Are These Penny Stocks A Buy Or Sell Next Week?
What is the first thing that comes to mind when you think of penny stocks? Some investors see them as silly, volatile investments that are not worth their time. But that is where those investors could be completely wrong. Penny stocks are volatile, so that part is true. But there are plenty of ways to make money with penny stocks. For one, you should always consider the volume of a penny stock in combination with its stock price and recent charts.
If one of these cheap stocks is rising, but the volume is low, it could be about to drop in price. You should always keep up with the news for a company that you are looking to invest in as well. Penny stocks can gain 50% or more in a single day, but at the same time, the losses can look similar.
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So not every one of these stocks under $5 should be taken how they look; essentially, don’t judge a book by its cover. With many penny stocks reaching new record highs every day, investors looking to enter the market at a low cost will be attracted to this type of asset. So let’s take a look at four stocks that are showing good signs of positive momentum in the market. Will they be the best penny stocks to buy next week or will sellers take over?
Top Penny Stocks To Buy [or sell] In October: Akebia Therapeutics Inc.
First up on this list of penny stocks to watch is Akebia Therapeutics Inc. (AKBA Stock Report). The company that develops and commercializes renal therapeutics for patients who have kidney diseases. One of its lead products is Auryxia, which is a ferric citrate, controls the serum phosphorus levels in adult patients that have chronic kidney disease.
The main focus right now is on Akebia’s vadadustat. It missed its safety endpoint in its PRO2TECT phase 3 program earlier this year, which was cause for concern. As a result, this is when the bulk of AKBA stock’s drop occurred. However, since then shares have steadily climbed. During late-September and, now, most of October, the penny stock has put in higher highs nearly every day for the last 32 and a half weeks. Surely the momentum must have stemmed from something.
As we know, this coming week the company is set to present late-stage vadadustat data at the American Society of Nephrology Kidney Week 2020 Reimagined. The dates of the event are next week between October 22nd and 25th. The presentation, titled “Global Phase 3 Clinical Trials of Vadadustat vs Darbepoetin Alfa for Treatment of Anemia in Patients with Non–Dialysis-Dependent Chronic Kidney Disease” (Abstract FR-OR54), is scheduled for Friday, October 23 between 10:30 a.m. ET – 12:30 p.m. ET.
With this upcoming presentation and pent up momentum, will the trend continue next week for AKBA stock?
Top Penny Stocks To Buy [or sell] In October: MannKind Corporation
Next up on this list of penny stocks is MannKind Corporation (MNKD Stock Report). The biopharmaceutical company develops and commercializes inhaled therapeutic products. These products are used to treat patients with diabetes and pulmonary arterial hypertension issues. It offers a product called Afrezza which is an inhaled insulin for improving glycemic control in adults with diabetes. So what has this company been up to in recent news?
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MannKind Corporation presented at multiple conferences in September, including the H.C. Wainwright 22nd Annual Global Investment Conference, 2020 Cantor Global Virtual Healthcare Conference, and the Oppenheimer Fall Healthcare Life Sciences & MedTech Summit. In addition to this, back in August the company reported its second quarter results. It was announced here that the company brought in $15.1 million in revenue for the quarter. This was a 15% increase in net revenue for MannKind. Its gross profit was also $3.3 million, higher than the $1.7 million the previous year; a 94% increase.
Michael Castagna, the CEO of the company said, “I am proud of how our employees pulled together during these uncertain times and innovated as a team to minimize the impact of the COVID-19 pandemic on our business during the second quarter.”
It seems like MannKind has been able to perform well throughout 2020. This is reflected in MNKD stock price, which is up about 100%, since the beginning of the second quarter.
Top Penny Stocks To Buy [or sell] In October: Aemetis Inc.
Aemetis Inc. (AMTX Stock Report) primarily focuses on acquiring, developing, and commercializing various different technologies to replace normal petroleum-based products. This is done through a process of converting ethanol and biodiesel plants into advanced biorefineries. It actively owns and operates an ethanol facility in California, and a chemical and fuel production facility in India to sell biodiesel and refined glycerin to transport companies and distributors.
Just a month ago, Aemetis closed a $35.5 million phase I EB-5 program. CEO Eric McAfee said, “The Aemetis plant EB-5 project is an excellent example of sound immigration policy that generated $35.5 million of new investment to create high-quality manufacturing jobs in the Central Valley of California.”
In September, Aemetis received FDA national drug code for OTC sanitizer products as well. The pandemic has obviously boosted the market for sanitizing products, so this was good news as well. The company is the only large-scale producer of high-grade sanitizer in the western US according to McAfee. Despite the generally volatile day-to-day trading in AMTX stock, the overall trend has been incredibly bullish. Since the beginning of Q2, AMTX stock price is up 615%.
Top Penny Stocks To Buy [or sell] In October: Gerdau S.A.
Gerdau S.A. (GGB Stock Report) is another one of the penny stocks under $4.20 experiencing a strong uptrend this year. Gerdau is a basic materials company that provides steel products and services in the United States and Canada. The company also operates out of Brazil. Gerdau offers semi finished products such as billets, blooms, and slabs. It also produces long rolled products like wire rods, rebars, and more. This also includes fence wires, fences, and concrete reinforcing wire mesh.
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Gerdau announced back in August that it will be raising its steel prices 8% despite the economic crisis caused by the pandemic. Long steels would be increased by up to 10% and by 11% again in September. After the company has continuously shown signs of recovery, its shares have been rising. It reported $59.36 million of net income in its second quarter, which was down 15%, but better than analysts predicted.
With fiscal stimulus talks still in tow, basic materials stocks remain a focus. The constant back and forth between the two U.S. parties hasn’t been kind to the market as far as volatility is concerned. However, if you look at the GGB stock price, you might not think that is the case. Since the start of Q2, GGB shares are up 119% to date.
Top Penny Stocks To Buy [or sell] In October: Hexo Corp.
What list of penny stocks to buy for under $4.20 would be complete without at least one pot stock. Hexo Corp. (HEXO Stock Report) believe it or not has seemingly weathered the cannabis storm better than some of its cohorts. Companies like Aurora Cannabis (ACB Stock Report), Aphria Inc. (APHA Stock Report), Cronos Group (CRON Stock Report), and even Canopy Growth (CGC Stock Report) all experienced aggressive selling this week. As far as HEXO stock was concerned, the pot penny stock is relatively flat for the week. Shares opened around $0.77 on Monday and closed Friday’s session just shy of $0.75.
There haven’t been many updates from Hexo to speak of outside of its latest CFO appointment. Last week, the company announced that Trent MacDonald would become acting CFO. He’s served in similar roles at other publicly traded companies in the past.
While it wasn’t a groundbreaking development, the obvious bigger picture focuses on the U.S. Presidential election. Comments made in the last Vice Presidential debate shined a bright and positive light on the potential future of cannabis in the U.S. Despite the sector fade at the end of the week, will stimulus talks over the weekend help re-spark that momentum we saw last week?