Does The Price Of These Penny Stocks Matter To These Analysts?
Whether you’re a day trader or looking for how to invest in penny stocks certain things are important to keep in mind. First and most important is the risk profile you have. Can you handle big swings in price or do you look for something more consistent? Depending on how comfortable you are with volatility will determine your initial strategy to trading. Something else to pay attention to is what’s happening in the stock market today. Obviously, we’ve got the U.S. Presidential elections to think about.
With that, we’ve seen plenty of spikes in the market across several sectors. A few of which include consumer stocks and energy stocks. We’ve also seen the start of another earnings season with varying reports from banks and tech companies. Regardless of the trends we’ve seen, these are topics to keep in mind when looking for penny stocks to buy.
So what are we seeing today? There are still plenty of active discussions about another stimulus, though the “deadline” was Tuesday. In comments to CNBC, House Speaker Nancy Pelosi suggested that progress has been made.
“If we were not making progress, I wouldn’t spend five seconds in these conversations. … This is not anything other than I think a serious attempt. I do believe that both sides want to reach an agreement.”
Further to this, Gilead Sciences (GILD Stock Report) also added to the excitement. The company announced late, Thursday that the FDA approved its remdesivir for Covid-19 patients requiring hospitalization. But what will this mean for stocks today? Consider that hope of stimulus and an apparent treatment for COVID could add to the positive sentiment in the market. Will this remain in place heading into the election itself? We’ll see, but in the meantime, there are a few penny stocks to watch right now.
Penny Stocks To Buy [or sell]: Sunesis Pharmaceuticals
Sunesis Pharmaceuticals (SNSS Stock Report) is currently covered by 4 WallStreet analysts who’ve issued ratings on the penny stock. The most recent comes from Oppenheimer who reiterated its rating in August. The firm currently has a Hold rating on SNSS stock but doesn’t have a price target to go along with it.
Why SNSS stock is in the spotlight this week was indicated in an October 12th press release. This week the company has a poster presentation at the EORTC-NCI-AACR Symposium on Molecular Targets and Cancer Therapeutics. It’s titled, “PDK1 inhibitor SNS-510 shows synergy with standard cancer therapies in solid tumor and hematologic cancer models”.
Considering it’s to be held October 24-25, 2020, there could be some speculative momentum building in anticipation of what’s presented. Sunesis is focused on advancing its kinase inhibitor pipeline. This includes SNS-510 and vecabrutinib. Certain mutated tumors are particularly sensitive to SNS-510. We’ll have to see what happens over the weekend and if any further details are given. Sunesis’ presentation is Saturday morning at 9 AM EST.
Penny Stocks To Buy [or sell]: NewAge Inc.
NewAge Inc. (NBEV Stock Report) has been one of the penny stocks we’ve discussed for the last few weeks. Ever since then, NBEV stock has been in a strong and very consistent move higher. On September 24th, shares were trading around $1.60, and one month later, NBEV stock has reached highs of over $3. As far as analysts are concerned, Northland Securities is the most recent to cover the stock and it has a Hold rating right now. Alliance Global Partners, however, boosted its price target in July from $3.50 to $5.
A lot of the focus has been on its pending deal to acquire ARIIX. In an update earlier this month, the company said anticipation of this deal closing is no later than November 30th. NewAge said that it expects to “capture approximately $20 million in additional annualized EBITDA in the first 18 months following closing in cost and revenue synergies”. NewAge said that it has already identified more than $10 million in annualized synergies to be implemented this year, alone.
There hasn’t been any further news or developments since October 15th. However, the focus on consumer cyclical stocks has grown especially in consideration of a stimulus bill. More money in consumer’s hands obviously makes for a more optimal environment for companies like NewAge.
Something to consider, however, is that Friday’s session saw the largest 1-day move since NBEV stock dipped in September. In light of this, it could be an indication of exhaustion on the chart. If NBEV stock is on your list, keep this technical trend in mind.
Penny Stocks To Buy [or sell]: eMagin Corporation
eMagin Corporation (EMAN Stock Report) has also been in a consistent uptrend over the last month. Really, EMAN stock has held this trend for the better part of the last 7 months. Since March 23rd, shares are up more than 970%. Not bad for a company that focuses on OLED microdisplay technology.
For the most part, eMagin has been conducting more presentations than anything else. The last big update from July, however, indicated a big deal with the Department of Defense. The $33.6 million deal is a 33-month long deal to “sustain and enhance U.S. domestic capability for high resolution, high brightness OLED microdisplays”. These will be based on eMagin’s direct patterning technology.
In light of milestones like this, where do analysts see eMagin? The most recent rating comes from H.C. Wainwright. The firm reiterated its Buy rating a few months ago. This came just days after the company reported its second-quarter earnings. eMagin beat on revenue and came in the same as last year’s quarter with EPS. Since the company was deemed an essential business, it has managed to operate during the pandemic. The biggest question now is whether or not this trend continues through the end of the year.
Penny Stocks To Buy [or sell]: Youngevity International Inc.
Youngevity International, Inc. (YGYI Stock report), is a lifestyle company taking an omnichannel approach to product sales and branding. It’s operating in 3 business segments including commercial coffee enterprises, a commercial hemp enterprise, and a multi-vertical omni direct selling enterprise.
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Similar to the approach NewAge is taking, Youngevity has a wide breadth of products and services. While it does have a current Buy rating from Benchmark, that rating is nearly 1-year old. Regardless, that hasn’t prevented investors from focusing on the stock recently. YGYI shares surged on Friday on much higher-than-average volume. There wasn’t any news to speak of on October 23rd, however, earlier this week the company did announce an update that could timing in the front seat of this trend. Youngevity announced the declaration of its regular monthly dividend of $0.203125 per share of its 9.75% Series D Cumulative Redeemable Perpetual Preferred Stock. It will be payable to holders of record as of October 31st,then November 30th, and December 31st.
The company also has an upcoming scheduled with the Nasdaq Hearing Panel on November 5th. This will give a final determination to the company’s listing status. Back in September, Nasdaq notified Youngevity that it planned to delist it after failing to comply with filing requirements. So that is likely something else to keep in mind if YGYI stock is on your list right now. In light of these developments, do you agree with analysts?