Are These Epicenter Stocks On Your Watch List This Month?
What are epicenter stocks? Put simply, these are penny stocks & blue chips that’ve gotten hit hard by pandemic restrictions. But according to the man who’s made this term famous, Tom Lee of Fundstrat, they could also be some of the names to experience the biggest recoveries. One of the things we’ve discussed when referencing epicenter stocks is the fact that there isn’t a vaccine. This is one of the main catalysts that could spur a move for reopening stocks.
The idea that there could be something to curb the spread, reduce recovery time, and help build confidence in reopening is everything that goes along with a vaccine. There haven’t been firm timelines or certainty to when this could be rolled out. That is, until this month. Pfizer (PFE Stock Report), AstraZeneca (AZN Stock Report), and even Moderna (MRNA Stock Report) have all reported meaningful results in their vaccine treatments. Many have begun seeing a light at the end of the tunnel. In this case, the idea of focusing on epicenter stocks has grown stronger.
We’re talking about companies in traditional retail (brick and mortar) as well as other businesses that traditionally do business face-to-face more than online. While many of these brick and mortar businesses took up a brick and click model this year, the fact still remains. Their businesses were set up for in-person business originally and the online angle was more a bandaid with future potential than anything.
Furthermore, we still have yet to see the financial ramifications that pandemic has brought. Many companies have had to take up major financings and restructuring plans to weather the storm. Needless to say, when it comes to the trade idea on epicenter stocks, it mostly focuses on the ability to fully reopen these businesses. In this light, are any of these on your list of penny stocks right now?
Epicenter Penny Stocks To Buy [or sell]: Party City Holdco Inc.
Party City Holdco Inc. (PRTY Stock Report) has quietly mounted a massive recovery this year. Considering it was trading under $0.50 when we were first discussing PRTY, shares have bounced immensely this year. In fact, as of this month, Party City stock has officially gone positive on the year. Prior to the pandemic sell-off, PRTY stock was trading around $3. In November, the penny stock is now approaching the $5 mark. In fact, shares briefly climbed above that threshold on Tuesday morning.
One of the biggest drivers for the company was the ability to focus on brick and click. This strategy has helped the company continue beating earnings estimates. In the latest quarterly report, Party City reported an earnings per share of 10 cents. This was no comparison to the $0.32 loss per share analysts expected. Furthermore, the company managed to report $534 million in sales, crushing the estimate of $489.3 million for Q3.
Next week the company participates in the BofA Securities Finance conference. With a refocus on reopening stocks, PRTY could be on the watch list heading into Decemer.
Epicenter Penny Stocks To Buy [or sell]: Nokia
Nokia (NOK Stock Report) is another one of the penny stocks to watch recently. In fact, it was one of the top penny stocks on Robinhood we said to watch for November. Since the 2nd, NOK stock has climbed from around $3.30 to highs of over $4 this week. The big move in the penny stock has come amid renewed optimism in tech and communications. Likely stemming from vaccine hopes, Nokia has also announced several key developments this month too.
This week, it was chosen as one of the TELUS network infrastructure partners. Nokia will provide 5G mobil services for Canadian customers.
“Our 5G network, strengthened by the expertise of our infrastructure partners, like Nokia, will form the foundation of Smart Cities and Industry 4.0, next-generation virtual healthcare, immersive education, agriculture technology and next-level gaming.”
Ibrahim Gedeon , Chief Technology Officer at TELUS
This comes just a few days after the company along with Elisa and Qualcomm reported achieving the world’s fastest 5G speeds on a commercial network in Finland. The network utilized Nokia’s 5G mmWave technology over Elisa’s commercial 5G network. Services are expected to be implemented next year.
Epicenter Penny Stocks To Buy [or avoid]: AMC Entertainment Holdings
One of the companies that have brought a little bit of skepticism among traders is AMC Entertainment Holdings (AMC Stock Report). While it’s been on our list of penny stocks to watch for a while, uncertainty on reopening has made things volatile. This week, however, cinema stocks are gaining ground amid optimism from COVID-19 vaccine news. While restaurants can seat people outdoors and entertainment venues can do the same, movie theatre operators are limited. In light of this, it makes sense that so many took the brunt of the pandemic gut punch. However, with the latest optimism thanks to Pfizer and Moderna, among others, stocks like AMC are back on the move.
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Since the beginning of November, shares have climbed from around $2.30 to highs this week of $5 so far. This 100%+ move has been greatly fueled by sector sentiment. So keep this in mind if AMC is on your list of penny stocks to watch right now. The company has also filed a shelf registration at the start of the month.
This was for up to 20 million shares of common stock. This “at the market” offering would be drawn on “from time to time” to raise money. With such a huge jump, I think it’s important to keep this in mind. We’ve seen plenty of penny stocks fall after raising money at discounted prices. For now, however, AMC stock has continued climbing this month. Will that trend remain intact through the holidays?
Epicenter Penny Stocks To Buy [or avoid]: Genius Brands International Inc.
One of the former darlings among penny stocks this year was Genius Brands International Inc. (GNUS Stock Report). We watched this penny stock explode from under $0.40 to highs of over $11.70. As with most parabolic moves, GNUS stock quickly came back down. After trading sideways for months, November has seen a slight uptick in the price trend. On November 2nd, the penny stock started the month at $1.10. Since then it managed to reach highs of $1.40 so far this week.
The entertainment company has been making its way forward to expanding it offerings. Earlier this month, the company launched Llama Llama branded merchandise promotion as a part of Kohl’s Cares Collection. It also made a strategic acquisition of ChizComm Ltd & ChizComm Beacon Media. The significance of this deal is that it brings ChizComm’s marketing and media buying into Genius Brands asset basket. ChizComm Beacon Media has consistently been ranked the largest media buyer within the Kids 2-11 age group, for example. What’s more is that the company’s coming into the holiday season with a significant cash position based on what was reported in its recent quarterly filing.
“The balance sheet of Genius is immaculate. We have zero debt. A fact that very few companies anywhere can state. We have a war chest of over $100 million dollars sitting in cash. As we seek smart acquisitions to accelerate the company’s growth, we will use our cash, our shares, and our balance sheet cautiously and judiciously to create value for our shareholders.”
CEO Andy Heyward