Looking For Penny Stocks To Buy Before October 2020?
We’re back on the hunt for penny stocks right now. The countdown has begun with the clock ticking to the end of the month and the quarter, this week. With that, it’s also good to know that penny stocks are red hot after last week’s big breakouts from energy stocks early last week. That seems to have woken up the entire small-cap space and now traders are thirsty for more. What this week brings is yet to be seen. However, we can gather some clues from some of the late-week action that some penny stocks experienced.
As we bid September adieu, I think it’s important to put a broader focus on sector momentum. We saw over the last few weeks how even a major sell-off in indexes like the S&P and NASDAQ still have their pockets of bullishness. So, from a bigger picture, what might be some of the micro-sectors to keep on the radar?
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Well, obviously, last week indicated that EV penny stocks and even hydrogen stocks are gaining positive ground. We also can’t forget about some of the “pockets” in biotech. Cancer stocks and, of course, coronavirus vaccine stocks remain a hot item among traders.
Penny Stocks To Watch This Week
When it comes to the former, immuno-oncology stocks have gotten a breath of fresh air following key developments by some of the leaders in the space. First, Gilead’s $21 Billion takeover of Immunomedics brought cancer treatment stocks into the limelight this month. They’ve taken a backseat to COVID stocks for most of the year. But big deals like that, as well as Bristol Myers Squibb and bluebird bio’s recently gaining FDA priority review for a CAR T cell therapy have helped bring back some attention to other top biotech penny stocks.
Then you’ve got the latter, EV penny stocks, Energy technology, and alternative energy penny stocks have become a focus in the stock market. What initially stemmed from Tesla’s Battery Day as a signal for investors has now evolved. We’re not just seeing EV makers gaining traction but anything and everything related to them. From the “pick and shovel” type companies, down to the raw material providers, there’s plenty of moving parts to consider.
Then you’ve got different pockets in tech to think about. While there’s been a bit of a rotation out of “Big Tech,” there are still smaller companies putting forth an initiative to benefit from the current state of the COVID economy. Online education, online entertainment, and more have begun to gain some interest from investors.
Can You Make Money In Penny Stocks?
This, of course, begs the question above: Can you make money in penny stocks? The short answer to that is “Yes you can make money in penny stocks.” But it doesn’t have to be done with the same mindset as playing roulette. As many have noticed, there’s a whole new breed of traders buying penny stocks on Robinhood, Webull, and other popular online/mobile brokerage apps. With that comes a quest for knowledge.
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This isn’t just about finding top penny stocks to buy. Rather, it’s about how to continuously profit by trading. The SPI and KODK breakouts are great, don’t get me wrong. But when you look at penny stocks, the instance of 50% moves or higher in a short period of time is a regular occurrence. Basically what I mean is, experienced traders, seek consistency. The singles, doubles, and triples are there every day.
Then when you actually do come across that grand slam homerun like SPI or KODK, it just becomes the cherry on a sundae. So a disciplined strategy and proven system for consistent profitability in the stock market helps a lot.
Different Ways To Trade Penny Stocks
Understand the basics of penny stocks and don’t forget to take profits. Again, those home runs are great but holding out on selling because “it might go higher” isn’t a strategy. One of the top ways to stay in winning trades longer and cut out of losing trades quicker is accomplished by a tiered trading strategy.
I won’t get into the full details of this but the basics are simple. Breaking up your full trade into pieces, buying and selling as the price increases, and holding a small core allows you to benefit from big moves. On the flip side, if your initial buy is 25% of the full position you planned on buying, but the trade fails, then you didn’t blow your whole trade. – For more information on the tiered trading strategy, click here.
However, there are plenty of other ways to buy penny stocks. At the end of the day, your strategy is what you make of it. As long as you can duplicate the trading style and be successful, that’s the point of it all. Luck shouldn’t be something you rely on at all. In any case, let’s get to this list of penny stocks to watch this week and see how everything unfolds, come Monday’s opening bell.
Penny Stocks To Buy [or avoid] #1: Axovant Gene Therapies Ltd (NASDAQ:AXGT)
Axovant Gene Therapies Ltd (NASDAQ: AXGT Stock Report) just began breaking away from its 5-month sideways trend during the last few weeks. AXGT stock pulled a “v-shaped” recovery after dropping in late-March. However, the bounce only took the penny stock so far. For the most part, the penny stock has been stuck in a sideways channel between $2.90 and $3.65 for months. There’ve been a few jumps higher and a few dips lower. However, on average, this 25% range has been in play for some time now. Earlier this month, AXGT stock ended up breaking above the upper range and has firmly established itself there ever since.
Last week, Axovant’s stock price hit a high of $4.97; a price not seen since January. Furthermore, since September 15th, its market has continued seeing daily volume well-above its previous average over the last 5 months. That followed a corporate update that paired the clinical-stage gene therapy company in a strategic partnership with Viralgen, a Contract Development and Manufacturing Organization (CDMO).
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Under the terms of the partnership, Axovant will have access to manufacturing resources for Axovant’s AAV-based gene therapy programs, AXO-AAV-GM1 for GM1 gangliosidosis and AXO-AAV-GM2 for GM2 gangliosidosis (also known as Tay-Sachs/Sandhoff disease) with sufficient capacity to support ongoing development and eventual commercialization. The goal is to advance the AAV programs where data from the ongoing Phase 1/2 clinical study of AXO-AAV-GM1 is expected in Q4 2020. Axovant also anticipates IND clearance of the AXO-AAV-GM2 IND application before year end.
Penny Stocks To Buy [or avoid] #2: Lightbridge (NASDAQ:LTBR)
Lightbridge (NASDAQ: LTBR Stock Report) experienced a strong day of trading on Friday. In fact, LTBR stock trade its highest single-day share volume of the year. Considering the focus on alternative fuels, it isn’t all that surprising that Lightbridge has gained a bit of attention recently.
However, the obvious spike in trading volume could be a focus for traders right now. Lightbridge is a nuclear fuel technology development company developing Lightbridge Fuel™. This proprietary nuclear fuel technology focuses on preventing climate change and enhancing national security.
While there haven’t been many new updates recently, I think we can see that sector momentum has helped. Late last week, a surge of activity was seen in stocks including LTBR, POLA and others following the “wake up call” from SPI. A few weeks ago, CEO Seth Grae explained how the ongoing global race for nuclear technology innovation has positioned Lightbridge Fuel™ on the Atlantic Council’s EnergySource Innovation Stream. While not much excitement stemmed from that, Friday’s action certainly has shown a massive spike in activity. Will that continue into the week ahead?
Penny Stocks To Buy [or avoid] #3: China Recycling Energy Corporation (NASDAQ:CREG)
China Recycling Energy Corporation (NASDAQ: CREG Stock Report) is another one of the penny stocks that lit up the small-cap market on Friday. In fact, CREG stock traded is second-highest, single-day share volume of the year on September 25th. Just by the look of the name, can you guess which sector the company is in?
The company is an industrial waste-to-energy solution provider in China. Specifically, the company recycles industrial byproducts for steel mills, cement factories, and coke plants in China. These byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources.
The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Aside from the focus on energy penny stocks, CREG may have gained attention as it has participated in industry conferences this month.
Most recently, China Recycling participated at the 2020 China International Energy Storage Conference in Shenzhen China from September 24th to 26th, 2020. Whether or not the focus remains on energy this week is yet to be seen. However, last week’s surge has received attention from traders over the weekend. Will it be on the list of penny stocks to buy or avoid Monday morning?