Are These Penny Stocks On Your List Right Now?
Penny stocks are experiencing a bit of a shift right now in my opinion. Earlier this year, all the rage was the next big coronavirus stock. At one point it seemed like any headline mentioning “COVID” or “coronavirus” was almost an immediate catalyst. In many cases, it didn’t matter what the context of the actual press release was, traders simply saw the words and reacted.
As we’ve seen, the “shoot from the hip” strategy saw more traders getting lucky than making successful trades. The main reason being, they relied on emotion to get into the trade, and that same emotion is what kept them in the trade past its prime. However, with so many companies finding ways to jump on the COVID bandwagon, even a losing trade was quickly forgotten as there were so many huge movers altogether.
Penny Stocks To Watch In August
In the stock market today, we still see plenty of interest in coronavirus penny stocks. But it has also given rise to other things. Tech advancements, other milestones in biotech aside from coronavirus, and even new innovations in general business have grown from this year’s pandemic stress.
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Earlier this month we had an article discussing several retail businesses, which were essentially forced to evolve or die. Their choice was to take up a “brick and click” model. While they didn’t flourish to record levels, so far they haven’t had to fall into bankruptcy like so many other brick and mortar retailers have.
The long and short of it is the pandemic was likely a great thing for penny stocks. Since so many companies fell into this price range, the staunch opponents of stocks under $5 had no choice but to look for penny stocks to buy because, well, some of their top holding likely fit that build. Now we’ve got an entirely new crop of traders who’ve seen the power of penny stocks.
Penny Stocks To Watch In August: Travena Inc.
Trevena Inc. (TRVN Stock Report) has been one to watch since early June. At the time, shares were trading around $1.40 and the company had just entered into a collaboration with Imperial College London to evaluate the potential of TRV027. This is the companies COVID-related treatment for acute lung injury. But as I said above, traders are not looking beyond topics like this to see what else these biotech penny stocks might have in store.
In the case of Trevena, the company has an active treatment pipeline. One of these treatments is the company’s lead investigational asset for the management of moderate-to-severe acute pain. Heading into the first week of August, Trevena’s IV Olinvyk (oliceridine) was in the spotlight. This was ahead of a major FDA decision. Sure enough, late last week the US FDA approved Olinvyk for intravenous use in hospitals and other controlled clinical settings. While shares surged, the announcement of a $50 million raise didn’t sit all that well with traders.
Despite this as the short term case, Trevena said that it will use the net proceeds from the offering primarily to fund the commercialization of OLINVYK. It will also use them to support the clinical development of its pipeline assets among other things. Since that offering is set to close “on or about” August 14th, TRVN could be on the list of penny stocks to watch right now. Armed with tens of millions to advance OLINVYNK, do you think this will be on your list before the end of the month?
Penny Stocks To Watch In August: Ebang International
Shares of Ebang International (EBON Stock Report) hit the radar early on Friday morning. This came after the company made its first announcement of August. Ebang reported that it has established a wholly-owned subsidiary in Singapore in preparation for establishing a cryptocurrency exchange. The company said the next steps include seeking government approvals and licensing to operate the exchange. One of the riders, is of course, that there’s no guarantee that they’ll receive those approvals. However, Dong Hu, Chairman and CEO of the company, seemed optimistic.
“With our newly established subsidiary in Singapore, we expect to expand our industry chain layout from providing equipment to offering trading services. We plan to establish a robust risk control system and develop an optimal transaction system, with the support from our dedicated professional team and industry experts, in order to provide investors with safe, fast and stable digital asset transaction services through blockchain technology. We look forward to providing systematic support to the development of blockchain and maximizing the values for our shareholders.”
The conversation about market risk and safe havens placed gold in the spotlight. However, cryptocurrency and blockchain penny stocks have started to grab some attention. Over the last 30 days, the price of Bitcoin, for instance, has climbed over 25%. In the case of Ebang, it’s important to also note its previous breakouts. EBON stock has a history of volatility. The last high-volume day was in July. Shares jumped to highs of $8 and seemingly came back down just as quickly. Will this time be different?
Penny Stocks To Watch In August: Boxlight Corporation
Boxlight Corporation (BOXL Stock Report) has been on our list of penny stocks to watch for weeks. On July 12th we started to follow a trend of speculation with the company. Specifically, we talked about more reliance on technology. Also how right now could lead to an easier transition at least for the first semester.
Earlier this week Boxlight announced a strategic deal with Samsung Electronics. The deal will see the two partnering to bundle classroom displays, software, and professional development for the education market. “Samsung and Boxlight solutions offer educators endless productivity possibilities by condensing multiple tools and innovations required for lessons as part of the education bundles that will be available later this year,” said Chris Mertens , Vice President Sales, Display Division, Samsung Electronics America in response to the deal.
One of the “unknowns” of BOXL stock, however, was earnings. This year it’s been somewhat of a coin-flip as to what results would look like. This mainly stems from the unprecedented impact that coronavirus had on a number of industries. Friday morning Boxlight reported Q2 results. Loss per share was $0.08 with revenues of just over $7.8 million and an adjusted loss of $0.01.