This month penny stocks are on fire. Better yet, dare I say it, this year, stocks under $5 have produced some of the most jaw-dropping rallies I think many have seen in a long time. This quarter alone, we saw stocks like Genius Brands (GNUS Stock Analysis), Digital Ally (DGLY Stock Analysis), Hertz Global Holdings (HTZ Stock Analysis), Tupperware (TUP Stock Analysis), and one of the biggest yet, Novavax (NVAX Stock Analysis) become much more than “just another penny stock”.
I’m basing this on price and progress as these penny stocks broke out in a big way this year. As a reader of PennyStocks.com, you’ve certainly had your hands full as far as what to pay attention to. Those were just a small hand-full of the countless penny stocks we’ve seen leave the price range so far.How Do You Find The Best Penny Stocks?
What will be next? That’s the ultimate question. In the stock market today, we’ve seen a resurgence of “the retail trader”. Where fundamentals once ruled the land, traders simply seem hungry for opportunities to capture big swings. While there’s nothing completely wrong with that, you should give yourself a tiny gut-check to make sure you aren’t letting emotion dictate your approach.
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Momentum trading is a very real thing and plenty of traders have scanners set up specifically for such events. But when you start believing the speculative hype, things get a bit foggy. So while you’re out there in the market, make sure you’ve got a clear head and a plan in place to make money with penny stocks.
After the week we’ve seen so far, I’m sure there will be more “cult” penny stocks to watch. We’re probably going to even cover some of the best high-volume penny stocks at one point or another. Make sure you’ve got your subscription up to date on PennyStocks.com so you get these updates in real-time. With this being said, let’s take a look at some of the high-volume penny stocks to watch in June so far.Penny Stocks To Watch: GNC Holdings
Back in April, we started picking back up on the “brick and mortar retail” story and GNC Holdings (GNC Stock Analysis) specifically. As one of the better-known flagships across shopping malls and retail outlets, GNC is a name-brand I’m sure you’ve either seen or shopped at. Obviously, with the economic shutdown, these retail locations weren’t positioned to fair that well. As we’ve already seen, many retailers have either declared bankruptcy or gone out of business entirely.
For GNC, however, the recent surge in momentum comes as more and more cities lift restrictions. On top of that, the company was taking proactive steps to work with lenders. The company recently reached an agreement with required lender groups to extend the springing maturity dates for certain loans.
As a result of discussions with its lenders, GNC entered into amendments to its loan agreements. This extended the springing maturity dates for the term loan facility, FILO credit facility and revolving credit facility until August 10, 2020. If certain conditions aren’t met it could cause the extended springing maturity date to move forward to June 15, 2020.
Given the fact that economies across the U.S. have begun opening up again, could GNC start regaining some ground? This week shares have already continued their June rally reaching highs of $1.48 on Monday, up 104% since the start of the month.Penny Stocks To Watch: Creative Realities Inc.
Ever since late-April, Creative Realities Inc. (CREX Stock Analysis) has been one of the high-volume penny stocks to watch. The company focuses on what we’ll likely see a lot of when more people return back to the “new normal”. I’m talking about technology to track and prevent the spread of viruses by monitoring certain things like thermal scanning. In late April we started covering the penny stock as attention focused on getting back to work. Traders began circulating the information on the company’s website showing options for workplace-based technology solutions.
Fast-forward a few weeks and a few percentage points and we see CREX stock continuing a strong uptrend. On another note, the fact that cruises are going back to business this month could be a clear indication that thermal imaging companies could be in the news.
In light of this, CREX stock saw a recent surge after updates showed cruise lines like Carnival utilizing thermal imaging. Recently, analysts at Benchmark Capital upgraded CREX stock to a “Speculative Buy” with a $5 price target. But that’s not what got the juices flowing this week.
Late in the June 8th session, CREX started jumping. In all reality, that jump-started about 10 minutes before the closing bell. Why did CREX stock jump? It may have had something to do with a blog post titled: Local Montessori School Installs Thermal Devices on the company’s website. It highlighted the fact that Creative Realities products like its No Touch Temperature scanner were in use. Considering it came late in the session, could this momentum continue through the week?Penny Stocks To Watch: Drive Shack Inc.
Drive Shack Inc. (DS Stock Analysis) operates and owns golf-related leisure and entertainment businesses. If you’re familiar with “Top Golf”, the model appears similar. Inline with companies like GNC mentioned above, America reopening could have a lot to do with the surge of interest in consumer stocks.
The company has locations in Orlando, West Palm Beach, Raleigh, and Richmond and caters to the adult crowd. Beer specials, food specials, entertainment specials and the like are part of the company’s business model.
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Why I say that “reopening” could have a bigger impact right now is based on a general lack of other info out there. Shares of DS stock surged on Monday to new June highs. The momentum continued after the closing bell as the penny stock reached highs of $3.43. This has marked a move of more than 80% since the start of the month. Yet the only recent news was the company’s earnings miss earlier in May.What Triggered A Move In DS Stock?
But look on Twitter and you’ll see what I mean with regard to reopening. Despite having little news on the PR wires, Drive Shack is vocal on Twitter. Friday the company tweeted “Hey RVA, we’re OPEN! Can’t wait to have you back!” and this week, the company made another tweet on its West Palm location. “UPDATE: WEST PALM BEACH CURFEW HAS BEEN LIFTED AND OUR NORMAL OPERATING HOURS WILL RESUME.”
For all intents and purposes, brick and mortar is all about keeping the doors open. With the reopening efforts clearly in toe, will this mark a turnaround for DS stock? Keep in mind that up until this year, shares traded above $4 on average.
B. Riley FBR started coverage on Drive Shack with a Buy rating and price target of $4. “We believe the current valuation and relative lack of investor and sellside attention do not reflect the underlying growth opportunity over the next three to five years as the company continues to transition from solely a traditional golf course operator to a developer of multiple ‘eatertainment’ concepts centered around an enhanced technology offering to boost the experience for consumers,” said analyst Eric Wold. One thing you might notice is that DS stock is approaching its 200-Day moving average (red line on the chart). So, it will be interesting to see if this will act as a firm resistance and see the move fail at that level or if DS will be able to break above it.Penny Stocks To Watch: IZEA Worldwide Inc.
IZEA Worldwide Inc. (IZEA Stock Analysis) has been a mainstay on PennyStocks.com watch lists since early May. At the time IZEA stock traded around $0.31 and the company was getting thrown into the mix of coronavirus entertainment. We’ve seen a lot of entertainment companies including Genius, mentioned above, benefit from COVID lockdowns.
For IZEA, however, the company has focused on a few different things. Last month the company announced a streaming event to demonstrate the latest capabilities of BrandGraph®, its newly released social intelligence platform. According to the company, BrandGraph provides an analysis of share-of-voice, engagement benchmarking, category spending estimates, influencer identification, and sentiment analysis.
Toward the end of May, IZEA announced that it established a new relationship with a “Fortune 500 insurance company” for influencer marketing services. IZEA said it also expanded its relationships with a “Fortune 100 food manufacturer” and a leading “multi-billion-dollar furniture goods manufacturer,” among others.What Has IZEA Stock Moving Recently?
Another big update came out. Late in the afternoon on June 8, the company said it secured a “significant six-figure contract with a new Fortune 500 customer”. It is for influencer marketing managed services. The company also said it secured a “variety of contracts with repeat customers, including the renewal of a contract with Global Fortune 500 technology company.”
Something to keep in mind, however, is that On June 4, 2020, IZEA submitted an 8-K filing. It showed the company launched an at-the-market offering of up to $10,000,000 worth of shares of the Company’s common stock. As we’ve seen, offerings can be a sticking point for investors depending on the price per share of the offering. We’ve continued to update on key developments since May. With this latest update, could IZEA stock continue to climb higher in June?Penny Stocks To Watch: Stein Mart Inc.
Finally, Stein Mart Inc. (SMRT Stock Analysis) has been one of the high-volume penny stocks to watch in June. Shares are up over 60% this month after SMRT stock reached highs of $0.599 aftermarket on June 8th. If you’re not familiar with this company, you’re looking at yet another brick and mortar retailer.
Stein Mart Inc operates several hundred department stores in the United States. It sells mostly name-brand merchandise. The company aims to provide current-season, quality merchandise at prices comparable with off-price retailers. The company leases all of its stores, which are located mostly in shopping centers frequented by more-affluent customers.
The initial push for SMRT stock began at the end of May. This coincided with the Phase 1 reopening process that many states started to enact. Following this, we saw Stein Mart report sales and a range of operating results for the first quarter ended May 2, 2020. The company said it plans to release its complete first-quarter financial results no later than June 30.
The company said it reopened 90% of its stores to date with reduced hours. It also sees Q1 sales coming in around $134 million. However, Stein Mart reported that it expects its operating loss to hit somewhere between $64 million and $68 million. With preliminary “dirt” on the table, will the progress of America reopening continue to push momentum for companies like Stein Mart?