Penny stocks are in their own world sometimes. Actually, compared to most blue-chip stocks, no matter what the broader markets are doing, stocks under $5 tend to move on their own accord. While thins like sector news can impact certain penny stocks, the majority have their own set of rules.
Here’s what I mean and what many of our readers have experienced for themselves. Let’s look at the gold sector, for instance. Back in March, for instance, we saw tons of large-cap gold stocks plummet to some of the lowest prices in years. While that was going on, there were still a few hand fulls of gold penny stocks actually seeing new highs for the year.
It had to do mostly with investors seeing more value in the “potential” of those companies than the current status of the already established market leaders like Barrick or Franco-Nevada. It’s not just limited to gold, obviously as this was just a quick example. The point of the matter is that while penny stocks are incredibly volatile, they do offer something different.
Are penny stocks worth it for new investors? That’s got a lot to do with risk tolerance and how you handle big swings in price. The attraction to these cheap stocks has everything to do with leveraging small sums to capture big percentage gains. I find that having a plan in place is one of the best ways to not get caught blindsided by volatility. At the end of the day, you can find countless examples of penny stocks that ran up big and presented both long and short-term opportunities. With this in mind, are any of these on your list of penny stocks to buy or will they be on the sell side of your watch list?Penny Stocks To Buy [or sell]: Houghton Mifflin Harcourt Company
Houghton Mifflin Harcourt Company (HMHC Stock Report) was one of the penny stocks to watch over the last week or so. Shares of HMHC stock saw a brief breakout before that but it was based more on speculative hype than anything else. In fact, the company came out with an update stating that rumors of certain events weren’t true. It then instructed investors to pay attention to updates that are published directly by the company itself; go figure.
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In any case, EdTech penny stocks have been hot this month. We saw a surge in attention spark big moves from small-cap stocks in this space. Houghton Mifflin recently introduced Teacher’s Corner this month. It focuses on remote education and includes features such as curated content, virtual events, and coaching.Recent Developments In HMHC Stock
Toward the end of the week last week, Houghton announced that it will report earnings on August 6. This week the company came out with more progress news. It was in the form of a PR with probably the longest headline I’ve ever seen. Essentially it was the release of some research data compiled by the company suggesting virtual learning wasn’t going away anytime soon.
“There is still concern about the fall and what our ‘new normal’ will be, but the marked increase in optimism is a testament to the resilience, adaptability and commitment of our nation’s teachers, and the clear realization we all have of how critical and central their jobs are to a thriving society,” said Jack Lynch, CEO of Houghton Mifflin Harcourt. Shares surged late in the afternoon on Tuesday. Can this continue through the rest of July?Penny Stocks To Buy [or sell]: Check-Cap
Another one of the penny stocks we’ve monitored for a while now is Check-Cap (CHEK Stock Report). April was when we first started taking a closer look and at the time CHEK stock traded around $0.50. It was also around the time that shares hit 52-week lows just days prior.
Shares of CHEK stock saw a bigger move on Tuesday. There was no update from the company directly. If you remember, CHEK was in a stronger uptrend a few weeks ago. That was cut short following news of a fundraising round late last week. The gross proceeds to the company from the transaction were expected to be approximately $9.6 million.Recent Developments InCHEK Stock
Check-Cap said it intends to use the net proceeds from the offering to advance the ongoing clinical development of C-Scan®, including preparations for its U.S. pivotal study. The company also said that the closing of the offering was expected to occur on or about July 27, 2020. Considering that’s right around this time of the week, have investors grown bullish once again?
Check-Cap’s main focus is on colorectal cancer through the use of its screening test. According to the company, C-Scan®, is the first and only patient-friendly preparation-free screening test to detect polyps before they transform into colorectal cancer.Penny Stocks To Buy [or sell]: Bionano Genomics
Another one of the penny stocks to watch for some time now has been Bionano Genomics (BNGO Stock Report). Most recently we talked about the company as volume continued to grow to above-average levels. But it has been in a more detailed focus since April 28th. We’ve seen BNGO stock rise from around $0.40 at that time to highs of $1.16 this week. During the course of those weeks, Bionano has announced new progress on its COVID-19 treatment.
Bionano’s main focus is its Saphyr system. The company initially announced the launch of the largest study to date, in March. The study was made for identifying certain substances related to resistance or sensitivity to COVID-19. Bionano announced that a European consortium published the first paper on Bionano’s Saphyr genome imaging instrument. This was to investigate the performance of Bionano’s data in comparison to the cytogenetic standard of care in constitutional or inherited genetic disorders.Recent Developments In BNGO Stock
On July 24th Bionano further announced that a recently formed international consortium of clinical and research sites is using its Saphyr genome imaging system. The system was used to identify genomic variants that influence resistance or sensitivity to the SARS-CoV2 virus progression and drug response. Other than these updates, there haven’t been any further public developments.
Monday marked the record date for shareholders to participate in the August 31, 2020 shareholder meeting. There’s really only one item to vote on. That is to approve an increase to its authorized shares from 200 million to 400 million. The other item is to approve more votes if there aren’t enough votes in favor of the proposal. In any event, BNGO stock is back on the move.
Considering that coronavirus penny stocks have gotten more attention this week anyway, it might simply be sector sentiment building excitement in the market. Furthermore, BNGO bounced off of its 200 Day Moving Average again on Tuesday with above-average trading volume. In light of that, will it be on the list of penny stocks to watch for certain traders this week?