Penny Stocks To Watch Amid Stock Market Rout
Penny stocks are pretty unique. You can’t ignore the fact that so many end up moving relatively disconnected from the broader markets. While that isn’t the case with all penny stocks, it’s a safe bet that no matter what the S&P is doing, there will undoubtedly be at least a few good penny stocks to buy. That’s the case we’re seeing today with the latest market rout. Why is the stock market down today? Over the weekend news began circulating that record coronavirus cases were being seen across the globe. In fact, the daily totals have shown to be at the highest on record since the pandemic began.
Whether it’s got something to do with more testing or, if there’s a wider spread due to loosening restrictions, the facts are the same. Higher cases have shocked markets due to the threat of another COVID-19 lockdown. Nothing of the sort has been declared at this point. However, the stock market is down today thanks to that COVID-related, bearish sentiment.
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So is this a time where there’s nothing to profit from? Is this another bear market? I wouldn’t go that far. If you’re a trader who shorts stocks, then this is a day you’ve been waiting for. However, if you’re like most day traders, you’re looking for penny stocks to buy that will rise. Despite the markets getting slammed on Monday, there are several penny stocks on the rise. Will that remain the case later this week?
Penny Stocks On The Rise #1: MicroVision, Inc. (NASDAQ:MVIS)
MicroVision, Inc. (MVIS Stock Report) continued climbing on Monday, further extending its move at the end of last week. Momentum has built up in the penny stock over the last few months, following a mix of speculation and upbeat sentiment in tech. Furthermore, the company was recently granted a patent titled “Laser Scanning Devices and Methods for Extended Range Depth Mapping”. Though there wasn’t a press release discussing additional details of this milestone, traders began circulating the information and breeding more speculation about what it “could mean” for the future of MicroVision.
What could have traders excited right now is the company’s upcoming earnings this week. On October 29th, MicroVision reports third quarter results after the close. Something to keep in mind, however, is that due to a lack of general news, it’s tough to gauge what these results might look like. In its last quarterly report, MicroVision missed estimates on EPS but slightly beat estimates on sales. That figure came in at $600,000 vs $540,000 estimated.
Even with that as the case, MicroVision has been pushing for change. This includes exploring strategic alternatives including a sale or merger. In light of this, advisors pushed shareholders to vote in favor of increasing the Authorized share count of MVIS stock. This was confirmed in the company’s October 9th 8K. As we watch and wait for these earnings, is this momentum buy the rumor/sell the news or will there be new insight on the future of MVIS later this week?
Penny Stocks On The Rise #2: Bionano Genomics (NASDAQ:BNGO)
Bionano Genomics (BNGO Stock Report) is another one of the penny stocks on the rise today. The biotech company announced another positive case study in the use of its Saphyr system. Rockefeller University scientists used Saphyr to analyze genomes of patients and animals that are susceptible to COVID-19.
Bionano’s Saphyr is credited with providing results of genome analysis and reporting important data for genetic researchers to use. The Saphyr system allows researchers and clinicians to accelerate the search for new diagnostics and therapeutic targets. It essentially streamlines the process of studying genetic changes.
“We recently announced a publication by the VGP that deemed Bionano’s optical mapping technology an essential component to building complete reference-quality genomes, and we are excited to once again be a part of this innovative and globally important research effort, which could lead to better treatment and better selection of patients who need certain treatment or vaccines the most.”Erik Holmlin, PhD, CEO of Bionano Genomics
This is the 3rd day BNGO stock has climbed. Prior to that, it was in a very consistent downtrend. In fact, until last Thursday, Bionano closed red 13 trading days in a row. So it’s important to understand that to see what comes next for BNGO. Will this finally mark a turnaround for the penny stock?
Penny Stocks On The Rise #3: Entercom Communications (NYSE:ETM)
While penny stocks on the rise might be few and far between today, there are obviously some moving opposite of the S&P. Entercom Communications (ETM Stock Report) is one of these. ETM stock reached highs of over $1.60 on Monday on no apparent news headline. Needless to say, it was one of the largest, one-day moves the penny stock’s made in weeks. Next week, the company is set to report third-quarter earnings.
This year’s obviously been difficult for advertisers. The pandemic all but crushed some of the biggest markets that spend billions on marketing. Sporting events, concerts, the travel industry, etc. all came to a screeching halt this year. While future prospects remain hopeful, in general, this latest news of record COVID cases doesn’t help things. Despite that as the case, ETM stock actually moved higher on Monday.
While this short-term jump is exciting for traders, it’s still important to keep a few things in mind. One of which is the company’s last earnings results. Entercom missed on both EPS and sales for the second quarter. Even with that as the case, the company, in its earnings update, explained that it thought things were turning around.
“Excluding the impact of cancelled sports play-by-play, second quarter revenues declined 47%. However, after bottoming out in April, we have achieved significant sequential improvement every month through the Summer with third quarter business on books already 30% greater than where the second quarter finished.”David J. Field , President and Chief Executive Officer
Will this ultimately translate into a better third quarter for the company?