Are These Top Penny Stocks One Your Watch List This Week?
If you are new to investing in the market, maybe penny stocks have gone over your head. A penny stock is any equity that is trading below $5 according to the SEC. If your portfolio is on the smaller side, trading penny stocks might be your best bet. Penny stocks can bring in a large profit in a short amount of time as opposed to large-cap stocks. It’s important to remember that not all penny stocks will outperform. In fact, many will come back down in price just as quickly as they rose. That is why it is important to know what you’re doing before you invest or place a trade.
Penny stocks have grown in popularity in 2020. This is due to many newcomers to investing caused by the financial hardships in the world. The interest for penny stocks in the market, in general, has gone up exponentially. This type of investment allows people to enter the market at a lower cost than your traditional blue chip stocks. One of the key points of focus for traders especially is volume.
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When you’re looking for some of the top penny stocks to buy, how much trading action it experiences is important. The reason for this has everything to do with liquidity and the ability to enter and exit a trade easily. For this reason, most traders will look for high volume penny stocks to add to their watchlist. With that being said, let’s take a look at 5 penny stocks that have been increasing in share price in 2020.
Top Penny Stocks To Watch: Renren Inc.
The first penny stock to watch on this list is Renren Inc. (RENN Stock Report). The company sells used cars and related items in China. Renren additionally arranges financing for its customers through financial services partners. At its showrooms, it offers Audi, BMW, Mercedes, Land Rover, and Porsche cars. However, at the end of August, its Kaixin Auto subsidiary exited the used-car dealership business. That came after experiencing a severe impact from the coronavirus pandemic. So, something else to look at is what could be a driving force of its current business model. In the last week, RENN stock price is up 33%.
The company’s other subsidiary, Chime, is a real estate technology company. It has built out customer relationship, content, and marketing management systems for its clients. Chime has also built a strategic partnership with Dippidi, a done-for-you content marketing and social media ad agency. With an obvious focus on tech stocks and internet stocks, in general, will this shift in focus help Renren weather the storm following Kaixin’s industry exit?
Needless to say, the company is not yet profitable. To see how the company is advancing, analysts will generally look at revenue growth. Companies are expected to grow in revenue each year if performing well. In the last 5 years, Renren has had a revenue increase of 52% per year. As of the closing bell on September 18th, RENN stock sits at $2.93 a share. We can also see on the RENN stock chart that volume has clearly increased over the last month. It will be interesting to see if future financial reports will impact RENN stock price when rolled out.
Top Penny Stocks To Watch: Adamis Pharmaceuticals Corporation
Next on this list of penny stocks is Adamis Pharmaceuticals Corporation (ADMP Stock Report). This is a biopharmaceutical company that develops and commercializes products for the therapeutic sectors of allergy and respiratory disease in the United States. On September 18th, the company announced the pricing of a public offering. Adamis stated its public offering will be 16,129,032 shares of its common stock at $0.62 per share. This will result in gross proceeds of about $10,000,000.
The company intends to use these net proceeds from the offering for general corporate purposes. This includes things like research, development, and clinical trials. This offer is expected to close on September 22, 2020. Obviously, with the previous closing price higher than the offering price, investors didn’t react favorably to this news at first. ADMP stock dropped hard during Friday’s morning session.
However, by the end of the day, shares caught a nice surge and ended up reclaiming about 15% of the initial breakdown. Currently, ADMP stock price is around $0.72 as of Friday’s closing bell. It will be interesting to see how the market reacts after the closing of this offering is announced. One of the key factors that have become a focal point of the company is its potential approval and commercial launch of ZIMHI [the company’s opioid overdose treatment]. In a press release earlier this year, the company said it’s aiming to achieve this before year-end.
Top Penny Stocks To Watch: Marathon Oil Corporation
Next on this list of penny stocks is Marathon Oil Corporation (MRO Stock Report). This company is an independent exploration and production company. Based in the United States and Equatorial Guinea, the company explores, produces, and markets crude oil, condensate, natural gas liquids, and natural gas. On September 16th it was announced that Marathon Oil has commenced a tender offer for up to $500,000,000 of its 2.800% senior notes due 2022.
In addition to this, energy stocks have been increasing in share price recently. Oil prices jumped after data showed a dip in supply. In addition to this, Hurricane Sally reduced production. This caused Marathon Oil to hike up more than 6%. Before this news, MRO stock price was at $4.60 a share on average. Now, MRO stock has managed to finish out the week at $4.80 as of the close on September 18th. This extended a 3-day move for the oil and gas penny stock. It also saw one of its highest volume days since June, last Friday.
Something to note, however, is that MRO has fluctuated rapidly with shifting sentiment in the oil and gas sector. If MRO is on your list of penny stocks, pay attention to what’s happening this week with any new industry data we get.
Top Penny Stocks To Watch: Centennial Resource Development Inc.
Centennial Resource Development Inc. (CDEV Stock Report) is another oil and natural gas penny stock to watch. It develops unconventional oil and associated liquids on rich natural gas reserves in the United States. Its primary asset is on the Delaware Basin, which is a sub-basin of the Permian Basin. The company leases or has acquired at least 78,195 net acres to date.
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On August 3rd, the company released its second-quarter financial results. Its net income was $5.3 million compared to $17.9 million year-over-year. The CEO of the company, Sean R. Smith stated, “The second quarter was the most challenging crude oil price environment in recent history.”
However, CDEV stock just jumped 15%, due to rising oil prices. Still, in 2020, this penny stock is 85% lower than when it started the year off. Smith added, “We made the prudent decision to voluntarily shut-in a portion of our production during May. Notably, we experienced virtually no artificial lift failures or additional workover expenses associated with returning volumes to pre-shut-in levels.”
This is why CDEV stock is so heavily down in 2020 but has caught a moment to breathe (for now). On September 14th, CDEV stock price was at $0.51 share on average and by the close on September 18th, CDEV stock reached $0.7401. Similar to MRO, Centennial has traded alongside the sector itself. So if it’s on your list this week, it’s not a bad idea to keep track of the broad sector news as well.
Top Penny Stocks To Watch: AcelRx Pharmaceuticals Inc.
AcelRx Pharmaceuticals Inc. (ACRX Stock Report) was another one of the high volume penny stocks to watch recently. Shares of ACRX stock broke above its 200 Day Moving Average and actually closed at that level for the first time in over a year. Looking back at the penny stock’s chart, you can clearly see that the 200DMA has remained a resistance point for ACRX. Needless to say, a surge in bullish volume took shares back above $1.60 for the first time since May.
Last week, the company announced that the U.S. military’s access to DSUVIA has been expanded. It was added to the Department of Defense’s Joint Deployment Formulary (JDF). The JDF is a core list of pharmaceutical products that are designated for deploying military units across all service branches. The drug is indicated for use in adults in certified medically supervised healthcare settings for the management of acute pain severe enough to require an opioid analgesic.
From then on, ACRX stock was on the move. Since the start of the week and through Friday’s closing bell, shares rallied by as much as 47%. Following Friday’s volume surge and major technical move, will ACRX continue this bullishness heading into the new week?