Does Your List Of Penny Stocks Include These Companies?
Do you trade penny stocks every day? If you’re like most readers, you’ve probably already made several trades today. But like most, you’re on the hunt for the next big penny stock breakout. More and more people are turning to the stock market today for ways to make more money.
It may look easy but trading penny stocks takes time to learn how to do it profitably. With that, I wouldn’t consider a few winning trades a proof of concept. Consistency is obviously the key. If your goal is to become a professional day trader, setting yourself up for success is paramount. Part of that success depends on your strategy.
Yep, you can make money with penny stocks every day. The better you are at controlling emotions and planning out your trade, the better your chances of consistent profits will be. One of the most frequent things I hear from new traders is that penny stocks aren’t worth it because they’re not good companies.
Honestly, if the goal is to make money with penny stocks, then a “trader mentality” is better suited than one designed for investing. This isn’t to say that investing in penny stocks is wrong.
Are Penny Stocks Worth It?
People will buy and sell these stocks under $5 in a short period of time because of how quickly they run-up, in general. This week, alone, has been one of the best weeks to be watching small-cap and micro-cap stocks. Why? More than “just a handful” have run up into the thousands of percentage points and with record-setting volume. In these cases, you can’t forget why you bought stocks in the first place: to make money.
So, why go into a trade with the mindset of making money and get caught up in the hype that makes you think a stock is the next Apple? If you truly feel it necessary to hold a longer-term position, you may be better suited by holding a smaller core and trading “around” that core position.
This will at least allow you to benefit from short term moves while holding onto a lower cost average in the even the company hits it big. This leads me to a new list of penny stocks to watch. Will one of them become the next big trade in the small-cap arena?
Ideanomics Inc. (NASDAQ: IDEX)
Market Cap: $83.61M
IDEX Stock Price @Open (6/5): $0.40
Shares of Ideanomics Inc. (IDEX Stock Analysis) were on the move on June 5th. This came after months of downward pressure on the penny stock. Ideanomics is focused on facilitating the adoption of commercial electric vehicles and developing financial services and Fintech products. This week the company turned heads after an announcement related to its fintech division.
Ideanomics entered into a 50/50 joint venture with Business Big Data PTE, Ltd./Seasail Ventures. The venture will see the creation of an investment company focused on new infrastructure projects in China. The investment company will develop an AI-enhanced “China New Infrastructure” bond product, introduce capital, and fund advisory. According to the company, “this fund will capture two significant emerging trends: the application of AI in traditional financial services and China’s next economic upturn.”
IDEX stock saw its highest trading volume of the year on June 5th. This is the first “sign of life” in the penny stock since March. During the first quarter of the year, IDEX stock rallied from 52-week lows of $0.276 to highs of $1.35 before sliding back to sub-$1 levels in Q2.
Groupon Inc. (NASDAQ: GRPN)
Market Cap: $883.12M
GRPN Stock Price @Open (6/5): $1.35
Groupon Inc. (GRPN Stock Report) started off the year on a bad note but has seen a steady turn around during the second quarter. After hitting new 52-week lows of $0.48 in March, GRPN stock mounted a recovery. During that time, Groupon stock climbed to highs of $1.58 this week, has continued to see higher highs as well as higher lows for most of the second quarter. On Friday, shares of GRPN stock surged after sector reports acted as a catalyst.
Aside from economies reopening, reports surfaced that Grubhub (GRUB Stock Report) had some new suitors. According to reports from CNBC, the food delivery company was “fielding interest” from the likes of “at least two European food delivery companies”. Just Eat Takeaway . com and Delivery Hero were cited as the proposed suitors in the report. Shares of GRUB stock rallied as a result.
While Groupon doesn’t deliver food, it has been lumped into the mix of other companies like Yelp (YELP Stock Report), GrubHub, UberEats (UBER Stock Report), and even BlueApron (APRN Stock Report). Suggesting that there could be a shakeup in the sector with regard to M&A could be one of the speculative things on the list when it comes to beaten-down stocks like Groupon. The company’s due to report first-quarter earnings later this month. So if GRPN stock is on your list, make sure to note June 16th on your calendar.
Ascena Retail Group Inc. (NASDAQ: ASNA)
Market Cap: $30.66M
ASNA Stock Price @Open (6/5): $2.18
A few weeks ago, Ascena Retail Group Inc. (ASNA Stock Report) was on the list of penny stocks to watch. The penny stock rallied to highs of $2.45 on some of its biggest share volume in recent history at the time. Ascena offers apparel, shoes, and accessories for women under the Premium Fashion segment (Ann Taylor, LOFT, and Lou & Grey).
It also offers products for the Plus Fashion segment (Lane Bryant, Catherines, and Cacique) and for tween girls under the Kids Fashion segment (Justice). Through its retail brands, it operates eCommerce websites and approximately 2,800 stores throughout the United States, Canada, and Puerto Rico.
Obviously we know how brick and mortar has struggled this year. At the time, its board has adopted a tax benefits preservation plan which aims to “reduce the likelihood that an ownership change that would significantly limit the company’s ability to use its net operating losses” or other tax attributes to offset future income.
This week ASNA stock continued trading higher on its new, largest 1-day volume at over 10.7 million shares traded. With economies beginning to reopen, is optimism driving the market in hopes that retail gets a boost from shoppers coming back to malls? Shares reached a new 3-month high on June 5th of $3.68 and marked a move of more than 120% since the beginning of the month.
Kitov Pharma (NASDAQ: KTOV)
Market Cap: $48.36M
KTOV Stock Price @Open (6/5): $0.471
Kitov Pharma (KTOV Stock Report) has been one of the penny stocks to watch this quarter. After hitting 52-week lows of $0.22, KTOV stock has bounced back as much as 220% with highs of $0.705 last month. However, in looking at the trend, there’s something that we can clearly see.
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That “thing” is that the technical trend on the chart. If you look at the KTOV stock chart, you’ll see that the 200-day moving average has continued acting as a resistance level. Over the last year, each time KTOV has tested this level, the penny stock has failed to break through and sustain levels beyond that point.
Last month, the company reported a key development that triggered a continuation for the stock. Kitov announced that the U.S. FDA accepted its Investigational New Drug application to conduct a Phase 1/2 clinical trial. This is for its NT219, an agent addressing treatment resistance in advanced cancer. According to Kitov, the study will evaluate NT219 as a monotherapy treatment of advanced solid tumors.
It will also be in combination with cetuximab, an “epithelial growth factor receptor-blocking monoclonal antibody”. This is for the treatment of recurrent or metastatic solid tumors and head and neck cancer or colorectal adenocarcinoma.