Investing in penny stocks can often prove to be exciting due to the simple fact that investors can make a large profit with a small price move. However, it is also important to keep in mind that penny stocks can be highly volatile and there is always the possibility of seeing enormous losses too. That’s if the right stock isn’t chosen. Hence, it is important to keep a close eye on the market and watch the movements of different penny stocks. It’s also important to keep a close eye on other factors too.
As you’ll see, one of the stocks below has been greatly helped by some attention from the US President. Another stock saw heavy institutional buying. These factors are outside of the realm of things that a company announces directly. So make sure you’ve got your eyes and ears open at all times. That said, here is a look at 3 companies you may want to put on your penny stocks watch list.
Penny Stock To Watch #1 GameStop
Video game retailer GameStop Corp. (GME Stock Report) has been in the middle of an impressive rally since last week. This has been due to two major factors. First, it announced that it is going to lay off as many as 120 workers as part of a cost-cutting process. This actually proved to be a huge positive. We reported on this last week in the article, “2 Penny Stocks Trying To Bounce Back In August.”
However, later on, ace investor Michael Burry told Barron’s that he is bullish on GameStop and owns as many as 3 million shares at the time. He stated that as many as 90% of the stores owned by the company are cash flow positive and he believes that the market has not valued the stock fairly. If you don’t know Michael Burry, watch the movie, “The Big Short,” and I think you’ll be surprised. Over the course of the past week, GME stock rose by 20%. However, don’t forget that the stock is still down over 70% year-to-date.
Penny Stock To Watch #2 Hudson Technologies
Another penny stock to watch, Hudson Technologies, Inc. (HDSN Stock Report) had been in the middle of a bit of a slump for much of August. But HDSN stock managed to make a comeback on Monday. On August 15, the company reported a worse than expected loss of $.10 per share in Q2 2019. However, the revenues of $56.01 million for the quarter managed to beat estimates by almost 10%.
On Monday the stock bounced back with a gain of 100%. Will it be a penny stock to buy later this week?
Penny Stock To Watch #3 Workhorse Group
Last but not least, one penny stock that has had a great year so far is Workhorse Group Inc (WKHS Stock Report). On August 14 it emerged that Workhorse is now ramping up production considerably. This is in expectation of landing the multibillion-dollar contract from UPS.
Since the news broke, WKHS stock has rallied considerably. Over the course of the past two weeks, it has gained as much as 30%. Furthermore, since the start of 2019, WKHS investors have seen the stock soar over 550% so far. A penny stock to watch? You decide.