Are These Small Cap Stocks On Your Radar Right Now?
You might be looking for penny stocks to buy right now because you read an article about how profitable they can be. But do you know what penny stocks are? With so many new traders in the stock market today, it’s important to have a lay of the land and a few basic definitions under your belt. first, what is the definition of a penny stock? The answer to that is simply: stocks under $5. The Securities and Exchange Commission deems it so and these high risk, low-priced stocks have a long history in the market.
What Is Market Cap?
Next, we want to discuss the basic market cap tiers. Essentially, the market cap or market value of a company isn’t as complicated as you might think. All it refers to is the total outstanding share count multiplied by the price per share. If a company has 100 million shares outstanding and a price per share of $1, its market cap is $100 million. Further to this idea, you’ve also got different tiers of market cap. When you’re talking about penny stocks, you’re likely going to encounter one of three defined tiers: small-, micro-, and nano-cap stocks. What’s The Difference Between Small Cap, Micro Cap, & Nano Cap Stocks?
What Are Small-Cap Stocks?
Remember, all “caps” have. to do with shares outstanding and price per share. What are small-cap stocks? These are companies that have a market capitalization between $300 million and $2 billion.
What Are Micro-Cap Stocks?
When it comes to this next tier, the same idea of “caps” holds true. What are micro-cap stocks? These are companies that have a market capitalization between $50 million and $300 million
What Are Nano-Cap Stocks?
Nano-cap stocks usually have a market cap that is less than $50 million. These are typically penny stocks that are either very low priced or have a very “low float”. In either case, nano-cap stocks can be even higher volatility than micro- or small cap stocks. So as you deal with different market cap stocks, understand that volatility can become a bigger factor to account for than just fundamentals or chart patterns.
Small-Cap Stocks To Watch
- MicroVision Inc. (MVIS Stock Report)
- TherapeuticsMD Inc. (TXMD Stock Report)
- Endo International plc (ENDP Stock Report)
For this list of penny stocks, we’re going to talk about small-caps. Are any of these on your radar this week?
Small-Cap Penny Stocks To Watch #1: MicroVision Inc.
Another rockstar among penny stocks has been MicroVision Inc. We first starting covering this company back in mid-April. Over the last month and a half, MVIS stock has mounted a recovery gaining back some of what it gave up in its early August drop. Prior to that, the penny stock was also maintaining a consistent uptrend during the second and third quarters.
While there aren’t many public news updates made by the company, there is definitely much speculation growing around its future. The company’s main point of focus is on sensor devices and displays including it. PicoP® scanning technology. It’s a mini laser sensing and projected display solution.
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The most recent being a proposed increase in the company’s authorized share count. Shareholders are being pushed to vote YES on increasing this figure with a goal of helping with exploring strategic alternatives including the sale of the company.
If you do a quick search on YouTube and navigate to the company’s page, you’ll see plenty of videos on its tech. This includes augmented reality technology, lidar for automotive applications, and even a concept for tabletop gaming. Given the latest M&A speculation, however, this has become a consistent topic of conversation among traders right now.
Small-Cap Penny Stocks To Watch #2: TherapeuticsMD Inc.
At this point, if you’ve read our articles for the last few weeks or months, you’ve likely stumbled upon TherapeuticsMD Inc. The penny stock has most recently held a strong uptrend for the last few weeks. Prior to this, TXMD stock was one to watch during most of the second quarter. The latest series of green days have stemmed from the company’s updates at the end of September.
First, TherapeuticsMD received approval for its BIJUVA® (estradiol and progesterone) capsules by Health Canada. The treatment is indicated in Canada for moderate to severe vasomotor symptoms associated with menopause in women. Following this, the company announced an update on its third-quarter progress.
TherapeuticsMD said that is on track to meet or exceed third quarter 2020 total net revenue consensus of $15.1 million. The company also said it was experiencing record retail and wholesale demand for its ANNOVERA product. On the heels of these updates, TXMD stock continues climbing into October. While it isn’t the crazy, 1-day spikes we’ve seen from some of the premarket movers, the penny stock has climbed over 30% since mid-September.
Small-Cap Penny Stocks To Watch #3: Endo International plc
Endo International plc has also recently seen an uptick in share prices heading into October. With a market cap of over $1 billion, it’s one of the bigger companies on this list of penny stocks. What’s more is that it’s one of the increasingly popular ESG stocks to watch. If you’re not familiar with what ESG stocks are, let me explain. ESG stocks is an acronym for companies focused on Environmental, Social and Governance. In fact, earlier this month, Endo announced the release of its first ESG report, titled 2019 Corporate Responsibility Report: Helping Everyone We Serve Live Their Best Life.
“Our ESG report showcases Endo’s commitment to deliver on our company vision—helping everyone we serve live their best life,” said Blaise Coleman, President and CEO of Endo. “One of our three strategic priorities is to be a force for good as this embodies our responsibility for maintaining a culture of compliance and ethics, working to make medicines more accessible to people who need them, and upholding our goal of promoting diversity, equity and inclusion in all we do.”
Endo is focusing on “life-enhancing” therapies including branded pharmaceuticals. What has investors looking at this company more recently is what was announced on Wednesday. The company said it will release its 3rd quarter results on November 5th after the close. This week ENDP stock managed to break through two previous levels of considerable resistance: the 50- and 200-day moving averages. In light of the recent uptick in volume, is this the beginning of a firm uptrend or just the top of a short-lived rally?