There’s Blood In The Streets But Not For These Penny Stocks Today
Are you looking for penny stocks to buy now? If so, you’re not alone but a big question being asked right now is “When will stocks go back up?”
The last two days of market turmoil have sparked a massive sell-off. The S&P, DOW, and NASDAQ dropped aggressively during the second half of the week this week. In the matter of 48 hours, these major averages gave back almost all of the gains from August. Considering that last month was one of the best August’s in decades, this pullback was shot to most traders. But what about penny stocks?
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Sure, you could look at the broader Russell Small- and Micro-Cap Indexes to get a general overview. But when it comes to stocks under $5, there usually isn’t a major trend across the board. What I mean by this is even with the last two consecutive days of unabashed selling in the stock market, today we’re still seeing plenty of big winners.
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Those winners, believe it or not, come from small- and micro-cap names. Take, for instance, one of the penny stocks we’ve actually discussed during the second half of this week, Shiloh Industries. This stock got rocked at the end of August.
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While the markets have done the same this week, SHLO stock price has rallied by more than 250%. Side note, if you’re saying “Where was I when SHLO stock was moving,” I’ll simply tell you to read our articles more frequently.
All joking aside, penny stocks aren’t for the faint of heart. The higher risk also lends itself to big sell-offs. The major difference is that penny stocks tend to rally sporadically, within a matter of days or even hours. It’s important to understand that when choosing which penny stocks to buy. Will some of these names be on your list this month?
Penny Stocks To Buy [or avoid]: Polymet Mining Corp.
You might remember Polymet Mining Corp. (PLM Stock Report) from back in June. At the time, the penny stock was experiencing crazy volatility. One day it skyrocketed from around $3 to nearly $10. Right after that, it was trading below $3. The movement in the stock would go on like this for months and, along the way, there was somewhat of a slight uptrend forming. However, at the end of August, PLM shares got hit hard by selling pressure. The company announced a reverse stock split amid a period of time where there were some uncertainties on its project in Minnesota.
In June, the Minnesota Supreme Court agreed to hear PolyMet’s appeal regarding its air permit. This was preceded in March by the Supreme Court granting our appeal regarding our Permit to Mine and dam safety permits. Fast-forward to this week and the slump continued during the first half. PLM stock reached low of $2.65 on Thursday with no apparent end in sight for this trend.
Needless to say, in true penny stock fashion, one update changed that. PolyMet released news after the closing bell on September 3. The company reported that the court found found no evidence supporting the argument against the company. In light of this news, PLM stock spiked big on Friday. The biggest point of interest for technical traders is on the 50 Day moving average. This was a relatively consistent level of support in June and July but appears to have become a resistance point on Friday.
Penny Stocks To Buy [or avoid]: National Cinemedia Inc.
Shares of National Cinemedia Inc. (NCMI Stock Report) also found some nice momentum on Friday. The penny stock experienced its biggest, single-day move since March. NCMI stock is one of the unfortunate victims of the coronavirus pandemic. Its previous home was well above $5. But with the onset of COVID-19 shutdowns, NCMI shares dropped to a low of $1.62 this year.
The company is the managing member and owner of 48.0% of National CineMedia, LLC, the largest cinema advertising network in the U.S. Without movie theaters open, advertising is obviously hard to do. In its last quarterly report, the company missed on earnings per share by a penny but beat estimates on sales. National reported around $4 million in revenues, which was considerably higher than estimates of $2.67 million that Wall Street had.
One of the catalysts this week comes from the analyst community. Barrington Research upgraded National Cinemedia to Outperform from Market Perform as theaters are set to reopen. It also set a $5.50 price target on the penny stock. The company will also take part in Benchmark’s Consumer/Media/Entertainment Conference next week. So September 10th might be a date to keep in mind if NCMI stock is on your list this month.
Penny Stocks To Buy [or avoid]: Marinus Pharmaceuticals
Another one of the penny stocks to watch this month is Marinus Pharmaceuticals (MRNS Stock Report). While there hasn’t been much news since early last month, there could be a few things to keep in mind in September. First, in July, the U.S. FDA granted the company Rare Pediatric Disease Designation for its ganaxolone.
This is the company’s drug candidate for the treatment of CDKL5 deficiency disorder, a rare refractory form of pediatric epilepsy. The significance here is that, with this designation, Marinus said it expects to report top-line data from its pivotal Phase 3 Marigold Study to evaluate ganaxolone in patients with certain pediatric epilepsy.
The company also said it’s on track to start enrolling patients for the Phase 3 study in Q3, with 50 of the targeted 100 U.S. sites already pre-selected. This is for its Status Epilepticus and will look at the efficacy difference between ganaxolone and placebo. Though MRNS stock has been relatively flat for the last month, we’re heading into the final month of the quarter. So, it could be a bigger point of focus considering these anticipated milestones.
Penny Stocks To Buy [or avoid]: Precipio Inc.
Similar to PLM, Precipio Inc. (PRPO Stock Report) shares have been very volatile this year. This year we started following PRPO stock at the end of July. The company entered into an agreement with ADS Biotec to distribute its FDA-authorized COVID-19 serology antibody tests, which also received Emergency Use Authorization. Distribution of the product will take place in the US as well as in other markets worldwide, according to the company. That news triggered a spike in PRPO stock. It rallied from around $1.40 to highs of $8. It soon came “back to earth” over the last few weeks. Some not-so-interesting earnings results didn’t help either.
Over the last few weeks, however, the company has reported some key developments. Namely, Precipio signed an exclusive global distribution agreement with ADS Biotec for the sale and distribution of its proprietary IV-Cell cytogenetics cell-culturing media. Both companies have developed a go-to-market strategy that they said would be launched this month. Following this news, on Friday, the company updated shareholders with new information on its COVID-19 progress and action plan.
Next week, Precipio hosts a shareholder call to address questions related to the company’s COVID-19 strategy. Some clarity seems to have been needed as the news flow has been a bit sporadic from the company in July and August with regard to its product roll-out. So if PRPO stock is on your list, mark down September 9th for the date of this call.