Are These Penny Stocks On Your List Today?
Should you choose to make penny stocks part of your trading strategy, it’s good to have a lay of the land. Understand the whole risk vs reward of certain stocks. It also doesn’t hurt to have a general feel for the industry that certain companies are in. For instance, earlier this year, coronavirus vaccine stocks are some of the hot penny stocks to trade.
There still is a demand for them but during the early days of COVID-19, companies saw explosive moves on even the slightest whisper of the virus. This situation created countless parabolic moves in penny stocks. What that means is that these COVID stocks ran up huge and then ended up coming back down just as quickly. There were other cases where certain coronavirus penny stocks ended up continuing much higher too.
The point here is to understand the market and the industry you’re buying into. Now, are there other ways to find penny stocks to buy? Yes, and some traders will focus more on technical analysis than fundamentals.
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These traders focus on things like chart patterns and momentum indicators, first. Then when they identify a trade opportunity, they’ll likely look into the company a bit more to see if there’s a news or company catalyst. This could come in the form of a corporate filing, institutional buying, or even a simple news headline. Keeping this in mind, are any of these on your list of penny stocks to buy now?
Penny Stocks To Buy [or avoid]: Color Star Technology Co., Ltd.
Color Star Technology Co., Ltd (HHT Stock Report) has been on the radar for a little over a month now. The company focuses on eLearning and virtual entertainment. The company also offers after-school entertainment tutoring in New York via its joint venture entity Baytao LLC. When we first discussed this company, the big focus was on the eLearning side of things. It was also at a point in time where Color Star was enhancing its Color World platform with new offerings. Since then, we’ve seen this penny stock jump huge, consolidate, and most recently rebound at the end of August. Monday marks the 5th consecutive day of higher highs on its chart.
Late last week, the company announced a deal with Red Phoenix Entertainment via Color Stars subsidiary, Color China Entertainment. The Venture pits the two parties into a deal to develop a co-op on sports education, brand promotion, and online star education. This added to the development momentum that began earlier in the week. Color Star had also inked a strategic agreement with the Romanian Chamber of Commerce and Industry. The focus there will be on cultural education.
Obviously, as the world continues dealing with the blowback of coronavirus, we’ve seen technology play a larger role. This includes education and entertainment. With the pending launch of the Color Star mobile app, the company aims to roll out a collection of celebrity tutorials and online entertainment educations courses as well. This could be something to keep in mind as testing had begun earlier in August and no new updates have been released yet.
Penny Stocks To Buy [or avoid]: Evofem Biosciences, Inc.
Another one of the penny stocks to watch this month was Evofem Biosciences, Inc. (EVFM Stock Report). The unique part about this company compared to other biotech penny stocks is that it’s in its commercial stages. Why is this “unique”? When it comes to smal-cap biotech penny stocks, it’s generally assumed these companies are heavy into R&D expenses and light on revenue due to that fact. When you’re talking about a commercial-stage company, now there are other things to factor in, which includes the potential for retail revenue.
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The main focus for Evofem recently has been on its pregnancy prevention, prescription gel, Phexxi. Here’s the important date to keep in mind heading into September and that is the 8th. This is when the company said it will have all the wholesale agreements in place with Phexxi on stock and ready for launch on September 8.
Evofem is also developing other treatments. Its EVO100 is being tested for the prevention of urogenital chlamydia and gonorrhea in women. According to Chief Medical Officer, Kelly Culwell, the company is planning to move forward with a randomized placebo-controlled Phase III clinical trial. She further stated that “we expect to enroll our first subject in the fourth quarter of 2020.”
Evofem is set to present at a slew of conferences next month. Those dates could be important ones to note as well. September 14th, 16th, 18th, and 22nd will see Evofem participating in fireside chats and presentations.
Penny Stocks To Buy [or avoid]: Hermitage Offshore Services
Last week Hermitage Offshore Services (PSV Stock Report) started making waves (no pun intended) in the stock market. The company is an offshore support vessel company that owns 21 vessels primarily operating in the North Sea and the West Coast of Africa. We know that coronavirus hasn’t been kind to most oil and gas stocks, Hermitage included.
Over the last 7 weeks, Hermitage has been trying to work things out on the financial front. On July 10th the company signed a forbearance agreement with lenders holding $132.9 million in term loans. The lenders agreed to hold off on exercising their rights under the facility until July 31st, which was further extended into August.
Hermitiage ended up selling off some of its vessels as well as filing a voluntary Chapter 11 petitions which included 28 subsidiaries. When companies declare bankruptcy, they open up to risk of delisting from major exchanges. In light of this, Hermitage submitted a request to appeal the delisting determination of the New York Stock Exchange.
Management believes that there isn’t enough certainty on the outcome of the proceedings that would prohibit it from meeting NYSE’s requirements. Call it what you will, but this latest development seems to have gotten the market excited in the short term, at least. Shares have climbed from around $0.32 to highs of $1.49 this week, so far. Will this momentum last or is PSV stock set to slide again?