Are These Penny Stocks On Your Watch List Right Now?
There’s been more scrutiny on penny stocks recently. Many traders experienced monumental gains earlier this summer. But now we’ve seen a bit of sector rotation after several new updates. Many of those updates have to do with coronavirus vaccines.
Countless companies rallied huge this year on speculative hype surrounding a COVID treatment. The government seems to have started picking sides, which hasn’t been the greatest for a few select names. In addition to that, we’ve got tech stocks wavering as well. Many of the ones on shaky ground were the same that exploded during the first few quarters of the year.
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Look at some of the bigger names in “at home tech” like Peloton or Teledoc. Both blue-chip stocks suffered big blows this month. Market optimism that suggests a means of “getting back to normal” has traders speculating once again. This time, it’s that we’ll go back to the same things we were using before the pandemic.
Is This The End For Coronavirus Penny Stocks?
So does this mean coronavirus penny stocks are done? In my opinion, no, however, as we’ve begun seeing, the moves that some are making aren’t as long-term as they used to be. In fact, where we saw big breakouts last for weeks and even months, now we’re seeing them last for hours or just a few days.
When it comes to trading penny stocks, this is a trend to keep in mind. We always talk about having a trading strategy in place. Well, that strategy might need a few tweaks to adjust to market conditions. If you’re seeing something similar to the above, you might want to adjust your timeline for trading. With this in mind, will these names be some of the top penny stocks to watch before the weekend?
Top Penny Stocks To Watch: Heat Biologics Inc.
Like I said above, coronavirus vaccine stocks are down but I don’t think they’re out just yet. Despite progress for some of the bigger names and support by the government, other COVID-19 penny stocks are still getting “their due” so to speak. Heat Biologics Inc. (HTBX Stock Report) has been one to watch for most of this year. Similar to other coronavirus vaccine stocks, HTBX stock price has tumbled in late July and early August.
However, the penny stock is still much higher for the year. Why is it on a watch list after falling over 60% from its 2020 high? News, of course. Thursday morning, Heat announced preclinical data for Heat’s gp96-based COVID-19. According to Heat, the data generated at the University of Miami Miller School of Medicine, “shows robust T cell mediated immune response directed against the spike protein of SARS-CoV-2.”
Following this update, HTBX stock saw a surge of interest during premarket trading. Shares rallied to highs of over $2 before the first pullback of that premarket session. Jeff Wolf, Chief Executive Officer of Heat Biologics, commented, “We are encouraged by the progress being made by other companies developing vaccines against COVID-19. However, unlike most of these approaches that drive primarily an antibody response, our COVID-19 vaccine is designed to drive predominantly T cell immunity along with antibody responses and innate immunity.”
Top Penny Stocks To Watch: AMC Entertainment Holdings Inc.
I don’t think any business exudes the spirit of “getting back to normal” than movie theaters. Ok, so maybe there are plenty of others. However, think about COVID and places like a movie theatre. It’s an enclosed location, generally not a place for social distancing, and built for the masses. Are we really getting back to normal? Well, if AMC Entertainment Holdings Inc. (AMC Stock Report) traders are to be trusted, sentiment appears to shift in that direction.
Something we’ve discussed in the past was epicenter penny stocks. This was a term coined by investor and FundStrat Head of Research, Tom Lee. He defines epicenter stocks as things like consumer discretionary stocks, industrials, technology stocks, health care stocks, and energy stocks. Recently, Lee has come out to discuss a slightly different twist on this idea in “reopening stocks”.
This month AMC reported earnings and I’m sure many braced for the worst. However, that wasn’t the case. In fact, AMC actually beat analyst estimates on sales figures of $18.9 million compared to the Street’s $13.54 million. Though AMC missed on EPS, the company managed to attract attention after saying it would resume operations of essentially “all international theatres in the next 2-3 weeks”. Today we got more clarity on that statement.
AMC announced that its theaters August 20th. With help from The Clorox Company, AMC is also implementing “AMC Safe & Clean”. It aims to ensure things like limited ticket sales and enhanced cleaning are paramount for customers.
Top Penny Stocks To Watch: XpresSpa Group Inc.
Yes, XpresSpa Group Inc. (XSPA Stock Report) is on another list of penny stocks to watch. XSPA stock has been one to watch for months now. Since the middle of March and even the start of the year, shares have climbed considerably. Year-to-Date, XSPA stock is up over 85% and has traded as high as $8.82 this year. What began as high-level talks to pivot its airport terminal spas to COVID-testing facilities has evolved into a reality.
We first started following this company in late-March as these “talks” were just beginning to happen. Following confirmation that XspresSpa locations were making the transition, momentum continued in the stock. XpresCheck has begun a pilot program at New York’s John F. Kennedy International Airport Terminal 4. This week XpresSpa expanded on its efforts after the JFK pilot program.
The company announce that it signed a contract with the Port Authority of New York and New Jersey to provide diagnostic COVID-19 testing at Newark Liberty International Airport. This, of course, is through its XpresCheck brand. XpresSpa sait it’s currently building a modular constructed testing facility within Terminal B that will host 6 separate testing rooms with a capacity to administer over 350 tests per day. It’s also important to note a few other things. as well.
One of the main things being that the company has filed for a $200 million mixed shelf offering. This allows the company to issue shares “from time to time”. Furthermore, the proposed maximum initial offering price per unit will be determined by the registrant in connection with the issuance by the registrant of the securities registered. Will dilution risk become a risk factor in the future?