3 Penny Stocks To Watch Next Week
If you’re looking for penny stocks to buy, over the weekend, then you’ve got time on your side. While many traders hate days off, others love it for one, simple reason: research. If you’re a day trader, that might not be as big a focus compared to swing trading or if you’re looking for strategies on how to invest in penny stocks. But, at the same time, preparing for the next market open is essential no matter your strategy.
Which penny stocks were trading after-hours? Were there companies that are set to release news? What industry or investor conferences are coming up? All of these questions are great and the answers may be important to know if you want to use them as catalysts. One of the nice things about certain industries is that companies within them will “pre-announce” event dates.
Should You Buy Penny Stocks?
This is aside from earnings reports. Plenty of the top biotech penny stocks in October saw sparks of momentum after announcing key data. The best part about that is that most of those companies had given dates out well in advance of the actual news headlines, themselves. You can find this same situation when it comes to mining stocks and even energy stocks.
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No matter the case, my point is simple. Do a little bit of research and it can prepare you ahead of time for a potential move in certain penny stocks. I should also mention that this “move” can be in either direction. So it’s important to weigh your risk/reward. Are you buying penny stocks ahead of time to “buy the rumor/sell the news” or are you waiting to play the headline itself and take advantage of a clear breakout or short opportunity?
Not all penny stocks to buy need a catalyst, necessarily. There are plenty of other ways to trade momentum and similar trends. However, using “days off” are a great way to take some extra time and get a full lay of the land, so to speak, before the next market session. With this in mind, are any of these penny stocks on your list this coming week?
Penny Stocks To Buy [or avoid]: Muscle Maker Inc
If you remember from last week, Muscle Maker Inc. (GRIL Stock Report) was one of the names on our list of epicenter penny stocks to watch. A quick refresh on epicenter stocks takes into account certain sectors that were beaten down during the early months of the pandemic. Originally coined by Fundstrat Global Advisors’ Tom Lee, expects certain of these sectors to rebound should the economy go back to a fully, reopened state. In light of this, obviously, restaurants, bars, entertainment venues, etc. could fall under that definition of epicenter stocks.
Muscle Maker focuses on quick service, healthy food for its customers. However, as we’ve come to see, there’s much more to this than just a copy-cat of “another Chipotle”. Late last week, the company released a letter to investors, which included a strategic update. Muscle Maker outlined its growth strategy, which includes employing a “non-traditional location” approach. The company explained this as an asset so as to move with the market and stay ahead of emerging trends. In light of this, GRIL stock began seeing some increased momentum. Obviously, one of the concerns for any restaurant stock is weather this pandemic storm.
Friday afternoon, things began heating up even more. After-hours the company released another key update. Muscle Maker said that it acquired one of its previously franchise-owned locations in the Chelsea neighborhood of Manhattan. The now corporate-owned restaurant is in the process of building an outdoor seating area, in addition to its already existing open air back patio to accommodate social distancing practices due to Covid.
“The current environment is presenting many strategic opportunities to grow the brand and we are in discussions on several other opportunities that have presented themselves. Any acquisition will be accretive to the top line sales and corresponding profitability of the brand.”
Michael Roper, CEO of Muscle Maker Grill
Penny Stocks To Buy [or avoid]: Document Security Systems Inc.
Document Security Systems Inc. (DSS Stock Report) hasn’t experienced much of an uptrend. But at the end of last week, DSS stock started seeing a bit of momentum. The company focuses on digital security. Anything from brand protection technology to blockchain security, the company aims to keep clients’ information safe. In any case, the company announced that Sharing Services Global Corp. appointed DSS Board Members Frank D. Heuszel and Sassuan (Sam) Lee to serve as directors on its Board.
DSS owns 37% of the outstanding shares of Sharing Services. It’s a diversified company focused on the acquisition and development of innovative companies, products, and technologies in the direct selling industry. The Sharing Services combined platform leverages the capabilities and expertise of various companies that market and sell products directly to the consumer through independent contractors.
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But why is DSS stock climbing if there wasn’t any news on Friday? The company reported earnings via 10Q on October 23rd. There wasn’t any headlines associated but the fact remains: the numbers are out. Revenue for the three months ended September 2019 came in at $2,617,000. In the same quarter this year, the company reported total revenue of $4,169,000. Meanwhile, net income came in at $4,942,000, this quarter compared to a loss of $1,251,000 during the same quarter last year. Will the company report comments on these developments on Monday?
Penny Stocks To Buy [or avoid]: Rave Restaurant Group Inc.
Rave Restaurant Group Inc. (RAVE Stock Report) is another one of the penny stocks surging after-hours on Friday. The stock closed the regular session at $0.69 and managed to reach highs of $0.82 during after market trading. One of the recent “events” didn’t have to do with news, but, similar to DSS, its filings.
On Friday, Rave filed a Proxy statement for its Annual Meeting of Shareholders. While it’s set to be held during early December, the specifics of that meeting were officially outline. These included, among other things, the election of certain directors of the company.
A recent focus of Rave has been beefing up its leadership team. Earlier this month, the company announced two new leaders – Darren Webb as director of development for RAVE, supporting both Pizza Inn and Pie Five. It also announced Dion Firooznia as franchise business consultant for Pizza Inn. Considering the surge after-hours on Friday, will this momentum continue into the Monday morning session?
