Are These On Your List Of Penny Stocks To Buy Today?
Penny stocks are one of those things that people either love or love to hate. When it comes to the latter, it likely stems from misinformation. Whether it’s misinformation on how to trade them or misinformation they used as due diligence from a social media post; it likely ended up burning that trader. Regardless, there are plenty of ways to make money with penny stocks today.
But something I can’t stress enough is to do real research. If someone has a post on social media with 75 rocket ship emojis and no explanation to their 3-word statement, you might want to find another resource. Seeing that there are so many new traders, penny stocks have grown in popularity this year. With that, the overall sentiment behind the idea of penny stocks has become magnified.
Penny stocks are well-known for their fast-moving nature and quick means of making a big score quickly. However, there are many new traders who want to skip the research part and just get right now the gains. The YOLO mentality has become a root cause of people falling prey to fake gurus.
What I will say is simply this: do your own research and verify everything for yourself. When penny stocks on racing higher, understand why so that you can properly plan for a day trade, swing trade, or even a start to investing in penny stocks. With that in mind, let’s take a look a little deeper on a few of these penny stocks making bigger moves Friday morning.
Penny Stocks To Buy [or sell]: iBio Inc.
One of the most active penny stocks today (so far) has been iBio Inc. (IBIO Stocks Report). We’ve followed its developments for months and have watched IBIO stock breakout big and break down just as big. Recently, momentum has been building back up. Though there wasn’t a huge price move this week, we can clearly see an increase in trading volume. In fact, on Monday, IBIO experienced its second-highest trading volume day of the 3rd quarter.
On Friday, things continued to heat up. This time it came with a noticeable price move during premarket trading. The catalyst behind it stemmed from iBio’s latest update. The company announced that it has entered into an exclusive worldwide license agreement with Planet Biotechnology Inc. for the development of Planet’s COVID-19 therapeutic candidate, ACE2-Fc. Planet’s in vitro studies demonstrated that its ACE2-Fc blocks the SARS-CoV-2 virus from infecting Vero E6 cells.
Considering the appetite for COVID news, investors took this update and ran with it. So far, the high of this week is $2.78. During premarket trading on August 28th, IBIO stock reached highs of $2.65. The biggest question now is will the trend continue or is IBIO stock set to drop?
Penny Stocks To Buy [or sell]: Medigus Ltd.
Medigus Ltd. (MDGS Stock Report) is another one of the penny stocks we’ve tracked for quite some time. Back in April, we started watching Medigus as the trading activity built up. This is when the company began making COVID-19 headlines and it ended up sparking a rally to highs of $5.15. But like many of the coronavirus penny stocks from earlier in the year, things cooled down along with news flow, then throw in a multi-million dollar public offering and here we are. In fact, this week, MDGS stock hit lows it hadn’t seen since April.
So why is this on a list of penny stocks to watch? On Friday, Medigus announced something a little different than what it had reported in April. The company entered into the eCommerce business. Yep, that’s right. Medigus, a low float penny stock with COVID news in April, announced eCommerce-related news today. The company signed a non-binding letter of intent to acquire a controlling interest in Smart Repair Pro, Inc. and Purex, Inc. These two companies operate in the Amazon Marketplace.
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Now, a few things come to mind with this release. First, it’s a non-binding letter of intent. As we’ve seen with the likes of Kodak and others, intent is not the same as a definitive, binding contract. Next, MDGS stock is a lower float penny stock and can experience higher levels of volatility. Finally, The general trend over the last 5 months has seen MDGS trade sideways more than anything. But along the way it has seen intermittent pops here and there. So if MDGS stock is on your list, be aware of all of the factors at play here. Do you think this is one of the penny stocks to buy now or avoid?
Penny Stocks To Buy [or sell]: Just Energy
We reported on Just Energy (JE Stock Report) late last night after the company announced its recapitalization plan. However, Friday morning, it wasn’t just continued momentum stemming from that update. Just Energy reported its Fiscal Q1 2021 earnings results. Base EBITDA from continuing operations jumped 67% over its comparable prior period to $40.5 million. Its base gross margin also saw a modest increase of 3% to $136.3 million while Just Energy was able to decrease administrative expenses. This was also just a slight decrease, 2%, to $40 million compared to its Fiscal Q1 2020 results.
“During the first quarter we delivered significant improvements in Base EBITDA and liquidity. These improvements were driven by the stabilization actions the Company took to control bad debt, add quality customers and contain costs implemented throughout the last fiscal year. We continue to take actions to fortify our core business, while meeting the needs of our customers in this unprecedented time.”Just Energy’s President and Chief Executive Officer, Scott Gahn
Where the company seems to have been able to cut costs is in SG&A and marketing. During the quarter, Just Energy saw a decrease of 58% to $11 million. Furthermore, the company significantly increased its unlevered free cash flow of $25.3 million. Considering that this was negative $4.8 million during the same period in Fiscal 2020, that was a jump of more than $30 million.