Are Penny Stocks Part Of Your Trading Strategy Right Now?
Do you trade penny stocks? If you do, you’re among the millions of people looking to make money in the stock market today. The case for and the case against penny stocks are valid. You’ll have some who say penny stocks are the devil; don’t touch them. You’ll also have others who are die-hard fans of stocks under $5 no matter the risk.
Then you’ll have people like us. We try to take a look at both sides of the coin. Personally I think this is the key to making money with penny stocks. You’ve got to understand the risks, of course, but you need to understand that the rewards can be just a great.
Herein lies the focus: making money. It doesn’t matter if you’re a fan of these cheap stocks. It doesn’t matter if you hate them either because stocks don’t have feelings. So emotion shouldn’t even play a role. Does a stock have enough volume, are there potential catalysts and are the risks greater or less than the reward? This is what some of the top traders focus on; not “getting even” with a stock.
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So your opportunities to make money with penny stocks depends a lot on your personal approach to trading. Letting emotions get the best of you can cloud your judgment. Then again, sticking to a plan can also result in leaving some money on the table. But nobody ever went broke taking profit, so let’s focus there. Heading into the final day of the month, are any of these penny stocks on your list?
Penny Stocks To Trade [or fade]: Clovis Oncology Inc.
Clovis Oncology Inc. (CLVS Stock Report) is, if you couldn’t guess by the name, a company focused on anti-cancer treatments. To be honest, if you’re looking at CLVS stock right now and scratching your head, you’re not alone. Just look at the chart for starters. Clovis stock is down over 50% for the year so far. That’s not even considering how low it dropped when the rest of the market did in March. Why is it even mentioned on a list of penny stocks right now?
The U.S. FDA approved the FoundationOne® Liquid CDx, Foundation Medicine’s comprehensive liquid biopsy test for all solid tumors with multiple companion diagnostic indications. This includes Rubraca® tablets. In July 2019, Clovis entered into an agreement with Foundation to collaborate on the development of a plasma-based companion
diagnostic assay to select patients for treatment with Rubraca based on Foundation’s liquid biopsy platform.
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Rubraca was also recently approved for the treatment of adult patients with certain types of prostate cancer (mCRPC) who have been treated with androgen receptor-directed therapy and taxane-based chemotherapy. Patrick J. Mahaffy, President, and CEO of Clovis Oncology said, “What we could not have foreseen was how important a plasma-based test would be in this COVID-19 environment…We are pleased that the FDA has approved a plasma-based companion diagnostic to identify mCRPC patients who may benefit from treatment with Rubraca.”
Penny Stocks To Trade [or fade]: Energous Corp
Energous Corp. (WATT Stock Report) is quite the opposite of CLVS in terms of the stock chart. Since April, WATT stock has been in a clear uptrend. From 52-week lows of $0.61, shares have jumped as high as $4.58 and finished out the Wednesday session just shy of $4. Some of the biggest drivers for WATT stock came with news of patents being granted to Energous.
Earlier this month the company reported Q2 earnings. Energous showed and EPS loss of $0.20, in line with estimates. However, it beat on sales. The company recorded $114.38k which came in higher than the $100k estimates that Wall Street gave. While this was received well by traders, last week’s update was even bigger in my opinion, just based on the market activity that ensued. Energous announced a strategic partnership with Xentris Wireless. Xentris designs, engineers and manufactures mobile accessories and charging solutions. The deal will see the two develop ruggedized products for military applications using Energous’ radio frequency-based charging technology.
That’s when WATT stock made new 52-week highs of $4.58. We saw a pullback over the last week or so and Wednesday was another jump for WATT. This time it didn’t come from a corporate update. The European Patent Office released a notice that showed Energous was granted a European patent. The title is “Systems And Methods For Generating And Transmitting Wireless Power Transmitting Wireless Power Transmission Waves”. Considering that this just came out today, will wee see more followthrough this month?
Penny Stocks To Trade [or fade]: Polar Power Inc.
Polar Power Inc. (POLA Stock Report) is one of the penny stocks I’d call a “love/hate” company. I know I said to leave emotions out of it. But POLA stock is a special breed. Shares saw a huge move in late June, traded erratically for a few weeks and then the rug got pulled. POLA stock was playing ping pong between $2.70 and $3.70, then earlier this month was when the slide started. The penny stock ended up dropping as low as $1.49. During the last few days, however, POLA stock has seen a bit of a rebound.
[Read More] Are These Coronavirus Penny Stocks On Your List Right Now?
What could be a catalyst right now? Let’s look at the company itself. Polar Power designs, manufactures, and sells direct current power systems. It does so mainly for applications in the telecommunications market, military, electric vehicle charging, cogeneration, distributed power, and uninterrupted power supply. Now, with all of the excitement surrounding EV stocks right now, you might be thinking, “Well, that’s probably why.”
But there could be a different catalyst at play. Her name is Laura and she was just upgraded. What I’m talking about is the hurricane in the Gulf of Mexico that was upgraded to a Category 4. Polar Power’s products include DC generators, Back-up DC generators, hybrid power systems, Li-Ion battery systems, and Marine DC generators. So it might be a speculative move for now and some large-caps like Generac (GNRC Stock Report). Can it continue through the end of the month?
Penny Stocks To Trade [or fade]: AYRO Inc.
Speaking of EV penny stocks, AYRO Inc. (AYRO Stock Report) is smack in the middle of this marketplace. July was a huge month for this company and we actually were there right from July 2nd when AYRO stock was still under $3. It ended up skyrocketing to highs of $8.18 before going through a 4 week consolidation period.
Its emissions-free electric vehicles are used in urban and short-haul markets. What may be more familiar to some of you is that it was previously known as DropCar (f/k/a DCAR). This culminated in what was found to be a big announcement on May 29th. The company and DropCar announced a merger, which we know today, became Ayro Inc. Earlier this quarter, the company inked a deal with Gallery Carts in part to launch new “on-the-go” hospitality vehicles. Gallery provides food, beverage & retail carts, kiosks, and portables.
Last week the company announced an initial order from Club Car for nine Club Car 411 electric vehicles to serve a military medical campus in the Northeast United States. AYRO said this is the first Club Car 411 deployment that will serve a major medical center. Aside from another update on the upcoming investor conference schedule in September, there weren’t any new updates. Given the state of EV stocks right now, however, AYRO might be catching some sympathy momentum right now. Will it continue?
