Are These 3 Penny Stocks To Buy Or Avoid This Week?
Are penny stocks part of your trading strategy in September 2020? If they are, you might want to be prepared for some higher volatility. What’s the reason for this? If you take a look at the overall market, yes we’re making new, all-time highs, but there’s something else to consider.
These new highs are coming amid slightly lighter trading volumes compared to earlier this year. Why does that matter? Well, for starters, the volume is essentially the lifeblood for stocks. It dictates the liquidity of a specific market, which translates to how easy or hard it is to get in and out of a position at optimal prices. The lower the volume, the harder this becomes. This is especially true when you talk about larger position sizes.
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Now, are all penny stocks with high volume the best to buy? There are always exceptions to rules, of course. It will end up coming down to your own, personal strategy and account size. With this in mind, there are several high volume penny stocks to watch this month. Here are three of them kicking off the month of September on a high note.
Penny Stocks To Buy [or avoid]: Baudax Bio Inc.
Baudax Bio Inc. (BXRX Stock Report) has been relatively quiet over the past few months. While it’s up from the 52-week lows of March, it hasn’t been the parabolic breakout penny stock to watch like some of the others. In fact, for the last few months, shares have traded relatively flat. However, the first two days of September saw some unusually higher volume. On September 1st, BXRX stock traded over 600,000 shares, which was much higher than the average 300k per day from weeks prior. September 2nd saw an even bigger day of trading with more than 3 million shares traded.
While there wasn’t any news to start the month, attention has been on the company since late August. This is when Baudax announced an award for a Group Purchasing Agreement with Premier Inc. This allowed Premier’s members to take advantage of special pricing for the company’s ANJESO injection. This is Baudax’s first commercial product approved in February as a pain management treatment.
Premier is a leading healthcare improvement company, uniting an alliance of approximately 4,000 U.S. hospitals and 175,000 other providers. This adds to the progress in early August 2020. The Centers for Medicare and Medicaid Services established a new permanent J-code for ANJESO. It facilitates reimbursement in the hospital outpatient, ambulatory surgery center and physician office settings of care. What’s important to note is that the code, J1738 (Injection, meloxicam, 1 mg), will take effect on October 1, 2020 and it is expected to replace the previously issued C-code (C9059). So far, this month, BXRX stock has climbed as much as 40%.
Penny Stocks To Buy [or avoid]: Senmiao Technology
Senmiao Technology (AIHS Stock Report) has established a strong uptrend over the last 2 weeks. Since August 25th, AIHS stock has reached new, consecutive highs. On Wednesday, Senmiao saw its biggest, 1-day move during that period with a jump of over 10% and its highest single-day trading volume since August 13th. Similar to Baudax, there wasn’t any news to speak of so far this month. However, this initial move began after the company’s last quarterly report was published.
While financial performance wasn’t massively attractive whatsoever, it appears management’s commentary was. Xi Wen, Chairman, Chief Executive Officer and President of Senmiao said, “We shifted our focus during the quarter to a new opportunity, namely the provision of short-term car rentals…Creating this additional revenue stream has also helped to mitigate the drop in online ride-hailing automobile sales.”
What’s more, and what could be a larger focus is Wen’s statement regard entry into the EV arena. “So far in the second quarter of this fiscal year (our quarter ending September 30), we have signed a strategic cooperation agreement with one of the largest auto dealer groups in southwest China to increase access to electric vehicles.”
With the attention on electric vehicles this year, traders continue scouring the market for one of the next EV penny stocks to watch. Could AIHS fit that mold and is this latest move just a sympathy move? On the flip side, could this become the turning point for the company after its last earnings report was published?
Penny Stocks To Buy [or avoid]: Urban One Inc.
You might remember this one from early June. Urban One Inc. (UONE Stock Report) was one of the biggest movers of the year. It went from being a penny stock to trading above $54 a share within a few days; yes, days. The biggest hype came from a surge of interest in penny stocks with companies owned by minorities. Urban One’s mission is “to be the most trusted source in the African-American community that informs, entertains and inspires” an audience by providing “culturally relevant integrated content through our radio, television, and digital platforms.“
The interesting part is that UONE stock has fallen so quickly. We’re talking a drop more than Kodak experienced after its massive run. Now that UONE is back in penny stock territory, however, attention has begun to refocus on the company. In fact, on Wednesday, shares advanced more than 20% after hitting its lowest low since June. But on September 2, momentum has remained strong.
There could be a renewed focus on certain companies within this niche. Newly appointed Vice Presidential Nominee for Joe Biden, Kamala Harris’ comments from last July have brought a bullish sentiment and have begun recirculating this quarter. 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.”
While there hasn’t been any news to speak of, from Urban One this month, speculation continues to fuel momentum. Is UONE stock benefiting from this speculative trading right now? Furthermore, will this mark a turning point for the penny stock?