Are These Top Penny Stocks To Buy Just Because They’re Low-Priced?
I don’t think penny stocks will ever get old. Tuesday’s trading session alone saw some of the wildest and most profitable trading of the week so far. There were also plenty of penny stocks that reached new highs of August.
It wasn’t by a few percentage points either. In many cases, some of these stocks under $5 surpassed previous highs by more than 20%. Considering what happened at the end of the day in the broader markets, penny stocks were actually some of the top-performing equities in the stock market today.
Are they risky? Yes, for sure, penny stocks are much riskier than blue-chips, for example. However, if you think a 1-day, 5% move in a stock like Apple is “amazing,” what would you consider a move of 50% or more from at least 10 penny stocks on Tuesday? I digress but I’m sure you get the point.
At the end of the day, it really comes down to managing risk and understanding the psychology of trading. Being able to know when to cut a losing trade early or understanding how to stay in winning trades longer is essential to making money with penny stocks. In light of that, it becomes clear that price might not matter as much as the company’s stock you’re buying.
Case in point, if a $1 penny stock has a large share structure, it might not move as quickly as a lower-float penny stock at $4 a share; and vice versa. Besides the fact that these can be purchased for under $4 right now, are they good penny stocks to buy?
Penny Stocks to Buy For Under $4: Agile Therapeutics Inc.
The most expensive on this list of penny stocks, Agile Therapeutics Inc. (AGRX Stock Report) has been actively followed on our site for nearly a year. Back in late-October, AGRX stock had actually hit some of its lowest trading levels in the history of the stock. We’re talking a negative speculation sell-off to under $0.40. But then Agile surprised investors, which triggered a dead cat bounce to highs of nearly $3 at the time. Earlier this year, before the March sell-off across the market, AGRX stock even managed to surge as high as $4.77.
So what has happened since? Well, Agile has continued making progress. Furthermore, from a technical perspective, it has remained in lock-step with its 200-day moving average acting as a lower support. Fundamentally, the majority of the focus for this company is on its female contraceptive, Twirla. The company has been raising additional money and working close with the FDA to button up final details for its drug. Aside from joining the Russell 3000 and 2000 Indexes, there hasn’t been much to speak of until this week.
August 11th is when Agile reported its latest earnings. The company came in with a smaller-then-expected EPS loss, which also beat analyst estimates. Agile also said that Twirla is still on track for commercial launch next quarter. In the second quarter 2020, the company completed production of the planned pre-validation batch of Twirla and transitioned to manufacturing validation batches.
In a few days, Agile presents at Maxim Group’s Leading Innovators in Women’s Health Virtual Conference. So this is something else to note if AGRX is on your watchlist. Furthermore, after earnings came out, shares began trading higher after hours on Tuesday.
Penny Stocks To Buy For Under $4: Cyren Ltd
Most likely the lowest volume penny stock on the list, Cyren Ltd. (CYRN Stock Report) has made a steady climb over the last 5 months. It reached 52-week lows of $0.31 on March 18th and as of late July, hit a high of $1.97.
The last 2 and a half weeks are more of an interest in my opinion. Not only did price increase but so did the average daily trading volume in CYRN stock. A quick look at the chart can confirm this as well. Despite there not being much recent info this week, last week Cyren kick-started August with a key update.
The company announced that its recently released Cyren Inbox Security product achieved positive initial market traction with enterprise customers. These customers adopted the new cloud-based service to protect their organizations from the ongoing threat of phishing attacks targeted at Microsoft 365 users. Though not identified by name, the company cited an international beverage manufacturer, a large educational institution, and a US-based real estate company among recent client wins.
One of the reasons that recent activity may have picked up could do with Cyren’s upcoming earnings. August 12th is when the company is set to report. The company will also host a mid-morning conference call during market hours, Wednesday. In its Q1 results, the company explained that COVID did make things difficult.
However, management also said that Cyren “experienced strong contract renewals during the period, including several large, multi-year agreements,” so we’ll have to see if that translated strongly for Q2 or not. What do you think? Comment below.
Penny Stocks to Buy For Under $4: Broadway Financial
Social issues have become a very hot item this year. One of the biggest topics has been minority-owned businesses. In light of the protests for equality, the market has seen a sub-set of stocks rise. You might remember the entertainment company, Urban One (UONE) (UONEK), which saw shares explode from under $1 to over $50 within a matter of days. Today it still trades above $10 after the dust had settled. We also saw shares of Carver Federal Savings Bank (CARV Stock Report) run from around $2.15 to highs of $22.97 following a similar sentiment-driven move.
While both of those former pandemic penny stocks are, well, no longer stocks under $5, a recent event has put a focus on these stocks once again. That focus comes from a very “Presidential Place”. Newly appointed Vice Presidential Nominee for Joe Biden, Kamala Harris’ comments from last July have brought a bullish sentiment.
Specifically, she tweeted that she’d “invest $12 billion in Black entrepreneurs by increasing access to credit and capital through direct federal grants. Together, we can create opportunity for Black entrepreneurs to grow the small business engine of our economy.”
As one of the few penny stocks left in this category, Broadway Financial (BYFC Stock Report) has followed suit, surging after hours on Tuesday after Biden made his VP announcement. It’s a United States-based savings and loan holding company. In its most recent earnings results, the company reported net income of $216K, or $ 0.01 per diluted share, for the second quarter of 2020. That compared to a net loss of $135K, or ($0.01) per diluted share, for the second quarter of 2019.
Penny Stocks to Buy For Under $4: India Globalization Capital
The lowest price penny stock on the list, India Globalization Capital (IGC Stock Report), while volatile, managed to hold a relative uptrend for the last few months. IGC stock spikes up quickly, slides back down, however, it has managed to see higher highs & lows along the way. It has also followed close to a major technical level in the 50 Day Moving Average since April, which has acted as support for the most part.
Last month the company made two big updates. First it received a Notice of Allowance dated July 8, 2020 from the United States Patent and Trademark Office for its cannabinoid formulation for the treatment of seizures in humans and veterinary animals. Then India Globalization announced the filing of a patent application, IGC-511, with the USPTO. This was for a new cannabinoid formulation intended for the treatment of chronic pain, muscular pain, and neuropathic pain in humans and veterinary animals.
This week IGC stock is back on the radar after its latest big development. Late in the afternoon on August 11th, the company announced the U.S. FDA notified IGC that it authorized the company to initiate a Phase 1 human trial study. This was for its investigational cannabinoid formulation treating patients with dementia due to Alzheimer’s disease. IGC said that after the completion of administrative tasks, it plans to begin enrolling patients for a 12-subject safety Multiple Ascending Dose Study.
“Our strategy with IGC-AD1 is to initially conduct trials that establish the efficacy of IGC-AD1 on the Behavioral and Psychological Symptoms of Dementia…Eventually, we expect to evaluate the efficacy of IGC-AD1 on plaques and tangles, the hallmarks of Alzheimer’s disease…We believe that this a first human trail of this sort,” said IGC CEO, Ram Mukunda.