Friday has produced some massive runners already. Whether it’s large-cap stocks like Amazon Inc. (AMZN Stock Report) or penny stocks like Kaixin Auto Holdings (KXIN Stock Report), the market is seeing a surge of momentum across several sectors. Last night we watched as Presidential incumbent Donald Trump and Presidential nominee Joe Biden participated in their respective, but separate, town halls. Everything from healthcare to cannabis was discussed. This is likely a reason we’re seeing such a broad range of momentum in the stock market today.
Everything from communications stocks to consumer goods were taking off Friday morning. What’s more is that strong economic data helped support that early trend. Retail sales data came out with signs of strength for the economy. Specifically, Wall Street expected this to come in at a 1.2% increase. However, the reported retail sales figures climbed 1.9% last month. Without auto sales included into this figure, the sales were still up 1.5% compared to the 0.3% expected. Furthermore, the consumer sentiment index also came in at 81.2 compared to the 79.9 expected.
The economy would appear to be showing some signs of strength at least as far as September was concerned. Will we see a Halloween breakout that turns into a Santa Claus rally in one of the craziest years the market has seen? While there’s still plenty of time to see this unfold, it’s important to keep in mind that we’ve still got the election to consider. That’s outside of any coronavirus fears or hopes that will likely play a role. In this sense, the name of the game is finding top penny stocks to buy. In October 2020, we continue seeing a lot of attention on these small-cap stocks. Will these find themselves on your list this month?Penny Stocks To Buy [or avoid] #1: Broadwind Inc.
Shares of Broadwind Inc. (BWEN Stock Report) have been on the move for the better part of the last few weeks. Starting on October 5th, BWEN stock began its ascent. Since then, shares have climbed by more than 75%. One of the popular niches in the market has been renewable energy and cleantech. While Broadwind never released an update this month, the company has found itself getting wrapped up in this trend. The company manufactures structures, equipment, and components for cleantech.
The last material update we saw from this company was actually at the end of August. In Broadwind’s corporate update, the company announced several big developments. One of these was $21 million in wind tower orders from an existing customer.
“While the timing of wind tower orders can vary from quarter to quarter, our tower backlog remains at elevated levels, providing improved visibility as we look ahead to 2021,” stated Eric Blashford, President and CEO of Broadwind. “For the full-year 2020, we anticipate revenue of approximately $200 million, together with double digit percent year-over-year growth in Adjusted EBITDA, supported by our ongoing diversification efforts and a stable outlook within our core clean tech markets.”Penny Stocks To Buy [or avoid] #2: Ocean Power Technologies Inc.
Ocean Power Technologies Inc. (OPTT Stock Report) is another one of the alternative energy penny stocks to watch right now. OPTT stock has been on our radars frequently this year. In fact, since the beginning of 2020, OPTT is up over 170% year-to-date. Similar to Broadwind, Ocean Power has been quiet on the newswires. However, it has been a bit more vocal on social media. The company comes out with sporadic tweets now and then that seem to act as a vote of confidence in the market.
Ocean Power focuses on renewable wave-energy technology and develops power generation systems that use renewable energy of ocean waves as the source of “raw material”. The latest focus has been on its PowerBuoy technology. The platform integrates with hydrodynamics, electronics, energy conversion, and computer control systems to extract the natural energy in ocean waves.
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What’s important to keep in mind is yes, OPTT stock has upheld a relatively consistent uptrend this month. However, without any headlines or company-specific catalysts, volume will likely be a big point of focus for traders.Penny Stocks To Buy [or avoid] #3: Genius Brands
Shares of Genius Brands (GNUS Stock Report) have been on the radar for the last few weeks. This company was actually one that was almost a mainstay on our watch lists from April the June of this year. We were able to see GNUS stock skyrocket from under $0.50 to over $11.70. This was an epic rally but as you’ll see on a chart, GNUS came back down almost just as quickly. As the shares have managed to settle around its 200 Day Moving Average for the last few months, a recent trend has become a bit more bullish.
Toward the beginning of September, GNUS stock started creeping higher. Since then, shares have steadily increased. Most of the excitement has centered around the company’s entertainment assets. Not only has the company beefed up its leadership team and announced new Board appointments, but Genius Brands has also added to its lineup. Toward the end of September, Genius inked a deal with Samsung for its Kartoon Channel! to be carried across Samsung’s Smart TVs. However, most recently there’ve been some questions asked as to the future of its previously announced, new additions to its line up.
Namely, Genius found out earlier this month that another licensor claimed rights to license the Adventures of Sonic the Hedgehog. As a result, the company yielded to that claim but was still able to acquire the PAC-MAN and The Ghostly Adventures series. Right now it seems that GNUS stock is in a technical trend having not only pulled away from its 200 Day Moving Average but also its 50 Day Moving Average as well. Will the trend manage to continue heading into the second half of October?Penny Stocks To Buy [or avoid] #4: Axovant Gene Therapies
Axovant Gene Therapies (AXGT Stock Report) pulled a bit of an about-face on Friday. The penny stock has been in an aggressive downtrend for most of the last 2 weeks. This came right after AXGT reached a new 2020 high at the start of the month. One of the big reasons the stock cracked came after the company announced that 2 of 4 patients in the cohort were unable to participate in the Unified Parkinson’s Disease Rating Scale, or UPDRS, assessments.
Needless to say, things go on and the company remains in a spotlight. There’ve been new names added to its Board and leadership teams. The company also received Rare Pediatric Disease Designation for its AXO-AAV-GM1 for GM1 gangliosidosis. What’s more is that XO-AAV-GM1 has Orphan Drug designation as well.
This week we’re seeing a bit more momentum building toward the end of the week. There weren’t any news headlines on Friday. However, at the top of the week, Axovant announced that it received Rare Pediatric Disease Designation from the FDA for AXO-AAV-GM2 for GM2 gangliosidosis, also known as Tay-Sachs and Sandhoff disease.
Something to keep in mind heading into the second half of the month is the company’s AXO-Lenti-PD for Parkinson’s. The company reported six-month follow-up data from the second cohort of patients in its SUNRISE-PD Phase 2 trial of AXO-Lenti-PD. October 30th will be the date to keep in mind. This is when the company shares additional data and program updates at its Parkinson’s disease R&D Day.Penny Stocks To Buy [or avoid] #5: AMC Entertainment Holdings Inc.
This might be a coin-flip for some but AMC Entertainment Holdings Inc. (AMC Stock Report) managed to break a near month-long downtrend on Friday (as of the lunch hour). AMC stock has been under pressure for weeks now after fears of a second wave began surfacing and the company’s financial troubles started to come to light. Despite opening numerous theaters, other brands haven’t had much luck. When news of Cineworld in the U.K. suspending its operations hit the headlines, AMC stock went into an even deeper spiral.
Can movie theater recover from the pandemic? That will be something likely seen once the economy starts reopening and the pandemic curbs. Reports of bankruptcy have also been spun in the news. This week, AMC CEO Adam Aron refuted reports of such a strategy. Rather, in a Reuters interview, Aron said that the company would raise equity in the market and could as k investors to participate. “At the moment there is no Plan B under consideration,” Aron said. “Now we are going to try to do it for a third time and push out our (financial) runway deeper into 2021.”
Following such a drawn out downtrend, does Friday’s action mark a potential turning point for AMC or just a break in the action of a bigger downtrend?