Are Penny Stocks On Your Watch List This Month?
We’re at the start of a new month and a whole new opportunity to find penny stocks to buy. Whether you’re a novice or experienced trader, these stocks under $5 are well-known for volatility. Heading into this week, we’ll likely see a lot of that volatility extend into broader markets. The U.S. Presidential Election is at the top of everyone’s lists for things to watch this week. A heated race that has involved everything from fiscal stimulus to how to address COVID-19.
With that has been great speculative buying opportunities in certain sectors. When it comes to penny stocks, however, this speculation tends to heighten the levels of volatility. We might see stocks on Apple (AAPL Stock Report) or Amazing (AMZN Stock Report) fluctuate 3-6%, which is big for those blue chip stocks. But then you’ve got penny stocks. A move of 3-6% is nothing compared to what we’ve seen from some breakout names this year.
Last week along, there were more than a handful that ended up rallying 300-600% within a day or two. It’s also worth mentioning that these stocks ended up going completely parabolic and coming back down just as quickly. Needless to say, the potential for short-term gains is clear. Over the weekend we discussed how to invest in penny stocks online. One of the risks involved is the length of time someone holds a stock.
When it comes to these cheap stocks, it’s important to keep a very close eye on the trade no matter how strong a trend might be. It’s also never a bad idea to take a profit when it’s on the table. If you can handle high-risk, highly-volatile situations, then penny stocks are likely something you’re attracted to. Heading into Election Week, are these on your list of penny stocks to buy or avoid?
Penny Stocks To Buy [or avoid]: Muscle Maker Inc. (NASDAQ:GRIL)
Late Friday afternoon there was a surge of momentum for several industry-related penny stocks. The main theme that all of them had was their relation to either food service, take-out, or delivery. Companies like iFresh Inc. (IFMK Stock Report) and Waitr Holdings (WTRH Stock Report) were among the ones seeing a slight uptick in late-afternoon trading. Muscle Maker Inc. (GRIL Stock Report) was another one of these late-breaking stocks to watch. GRIL stock was relatively quiet for most of the session. But from around 2PM EST on, the market really woke up. When the closing bell rang, GRIL had climbed over 11% for the session with active trading continuing during the post-market hours.
There wasn’t any news to reference for the move. But given the fact that GRIL along with several other food-related penny stocks made a move, it could be a sympathy-based breakout. One of the things to note was the increase in COVID cases has some speculating on people going back into some sort of lockdown. England was recently sent back into lockdown limiting travel to only essential needs. Whether or not this becomes the case in the U.S. is yet to be seen. However, the sentiment seems to have shifted to those pandemic penny stocks we saw make bigger moves earlier this year.
Muscle Maker has been on our list for a while now. Much of the focus has been on its shuffle to grow while the restaurant industry has been held back by social distancing restrictions. GRIL was one of the names on our list of epicenter penny stocks to watch recently, too. Right now Muscle Maker is focusing on locations like military bases, airports, universities, casinos, kiosks, food trucks, and ghost kitchens. The company recently launched 3 new ghost kitchen markets and brought on Major General (Ret) Philip Balastos to help spearhead its military base operations.
Penny Stocks To Buy [or avoid]: Insignia Systems Inc. (NASDAQ:ISIG)
This low float penny stock was on our watch list last week. Insignia Systems (ISIG Stock Report) caught a surge of momentum on Monday that sent the stock reeling into Tuesday. ISIG stock reached highs of $1.74, up over 100% from Monday’s opening bell. This was the second time in October that the penny stock made such a strong, short-term move. Similar to its first October move, ISIG stock dipped throughout the course of the following days.
Was the move a result of some new COVID treatment or related headline? No, Insignia is a marketing company and while there hasn’t been much news in the form of press releases, the filings have some information to make note of. First, there’s been a jump of institutions buying. You can check the ISIG filings to see a Schedule 13 showed a nearly 5% stake in the company from Cable Car LLC.
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One of the initiatives taken up by the company is helping retailers succeed during the pandemic. It further focused on supporting the public through its launch of Insignia Cares. “We knew from the beginning that COVID-19 would impact families across the country and wanted to use our position to help provide relief to as many as possible,” said Adam May, Chief Growth Officer. But with this being the only recent headline from last Thursday it’s hard to say what ended up acting as a catalyst for Friday’s strong, post-market move. Heading into Monday’s session, it could be one of the low float penny stocks to watch.
Penny Stocks To Buy [or avoid]: Neptune Wellness Solutions Inc. (NASDAQ:NEPT)
Neptune Wellness Solutions Inc. (NEPT Stock Report) saw it’s most-active day in months, on Friday. One of the hot topics of discussion heading into election week has been on cannabis legalization initiatives. This is both at the state and federal levels. Neptune focuses on health and wellness products leveraging the potential of cannabis as part of its product offering.
Last week, the company announced several key initiatives that have acted as catalysts. Neptune closed a supply agreement with the Ontario Cannabis Store to sell and distribute Neptune’s recreational Mood Ring product line. Ontario Cannabis is a wholesaler and online retailer for recreational cannabis. Mood Ring products will become available to the 211 licensed private retailers in Ontario. This further extends Neptune’s reach to 515 retailers in Canada.
Furthermore, and what seems to have been a big focus on Friday was its Innovations business unit and a letter of credit facility with Perceptive Advisors. The facility will provide the company with up to $45 million to support large purchase order fulfillment. As a large shareholder already, Perceptive’s facility will initially be utilized to support Neptune’s growth efforts.
With earnings coming up later this month, it will be interesting to see how Neptune managed to grow last quarter. In its previous quarterly results, the company missed on earnings per share but realized strong sales growth year-over-year. During last year’s period, the company did just over $4.3 million. This year’s quarter, Neptune reported over $21 million in sales. If NEPT stock is on your list, keep November 11th as a date to note for its next earnings report.