As they say, the early bird gets the worm, and there are no worms quite like penny stocks. Thanks to even the slightest catalyst, these cheap shares can spike hundreds of percentage points within a single day. While not all penny stocks trade during premarket hours, you’re sure to find at least a few making waves early. The thing to remember about premarket momentum is that it is much different than the regular session.
Many traders don’t have accessibility to premarket trading, so volumes are lower. It is an exciting session during the full market hours and something to keep in mind if you’re looking to identify potential follow-through trends heading into the first have of the day.
Penny Stocks TL;DR 30-Second Summary
- Pre-market trading is a time where some of the biggest moves are made for some penny stocks
- Not all traders have access or the ability to trade before the 9:30AM ET
- If you are able to trade pre-market, it may be wise to treat it like a different sessions entirely
- Despite the risk, pre-market trends can sometimes give an indication for what’s to come during the normal session
- Today we look at a few of the hot penny stocks to watch before the opening bell. The question to answer now is will there be enough followthrough during the normal session to see momentum continue?
Despite some of the shortcomings if you cannot trade penny stocks during pre-market hours, there are cues to take into account. The most frequently used signal is trading volume and directional momentum. How’s the stock performing heading into the open, and can you trust the trend? Believe it or not, even some of the hottest stocks to watch pre-market can fade as soon as the bell rings. If you’re on the hunt for new stocks to buy based on early trends, keep this in mind.
Penny Stocks To Watch Pre-Market
- American Virtual Cloud Technologies, Inc. (NASDAQ: AVCT)
- MingZhu Logistics Holdings Ltd.(NASDAQ: YGMZ)
- Can-Fite BioPharma Ltd. (NYSE: CANF)
- NRx Pharmaceuticals (NASDAQ: NRXP)
American Virtual Cloud Technologies, Inc. (NASDAQ: AVCT)
Ever since early December, American Virtual has been on the rebound path. So far, AVCT stock has managed to jump from lows of $0.84 to highs of more than $2.60 during pre-market trading on December 29th. The company provides IT solutions for its clients ranging from cybersecurity to enhanced connectivity & cloud communications. The most significant point of focus lately, however, has been on the company’s Kandy Communications Business.
Why Is AVCT Stock Moving?
American Virtual came out late Tuesday afternoon with news after the closing bell. Kandy Communications announced the growth of its partnership with Etisalat, a telecom group in emerging markets. It also reported new offerings that will allow for embedded communications in business applications for large enterprises in those markets.
The new offerings include embedding real-time communications into critical telehealth applications. According to the company, Etisalat has enabled leading UAE hospitals to offer access to on-demand healthcare to improve medical outcomes.
MingZhu Logistics Holdings Ltd.(NASDAQ: YGMZ)
As you’ll see on the YGMZ stock chart, things have been volatile over the last few weeks. However, something else to note is that since reaching its 52-week low this month, MingZhu has managed to bounce back much more robust than compared to earlier this year. As with many penny stocks, YGMZ is experiencing a Santa Claus rally of its own, and that continued after new developments emerged this week for the Chinese trucking company.
Why Is YGMZ Stock Moving?
Wednesday morning MingZhu announced a new share purchase agreement to buy out Cheyi Limited. Cheyi operates an online ride-hailing and driver management service company. The nearly $30 million acquisition will see MingZhu bring on a company that hosts more than 6,000 vehicles and drivers for ride-hailing services.
CEO, Jinlong Yang explained, “This immediately broadens our portfolio and will serve as a centerpiece of our continued diversification strategy. Our priority remains unchanged. We are focused on accelerating our growth strategy by strategically deploying capital in both organic and inorganic opportunities, as we unlock MingZhu’s potential and greater value for shareholders.”
Can-Fite BioPharma Ltd. (NYSE: CANF)
We discussed Can-Fite earlier this month in our article “5 Penny Stocks To Buy For Under $5 This Week” and highlighted Can-Fite’s Phase IIb study of its NASH drug candidate Namodenoson. Following clearance from the Israeli Ministry of Health, the company expects to begin the next portion in studying Namodenoson. A prior Phase IIa clinical trial of Namodenoson in the treatment of NASH met study endpoints showing anti-steatotic, anti-inflammatory, and anti-fibrotic effects. in Q4 2021.
A day after our update, the company announced its Open Label Extension program of its concluded Phase II study of Namodenoson experienced a Complete Response (CR) to Can-Fite’s drug. That means that all cancer lesions have cleared according to the company. Things have been volatile ever since and CANF stock has traded in a very wide range.
Why Is CANF Stock Moving?
Once again CANF stock is in ews headlines. This week the company announced that it is filing new patent applications in several countries for the treatment of all advanced solid tumors. This was based on the recent clinical data from the Complete Response receipt. Can-Fite said that “These pending patent applications are the latest in Can-Fite’s growing IP portfolio covering its platform technology, as well as its drug candidate Namodenoson and its use in a variety of advanced cancers.”
Looking ahead, Can-Fite said that it expects to begin enrollment in a Phase III trial for Namodenoson in patients with advanced HCC with underlying Child Pugh B7 (CPB7) cirrhosis. This will be used to support a New Drug Application submission and hopeful approval.
NRx Pharmaceuticals (NASDAQ: NRXP)
Shares of NRx Pharmacetucals shot higher during pre-market trading on December 29th. The biotech company has recently placed its focus on small molecule drugs for inflammation. With the virus pandemic placing a lot of attention on related companies either making a drug, a test, or something else, there’s no shortage of speculative momentum in the biotech space.
Why Is NRXP Stock Moving?
While NRx has a robust pipeline of multiple candidates, this morning news regarding its ZYESAMI platform. Specifically, it filed filed a new Breakthrough Therapy Designation request with the FDA. The focus is on patients with Critical COVID-19 and respiratory failure “who are at immediate risk of death despite treatment with remdesivir and other approved therapies.”
“At a time when America is entering a new COVID-related crisis, we thank the FDA for encouraging us to address the subset of patients who have no other approved treatment…More than 2,000 Americans died from COVID-19 on Christmas eve . With the FDA’s support, we believe we have the chance to help more than 100,000 Americans return to their loved ones who otherwise might not live to see next year’s holidays.”Prof Jonathan Javitt , MD, MPH, Chairman and CEO of NRx Pharmaceuticals
With a focus on vaccines and alternative treatments, NRXP has turned some heads with this news.
When it comes to premarket movers, there are plenty of things to account for. In particular, paying attention to these premarket trends is key in determining to strength of the move. In many cases, stocks fade after the opening bell so keep a close eye on trading volume as the regular session begins.
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