Are These Penny Stocks On your Watch list This Week?
This week, several penny stocks have seen short-lived breakouts. While that’s great for day traders, it leaves a bit to be desired for anyone else. If you work a full-time job or have kids to watch over, sticking to your computer or phone all day might present difficulties. The obvious reason is that you have other things going on that require your attention.
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Here’s the dilemma, we’re talking about stocks under $5. They aren’t usually “built” for “safety”. A drop of just a few cents can equate to significant losses. Are all penny stocks volatile? Generally speaking, just the price level alone lends itself to higher levels of volatility; that’s why they attract so many day traders. The opportunity to quickly make money with penny stocks is the goal.
Are Penny Stocks Right For You?
So what can you do if you’re in the second group of people; the ones who might not be able to day trade all the time? One of the strategies some traders deploy is a swing trading strategy. They’ll look at longer-term indicators and trend lines. They will also look at different chart time frames too. Where scalpers might have a 1 minute chart, swing traders might go off of a 30 minute, 1 hour, or daily chart.
As a rule of thumb, however, you’ll want to at least check in on your trades more frequently than you would a long-term investment. At the very least, set up price alerts on whatever platform you can easily access. It can be very helpful if you have to step away or can’t be in front of your screen/phone for a while. If you’re looking for penny stocks to buy, you’ll want to have some sort of strategy based on your situation. With this in mind, are these penny stocks to buy or avoid right now?
Penny Stocks To Buy [or avoid]: Electrameccanica Vehicles Corp. Ltd.
Electrameccanica Vehicles Corp. Ltd. (SOLO Stock Report) has been in a sideways trend for most of the third quarter. It was a big mover we started tracking in early June. Since then it saw a nice move from around $1.35 to highs of $6. Like most of the penny stocks that were up big this year, SOLO stock dipped back to find a general level of support. It looks like the $2.50-$2.60 area has been that level so far. Additionally, the 50-Day Moving Average seems to have become a technical level starting to play a role in the market.
We discussed Electrameccanica earlier this week as EV stocks in general were gaining attention. Believe it or not, Tesla wasn’t one of the main players (for now). Yesterday we saw Chinese EV company Nio Inc. reach new, all-time highs. That trend continued early on Wednesday as NIO stock reached a new high of $19.85. Aside from the sector hype, SOLO stock might also be experiencing excitement after indicating this could be an important week for the company’s future.
ElectraMeccanica announced an official start date of August 26th for the commencement of production for its flagship SOLO EV. This is the company’s all-electric, three-wheeled vehicle. The SOLO has a range of over 100 miles and a top speed of 80 mph, making it safe for any road or highway.
“August 26 will be a momentous occasion for our business, and I could not be prouder of all the efforts from our collective team to make our SOLO dream a reality,” said ElectraMeccanica CEO Paul Rivera.
Penny Stocks To Buy [or avoid]: Ocean Power Technologies Inc.
Ocean Power Technologies Inc. (OPTT Stock Report) was on the radar earlier this month. August 11th we saw volume begin picking up, mentioned this fact, and then the following day we witnessed OPTT stock reach new 2020 highs. What does Ocean Power do? The company focuses on renewable wave-energy technology. It’s engaged in developing systems that generate electricity by harnessing the renewable energy of ocean waves. It offers the PowerBuoy technology which integrates with hydrodynamics, electronics, energy conversion, and computer control systems to extract the natural energy in ocean waves.
Though OPTT saw some consolidation after that initial move, it was back to a higher level of support compared to the rest of the year. The move appeared to have come from a company tweet on its PowerBuoy, this time showing it deployed off the NJ coast. This week, however, Ocean Power came out with a formal press release. The company announced the addition of Gilar Prakoso to the OPT Commercial team as Asia-Pacific Representative, based in Jakarta, Indonesia.
“The Asia-Pacific region presents significant opportunities for OPT’s power and communications solutions among nations concerned with maritime border enforcement and safeguarding vast oceanic resources.”George H. Kirby, President and Chief Executive Officer of OPT
“Gilar’s fluency with local maritime agencies and industry, and his established relationships are essential to growing OPT’s customer base and cultivating regional partnerships. We are excited to have him on board to execute our market expansion strategy and promote our capabilities in this area of the world.”
Penny Stocks To Buy [or avoid]: Broadway Financial
This year we’ve definitely seen some new trends push the market. Coronavirus vaccine stocks were red hot this year. We also saw technology stocks explode and lead the market to new highs. However, something else we saw was the emergence of a whole new group of stocks. This grouping focused mainly on minority-owned businesses. This piece of the market received another surge of momentum after Kamala Harris was named as a VP in the Biden presidential campaign. Harris’ comments from last July brought a bullish sentiment.
Specifically, she tweeted that she’d “invest $12 billion in Black entrepreneurs by increasing access to credit and capital through direct federal grants. Together, we can create opportunity for Black entrepreneurs to grow the small business engine of our economy.”
Broadway Financial (BYFC Stock Report) is part of this list of penny stocks. In its most recent earnings results, the company reported net income of $216K, or $ 0.01 per diluted share, for the second quarter of 2020. That compared to a net loss of $135K, or ($0.01) per diluted share, for the second quarter of 2019. This week, Broadway came out with another big update. The company announced that it entered into a transformational Merger of Equals agreement with CFBanc Corporation.
The company said this would effectively create the largest Black-led Minority Depository Institution in the nation. Furthermore, it would equate to more than $1 billion in combined assets under management. It would also equate to approximately $850 million in total depository institution assets (as of June 30, 2020 ).