirus and general tech speculation pushing momentum. Will BLIN continue benefiting from this type of speculation?
Also, consider that online education stocks have received some extra focus in light of COVID-19. In any case, BLIN made new 2020 highs on August 3rd and it will be interesting to see if this trend continues. Leave a comment below if this is on your list of penny stocks right now.
Penny Stocks To Watch: Avinger Inc.
Avinger Inc. (AVGR Stock Report) hasn’t been the most impressive penny stock to watch this year. Over the last few months, there’ve been some big days but for the most part, AVGR stock has been range-bound. The penny stock hasn’t really broken away from its 50-Day Moving Average. However, there could be a new trend forming over the last few days as the AVGR stock price started pulling away from this technical level to the upside.
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There hasn’t been much in the form of headlines besides the company closing a $5.4 million public offering. That is, until last week when Avinger announced its second quarter results. The company beat estimates for EPS as well as sales for the quarter. Avinger reported ($0.18) EPS compared to ($0.20). Sales came in at $1.5 million compared to $1.34 million.
Avinger is a commercial-stage medical device company that designs and develops an image-guided, catheter-based system for the diagnosis and treatment of patients with Peripheral Artery Disease. Jeff Soinski, CEO explained in earnings release, “We continued to advance a number of important strategic programs to drive future growth. In May, we submitted a 510(k) application for U.S. pre-marketing clearance of our Ocelaris image-guided CTO crossing catheter. We also made significant progress in the development of our new L300 imaging console, which will provide our proprietary imaging capabilities in a much smaller form factor and at a lower cost. On the clinical front, completion of our INSIGHT IDE study remains a priority as it supports an anticipated future 510(k) filing for an expanded indication of plaque removal from in-stent restenosis (ISR) with the Pantheris catheter.”
Penny Stocks To Watch: SINTX Technologies
SINTX Technologies (SINT Stock Report) is another one of the penny stocks that’s been on the list for months. We started following along in late March leading up to a corporate conference call in April. Fast-forward to this week and SINT stock is back in motion. The latest catalyst appears to stem from an analyst note on the company. Maxim Group analyst Tate Sullivan upgraded SINTX from Hold to Buy and announced a $4.5 price target.
Keep in mind that the current focus of the company is its antiviral treatment using silicon nitride. The company is looking for applications to reduce the spread of COVID-19. Furthermore, on July 23rd, the company tweeted something that sparked more positive sentiment in the market:
The company completed its AS9100D Stage II audit. On top of that, the tweet goes on to say the company expects to be awarded certification in October. Further to this, The company tweeted that SINTX and its R&D collaborators published a second paper on properties of Silicon Nitride – PEEK comppositive. The company further said, “This paper confirms previously published findings – a composite of SINTX’s Si3N4 and medical-grade PEEK combine the osteoconductivity of SINTX’s ceramic with the favorable mechanical properties of the polymer.”