Looking For Penny Stocks To Add To Your Watchlist Next Week?
If you’re looking for some penny stocks to watch next week, it’s important to be familiar with certain trends. For instance, countless stocks under $5 have breakouts this year thanks to Covid-19. However, not all penny stocks dealing with coronavirus are ten-bagger stocks.
How to make sense of the markets these days? Not easy if you ask me. Two months ago we saw the steepest market slide in recent decades. Investors have been bracing for a larger impact, only to have stocks turn around for a sustained rally that lasted until today.
While a penny stock can be inexpensive to buy, that doesn’t mean it’s a steal. So before we figure out whether penny stocks are worth the buy. A hawk eye for trading momentum and solid market fundamentals helps cut through the noise. Especially when we are dealing with penny stocks. Not to mention penny stocks that are related to coronavirus.
Why Are Penny Stocks Getting So Much Attention These Days?
If you are hearing a lot about penny stocks lately, especially through social media, don’t be surprised. This is because we are seeing a whole new group of traders participating in the market. Maybe it was all the tales of quick riches which caught their attention. Or maybe they want to be the first few to invest in stocks that could provide treatment for the coronavirus. After all, timing is very important when it comes to investing. Despite all the risks, the promise of rewards seems convincing enough to attract many investors to trade penny stocks.
While there are many skeptics in penny stocks, saying these are terrible and risky investments, I don’t blame them. But there are two sides to a story. Penny stocks are often small companies that are just getting started. These stocks have the potential to multiply a small investment in a short time frame. Even Amazon (AMZN Stock Report) started off as a penny stock. That is why tons of research, building your strategies and sticking to them are so crucial when it comes to investing in penny stocks.
Penny Stocks To Watch #1 Genius Brands International
Genius Brands International (GNUS Stock Report) is trading at $1.63 per share today. The stock was only trading at $0.31 per share during the beginning of May. Meaning, the stock has gone up more than 400% in a short span of two weeks. This came as the company announced the launch of their new Kartoon Channel. Which is expected to be available in over 100 million U.S. households. This announcement could be seen as a turning point for the company when Netflix (NFLX), Roku (ROKU) and Disney+ (DIS) have seen an uptick in their subscriptions.
Kartoon Channel is referred to by the company as “Netflix for Kids”. There is no subscription fee and it is fully ad-supported. This couldn’t come at a better time when the stay-at-home order is still in effect. Especially when there is no visibility of when it is going to be lifted. In fact, many conglomerates expect their staff to work from home until the end of 2020. Genius Brands positions itself as having a parent-friendly schedule grounded with core animated programs that have learning elements and curriculums, as well as entertainment value. Would GNUS stock continue to climb in the coming quarter? That question remains to be answered and it will be best to assess the response of the audiences first, before jumping into the stock amid the hype.
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Penny Stocks To Watch #2 iBio Inc.
Despite its very small market capitalization of around $111 million, iBio Inc. (IBIO Stock Report) is one of the early winners when it comes to the coronavirus. IBIO stock shot up 24% on April 27 when the company announced that it could manufacture nearly 500 million vaccines at its Texas site.
In late February, IBIO stock soared on hopes for the company’s partnership with Beijing CC-Pharming on a plant-based vaccine with the potential of treating the coronavirus. iBio aims to use its FastPharming facility, which was set up to create rapid delivery of medical countermeasures to treat a pandemic. The partnership looked to leverage CC-Pharming’s work on Middle East Respiratory Syndrome (MERS), another coronavirus, and iBio’s manufacturing processes in plant-based expression systems.
While the potential could be huge, investors should not ignore the fact that the company has posted negative cash flows for several years. Like many other biotech companies, if the hope of a successful Covid-19 vaccine fails to materialize, that would seriously hurt its stock price.
Former Penny Stocks To Watch (Or Avoid) #3 Novavax
Novavax (NVAX Stock Report) is one of the reasons why many investors are attracted to the penny stocks space. It may have caught your attention this week as it further climbed 56% after having a hot rally in the month of April. Just think, this was one of the stocks under $5 at the start of the year and it has now jumped to over $60 in May.
The small cap biotech stock has surged more than 700% since January while global markets were brought down to their knees. Despite having no approved drug on the market, it does have tremendous growth potential and a possible game-changer drug in its pipeline, NanoFlu. The company expects to begin an early stage clinical study evaluating its experimental coronavirus vaccine candidate NVX-Cov2373 within a matter of days.
The preclinical results of the vaccine have been quite promising. The thought that NVAX was still considered a penny stock earlier this year is pretty incredible. This shows us the potential of what stocks under $5 could offer. Whether this stock continues to climb or not will have to depend on the outcome of the upcoming clinical trial. As always, we encourage readers to take a cautious approach with these stocks.