Are These Penny Stocks Under $4 On Your List Heading Into The End Of The Month?
Whether you buy penny stocks on Robinhood, Webull, TD Ameritrade, Etrade, or others, the goal is simple: make money. That’s it. The goal isn’t to find stocks breaking out just to hold onto them forever & hold a bag after they’ve gone back down.
It isn’t to think that just because a post about penny stocks on Reddit has 4, 5, or 50 rocket ships, you shouldn’t take profit when it’s up over 100%. Also, your broker might dictate the types of penny stocks to buy. For instance, if you’ve got a TD account, you’re able to trade all penny stocks. Robinhood and Webull, on the other hand, generally only allow access to NASDAQ or NYSE penny stocks.
Whichever the case, you’re here to make money with penny stocks. The whole idea behind these cheap shares is that there’s an ability to profit by investing small sums of money to leverage the volatility-factor for a quick score. So, if you’re new to penny stocks, don’t forget this.
Trading VS Investing In Penny Stocks
Even if a stock continues higher after you sell, you can always buy back if the trend is strong. On the other hand, you can take up a strategy to stay in winning trades longer while cutting out of losing trades quicker. One such strategy is called the tiered trading strategy. I won’t get into the full “ins and outs” of this approach. The basics, however, involved entering and exiting trades in stages. You might want to invest $1,000 in a particular stock.
In this case, the tiered approach would see you take an initial position equal to 25% of the overall size. If or when the trade starts working in your favor, you add to that position in tiers while also selling in tiers, as the penny stock moves higher. If the trade doesn’t work out, you only risk 25% of what you were going to invest thus saving a lot of money. There’s a whole second side to this strategy that involves the technical charting aspect. So if you’re interested in this type of approach you can get more information on tiered trading by clicking here.
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In any case, you’re probably doing your weekend DD on some penny stocks. With this in mind, let’s check out a few names that retail traders have begun discussing over the weekend.
Penny Stocks To Watch: Professional Diversity Network
Professional Diversity (NASDAQ: IPDN Stock Report) saw a strong surge of trading momentum on Friday. The penny stock reached highs of $1.40 and traded more than 2.9 million shares by the closing bell. What’s more, is that IPDN stock hit a 52-week low earlier in the day yet managed to aggressively bounce off of that level almost immediately.
There wasn’t any news of filings made. However, if you look at the intra-day chart, you’ll see that the majority of the volume came after 3 PM EST. The company has been wrapped into the eLearning niche of the tech sector recently. That’s because Professional Diversity develops and operates online and in-person networks for things like education and online network building. The company has further placed a focus on professional development for women, minorities, veterans, LGBT, and disabled persons globally
Earlier this month, Professional Diversity entered into a collaboration agreement with Chicago-based brand marketer Brittany Applegate. According to its September 4th PR, “PDN and Ms. Applegate’s collaboration will focus on enhancements to important messaging methodologies and brand materials to better communicate the Company’s offerings to its current and potential customers as well as job seekers.”
It would also appear that IPDN stock has moved in sympathy with other stocks we’ve discussed this weekend including UONE, BYFC, and CARV, which all saw a similar trend around the same time Friday afternoon.
Penny Stocks To Watch: Amarin Corporation plc
Amarin Corporation plc (NASDAQ: AMRN Stock Report) is another one of the penny stocks hitting 52-week lows on Friday. Shares ended up first gracing the stage of stocks under $5 back in March. This came following news that the Nevada court ruled that Amarin’s patents for heart treatment drug Vascepa were invalid.
What that means is generic drug companies can now create generic versions of the drug for the same purposes without having to work around such patents. Considering the drug accounted for a majority of the company’s revenue, this was a big blow to AMRN stock. Needless to say, following the drop, AMRN managed to climb back out of penny stock territory reaching highs of $8.46 and recently trading around $7 at the start of September.
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Once again, however, AMRN shares plummeted earlier this month. The drop came as judges were assigned in its appeal of the previous Nevada court ruling. Basically, it was found that one of the judges rarely reverses lower court decisions. Fast-forward to last week and shares hit a new low of $3.36.
There is still some bullish sentiment in light of the company’s recent update earlier this month. Furthermore, there are several biotech penny stocks gaining steam this month. Amarin said it anticipates that generics companies, when they launch in the US, are “likely to have limited supply capacity for VASCEPA.”
Amarin said that based on this assumption and given the need for greater awareness of VASCEPA by healthcare professionals and at-risk patients, the company intends to continue current promotion levels of VASCEPA in the United States.
Penny Stocks To Watch: AgEagle Aerial Systems, Inc.
AgEagle Aerial Systems, Inc. (NYSE: UAVS Stock Report) has been a very reactive penny stock to watch recently. It’s also worth noting that UAVS stock has climbed over 40% year-to-date. While shares saw a strong surge earlier this year, the recent attention has focused on moves made by other companies. UAVS stock has periodically responded in sympathy when headlines have emerged that relate to its model. AgEagle simply focuses on advancing drone technology.
This year, the company’s experienced strong speculation following developments of companies like Amazon setting up drone delivery. In fact, earlier this month AgEagle shares jumped when Walmart said it would begin pilot programs for drone delivery. Furthermore, late last week, Amazon unveiled the Ring Always Home Cam. It’s part of the Ring security suite and actually flies to pre-selected locations inside a home so you can easily check on your home.
Needless to say, Friday’s session was interesting for the penny stock. While UAVS reached a new September low on Thursday, shares promptly bounced back Friday afternoon. Furthermore, the after hours session was of particular note. UAVS stock closed the regular session at $2.29 but traded as high as $2.38 after the bell. While investor focus as been on coronavirus vaccine stocks recently, drone tech has gained ground.
The FAA has been granting approvals for drone operations. Amazon recently joined UPS and Alphabet-owned Wing, who previously won FAA approval for its drone delivery operations. It will be interesting to see how Friday’s momentum translates – if at all – into Monday’s opening session.
Penny Stocks To Watch: Boxlight Corporation
Boxlight Corporation (NASDAQ: BOXL Stock Report) has been trending sideways for the last two weeks. After dropping from highs of $4.65 in July, the penny stock has tried to find its footing. BOXL stock was one that hit watch lists earlier this summer amid a surge of attention on eLearning & EdTech penny stocks. With schools set to reopen virtually at first, related names in technology took flight; Boxlight was one of them. But as more details emerged, things cooled off over the last few months.
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However, recent news on a major acquisition by Boxlight has sparked some additional interest in the market. Late last week, the company announced a $94.9 million acquisition of Sahara Presentation Systems PLC. The company focuses on distributed and manufactured AV solutions. The deal has a cash a component of roughly $66,700,00 with the remained in preferred stock. Sahara’s widely lauded for its touchscreens and digital signage products.
Additional specifics came from management comments on the transaction. Michael Pope , Chairman and CEO at Boxlight added, “The Sahara acquisition expands our geographic reach – particularly in the EMEA region, provides significant revenue growth, results in immediate consolidated profitability, and adds tremendous global management talent…The combined companies are generating greater than USD 100 million in sales and are highly profitable. I look forward to reporting our consolidated financial statements in future quarters.”
BOXL stock surged during Friday’s session after the news broke.
