Are you looking to invest in penny stocks or are you more of a day trader? Whichever your strategy, the goals are all the same: make money and repeat the process. The important part is finding the best penny stocks to buy. Where investing in these cheap stocks can be a task, day traders are finding plenty of opportunities to play off of momentum and turn a quick profit in the market.
It’s important to have a clear understanding of risk and reward, however. If you’re going into a fast-moving stock thinking it’s a good investment, you might get slapped with some reality. Most high-flying penny stocks are very volatile. In the long run, they could continue higher. However, in the short-term, the general trend mirrors big swings up and down. This is why traders focus on momentum, first and fundamentals second. What’s more is that sometimes, penny stocks might move for no apparent reason. There might not even be a company-specific catalyst.
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Last week we saw this exact scenario with low float China-based stocks. Without much rhyme or reason, several of these penny stocks exploded with big volume and volatile price action. What will we see this week? Something to consider is the slew of tech earnings coming out from the top names in the industry.
Furthermore, we’ve got fresh cases of coronavirus pushing new records across the world. So biotech and healthcare will also likely be a factor. Don’t forget, though, just because these might seem “cheap,” it doesn’t necessarily mean they’re the best penny stocks to buy. In light of this, where do these names sit on your list right now?Penny Stocks To Buy [or avoid]: Marin Software Inc. (NASDAQ:MRIN)
Marin Software (MRIN Stock Report) has been on the move over the last few sessions. The penny stock was trading around $1.30 just a week ago. Last Wednesday, was the first big move for the stock when it rallied as high as $5.70. As I said above, these fast-moving names tend to experience incredible volatility. In light of this, the next day, MRIN stock had dropped as low as $2.12. Heading into the first few days of this week, MRIN is back on the move. Monday saw highs of $4.33 during the morning session as the tech stock surged on over 12 million shares trading prior to the lunch hour.
The initial spark last week stemmed from speculation based on a 2019 article discussing the idea that Marin could be an acquisition candidate for Big Tech. Needless to say, this week, the company did come out with a formal press release that seems to have resonated with the market.
Marin announced preliminary financial results for its 3rd quarter. These included a net revenue estimate of $6.8 million as well as a non-GAAP loss in a range from $2.7 million to $3 million compared to last year’s Q3 loss of $2.9 million. The enterprise marketing software company is also expecting to record roughly $9 million in cash and cash equivalents for the quarter.
Since the start of the month, MRIN stock is up over 220%.Penny Stocks To Buy [or avoid]: Ambev SA (NYSE:ABEV)
Brazil’s Ambev SA (ABEV Stock Report) continues pushing higher in the stock market today. Shares of ABEV stock extended a now 5-day trend of putting in higher highs. It hasn’t been the best year for the beer company. There was a brief period of resilience this summer, however, like many Brazilian stocks, ABEV shares slid in August and September.
Ambev is the largest brewer in Latin America by volume. It’s also the fourth-largest beer producer in the world. The company owns Argentina’s largest brewer, Quinsa and has the benefit of Anheuser-Busch InBev holding a controlling interest.
Needless to say, these last few trading sessions have been bullish for the stock, and really, the whole month in general. Since October 1st, ABEV stock is up roughly 16%. With earnings coming up is this a real trend or are we looking at another “buy the rumor, sell the news” event soon?Penny Stocks To Buy [or avoid]: Alliance Resource Partners (NASDAQ:ARLP)
Alliance Resource Partners (ARLP Stock Report) posted a surprise earnings beat on Monday. The company primarily is in the business of coal mining and while you might think that the coal industry is on edge, Alliance is actually expecting things to continue picking up. The company said Monday that it sees increased demand for coal next year.
Alliance reported a strong EPS for the quarter of $0.21. This was in comparison to estimates that the company would report an EPS loss of 5 cents. However, sales did miss slightly. The company posted $355.7 million for the quarter. That came in just shy of the $357.65 million estimate. Needless to say, Alliance experienced a considerably higher level of coal and oil & gas volumes.
“The continuing efforts of the entire organization to optimize cash flow, reduce working capital and control capital expenditures and expenses enhanced our financial position and liquidity. As a result, all of ARLP’s operating and financial metrics improved significantly during the 2020 Quarter.”Joseph W. Craft III , Chairman, President and Chief Executive Officer
This surprise beat helped ARLP stock extend a now 5-day uptrend. Since last Tuesday, the penny stock has climbed 30%. But with the election coming up, the future could be relatively uncertain until we find out who will remain or become the President for the next 4 years.Penny Stocks To Buy [or avoid]: Axovant Gene Therapies (NASDAQ:AXGT)
Axovant Gene Therapies (AXGT Stock Report) is one of the biotech penny stocks we discussed over the weekend. The company has an upcoming event this week. On Friday, there will be additional data and program updates at its Parkinson’s disease R&D Day, Friday.
The company currently has a SUNRISE-PD Phase 2 trial going on for its AXO-Lenti-PD. The target of this treatment is for Parkinson’s disease. A few weeks back, Axovant reported six-month follow-up data from from a dose escalation. So this could be an important date to keep in mind if AXGT stock is on your watch list right now.
Aside from that, earlier this month, the company’s AXO-AAV-GM2 made headlines. It received Rare Pediatric Disease Designation from the FDA. This is the company’s pipeline treatment for Tay-Sachs and Sandoff disease. The company is expecting to evaluate the therapy in a registrational clinical trial consisting of a Stage 1 dose-ranging study and a Stage 2 efficacy study.