Top Penny Stocks Today: Here’s Why BON Stock Is Moving
We’ve run a series of articles discussing penny stocks trading below certain price thresholds. In general, all stocks within this niche trade below $5, but the ones at even lower prices can produce some of the most volatile returns. They also come with plenty of risks, including the potential for huge losses.
Aside from big swings on an intra-day level, many penny stocks can record explosive gains over a few days. These moves can seemingly come out of nowhere too. Today, Bon Natural Life Limited (NASDAQ: BON) fits this to a T. In fact, if you have never heard of this company before, don’t feel bad because BON stock usually doesn’t trade more than a few thousand shares a day at times fewer than 5,000.
However, this year has seen some irregular trading activity. In January, the penny stock recorded one of its highest single-day trading volumes, with more than 13 million shares. No headlines were put out by the company, and there weren’t any filings to pair with the action. A few days later, the company announced the date of its next earnings report.
What To Know About Bon Natural Life Limited (NASDAQ: BON)
Bon Natural manufactures ingredients used in personal care products. Plant extracts and natural supplements are provided to make fragrance compounds for perfumes and ingredients for powder drinks and bioactive food.
Earlier this year, BON stock gained a bit more exposure thanks to news of a purchase order. The company received the order from Chongqing Fudoudou Technology Co., Limited for the product “FeatherPure Women’s Personal Care Gel.”
The deal was expected to bring in $3 million in revenue over two years. In addition to that, the company’s CEO, Richard (Yongwei) Hu, expects a partnership with Chongqing Fudoudou “will additional source of revenue growth with an expected revenue increase of US$10 million in 3 years.”
This week’s latest news comes as a complement with revenue growth in mind.
BON Stock News
Right after the closing bell on February 2, Bon reported its full-year 2021 results. Total revenues jumped nearly 40% compared to 2020 with $25.5 million. Gross profit also climbed over 36% to $7.1 million. Meanwhile, net income and EBITDA jumped more than 46%. The Health Supplements portion of revenue led the way in growth with a 71.2% increase from the prior year. Fragrance Compounds accounted for the most significant increase in gross profits, with an 82.3% jump over 2020.
In addition, the company also made a note of a new product launch later this year that could add to this growth
“We believe that with the commissioning of our Yumen Plant later this year with 150% increase of revenue growth potential on an annualized basis, we will be able to better serve our customers both at home and abroad more efficiently, accelerate our global business expansion and create lasting long- term value for our investors.”
Richard (Yongwei) Hu, BON’s Chairman & CEO
BON Stock Jumps 80%
The penny stock that has only traded thousands of shares per day recorded millions of shares traded during extended hours sessions Wednesday and Thursday. Shares of BON stock reached highs of $6.07 during the early session on February 3 but, nearing the open, settled back around $4. With fewer than 10 million shares outstanding, BON could be one of the low float penny stocks to watch heading into the second half of the week.
But with such a large gap up, the big question is will it be sustainable or is BON stock destined for a breakdown back to its previous levels?
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