Are These On Your List Of Penny Stocks To Buy Right Now?
There are plenty of penny stocks to watch this week. I know it’s only Monday but big news from Moderna (MRNA Stock Report) has the markets surging early. What happened with Moderna? While the last coronavirus vaccine news came from Pfizer (PFE Stock Report) and triggered a market rally earlier this month, Moderna’s latest news has overshadowed Pfizer this week. The company announced early Monday that preliminary trial data showed Moderna’s coronavirus vaccine candidate was 94.5% effective. This is 4.5% more effective than Pfizer’s was reported to have been.
This new comes as a welcome sight for many who were uneasy going into the weekend. Additional restrictions were being put in place across the country as coronavirus cases have surged. But, of course, with news like this, MRNA stock price got a nice boost Monday morning. The biotech stock reached early highs of $105.85 during the premarket session. This was 18.4% higher than where MRNA stock closed on Friday afternoon. Still, though, we need to see what the next steps look like.
Given this major headline, both penny stocks and blue chip stocks alike are heading higher. One of the core points of focus now is on epicenter stocks. These are ones that have gotten beaten down by the negative impact of coronavirus but, according to Tom Lee of Fundstrat, could recover strongly if things get back to “normal”. Given this and the latest news from Moderna, will these be epicenter penny stocks to buy right now or avoid?
Epicenter Penny Stocks To Buy [or avoid]: AMC Entertainment Holdings Inc.
Over the weekend, on discussion boards on places like Reddit and Facebook, traders appeared cautiously optimistic about AMC Entertainment Holdings Inc. (AMC Stock Report). With news of more restrictions potentially strangling the recent economic rebound, some were unsure of what that would mean for AMC.
The company has continued reopening its theaters. In fact, at the end of October, the company had already reopened roughly 529 of its 600 domestic locations. Furthermore, around 261 of its 358 international locations were also operating in some capacity. To get around certain barriers of social distancing, the company had also implemented a rental option for guests.
Last week, the company announced the official launch of Private Theatre Rentals at AMC. Guests wanting to book a private showing can do so for up to 20 friends and family members by going to AMC’s website or by using AMC’s mobile app. With bullish optimism following Moderna’s news, AMC stock has jumped to highs of $3.95 during premarket trading on Monday. Something to keep in mind is that the company had also filed for an offering of up to 20 million shares of common stock through an “at-the-market” program. Will this pose dilution risk down the road for AMC stock?
Epicenter Penny Stocks To Buy [or avoid]: Ashford Hospitality Trust
We talked about Ashford Hospitality Trust (AHT Stock Report) last week among other REIT penny stocks. With a proven vaccine, it could lead to more consumer spending and, of course, travel & leisure could benefit. Ashford invests in full-service upscale and upper-upscale hotel properties in the U.S. This includes operating under the Marriott, Hilton, Hyatt, Crowne Plaza, and Sheraton flags.
Social distancing has put a damper on things, obviously. But Moderna’s vaccine news highlights a potential path forward for travel and entertainment stocks. There hasn’t been any news from the company this week. So it’s likely that AHT stock has benefited from sympathy momentum from this major vaccine headline. What’s more is that AHT stock has begun attracting some institutional interest.
Last Friday a 13G was filed, it showed, ThornTree Capital holds a stake in the company. Ashford had battled with one of its larger shareholders over the last few months. This lead to potentially offering 126 million shares; a highly dilutive event. The move shook some of its larger investors, specifically Cygnus Capital. The investor eventually called upon Ashford to eliminate the offering since it wasn’t able to obtain enough votes in the eyes of Cygnus. This exchange offer will expire on November 20th unless earlier terminated or extended. So we’ll have to see how things unfold leading up to that date.
Epicenter Penny Stocks To Buy [or avoid]: FuelCell Energy
Another one of the industries that Tom Lee explained could benefit from reopening is energy. Obviously, more commerce and potentially getting back to full industrial capacity would see a need for more fuel. Whether this comes in the form of oil, gas, or alternatives, energy stocks are among the epicenter names.
FuelCell Energy (FCEL Stock Report) has been trending recently. That’s thanks to a more keen focus on alternative energy sources. It’s been one of the hot penny stocks to watch this month as shares have jumped more than 45% so far. During premarket trading on Monday, FCEL stock reached early highs of $3.10.
FuelCell has focused on industrial, commercial, and government initiatives. An $8 million funding award a few weeks back doesn’t hurt either. The company won this award from the Department of Energy for designing and manufacturing the SureSource electrolysis platform. Interest from names like Jim Cramer on CNBC has also placed a focus on this niche. Cramer explained recently that while people are focusing on electric, hydrogen “is a great fuel”. Will Moderna’s vaccine news continue fueling this surge in epicenter stocks like FCEL this week?
Epicenter Penny Stocks To Buy [or avoid]: Coty Inc.
One of the popular retail penny stocks to watch this month has been Coty Inc. (COTY Stock Report). Since November 2nd, COTY stock has climbed as much as 70% so far after reaching premarket highs of $5.03 on Monday. The big focus for the company right now is completing the sale of its retail hair business. With an expected completion date of November 30th, there’s been a nice surge of interest in COTY recently. The deal will see the company selling 60% of this business segment for a cool $2.5 billion while retaining the remaining 40%.
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Coty is a luxury brand builder. The company sells fragrances, cosmetics, and skin/body care products. Coty licenses brands like Calvin Klein, Hugo Boss, Gucci, Davidoff, CoverGirl, Rimmel, and Sally Hansen. Furthermore, Coty has licensed the rights to Kylie. With the namesake being Kylie Jenner, it’s becoming one of the fastest-growing and most-engaged beauty brands on social media.
With Moderna’s vaccine news sparking optimism in consumer spending, retail penny stocks could become a focus.