Are These On Your List Of Penny Stocks Right Now?
Whether you’re looking for short-term penny stocks to buy or you’re interested in penny stocks to invest in, you’ve got plenty of options. One of the quickest ways to identify popular penny stocks is by tracking volume. I don’t mean just finding the highest volume names. But more so, penny stocks that’ve experienced irregular levels of trading activity. If you look at the stock market today, market activity has become one of the clearest ways to gauge interest.
Why do I say to find “irregular volume” instead of just high volume penny stocks? Generally speaking, you can have stocks under $5 trading tens of millions of shares per day. That might be the average trading volume for a particular stock. But if you find certain penny stocks that don’t normally trade like that, it could be a sign of a recent catalyst. Think of volume like a pre-alert system.
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We’ve seen this mostly with premarket momentum. Leading gappers or stocks that are trading higher “today” during the premarket session than they were “yesterday” are considering gappers. More times than not, there’s an underlying catalyst triggering such momentum. It might be a big news release or it could be upcoming results triggering bullish speculation. In either case and more, the volume is the first sign that “something’s” going on. When you’re making a list of penny stocks, it might not be a bad idea to start with high volume penny stocks experiencing unusual levels of activity. With this in mind, are the following on your list of penny stocks to buy or avoid right now?
Penny Stocks To Buy [or avoid]: China Xiangtai Food Co., Ltd.
China Xiangtai Food Co., Ltd. (PLIN Stock Report) was riding high before the opening bell on Wednesday. It’s no secret that PLIN stock has been in a year-long downtrend and recently hit new 52-week lows. However, with a lower float and strong premarket news, PLIN shares have begun trading higher (so far). It’s important to note that this penny stock is no stranger to big, one-day moves. So, before I get into the finer details, keep this in mind if PLIN stock is on your list today.
This morning China Xiangtai Food announced that its subsidiary, Chongqing Ji Mao Cang Feed Co., Ltd. completed a multi-million dollar sale. Specifically, the company confirmed a $7.2 million sale of soybean meal over 3 months. This came after purchasing an aggregate of approximately 18,000 tons of supply from China Grain Reserve Corporation’s Zhenjiang Branch Office.
“Looking ahead, we will continue to leverage JMC’s expertise in animal feed raw material and formula solutions and PLIN’s commercial strength to expand into the southwest China market and create value for our shareholders,” said Zeshu Dai, Chairwoman and Chief Executive Officer. The big question now is will PLIN stock manage to firm up a true uptrend or was premarket momentum the last of the bullishness in the stock market today? This could be one of the penny stocks on the “avoid” list if it sticks with the same 1-day trend it’s followed this year.
Penny Stocks To Buy [or avoid]: Inuvo Inc.
Inuvo, Inc. (INUV Stock Report) is one of the penny stocks we talked about over the weekend. It’s a data-driven tech company with a focus on developing its main product, IntentKey. This is the company’s programmatic media tech powered by patented AI-generated audience data. IntentKey identifies the earliest signals of consumer intent and is used mainly in marketing settings.
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One of the hot button items for Inuvo has actually been COVID-19. Earlier this year, the company found that its IntentKey clients and prospects were searching for a solution to help them better understand and adapt to the impact of Covid-19 on their businesses.
Specifically, we said that INUV stock could be one to watch ahead of the Snowflake IPO (SNOW Stock Report). Since cloud computing and numerous tech stocks were reacting in sympathy, so far it looks like INUV stock has followed suit. Since the start of the week, shares have climbed from around $0.40 to highs of $0.46 so far. This week the company presents at the Lake Street BIG4 Conference on Thursday. Inuvo management is scheduled to meet with investors with one-on-one and group meetings to be held throughout the day.
Penny Stocks To Buy [or avoid]: Kopin Corp.
Kopin Corp. (KOPN Stock Report) was another one of the gapping penny stocks to watch on Wednesday. Shares jumped from a previous close of $1.38 to premarket highs of $1.80. In general, KOPN stock has seen a strong uptrend this year. Since the start of 2020, shares have jumped from around $0.40 to highs of $2.16 in August.
We discussed this penny stock back in May when Kopin gave a business update. First quarter revenue increased 42% with its defense product revenues jumping 144%. What does Kopin do? The company develops high-resolution micro displays and has continued its progress throughout the year. Back in August, the company reported its Q2 earnings. Highlights included Q2 product revenues jumping 50% year-over-year. It also saw a decline in R&D and SG&A expenses during the period to the tune of 41%.
This week, KOPN stock surged one again after its latest milestone. The company announced it has received an approximately $22.9 million order from Leonardo DRS, Inc. This is for its eyepiece assembly which is included in the Family of Weapon Sight-Individual (FWS-I) weapon sight. This is a clip-on thermal weapon sight. It gives users the ability to acquire targets day or night and in smoke or fog, significantly increasing survivability and lethality margins on the battlefield.
According to the company, this follow-on order has Kopin providing DRS with FWS-I eyepiece assemblies through 2021 as the program ramps up to full-scale production. Will Wednesday’s momentum trigger the next leg in KOPN’s 2020 uptrend.
Penny Stocks To Buy [or avoid]: Avinger Inc.
Avinger Inc. (AVGR Stock Report) is another one of the penny stocks to watch this week. The penny stock had been stuck in a sideways trend for a few weeks. Last week, AVGR stock had a flash of trading momentum after announcing receipt of FDA clearance of its catheter-based system, Ocelaris. It’s now marketed under TIGEREYE.
“Our Ocelot catheters have helped physicians cross thousands of CTOs since introduction of the product line in 2013. TIGEREYE brings compelling new features and benefits to expand upon this platform to help physicians safely cross challenging CTOs. We anticipate initiating a limited launch of TIGEREYE in the U.S. in the fourth quarter of this year.”Jeff Soinski , Avinger’s President and CEO
Shares of AVGR popped then dropped on Friday. What might have triggered some of the sell-off were insider trades reported in a few FORM 4s showing selling by the CEO, CFO, and CTO. Now, it wasn’t hundreds of thousands of shares. However, it was insiders selling all the same, which, as we know, isn’t the best for sentiment in a stock. This week, however, has been all about recovery by the look of it. Since Monday, AVGR stock has managed to climb 11% so far. Volume has picked up a bit so the bigger focus now, in my opinion, will be whether or not this week’s uptrend can remain intact.