penny stocks drop

Penny Stocks Can Make Big Money & Lose Big Money

If you recently read an article about an investor making it big on penny stocks, put that on pause for a moment. Right now you’re likely in an excited state ready to buy penny stocks and score big. While that’s entirely possible, you can’t ignore the risks of buying penny stocks either. We’re talking about high-risk equities here, not mega-cap bonds or things of that nature. In this light, you can’t forget the basics of investing. With that comes managing risks involved.

While some penny stocks on places like Robinhood can be extremely profitable, there is always the chance that a trade turns sour. This is why I personally place a heavy emphasis on understanding the industry you are investing in. You’d also want to keep in mind the ins and outs of the company.

[Read More] 4 Penny Stocks To Buy For Under $2.50 Right Now

Basically, look at everything from news to corporate filings and anything in between. With this in mind, here are a few penny stocks to watch that have been struggling and just hit fresh 2019 lows. The biggest question is can they recover or are they set to slide even further yet?

Penny Stocks On Robinhood: Ocugen Inc. (OCGN)

Kicking things off is a company hailing from the biotechnology sector called Ocugen Inc. (OCGN Stock Report). Ocugen is a biopharmaceutical company that is zeroed in on discovering and selling treatments for rare eye diseases. At the moment, the company has 9 therapies in its clinical pipeline. In order to develop these treatments, the company utilizes its OcuNanoE technology platform to enhance the efficacy of topical ophthalmic therapeutics.

bad penny stocks Ocugen Inc. (OCGN)

The price action of this penny stock has been very rough since late September. On September 26th, this stock took its first hit and it was only downhill from there. It has fallen from a high of $16.80 on September 26th to $0.273 on November 22nd. On September 30th, the company announced a stock split of 60:1 which definitely played a role in this price drop. Recently, Ocugen provided its Q3 financials and provided a business updated.

Regarding these updated and financials, Ocugen’s Chairman, CEO and Co-Founder, stated, “We believe our new strategic partnership with CanSinoBIO will be instrumental in accelerating the progress of our modifier gene therapy platform closer to the clinic. We are working to meet several milestones over the course of the next few years that we believe will continue to add value to Ocugen shareholders.”

Penny Stocks On Robinhood: McEwen Mining Inc. (MUX)

The next company on this list of penny stocks is part of the precious metals industry. McEwen Mining Inc. (MUX Stock Report) is a mining company that explores, develops, produces, and sells gold, silver, and copper deposits. The company has mining interests currently in 7 location around the world some of which are in the production stage and other still in the exploration stages.

bad penny stocks McEwen Mining (MUX)

The company recently announced the closing of its $50 million public offering of 37.750 million shares, this penny stock continues to decline. This week McEwen tumbled even lower, hitting fresh yearly lows of $1.17. When taking a closer look at the company’s chart, you can see a massive drop on November 20th of 15.13%. This hit came courtesy of McEwen initially announcing the $50 million public offering. This could be because the offering was at $1.325 per unit.

Needless to say, shares did actually recover at the end of the week regardless of hitting those new lows. McEwen announced the formal closing of the offering and assuming the offering price of $1.325, the current market is trading discounted to that price. Are shares set to rally next week or is MUX stock going to continue to slide?

Penny Stocks On Robinhood: Sunworks Inc. (SUNW)

Hailing from the energy industry is Sunworks Inc. (SUNW Stock Report). Sunworks is a technology company that provides high-performance solar power systems. These systems are offered to both commercial and agricultural companies as well as homeowners looking to cut their electricity bills down. The technology company has completed over 60 solar projects thus far across the globe.

bad penny stocks Sunworks (SUNW)

Over the last 6 months, Sunwork’s stock price has been struggling. In these 6 months, the stock had a high of $13.79 on May 7th and has fallen to $1.10, a 52-week low on November 22nd. Over the last month, there has been a sharp increase in trading volume attributable to penny stock news that the company has released.

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For instance, Sunworks in the last month has reported its Q3 financials and it was awarded an agricultural solar project in California. However, to no avail, the penny stock has continued to fall. Despite the case, what does next week have in store? I ask because after hitting those lows, shares rebounded to close at $1.18. So will that momentum persist into Monday’s session?

Penny Stocks On Robinhood: Arcimoto Inc. (FUV)

Wrapping things up is a company from the auto industry, Arcimoto Inc. (FUV Stock Report). Arcimoto creates and sells 3 wheeled electric vehicles to fulfill its mission of catalyzing the shift to sustainable transportation. The company currently sells one electric vehicle known as FUV. It has been used for delivering goods, leisure use, and even for emergency services.

bad penny stocks Arcimoto Inc. (FUV)

The final penny stock on this list has not struggled as much as some of the other stocks on this list. But that isn’t really saying much considering what’s gone on throughout the year. However, November 22nd’s trading session was anything but good for Arcimoto. The company’s stock price has fallen 25% after a recent news catalyst.

The catalyst was the announcing of a public offering for common stock. The offering is expected to be worth approximately $8.1 million for 5 million shares valued at $1.80 per share. Seeing that the shares closed just shy of these 2019 lows, it’s going to be interesting to see how FUV stock fairs next week. You’ll also notice that this can be extremely volatile as well. Just a few days ago shares spiked to highs of $4.08 but then slumped to where it closed on Friday.

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