5 Penny Stocks To Watch Before Friday
Penny stocks, blue-chip stocks, you name it, volatility has been a big influence this week. The broader markets have now sold off 2 days in a row thanks to a surge of new cases of coronavirus across the U.S. Things have now gotten to a point where New York State just enforced quarantine restrictions on California.
Furthermore, there are still many more questions than answers when it comes to the future of the proposed stimulus deal that was supposed to have a “deadline” of last Tuesday. Then let’s also not forget the general market volatility we normally see around election time. The trifecta of catalysts is in play right now so what does this mean for traders? Should they just go into cash?
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While you should stick to the strategy you’re comfortable with, day traders are seizing major opportunities right now. Volatility is the lifeblood of big gains. When you throw the idea of penny stocks into the conversation, we’re now talking about big gains quickly. That’s something we’ve seen on an almost daily basis.
Trading VS Investing In Penny Stocks
For example, yesterday we discussed Insignia Systems Inc. (ISIG Stock Report) in our end of day article. Shares were trading around $1. Overnight, the penny stock ended up jumping 74% to highs of $1.74 during the morning session. The only problem is that if you weren’t in a trading mindset, it wasn’t much to talk about after 10 AM. While it’s still up about 28% as of Tuesday’s closing bell, the case for “trading” versus “investing” is important to realize here.
Everything has its time and place. Trading penny stocks and investing in penny stocks are things to learn how to do. It’s also important to understand when to utilize each strategy. If we’re talking about highly volatile, high volume penny stocks, taking up a trading strategy (most of the time) will pay off more than and investing strategy. On the other hand, when you have certain stocks with well-established trends, consistent trading volume, and less volatility, then an investing strategy or swing trading strategy (most of the time) will pay off better.
It’s all situational. So no matter what, if you find some penny stocks to buy, keep an eye on your active trades. At the very least, have proper backstops in place. This would be something like stop-loss orders and price alerts in case you can’t be in front of your screen for a moment. Heading into the rest of the week, there will likely be more “ISIGs” to find. But there might also be some stocks to watch for a longer period of time. Where do these sit on your list right now?
Biotech Penny Stocks To Watch: GT Biopharma Inc.
If there’s one thing that traders look for, it’s “cracks in the system’ – anomalies that don’t match up to broader trends. In this case, I’m talking about biotech stocks. If you look at the S&P 500 right now, you’ll see another day of selling on Tuesday. However, what you won’t see when you look at the Biotech ETF – IBB- is a mirror image. In fact, on Tuesday, the ETF closed green about half a percent. In this case, it might not be a bad thing to have some biotech names on the radar. GT Biopharma Inc. (GTBP Stock Profile) has been one to watch recently thanks to a slew of key developments.
In fact, after reporting its latest update on patient dosing, interim results on its lead candidate were chosen for presentation at a leading industry conference later this year. GT’s GTB-3550 treatment is initially targeting patients with acute myeloid leukemia. In the Dose Level 3 update, the company reported a meaningful response from the patient after being treated. This included a decrease in AML blast levels from 18% to 12% in the bone marrow. The patient also improvement in marrow cellularity, which is another proof point to this treatment.
In addition to GTB-3550 specifically, the platform it’s based on -TriKE™- has also received praise in industry journals recently. The platform is a combination protein that bridges an immune cell and a tumor cell to drive tumor cell killing power exponentially. In a recent publication in the journal Cancers, TriKE™ was researched along with a B7-H3 protein. The findings were strong enough to justify the company planning for advancing a B7H3 TriKE™ product candidate to clinical development. As this story develops, we’ll continue to monitor the progress closely. For More Information On GT Biopharma & Its Pipeline, Click here.
Healthcare Penny Stocks To Watch: Community Health Systems, Inc.
While it isn’t a biotech penny stock, Community Health Systems, Inc. (CYH Stock Report) jumped after the close on Tuesday. The company announced third-quarter results as well as a new CEO and new Executive Chairman. Earnings per share blew away estimates. Wall Street expected an EPS loss of 16 cents. Community Health came out with an EPS gain of 18 cents. Meanwhile, sales also beat estimates. The company reported $3.13 billion which was 8% higher than the $2.9 billion estimates.
“Our results in the third quarter reflect strong progress on strategic activities taking place across the organization…These strategic activities continue to generate positive results and we remain optimistic about our opportunities for even more progress moving forward.”
Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc.
The response in the market was a stark difference from what Tuesday’s regular session saw. CYH stock ended up closing at its low of the day, down over 8%. For Analyst Ratings On Community Health Systems, Inc., Click here.
Oil & Gas Penny Stocks To Watch: Sanchez Midstream Partners & Tengasco Inc.
One of the other high-flyers after hours on Tuesday afternoon was Sanchez Midstream Partners (SNMP Stock Report). While a number of oil stocks fell on Tuesday, Sanchez bucked the trend. Not only did shares rally over 40% during the regular session, but SNMP stock also pushed higher after the close. There haven’t been any new developments from the company in particular; more speculation than anything else. Sanchez is a midstream operator processing, storing, transporting, and marketing oil, natural gas.
On the same token, Tengasco Inc. (TGC Stock Report) was another oil and gas penny stock that caught some nice momentum after hours on Tuesday. TGC stock closed the regular session around $1.10 and ended up reaching highs of $1.56 in post-market trading. While Sanchez didn’t have any major headlines recently, Tengasco did. About a week ago the company announced a definitive merger agreement with Riley Exploration – Permian, LLC. Following the closing of the transaction, the current members of Riley will own 95% of Tengasco and the current Tengasco stockholders will own the remaining 5%. In addition, Riley will become a wholly-owned subsidiary of Tengasco.
There’s also going to be a name and symbol change after the deal’s complete. Tengasco will change its name to Riley Exploration Permian, Inc. and expects to trade under the new “REPX” symbol. The transaction is expected to close during the first quarter of 2021. The biggest question on both fronts is how will Tuesday’s momentum translate into Wednesday’s morning session. As we’ve seen, after market gappers can lose steam the following day and a lot could ride on the overall sector sentiment itself.
Bitcoin & Blockchain Penny Stocks To Watch: Marathon Patent Group, Inc.
Marathon Patent Group Inc. (MARA Stock Report) has been on our radar for weeks now. This is especially in light of the recent surge in bitcoin prices. If you’re not familiar with Marathon, the company focuses on mining digital assets. Not only has Bitcoin sparked interest in companies like Marathon, but the company itself has also made its own fundamental catalyst as well.
This week, Marathon announced a contract with Bitmain to purchase an additional 10,000 next-generation Antminer S-19 Pro ASIC Miners. This adds to the company’s existing operation of 2,560 miners.
“It is important to note that this delivery is quicker than our previous order for 10,500 miners, which will be delivered between January and June 2021. These new 10,000 miners are expected to all be deployed in Q1, three months earlier than our last purchase. As a result, there will be a substantial increase in our Bitcoin Mining revenue sooner than we had anticipated.”
Merrick Okamoto, Marathon CEO
As bitcoin prices edge closer to $14,000 on Tuesday evening, will this momentum in bitcoin and blockchain penny stocks remain intact during Wednesday’s session? For Analyst Ratings On Marathon Patent Group, Inc., Click here.