3 Penny Stocks Reversing Course At The Start Of October
Sometimes traders will look for penny stocks that have pulled back aggressively. They might also look for stocks at 52-week lows. What’s the reason for that? In many cases, investors look for opportunities to take advantage of reversal trends. While there are plenty of chart patterns to reference, sometimes looking for general support and resistance levels is the easiest route.
Today, we’ve seen several sectors reverse course. In turn, so have certain stocks. Different niches in technology, healthcare, and even retail are gaining ground at the start of October. Whether or not that continues is yet to be seen. We’re only 1 day into the month with plenty more time left before the election.
Headlines have already caused heavy volatility in the market. Do we have a stimulus deal? Do we not have a stimulus deal? Is there a coronavirus vaccine? Is it just wishful thinking? These are all very real questions being asked as headlines trigger a flip flop across the stock market today.
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Needless to say, there are pockets of the market that are relatively unencumbered by these broader headlines. One of these pockets is, ironically, penny stocks. Generally speaking, these cheap stocks tend to trade on their own accord. Case and point are the names on this list of penny stocks. While the markets are trading all over the board, today, these have established a clear trend. Will that continue for October?
Penny Stocks To Trade [or fade]: Microvision Inc.
Have you been a reader of PennyStocks.com for the last 9 months? If you have, then you’ve definitely read a few articles on Microvision (MVIS Stock Report). We first starting covering this company back in mid-April. MVIS stock traded around $0.25. The penny stock has rallied to levels not seen since 2015. The company is the creator of PicoP® scanning technology. It’s a mini laser sensing and projected display solution. Its technology has applications in light detection, augmented reality, and even interactive projection.
For the most part, speculation has played the biggest role with MVIS stock this year. Whether it was rumors or simple tech sector momentum, MVIS stock has moved with the market. With M&A heating up, some had speculated that MVIS could follow a similar trend. But so far, nothing has been solidified from what we can see.
After recovering from the August sell-off, MVIS stock has reset and is back in an uptrend. The biggest focus heading into October is the company’s last filed proxy statement. Specifically, shareholders are being urged to vote YES on increasing the company’s Authorized Share count. The supposed reason is to help with the company’s exploration of strategic alternatives including the sale of the company.
No matter the outcome, it’s important to note that Microvision has been shrouded in more mystery than anything. The narrative continues to be that the company is looking for alternatives to build value for shareholders. October 8th is the date of the special meeting to vote on this. Will October finally be the month the company turns things around or is this simply a “buy the rumor” lead up to next Thursday?
Penny Stocks To Trade [or fade]: Express Inc.
Express Inc. (EXPR Stock Report) just hit a new 52-week low on September 30. During the first day of October, EXPR stock pulled a quick reversal with its highest share volume day of the year. There haven’t been any new updates to point at thus far. The company is famous for its apparel and accessories business. EXPR stock hasn’t been able to breathe for months. In fact, from mid-June to this week, EXPR stock has closed green less than 25 times. On Thursday, the penny stock bounced back from its Wednesday lows, back to highs of $0.844 by the late afternoon session.
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There’s been a relatively high level of sympathy in favor of reopening stocks. Obviously, Express has been hurt by the economic shutdown. It also wasn’t able to successfully build on a similar brick and click strategy that other traditional, brick and mortar retailers benefited from. However, that doesn’t mean it wasn’t leveraging eCommerce to push the ball down the field this year.
In its Q2 earnings, Tim Baxter, Chief Executive Officer explained how the company has focused on cash preservation initiatives this year. Baxter said, “I am encouraged by the momentum in our eCommerce business, the strong response to our August fashion deliveries, and the increase in customer engagement with our brand messages. While mall traffic continues to be challenging, I would expect our results to improve as we move through the back half of the year.”
These levels are the lowest that EXPR stock has ever traded at. Will Q3 results and Q4 performance turn around before the end of the year?
Penny Stocks To Trade [or fade]: CBAK Energy Technology Inc.
CBAK Energy Technology Inc. (CBAT Stock Report) is another one of the penny stocks we’ve discussed for a while now. It first came to light back in June. At the time, this energy penny stock was trading around $0.80 and it had just begun seeing above-average trading volume. Fast-forward to the last few weeks and CBAT stock has been explosive.
We watched, in real-time, how huge this penny stock rallied. CBAT stock jump from under $1 to highs of $3.75 by Friday. In fact, shares reached a high $4.16 during premarket hours on Friday with some of its highest share volume of the year. If you’re unfamiliar with CBAK, let me give you a quick description. They manufacture lithium-ion batteries and electric energy solutions.
Elon Musk’s Tesla Battery Day helped spark excitement across lithium and battery stocks. Apparently, that hasn’t subsided at the beginning of October either. Most recently, CBAK made headlines that have triggered additional interest in the penny stock. The company announced that its product release of 32140 large-sized cylindrical tabless battery officially passed its technical and Pilot Plant tests. The company aims to achieve mass product delivery in the first half of 2021. Tabless batteries were also a big focus of Musk in his Battery Day presentation.
This morning an article came out on Barron’s – Why Lithium Could Be a New Risk for Tesla and Other Electric-Vehicle Makers – which has also brought interest to some lithium names. Specifically, the article said, “It would seem electric vehicles are taking over. And that has huge implications for a related industry: lithium mining and production.” In light of this, a bullish surge was seen today in related names including CBAK. It will be interesting to see if this trend continues throughout the month of October.
