Weighing risk and reward with penny stocks is never a bad thing. Look, you’ve got plenty to think about before committing to a trade and risk plays a huge part in that. No matter what others will tell you, penny stocks are some of the most volatile stocks in the market. Aside from how the businesses are financed, you’ve got simple price risk as a big thing to account for. Simply put, if Apple stock were to decline by 5 cents, that’s unnoticeable to the percentage change. But, take penny stocks under 10 cents and you’ve got a whole different situation to deal with.
The best thing to do is get yourself educated to some extent and don’t be afraid of risk. Understand how to trade with it. In many cases, you can use the high volatility to your advantage in capitalizing on quick moves in price. On top of that, unlike popular opinion might suggest, there are plenty of these cheap stocks that attract big investment and attention by Wall Street funds. Not only that but bigger companies have a history of doing business with companies, not stocks.
Earlier this week we discussed Entercom Communications (ETM Stock Report). While it didn’t immediately break out, the attention on things like last-minute election marketing was coming into focus. The penny stock caught a quick spike in trading momentum that traders capitalized on. Now, a few days later, we see Entercom inking a multi-year deal with FanDuel, one of the leading sportsbook companies in the U.S. Specific terms of the deal weren’t immediately disclosed. However, it does support the idea that penny stocks aren’t just “no-name companies” in a grey abyss of sketchy stocks.What Are The Best Penny Stocks To Buy?
So how do you find top penny stocks to buy? There are many different ways but one of the best is by simply doing research. Whether that means looking for high volume penny stocks and researching chart trends or sifting through filings and looking for fundamental catalysts. There are plenty of options for you. The point is to understand why a stock is or could be moving and how you can best capitalize on that move. With this in mind, are any of these on your list of penny stocks to buy now?Penny Stocks To Buy [or avoid]:Rekor Systems Inc.
Looking at the Rekor Systems (REKR Stock Report) chart shows a rough few weeks for this company. Wednesday was, by far, the single-worst day in the last few months. REKR stock dipped to a low of $3.09, down 60% from its September highs. The big factor adding to this downtrend was the company’s preliminary results. Rekor said that it’s expecting revenue to be roughly $600k light compared to its second-quarter results. Regardless, the stock pulled an immediate about-face on Thursday.
REKR stock recouped a lot of what it lost on Wednesday as sentiment turned positive. Despite setbacks from the pandemic, Rekor was able to reach a few milestones according to its preliminary update. The company said that in the third quarter it announced the launch of Rekor One. This is the company’s single source for roadway intelligence. It also launched an iPhone and Android mobile vehicle-recognition application for commercial users.
- Penny Stocks on Robinhood To Buy Under $1 Right Now
- Does Your List Of Penny Stocks Have These Trending Names On It?
What’s more, was that Mastercard selected Rekor to help deliver its AI-Powered Drive Through Platform. This is a directive for major quick-service restaurant brands to transform their drive through interactions through vehicle recognition, voice ordering, and artificial intelligence. So, has the market now baked in this guidance for when the company reports its full earnings on November 9th? Leave a comment below: Is REKR a Buy or Sell Right Now?Penny Stocks To Buy [or avoid]: Sunworks Inc.
Technology isn’t just about the internet of things or software as a service. We’ve also seen a surge of interest in things like alternative energy technologies. Sunworks Inc. (SUNW Stock Report) provides solar technology solutions for everything from agriculture and industrial to commercial and residential applications. A few weeks ago we saw SUNW stock take off in a sympathy trade alongside other alternative energy and EV penny stocks. One of the key points of focus besides sector hype has been its pending merger with The Peck Company (PECK Stock Report).
Even before the retail market hype built behind this company, we talked about this proposed deal and what it could mean for Sunworks. SUNW stock was still under $1 and some speculative momentum was building behind the PECK/SUNW deal. The duo aims to form one of the formidable solar technology companies in the industry. A special meeting of shareholder is set for later next month (November 12th) to vote on the combination.
Sunworks is coming off of a strong third quarter as well. the company already reported $10 million in project wins for the quarter. This translated to more than 4.4 MW of installation. What’s also helped give the sector a boost was earnings earlier this week from First Solar (FSLR Stock Report). First Solar on Tuesday said it now expects to report $2.6 billion to $2.8 billion in net sales this year. Profit, on a per-share basis, is anticipated to range from $3.65 to $4.15.
As sentiment remains bullish for solar, a lot could be riding on what happens next week with the outcome of the Presidential election. So while momentum is stronger this week, there could be a volatile road ahead in light of this. Leave a comment below: Is SUNW a Buy or Sell Right Now?Penny Stocks To Buy [or avoid]: Trevena Inc.
You also can’t forget about “bio” technology either. One of the penny stocks that we’ve followed this year is Trevena Inc. (TRVN Stock Report). Since June 2nd TRVN stock has become a focus. The penny stocks’ initial move came momentum that built from its TRV027 COVID-19 advancements. The company began collaborating with Imperial College London to evaluate the treatment potential of TRV027 for acute lung injury in COVID patients.
Right now, its OLINVYK treatment could actually be a much bigger focus. OLINVYK is used to treat moderate to severe acute pain in adults and was compared to the safety of IV morphine. Earlier this month the company presented at the ANESTHESIOLOGY® 2020 conference to discuss new analyses on data from its Phase 3 program for OLINVYK.
But right now could be of particular interest for some who’ve followed TRVN stock for a few months. The company has explained that OLINVYK will be commercially available when the U.S. Drug Enforcement Administration issues its controlled substance schedule. If you take a peek at the Federal Register, you’ll see an “unpublished document” referencing “Schedules of Controlled Substances: Placement of Oliceridine in Schedule II”.
In light of this, it could be one of the potential catalysts behind the early morning surge on Thursday. Leave a comment below: Is TRVN a Buy or Sell Right Now?