Are These Small-Cap Stocks On Your Watchlist This Week?
When you look at the stock market the past few days and analyze some of the best-performing stocks, what do you see? It is the small-cap stocks that are topping the list. Despite a general pullback in the market, small-cap stocks headed in the opposite direction. And not only do these small-cap stocks tilt upwards, many rallied by thousands of percentage points.
One of the big mover events in the market was the coronavirus and the reopening of the economy. Well, that’s certainly what’s on top of the mind of investors. But if we just watch closely, there are certain sectors that are also benefiting from the current ‘Black Lives Matter’ movement. This week, we are also seeing some breakouts overnight, especially companies that serve the black and underrepresented communities.
How Do You Find The Next Best Small Cap Stocks To Watch?
What will be the next promising small cap stocks? That’s the question every trader has been asking. In the stock market today, we have seen a resurgence of traders that don’t follow the fundamentals. They are only here to look for big swings. I don’t blame them though, since our economy is so dissociated from the stock market itself. Sometimes, companies with strong fundamentals go south whereas companies that have been quiet and weak make a huge jump.
Momentum trading is real and plenty of traders have scanners ready for such events. Some of these small cap stocks are making moves on an epic scale. As such, traders and investors alike should set aside emotions when making investment decisions. That said, if you can’t stomach the pain when stocks go south, then you might want to choose a safer bet. With all of these in mind, let’s take a look at some of the small cap stocks making big moves this week.
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Top Small-Cap Stocks To Watch This Week: Carver Bancorp Inc
Shares of Carver Corp (CARV Stock Report) jumped over 600% during its trading period yesterday, before closing 248% higher at Wednesday’s close. The company serves the black and underrepresented communities and saw their shares skyrocketed as traders associated the company with trends of supporting Black-owned businesses amid global protests against police brutality. It appears traders see the stock market as one way to voice out their support for the African American community.
While it is difficult to verify such a narrative, many traders are seizing the momentum and pushing many of the black-owned stocks upwards. There’s no fundamental news that would push the stock higher as far as I’m concerned. While the surge we are seeing with CARV stock is simply due to the movement, we must also bear in mind that such a breakout is not a fundamental push. As such, caution is warranted if you plan on trading this stock. For instance, let’s take a look at Urban One (UONEK Stock Report). The stock made a jump over 500% before losing 60% of its value from the peak. The question here is, will we see CARV stock sharing a similar fate as UONEK stock?
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Top Small-Cap Stocks To Watch This Week: Atlas Financial Holdings
Shares of Atlas Financial Holdings (AFH Stock Report) skyrocketed 427% towards a 14-month high volume. They closed 187% higher at the closing bell yesterday. This came after the announcement that it closed the sale of its indirect subsidiary Gateway Insurance Co. to Buckle, a tech-driven financial services company. The sale has received the necessary regulatory and court approvals. Both Atlas and Buckle plan to work together to identify additional opportunities to provide insurance solutions to the gig-economy sector. The emphasis will be on transportation network company drivers.
The company saw its trading activity surged to 144.8 million shares on Wednesday. This compared to the average of 565,000 shares traded per day. This makes it one of most actively traded stocks on major US exchanges. People who follow the company would know that it failed to file its 2019 annual report. As such, the company is in a position that’s violating the listing rules. It will be interesting to watch in the coming weeks when the annual report is ready.
“In the coming weeks, we will also continue to focus on becoming current with our financial reporting and then ultimately beginning to communicate our forward-looking strategy in an efficient and proactive manner,” – Scott Wollney Chief Executive Officer.