When it comes to investing, penny stocks are usually last on the list of targets. For starters, their highly-volatile nature doesn’t lend itself well to a long-term hold. Furthermore, the general speculation factor also tends to fight against the mentality of investing. Penny stocks, in general, are sought after for the potential to move up quickly in price, opening opportunities to score big gains in short order. This isn’t to say that all penny stocks are only trade-opportunities.
We’ve come to find, this year especially, that investing in penny stocks can pay off. I won’t go through every single example, but over the year, I’ve tracked a bunch of names that have not only run up big, but they also continue to run even further thereafter.Trade Or Invest In Penny Stocks?
Take a look at some of these former penny stocks we wrote about earlier this year and that have completely shattered new highs this year. Some even broke above $50 and $100 at times. In comparison to what I was discussing in the previous paragraph, not all penny stocks are built for investing either.
There is a fine balance and something that can more easily be identified with time. Experienced traders will tell you to find penny stocks to buy, and once you’re up, sell, take your profit, and move on. Among that same class of traders, others will discuss a different strategy. It’s referred to as “holding a core”. The simple definition of “holding a core” is taking an entry position in a stock.
Then buying more, selling some, then repeating this process as a stock goes higher. Essentially traders average up their position but sell and buy more in pieces all while holding a core position. There are other strategies like the tiered trading strategy that allows traders to stay in winning trades longer while also being able to cut losing trades quicker. – Learn More On Tiered Trading.
No matter the case, the goals are the same: make money. So whether you’re trading or looking for penny stocks to invest in, keep that in mind. That being said, are these penny stocks to invest in, trade, or fade right now?Penny Stocks To Trade [or fade]: New Gold Inc.
New Gold Inc. (NGD Stock Report) is one of the few gold stocks that actually made new 52-week highs this month. If you look at the state of the gold market, you’ll see it’s been beaten up a bit. Since hitting new, all-time highs in August, the last few weeks have been rough. The price of gold even broke back down below $1,900, a threshold thought of as new support for the precious metal. Nearly every major gold stock has been in recovery mode. New Gold stock, however, is somewhat of “the honey badger”. It doesn’t give a **** what the rest of the sector’s doing.
On Wednesday, shares reached a new 52-week high of $1.90 with a firm close at $1.89. Now that gold seems to be back in motion, are gold stocks on your list again? If there’s one thing that has stood the test of time it’s what I’m about to write next. During times where gold is hot, the juniors tend to run higher than the majors. Obviously, NGD stock has become an example of that.
Aside from reaching new highs, New Gold is also gaining steam after its latest deal. At the end of August, the company announced closing on the sale of its ale of the Blackwater Project. Not only did it give them $190 million in cash ($140m+$50m next August), but it included an initial gold stream of 8%.
Considering NGD just made a new 52-week milestone, is there still gas left in the tank? With gold prices appearing to have started to quietly ascend, it will be interesting to see what the market yields next.Penny Stocks To Trade [or fade]: Party City Holdco Inc.
We put out an article about “reopening stocks” today. Also known as “epicenter stocks,” these are the companies that might benefit the most from the economy getting back to normal. If one industry could exemplify that, it’s likely the retail sector. While eCommerce thrived during the pandemic, many traditional brick and mortar companies are shifting to a brick and click model. Party City Holdco Inc. (PRTY Stock Report) has taken advantage of this business model.
The penny stock has made an admirable move of more than 500% since the start of the second quarter. Meanwhile, the company has managed to bob and weave, for now, avoiding that dreaded “B” word so many retailers have faced in 2020. I’m talking about bankruptcy. When we first began following PRTY stock more closely in May, the company had found itself actually benefiting from things like drive-by birthdays. Furthermore, Party City reported stronger than expected sales last quarter.
Though it missed on EPS, the company pointed out its North American e-commerce sales. Party City saw these sales increase by 83.2%. This also helped the company beat analyst estimates on revenue for the quarter. The company reported $254.7 million in revenue for the quarter. This outpaced estimates of $225.67 from Wall Street. Heading into the busy Halloween season, will Party City continue to maintain this type of growth?Penny Stocks To Trade [or fade]: AquaBounty Technologies Inc.
AquaBounty Technologies Inc. (AQB Stock Report) is a recent addition to a list of penny stocks to watch this month. We started discussing it earlier this week after identifying some unusual volume trends last Friday. Considering that the market was closed on Labor Day, September 8th was the day to see if the trend continued. Continue it did as AQB stock has managed to breakout this week from $3.01 on Tuesday to highs of nearly $4 on Wednesday.
Does the company have a breakthrough COVID treatment? Is AquaBounty designing some sort of water-based medical device? The answer to both of those questions is, No. On a basic level, AquaBounty genetically modifies fish. The company is engaged in the field of land-based aquaculture.
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This month, AquaBounty is set to present at 2 industry conferences. These include the H.C. Wainwright Global Investment Conference on September 16 and the Lake Street BIG4 Conference on September 17. One thing that has been a sticking point for investors recently is the company’s planned, 10,000 metric ton farm. Supposedly this quarter AquaBounty is set to announce the farm’s location. Construction is anticipated to begin early next year. After this week’s early momentum, is this trend as sustainable as AquaBounty’s fish?Penny Stocks To Trade [or fade]: Rockwell Medical
Rockwell Medical (RMTI Stock Report) faced a ton of selling pressure during Q2 and Q3 this year. What’s more interesting is how strong of a start it had to 2020. From January 2nd right up until the marketwide selloff in March, RMTI stock jumped from $2.45 to highs of $3.85. The momentum stemmed from the company’s licensing agreement with Sun Pharmaceutical Industries Ltd. for an iron replacement therapy, Triferic, in India. However, after the March drop and recovery attempt, RMTI stock just hasn’t been able to make any significant headway toward turning things around in the market.
So why is it on a list of penny stocks to watch? Let me go over its latest announcement then you can decide. Wednesday afternoon, Rockwell announced that it entered an exclusive license agreement with Jeil Pharmaceutical Co., Ltd. This is for the rights to commercialize Triferic in South Korea.
Under the terms of the license agreement, Jeil will be the exclusive development and commercialization partner for Triferic in South Korea. Rockwell Medical will supply the product to Jeil. In consideration for the license, Rockwell Medical will receive an upfront fee and will be eligible for milestone payments and royalties on net sales.
Something else to keep in mind is what the company said in its second-quarter business update. The Company currently expects to launch evaluation programs during the third quarter of 2020 to allow clinics to gain direct experience with Triferic AVNU, and expects Triferic AVNU to be available commercially during the fourth quarter of 2020, following the completion of the initial evaluation programs. This is the intravenous formulation of Triferic. With this recent development and potential milestones planned is RMTI on the trade or fade list?