Are These Premarket Penny Stocks On Your List Today?
When looking for penny stocks to add to your watch list, what are some of the criteria you require? Some traders might focus on penny stocks with news. Others may look for simple momentum trends. There’s no right or wrong answer to this question as long as you’ve got a plan in place when it comes time to trade. Today we’re going to discuss premarket hours. This can be an exciting time in the stock market and one where you’ll see a lot of big swings from certain small cap stocks.
However, unless you’re planning on just trading before the market opens, there are a few things to keep in mind. First, what you see during premarket might not be what you get when the market actually opens. We see things like “gap up” and “gap down” trends. This is where certain penny stocks might trade much higher than their previous close (gap up) or much lower than the previous close (gap down). However, just because penny stocks are gapping up or gapping down, it doesn’t mean that will become the defined trend at the opening bell.
You’ve got to take the psychology of trading into consideration. This gap up is a huge opportunity for previous holders to cash in on their investment. If they were able to buy a penny stock for $0.50 a share “yesterday” and “today” it’s trading at $1.50, who wouldn’t be enticed to take a 200% profit? Once the sell-off ensues, the earlier bull trend usually doesn’t persist much longer.
Not all penny stocks that gap up will breakdown, however. Many actually “gap and go” meaning they continue running much higher at the opening bell. There’s plenty of technical and fundamental analysis that goes into deciding whether or not to buy penny stocks like these. With this in mind, are any of these names at the top of your list today?
Penny Stocks To Watch: GT Biopharma Inc.
Shares of GT Biopharma Inc. (GTBP Stock Report) have been on the move for the last few weeks. The company’s immune therapy pipeline has been lauded for its novel approach to addressing multiple indications. GT’s TriKE™ has been evaluated in ovarian, breast, prostate, pancreatic ductal adenocarcinoma, and lung cancer models. According to the company, it also demonstrated a significant reduction in tumor burden in animal models. It also boosted overall survival in animal models of solid tumor cancers.
Most recently, GT Biopharma inked a deal with Cytovance® Biologics. This is a USA-based contract development and manufacturing organization and a subsidiary of the Shenzhen Hepalink Pharmaceutical Group Co., Ltd. Through this deal, Cytovance will manufacture TriKE™ using Cytovance’s proprietary Keystone® bacterial or mammalian expression systems.
Matt Delaney, MBA, M.I.B., Vice President Business Development & Marketing of Cytovance said “We are pleased to have been selected as GT Biopharma’s exclusive GMP manufacturer for its first three TriKE™ product candidates.” Mr. Delaney also stated, “we believe our proprietary Keystone® bacterial or mammalian expression systems will deliver high production yields of TriKE™ further enhancing economies of scale.”
TriKE™ is also the platform that GT Biopharma’s lead candidate, GTB-3550 is based on. The company recently reported favorable dose response in the Dose Level 3 in its GTB-3550 TriKE™ Phase I/II clinical trial. GTB-3550 is being evaluated in acute myeloid leukemia patients. For More Information On These Results Click Here
Penny Stocks To Watch: FuelCell Energy
Shares of FuelCell Energy (FCEL Stock Report) have had a hard time gaining traction this year. The penny stock began the year at $2.77 and is currently trading right around that level during premarket hours on Monday morning. Despite this case, a lot has happened in the stock market with respect to FCEL stock. It reached highs of $3.50 and lows of $1 during the last 9 and a half months.
The recent sentiment in the market for fuel cell stocks, however, has been relatively bullish. You can also see this reflected in the trend in FCEL shares this month. Since the start of the month, the energy penny stock has climbed by 27% as of Monday’s premarket high of $2.78. Furthermore, this move has more than just sector strength behind it.
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Last week the company announced that it secured a contract worth $8 million with the US Department of Energy. “This project represents a key step in FuelCell Energy’s path to commercialize its high-efficiency solid oxide electrolysis technology. The multi-stack module that forms the core of the system is a modular building block easily scalable for larger systems,” the company said in its press release.
So with a bit of renewed bullishness, will FCEL stock stay the course this week or is another pullback in store?
Penny Stocks To Watch: Lizhi Inc.
One of the bigger gappers this morning is Lizhi Inc. (LIZI Stock Report). The company is an online, user-generated audio community, and entertainment platform in China. Shares have already climbed from Friday’s $2.65 close to pre market highs of $4.88. This 84% move was accompanied by some corporate headlines as well.
The company announced that it has been selected into the first 10 Guangdong-based online audiovisual companies to participate in a local government-backed pilot program. This program stands out companies that “spearhead the innovation in products, services and business models through the development, promotion and application of cutting-edge technology,” according to the company.
LIZI stock is generally a thinly traded one. It’s biggest share volume day was in January when it traded just over 3.6 million shares. During Monday’s premarket, the penny stock has already seen more than 8.5 million shares exchange hands. Considering this large move, will LIZI stock be one that continues higher or is a sell-off in store at the opening bell?
Penny Stocks To Watch: Medley Management Inc.
Medley Management Inc. (MDLY Stock Report) is a big mover during premarket hours on Monday. The penny stock finished out the week last week at $0.60. The premarket session on Monday saw MDLY stock surpass. $2.30 in early trade. While there weren’t any headlines on October 12th, there was late-breaking news on Friday evening that seems to have become a source of excitement.
Medley Management Inc. is the parent company of Medley LLC. The company has $3.6 billion of assets under management in two business development companies. These include Medley Capital Corporation (MCC Stock Report) and Sierra Income Corporation. Medley lends to privately-held middle market companies, primarily through directly originated transactions. The news that came out on Friday was that Medley Capital sold a loan portfolio for proceeds of $41 million.
“We believe this is a significant transaction for MCC as it improves MCC’s liquidity and materially strengthens its balance sheet,” said David Lorber , Chair of the MCC Special Committee. He added, “The transaction better positions MCC to meet its other debt repayment obligations.”
The biggest thing to consider right now is that MDLY stock has climbed more than 250% seemingly “overnight”. Weighing risk/reward, do you think the penny stocks can head higher or is a sell-off in order at the open? It’s worth noting that prior to the March sell-off, MDLY stock consistently traded around $3.