Are These On Your August List Of Penny Stocks?
Are penny stocks on your list right now? If they aren’t, you may want to at least familiarize yourself with small-cap stocks. If you can handle the stock market in 2020, I’m guessing that you’ve learned a bit about volatility. You know, those big swings in price that you hear about?
While the Teslas and Kodaks have all proven how volatility can present big opportunities for higher-priced stocks, penny stocks experience this on a daily basis. There was an article out today on PennyStocks.com that referenced this perfectly. Even if the broader market’s down in the dumps, you’re likely to find some penny stocks making new highs.
So here we are in the thick of summer and there are millions more trading penny stocks that there were this time last year. That’s if Robinhood’s figures from earlier this year are to be believed. Reports cited that the trading app added 3 million new users just in the first quarter. With the average age somewhere in the ballpark of 32 years old, we saw exactly how risky some of these traders were.
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They even placed bets on bankrupt companies like J.C. Penney, Hertz, and others “just because they were moving” and in some cases they made winning trades. Fundamentally speaking, there weren’t many company-based reasons they went to buy penny stocks like these. The one thing that became evident was that shares were inexpensive, they could buy many, and small price movements meant big gains. Now, 5 months later, the rally rages on and once again, penny stocks are in focus in August. Here are 3 of them that already made big moves this month. The ultimate question now: will they be penny stocks to trade or will this momentum fade?
Penny Stocks To Trade [or fade] #3: LightInTheBox Holding Co.
It doesn’t take long to see that shares of LightInTheBox Holding Co. (LITB Stock Report) have experienced a strong move in August. The eCommerce company conducts direct to consumer retail sales across a network of websites. This month, LightInTheBox reports second-quarter earnings.
Though there’s still about a week left before that happens, LITB stock hasn’t wasted any time making a strong climb leading up to that report. Since the beginning of August, shares have climbed from $1.29 to highs of $3.89 and currently sit around $2.70 this week.
With eCommerce on fire this year, anyway, it’s not surprising that sentiment has grown around companies like this. Earlier this month, LightInTheBox appointed a new round of executives. These included Wenyu Liu as Chief Growth Officer and Yuanjun Ye as Chief Financial Officer. Aside from that update, however, there hasn’t been much more released by the company. So if this is on your list right now, you’ve got to ask yourself if this is a move anticipating earnings or one in sympathy with the rest of the sector?
Penny Stocks To Trade [or fade] #2: Oxbridge Re Hodlings
Oxbridge Re Holdings (OXBR Stock Report) is one of the penny stocks we’ve watched this week. The company provides reinsurance solutions through its subsidiary focusing on underwriting fully-collateralized reinsurance contracts primarily for property and casualty insurance companies in the Gulf Coast region of the United States. The day Oxbridge reported earnings, we began following its progress. If you’ve been trading penny stocks this week, you probably know what happened on Tuesday. OXBR stock gapped up to around $2 at the open from a previous close of $1.17 on Monday.
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It then proceeded to breakout to highs of over $2.50 before sliding back to around $1.60 today. But it doesn’t end there. As they say, look for a potential “follow-through”. This refers to additional momentum after a pullback. August 12th has seen quite a bit of that as shares of OXBR stock have bounced by roughly 25% from the opening bell.
The company reported increased results over last year. Net income came in at a “modest” $165k but compared to a loss of $205k last year, it’s notable. This boiled down to an EPS gain of $0.03 compared to an EPS loss of $0.04 last year. Furthermore, sales came in at $482k compared to just $109k last year. For OXBR stock, will this be a sign that it has established a new, higher level of support compared to the last few months? Or will it return back to its 50-day moving average like it has done so for most of this year?
Penny Stocks To Trade [or fade] #1: Colony Capital Inc.
Colony Capital Inc. (CLNY Stock Report) has been one of the penny stocks we’ve discussed in the past. The company segments its operations into real estate equity, real estate debt, and investment management businesses. Colony Capital’s asset portfolio and total revenue generation are split primarily between its real estate equity and real estate debt divisions.
With a more positive sentiment around the economy reopening, potential vaccine candidates, and fewer cases, real estate has been one of the sectors benefiting. Specifically, we started following in early May. At the time, CLNY stock traded around $2. it was also when Digital Colony, the global digital infrastructure investment platform of Colony Capital announced a strategic recapitalization of Beanfield Metroconnect. Fast-forward this month and the stock’s back on the move.
Just a few days ago the company reported its second-quarter results. Colony posted revenue of $372.4 million and a loss per share of $0.04. Management also said that ” Despite the impact of COVID-19, the Company’s digital portfolio companies across investment management and operating businesses grew core organic revenues approximately 9% on average YoY in the second quarter. Wednesday saw CLNY stock post its 5th consecutive day of higher highs. In light of the broad economic trends, will this move continue for CLNY this month? Since the 3rd, shares have climbed as much as 41%.