Penny Stock News Has Triggered Big Momentum With These Small-Caps
What’s one thing you look for when trading penny stocks? Some will say “momentum” and others will say “a catalyst”. No matter what, one usually follows the other. Specifically, news catalysts are some of the topics of discussion for momentum traders looking for reasons behind that momentum. What’s more is that when it comes to penny stocks with news, you’ll want to actually read the news itself; not just the headline.
It seems obvious, right? Actually reading a press release versus just a headline is actually a problem new traders seem to face right now. I can’t tell you how many times a headline will have all the “right word” but the actual body of the announcement says something much different in context. Companies know what they’re announcing and understand how news can become a point of focus.
So as traders, it’s up to you to understand the ins and outs of things like corporate updates. For instance, if you do come across an appealing headline and you see a stock rallying strong. But after reading it, your opinion of the actual update is less exciting. Then there’s a high probability that the specific news catalyst might not resonate as long as one where the headline is just as exciting as the specifics within a PR.
Now, if you’re reading this and you’re in disbelief, I understand. But I thought it would be necessary for new traders who’re just beginning to learn the ropes. There’s been a lot of news headlines sparking big moves in penny stocks.
So when it comes to catalysts like these, it’s good to understand the reasons why they’re a catalyst. It’s also important to understand if there’s enough “meat” to the update that will resonate longer than just a few hours. With this in mind here’s a list of penny stocks trending higher after key updates this month.
Penny Stocks To Watch: Blonder Tongue Laboratories Inc.
Blonder Tongue Laboratories Inc. (BDR Stock Report) is a newer addition to the list of penny stocks to watch. There hasn’t been a whole lot of consistent trading volume in BDR stock. That’s a likely reason why you might have not heard of this company recently. It’s biggest trading day in the last 3 months has been 1.1 million shares around $0.90. So, what has transpired, leading up to this week, that could see BDR stock on a watch list or two?
First, the company reported earnings at the beginning of the month. Blonder Tongue is a designer and manufacturer of cable television video transmission technology. But due to COVID, the company’s quarter was rough. Commenting on the results, Chief Executive Officer Ted Grauch noted, “The early portion of the second quarter saw the worst of the COVID related market impact, with a significant level of optimism returning during early and mid-June…In spite of the foregoing, the Company’s CPE products saw a modest increase in revenues and bookings during the latter portion of the second quarter. Although this revenues and bookings increase has not resulted in material cash flow benefits to the Company, it provides evidence that the broader market is potentially building pent-up demand that may benefit us when a more sustained recovery begins as the impact of COVID-19 is mitigated.”
This week saw momentum building after a series of FORM 4 filings showed a string of insider buys over the last few months. Eric Skolnik (CFO), Ted Grauch, Allen Horvath (SVP of Operations), and Ronald Alterio (CTO) purchases thousands of shares between $0.51 and $0.82. This seems to have sparked interest in the stock market today. Will the sentiment last through the rest of this quarter?
Penny Stocks To Watch: Teligent Inc.
Teligent Inc. (TLGT Stock Report) was trending this week after press headlines, excited traders. This was a report of the company’s second-quarter financials. Teligent reported revenues of $13.6 million. This was an increase of $6.1 million or 82%.
The company cited stronger demand for both US topical products and injectable products sold in Canada. Gross profits also came in strong. Teligent recorded $2.5 million, which was an increase of $3.7 million or 315%. What’s more, is that the company showed an adjusted EBITDA loss of $2.3 million. This was actually an improvement of $5.2 million. All of these improvements were compared to the first quarter of 2020.
However, when it came to comparables to its Q2 in 2019, many of these results were actually a decrease on a year over year basis. “In light of the evolving COVID-19 challenges that transpired in the second quarter, we are pleased with our second quarter financial results and continue to see positive signs that patients are returning to the dermatologist in the United States,” said President and CEO, Timothy Sawyer.
Another factor to note is what the generic pharmaceutical company said in reference to a response from the FDA. Specifically, on August 13th, the company received an additional comment letter from the Administration relating to its response to the Warning Letter issued in November 2019.
The comment letter indicated that the FDA reviewed the company’s responses and deemed them to be inadequate as Teligent failed to “address and/or provide supporting documentation” to several of the concerns raised in the Warning Letter. The company said it will look to make further improvements and provide additional responses in light of this. But it could be a sticking point for some who are looking at TLGT stock this week.
Penny Stocks To Watch: Exela Technologies Inc.
Exela Technologies Inc. (XELA Stock Report) has been on the watch list since May. At the time, the company was working with certain institutions to implement payee platforms. The company was also pushing attention to contactless solutions. In light of coronavirus, this aspect received much more attention. Fast-forward to August and the focus remains on the company applying its tech to the country’s reopening plans.
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Last month Exela reported on Mastercard’s confirmation of enrollment of its Request to Pay solution by Pay.UK. It’s a leading retail payments authority in the UK. The Mastercard Request to Pay solution was co-developed with Exela Technologies. It’s going to leverage the proprietary technology which will be deployed by Mastercard in the cloud, to enable billers to make payment requests through a secure, unified messaging service.
This week, Exela continued giving updates on its initiative. The company announced that its Digital Mailroom platform has onboarded 100,000 paid users since the start of 2020. This milestone has been achieved in part due to interest from customers across the globe who are seeking a solution to the operational challenges brought on by the COVID-19 pandemic. Matt Brown, Global Head of Strategy, Exela Technologies said, “Our goal is to help our customers in any way that we can, and driving digital adoption and process improvements through DMR is just one way that we can do that in this challenging time.”
Will this mark a turning point for XELA stock after the 2 week slide it’s seen recently?