One of the best parts about penny stocks is that there are thousands of them. Seriously, think about it. If you miss a breakout on one penny stock, there are plenty more to watch that have a real chance of big moves, regardless. It’s one of the reasons why we always say to trade with a plan and don’t forget to take profits along the way.
Even if the move continues, you can either choose to re-enter the trade or simply find a new one. Today, for instance, there were more penny stocks breaking out than you could count on 2 hands. Though some of the moves were fleeting, the fact remains, there were plenty of options out there. One of the easiest ways to find penny stocks to watch is following the news.
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It’s obviously not the only thing to do to find stocks with potential. But it is something that can help cut through some of the other research to do in order to find out why a stock is moving the way it is. As always, it’s important to read more than just the headline. However, it helps especially when you’re looking for potential catalysts. There were plenty of penny stocks moving higher but no news was immediately evident. In that case, it’s harder to find justifiable information that would spark such a move.
Finding reliable information is important because it can show you if a stock is moving based on something the company did, or if it’s simply just a short term technical move that could end in a day. With this in mind, let’s take a look at a few companies with news this week. Will they be on your list of penny stocks to trade or will they fade before Friday?Penny Stocks To Trade [or fade]: On Deck Capital, Inc.
If you were to look at the stock chart for On Deck Capital, Inc. (ONDK Stock Report) right now, there’s something clearly noticeable. That’s the huge drop in the price of ONDK stock in March. Being that the company is an online lending platform for small businesses, it’s understandable why the drop was so steep. However, since then, the fintech penny stock has experienced wild volatility. It has traded in a range between lows of $0.54 and highs of $2.15. However, during the last 4 weeks, this range has consolidated tightly to between lows of $0.657 and highs of $0.87.
The company was the target of several price target cuts. It also received notice from the New York Stock Exchange that it didn’t meet the continued listing standard related to a minimum closing price of $1 for 30 consecutive trading days. So you might say that there’s been much more uncertainty pertaining to the future of the company than any other kind of speculation.
This week, however, things appear to have changed a bit. The company not only reported its earnings results but On Deck, was also the target of a $90 million acquisition. The company entered into a definitive agreement under which Enova International (ENVA Stock Report) will acquire all outstanding shares of OnDeck in a cash and stock transaction. The implied price of $1.38 per OnDeck share reflects a 43.6% premium to its 90-day volume-weighted average price and a 90.4% premium based on the closing price of $0.73 per OnDeck share on July 27, 2020. Shares spiked to more than $1.20 after-hours on Tuesday afternoon from a close of $0.85.Penny Stocks To Trade [or fade]: Achieve Life Science Inc.
Achieve Life Science Inc. (ACHV Stock Report) is another one of the movers in the stock market this month. This was one of the penny stocks on the pre-July 4th watch list. Shares were trading around $0.40 at the time and Achieve had announced a key development in its Cytisinicline development platform. The company reported successful topline results from the New Zealand RAUORA Phase 3 non-inferiority clinical trial comparing cytisinicline to varenicline (Chantix®) in Māori (indigenous New Zealanders) and whānau (family) of Māori.
Since that time, ACHV stock has managed to climb to highs of $0.67 this month. Something to point out is that ACHV has faced a clear point of resistance at its 200-Day Moving Average. As you’ll see, both July 22nd and July 28th, shares tested but failed to maintain levels above it. Prior to that, the 50 Day Moving Average acted as a levels of support and resistance.
However, after the close, shares began spiking. In fact, ACHV stock managed to reach a high of $0.68 during after-market trading on Tuesday. This came after the company announced that it will report its second quarter 2020 financial results on Thursday, August 6, 2020. But since the move came many hours after the fact, could this simply be a technical move or is there something more behind it?Penny Stocks To Trade [or fade]: Titan Medical Inc.
Another after-hours mover on Tuesday was Titan Medical Inc. (TMDI Stock Report). This week the company announced that its CEO would present this weekend at the Society of Robotic Surgery 2020 World Robotic Symposium. Mr. McNally, said, “We are honored to present a progress update on our single-port robotic surgery system at the Society of Robotic Surgery 2020 World Robotic Symposium, where we will be among clinical and industry experts in the field of robotic surgery.”
This latest update follows a series of recent developments. On June 3, 2020, Titan entered into several agreements with an affiliate of Medtronic plc. (MDT Stock Report). That’s including a development and license agreement to further the development of robotic-assisted surgical technologies.
There’s also a separate license agreement in respect of certain intellectual property of Titan. As technology milestones are completed and verified, Titan is entitled to receive a series of license payments totaling up to $31 million for Medtronic’s rights to such technologies.
If you remember back at the end of March, we first started following TMDI stock. That was when Titan announced that it had increased its global IP portfolio to 49 issued patents and 86 patent applications. Since then a lot has obviously happened and as of the closing bell, TMDI is trading roughly 472% higher. Can this trend continue through the rest of the month?Penny Stocks To Trade [or fade]: Community Health Systems Inc.
This afternoon, Community Health Systems Inc. (CYH Stock Report) came out with earnings. Now, I will say the expectations for certain companies’ earnings don’t have the bar set very high. But for CYH stock, analysts appear to have set the bar incredibly low. Wall Street expected Community Health to report an EPS loss of $0.62. Instead, EPS came in at a positive $0.85.
Furthermore, net income attributable to Community Health Systems, Inc. common stockholders was $70 million, for the three months ended June 30, 2020. That was compared to a net loss of $(167) million, for the same period in 2019. However, net operating revenues for the six months ended June 30, 2020, totaled $5.544 billion, a 17% decrease, compared to $6.679 billion for the same period in 2019.
Wayne T. Smith, chairman, and chief executive officer of Community Health Systems, Inc., said, “I am proud of our hospital leadership teams and the corporate support teams that have demonstrated agility and resilience under pressure and leveraged all of the resources of our organization to support their community response as well as one another. We will continue to adapt to this evolving situation with a steadfast commitment to provide the best possible response to this public health crisis, while at the same time focusing on long-term growth for all of the Company’s stakeholders.”
CYH stock climbed to highs of $4.99 after hours on Tuesday afternoon. Since the start of July, shares have climbed from around $3 to those after-hours highs.