Penny stocks are red hot today. The past few weeks saw selling pressure take the market lower heading into election week. However, optimism over the weekend and upbeat sentiment after Pfizer’s (PFE Stock Report) big vaccine news have triggered a market rebound. But with all of this exuberance, it’s important to keep grounded. This is especially true when you’re talking about stocks under $5. The fact of the matter is you can buy penny stocks in large sums and leverage that to make big gains quickly. The other side of that coin is that a slight move in price in the other direction and you can lose money as well.
Volatility is the name of the game. It’s in these big price swings traders are able to capture profits. Whether you’re new to trading or an experienced vet, everyone knows how easy it is to let emotions play a role in your strategy. Word to the wise: don’t let that happen. Greed, fear, hope, etc. can easily drive buying and selling if you let it. The goal should be blocking out emotion and focus on the market specifically. To be honest, stocks don’t care how much you’re down or up, they simply move with the market.
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Then again, it’s hard not to get excited about a potential vaccine. This is something that the market’s waited for all year. The idea that Pfizer’s treatment showed such promise has eyes on an economic turn around. But don’t get too hyped up just yet. We’re still seeing record coronavirus cases as it is. Even with a vaccine, we still need to see if people will actually take it. Regardless of this, as traders, it’s our job to take advantage of market volatility and follow the money to benefit from trends. Right now, there’s been a market-wide surge. Will these hot penny stock be on your list?Hot Penny Stocks To Watch: Havn Life Sciences Inc.
Havn Life Sciences Inc. (OTC: HAVLF Stock Report) (CSE: HAVN) has recently gotten some attention following the advent of the mushroom boom. Psychedelic penny stocks are experiencing stronger momentum this year thanks to sector progress and a brighter spotlight following a recent IPO. Earlier this year, Compass Pathways (CMPS Stock Report) went public on the Nasdaq. When you compare mushroom stocks to marijuana stocks, for example, the move to higher exchanges has happened much more quickly in this new “sindustry”. This certainly hasn’t hurt the attention that these stocks have begun experiencing.
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When it comes to Havn, it could have an added advantage above other small-cap psychedelic stocks. This has to do with who the company’s Chairman, Vic Neufeld. He’s credited with not only helming Aphria Inc. (APHA Stock Report) during its early public years, he’s also credited with helping direct its growth. His experience not only in cannabis but also in building nutraceutical companies, in general, has given investors something to take notice of when it comes to Havn’s leadership.
But it’s obviously more than just Neufeld and the experienced team at Havn. The company has, of course, begun building its revenue model. Havn is focused on two, clear initiatives that it has already begun executing on, Havn Labs and Havn Retail. The company has already begun supplying companies with psychedelic compounds. In October of 2020, the company inked a deal with Revive Therapeutics Ltd. supplying it with psychedelics for use in its investigational new drug enabling studies and future clinical trials under the FDA guidelines. Currently, Revive has focused on expanding its Psilocybin-based therapeutics for mental health and abuse disorders. For more information on HAVLF, click here.Hot Penny Stocks To Watch: Nano Dimension Ltd.
Nano Dimension Ltd. (NASDAQ: NNDM Stock Report) has been on our list of penny stocks to watch for a few weeks now. When we first came across the company, there was a bit of mistaken identity going on. NNDM stock jumped and subsequently dropped just as quickly when headlines mentioned a company with a similar name. Fast-forward a bit and the company has executed on several initiatives while also seeing a boost in the market.
The company provides printed electronics. Last week, Nano Dimension made headlines after selling two of its DragonFly LDM systems for printed electronics. This is an important thing to note with this early stage company as, according to Nano Dimension, it could mark a recovery in the space after COVID-19’s impact. Yoav Stern, CEO and President of Nano Dimension said, “While these two new customers represent our main target markets during the COVID-19 era – defense contractors and research centers, the significance justifying noticing these transactions is that they may be the early birds of recovery, at least for the APAC marketplace.”
With tech stocks turning around, in general, NNDM stock has mimicked the trend. While the company had mentioned its concern with a potential second wave becoming a burden, the Pfizer news certainly takes a bit of that away for companies in similar situations.Hot Penny Stocks To Watch: W&T Offshore Inc.
The trend today is all about reopening. We discussed epicenter stocks earlier this morning and part of that group includes energy stocks. With the economy potentially coming back online, we’re looking at shipping, transit, work commutes, manufacturing; all things that require energy sources. Obviously, oil and gas stocks could benefit from something like this. In turn, we’re seeing companies like W&T Offshore Inc. (NYSE: WTI Stock Report) mirror this trend.
Though it might still be early, the speculative bet is that these penny stocks could rebound. W&T, in particular, focuses on oil and natural gas operations offshore in the Gulf of Mexico. While this bullish sentiment has helped give WTI stock a boost, it’s also coming off of a recent earnings beat. W&T beat on EPS and sales during the third quarter. The company reported a 14 cent loss per share for the quarter compared to estimates of a $0.26 loss per share. Furthermore, sales came in $6.45 million higher than Wall Street initially expected.
“Late in the fourth quarter, we expect to consolidate our two natural gas treatment facilities that serve the Mobile Bay area into the larger of the two facilities which we acquired last year from ExxonMobil. This single facility provides us with more than enough capacity for our current operations as well as production from future natural gas drilling projects in the area.”Tracy W. Krohn, W&T’s Chairman and Chief Executive Officer
Something to keep in mind heading into the remainder of this year.Hot Penny Stocks To Watch: MannKind Corporation
MannKind Corporation (NASDAQ: MNKD Stock Report) is another one of the hot penny stocks we’ve discussed for months. In fact, since the beginning of the year, MNKD stock is up almost 90%, year-to-date. Furthermore, from the March sell-off levels, the penny stock has recovered by as much as 212.5%.
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The company develops and commercializes inhaled therapeutic products. It offers a product called Afrezza which is an inhaled insulin for improving glycemic control in adults with diabetes. Similar to W&T, MannKind also reported earnings recently. While EPS came inline with estimates, the company missed on sales. Regardless, MNKD was able to gain some interest from analysts at Oppenheimer who revised their price target higher, to $3, on MannKind. The firm currently maintains an Outperform rating as well.