Will These Be On Your List Of Penny Stocks To Buy In June 2020?
Penny stocks can be some of the most active equities in the stock market today. The main reason for the activity is based on the swings in stock price. Stocks under $5, according to the penny stocks definition, are inherently volatile. As such, the lower the price, the more volatility there is. It comes down to how well you’re able to navigate that price movement in order to consistently make money with penny stocks.
After a few discussions with traders, there’s a general consensus among them right now. More traders are paying attention to headlines and company tweets than anything else. Just last week, a stock that I’ll leave nameless was racing to new highs because of a press release it put out.
But while novice retail traders bought into the hype, a filing was submitted to the SEC that showed a massive capital raise was in motion. Now, some traders caught that and understood the risk that the discounted financing could have on the stock. But the majority simply referenced the headline and increased their positions.
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One of the common things discussed on this site is research. Always do your research when it comes to penny stocks. It’s easy to let emotions get the best of you. However, as we’ve seen, a filing that seemingly “comes out of nowhere” can put a damper on all that FOMO and hype out there. With this in mind, the time you take to research the most active penny stocks can give you an upper hand when it comes time to remembering why you’re trading in the first place; to make money.
With this list of penny stocks to watch, all trade under $2.50 but does that mean they’re the best penny stocks to buy now?
Penny Stocks Under $2.50: Hertz Global Holdings
Shares of Hertz Global Holdings (HTZ Stock Report) have had a rough year. Despite reaching new 52-week highs in February, HTZ stock was dumped all the way down to $0.40 in May. A staunch supporter of Hertz, Carl Icahn recently unloaded his massive position in the penny stock.
Icahn Partners sold 32,326,849 Hertz shares and Icahn Partners Master Fund sold 23,015,260 shares, both at $0.72 per share. Icahn has been an investor of Hertz since 2014. Despite his selling, he did say that “based on a plan of reorganization that includes new capital, Hertz will again become a great company.”
This week HTZ stock is back in the spotlight. The hopes are high for the economy to turn around soon. Travel stocks have started to gain a lot more interest. If you look at airlines, for instance, American Airlines (AAL Stock Report) has climbed over 100% in the last month. It also saw its largest one-day move in months. With summer flights coming back, investors are betting on the industry getting back to the “new normal” sooner than later.
In light of this, car rental stocks have followed suit. Avis Budget (CAR Stock Report) has catapulted over the last few weeks. As one of the lower-priced rental stocks, HTZ has benefited from this breath of fresh air for travel stocks. Will it continue or is this just another short-term, short-lived rally based on sheer hope?
Penny Stocks Under $2.50: Hexo Corp
Hexo Corp. (HEXO Stock Report) is one of the few marijuana penny stocks on a major exchange trading under $1. But recent volume trends suggest interest could be building again. Over the last 3 weeks, HEXO stock has gone from $0.45 to highs of $0.89 and currently trades around $0.75. After closing a $57.5 million financing deal, HEXO stock has traded “against the grain” of the cannabis sector for the most part. Where most of the sector has been red the last few days, Hexo is nearing its Q2 high again this week.
At the beginning of June, the company announced it received its Health Canada license amendment for the sale cannabis products for its cannabis manufacturing and processing facility in Belleville, Ontario. The updated licensing also encompasses the expansion of the licensed area to include the beverage production area dedicated to the Truss/ HEXO beverage division.
“Receiving the sales license for our Belleville facility is extremely positive news for HEXO and Truss, our joint-venture with Molson Coors Canada,” said Sebastien St-Louis, CEO and co-founder of HEXO. Following this update, the company further announced the launch of a new 30-gram medical flower format for its high-THC strain Tsunami. According to the company, “The move to a larger format and a new type of packaging is an important step on HEXO’s sustainability journey and provides medical clients with a more discreet option for high volume orders.”
Armed with fresh capital and a new license, is HEXO stock finally ready for something more? The company has struggled to gain ground in the market this year. But the recent surge in trading activity could be something to take note of right now if HEXO is on your list of penny stocks.
Penny Stocks Under $2.50: Blink Charging
With names like Nio (NIO Stock Report), Tesla (TSLA Stock Report) and others pushing attention toward electric vehicles lately, it seemed like only a matter of time before traders looking for “picks and shovels” in my opinion. I’m talking about products and services that aren’t involved with actually making the cars but rather supporting their operation. Car charging is obviously one of these things.
Blink Charging (BLNK Stock Report) specializes in charging equipment that has deployed over 23,000 charging stations. Last time we discussed this in May, Blink had just seen a series of FORM 4s indicating insider activity in the stock. Shortly after this, the company reported a record quarter for revenue in its Q1 2020 filing. Furthermore, at the end of the month, the company reported a new milestone. Blink had deployed its 1,000th second-generation level 2 charging station, the IQ 200.
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What’s new with Blink in June? Not a whole lot. But with the launch of SpaceX, Tesla caught some attention. Comments made by competitors like Nio suggested that the EV giant isn’t necessarily a competitor to slow EV growth but rather one to support more rapid expansion of the sector. All of those ideas point to a broader awareness of this technology and as a possible result, the need for more charging options. Is BLNK stock benefiting from that speculation or is there something else to suggest it to be one of the top penny stocks to watch in June?
Penny Stocks Under $2.50: Biocept Inc.
Biocept Inc. (BIOC Stock Report) has been one of the more sporadic penny stocks that has broken out but then regularly pulled back to where it was in the previous period. Something to note if you’re a technical trader is its relationship with the 200 Day Moving Average. Over the last few months, each time BIOC stock tests that level, it can’t sustain itself above it. That could suggest the 200MA compared to other levels, is a relatively strong level of resistance for the penny stock. Will that change this week?
Biocept shares have been ticking higher ever since the end of May. It seemed to have stemmed from the presentation of data at the American Society for Clinical Oncology. This data showed that its Target Selector platform was able to identify potentially “actionable” mutations in the cerebrospinal fluid of certain patients with metastasized cancer.
This week BIOC stock continued the trend and once again tested the 200MA on Thursday. It’s important to keep in mind that BIOC broke out big earlier this year due to an apparent mix up with publishing a web page before it was ready. That page revealed the intent to start doing COVID testing. This week it appears that attention on social media is focusing on a page that has shown the company is affirming that it is performing COVID-19 testing. But keep in mind that the company announced in April that it would begin accepting COVID-19 testing requests.
Specifically, its website states, “Biocept performs testing of FDA approved protocols for Emergency Use Authorization (EUA) for COVID-19 testing and complies with the Centers for Disease Control and Prevention (CDC) guidelines on social distancing and enhanced cleaning procedures to ensure the health of our patients, employees, and others.”
