Penny stocks are an interesting asset class. Some tend to have no rhyme or reason to their movement. While others you would think to have broken out after big news remain dormant. A lot of this comes down to who knows about these companies, in general. I’m sure you’ve come across some of these scenarios. Maybe it was one of the OTC penny stocks you found rallying 100’s of percentage points in a single day. But that same company might not have released news or filings in months. Essentially, you’ve found a ghost ship.
When it comes to OTC listed stocks under $5, you’re dealing with an entirely different class of penny stocks. The reporting requirements are much less in comparison to the NASDAQ or NYSE. There’s also a lot more risk when it comes to some of the financing deals these companies engage in. It’s almost a chicken and egg scenario. Since these companies don’t report as much as some of the main exchange-listed ones, it’s difficult to find attractive banking options.Penny Stocks And Risk
In this case, many of these companies will work with lesser-known family offices that offer money at a premium. Things like steep discounts to market, high payback premiums, and the like aren’t an unusual thing to find in the filings of OTC companies. There’s also the whole liquidity issue.
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Since many firms won’t trade these stocks, they will instead focus on NASDAQ and NYSE penny stocks. The one exception is dually listed companies. These are the ones that trade on the OTC as a foreign listed company (usually with an “F” at the end of the symbol). However, most also trade on the main listing on their “home” exchange.
Regardless of all this, maybe they are interesting to you and that’s your prerogative. In the stock market today, however, we’re seeing plenty of options for penny stocks listed on major exchanges. So the old ways of searching for small-caps on the OTC has greatly evolved in my opinion. In light of all of this, let’s take a look at a few trending names this week. You can decide if they’re the best penny stocks to buy now or avoid entirely.Penny Stocks To Buy Now [or avoid]: AutoWeb Inc.
As the A-Team’s Colonel John “Hannibal” Smith said, “I love it when a plan comes together.” That goes for trading penny stocks too. When you have a trade idea that ends up not only working out but continues to follow the trend beyond a day, it’s a good feeling.
This could be the case with traders who’ve followed AutoWeb Inc. (AUTO Stock Report) for the last few months. After hitting lows of $0.50 in March, the auto marketing company pulled a turnaround of epic proportions that has now lasted 5 months so far. Last week, we started following this company as it just reported earnings. The next catalyst was a July revenue update.
Jared Rowe, President and CEO of AutoWeb. “Our improved results over the past several months are further evidence of the strength of our turnaround. Gross margin has continued to hold above 35%, and we generated positive cash flow and adjusted EBITDA in both June and July. In fact, we drove a higher level of adjusted EBITDA in July than we did for the entire second quarter.”
Since then, AUTO stock has climbed as much as 93% so far. What’s more is that it has been keenly follow by analysts recently. The lates, Barrington Research, upgraded AutoWeb to “Outperform” from “Market Perform”. About a week ago, analysts at B. Riley and Lake Street also upgraded AutoWeb.Penny Stocks To Buy Now [or avoid]: AIM ImmunoTech Inc.
AIM ImmunoTech Inc. (AIM Stock Report) saw its shares take off on Thursday morning. While this year has been somewhat of a flat one after breaking out in March, AIM stock has seen a few exciting days. This week, the excitement stemmed from its latest announcement.
The company identified an effective in vitro model at The Institute for Antiviral Research at Utah State University. This is for testing Ampligen, a dsRNA TLR3 agonist. The results show that Ampligen was able to decrease SARS-CoV-2 infectious viral yields by 90% at clinically achievable intranasal Ampligen dosage levels. This now supports AIM’s goal of developing an intranasal prophylactic approach using Ampligen to prevent COVID-19.
“We are pleased with these results, as they establish Ampligen’s bio-activity against SARS-CoV-2 as well as support our decision to test Ampligen in humans as an intranasal prophylaxis and early-onset therapy against COVID-19,” said AIM CEO Thomas K. Equals.
Next week, the company is set to present at the LD 500 Investor Conference. Its CEO is set to present on Tuesday at 1.20 PM EST.Penny Stocks To Buy Now [or avoid]: IZEA Worldwide Inc.
IZEA Worldwide Inc. (IZEA Stock Report) is another one of the penny stocks to watch this week. As you might recall, IZEA stock has been on the watch list for months now. The stock began captivating attention as the stay at home orders put people inside for extended hours in front of their computer screens. Specifically, IZEA focuses on influencer marketing and the social media industry itself. The company initially launched a technology platform to pay bloggers to create content for brands.
Earlier this month, IZEA reported the publication of a brief providing its first public analysis of the influencer marketing industry within the travel and tourism industry. What’s more is that about a week and a half ago, IZEA announced that twelve professional athletes from the NBA and NFL joined its Shake platform. Shake is IZEA’s new online marketplace that allows creators to offer their services, delivered digitally, for a self-determined price.
This year, IZEA has attracted some new analyst interest. Craig Hallum has IZEA stock set at a Hold rating and a target price of $0.50. In June, Ladenburg Thalman upgraded its Neutral rating on IZEA stock to a Buy. With TikTok becoming a huge focus for the market lately, is IZEA benefiting? The company recently held a TikTok 101 webinar this month. Aside from that, there haven’t been any new updates lately and shares of IZEA stock are jumping on Thursday.