It’s true that there is always an opportunity to make money with penny stocks. But it’s also important to keep in mind that there is the possibility of losing money. Sometimes penny stocks might not rise as expected because the volumes are generally thin and there is very little activity.
Of course this is in comparison to larger stocks like Facebook or Twitter where trading volumes can be much higher. Hence, it’s important to do proper research on the category of penny stocks and figure out which ones are rising on the back of good volume.
You should also keep a close watch on any penny stock news that gets released. These announcements can quickly act as catalysts for market momentum. On that note, here is a look at three penny stocks which have made big moves due to solid volume.
Penny Stock #1 Energy Focus Inc (EFOI)
Like I said above, penny stock news can trigger momentum in either direction for certain companies. One of the penny stocks that has benefited from positive news on Tuesday is Energy Focus Inc (EFOI Stock Report). Before the opening bell on July 30, Energy Focus announced it received a new $3 million contract. The deals has the company supplying LED solutions to “a leading healthcare organization.”
The name of this leading healthcare company wasn’t revealed. However, according to the news, Energy Focus has received its first orders of about $500k under the new contract. This news was enough to send the stock flying on Tuesday. During the morning session, EFOI stock reached highs of $0.93. The crazy part is that this news comes after the company reported lackluster quarterly figures.
Though EFOI is performing this week, the energy penny stock has been beaten down most of the year. During the first quarter of 2019, EFOI stock was trading above $1.50 at one point. Can this momentum continue or is this just a pop and drop scenario?
Penny Stock #2 Soligenix Inc. (SNGX)
Another one of the top penny stocks that rose significantly this week was Soligenix Inc (SNGX Stock Report). In this regard, it is also necessary to point out that the biopharmaceutical company had also made an important announcement. Soligenix discovers treatment for some of the rarest diseases. This week it announced that it was granted two patents by the European Patent Office. It is, without a doubt, an important development for the company as it acted as another catalyst.
Overall, SNGX stock has been one of the top penny stocks to watch this quarter. After reaching lows of $0.65 early in June, the biotech penny stock has rallied in a big way. In fact, since that point in June, shares of SNGX stock have jumped by as much as 113% following highs of $1.39 on July 30.
Penny Stock #3 Hexo Corp (HEXO)
The climate for marijuana stocks hasn’t been great this quarter. The crazy part is that Hexo Corp (HEXO Stock Report) wouldn’t have under the definition of a penny stock at all a few months ago. The (now) marijuana penny stock traded as high as $8.40 in April. But this isn’t an individual outlier either. The marijuana sector has been going through a bit of pain over the past few months.
But HEXO stock proved to be an exception on Monday, as it jumped by as much as 9%. It should be noted that the Hexo stock had dropped by as much as 25% in July until yesterday.
The company inked its fair share of important partnerships but it seems the trigger for the surge came from analysis of John Chu at Desjardins. Chu stated that the company has raised its production capabilities significantly. He also gave a target price of C$14. If it hits that price point, then it would represent a move of over 100% from its current level between C$5.20 – C$5.60.