Within a week, we’ll be in a new month with all new opportunities for penny stocks. What September brings is unknown, obviously. However, we can look at a few key trends at the end of August to watch, heading into September. One of these trends is the slight uptick in trading volume among small-cap stocks. If you look at last week’s trading volume in the Russell 2000 Index ETF (IWM), you’ll clearly see a drop-off compared to previous weeks. At the end of last week, however, we saw momentum pick up.
This week we’re seeing a slightly higher level of activity as well. Whether it was retail traders taking a breather or simply focusing on Apple and Tesla stock splits, it looks like the focus is returning to the smaller stocks right now. That could bode well for those looking to ride momentum into the fall.
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Furthermore, the U.S. election is creeping ever-closer and we’re still seeing headwinds from things like the coronavirus, the U.S./China trade talks, and even the future of national & global monetary policies. The bottom line is that there are still many unknowns that could trigger more volatility ahead.
What does that mean? Well, for penny stocks, trading in the short term could remain a focus. If you’ve been in this market in 2020, then you already understand how volatility can play a big role. Furthermore, you also understand that these big swings are where the money’s at. In light of this, here’s a list of penny stocks experiencing larger momentum right now.Penny Stocks To Watch #1: Bionano Genomics
Bionano Genomics Inc. (BNGO Stock Report) is one of the companies we discussed at the start of the week. The company’s Saphyr platform is its main offering right now. It is a detection system. It analyzes structural variants in things like lung cancer. Earlier this month, actually, the company announced the publication of the first study utilizing the Saphyr system specifically in lung cancer & metastases.
On Monday, Bionano announced the acquisition of diagnostics services provider Lineagen Inc. The $9.6 million deal brings Lineagen’s proprietary molecular diagnostics services into the Bionano fold. This is just the latest in a string of developments that has triggered a move this year in BNGO stock.
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Earlier this year, we began covering BNGO stock after a string of announcements. At the time, the company had begun a study identifying certain substances related to resistance or sensitivity to COVID-19. Due to the increased attention on COVID penny stocks, BNGO surged from under $0.30 to highs of $1.16 last month. After sliding back to its 50-Day Moving Average, BNGO stock is fighting to maintain this as a key level of support. Will it managed to hold and bounce or is it set to continue its slide lower?Penny Stocks To Watch #2: ElectraMeccanica Vehicles Corp.
ElectraMeccanica Vehicles Corp. (SOLO Stock Report) is back on the watch list this week. Some of you may remember the penny stock from a few months ago. Back in early June was when we first began focusing on SOLO stock. It was at a point in time where Nikola had recently gone public, Nio and Tesla were beginning to take off, and EV mania was flooding the stock market.
Initially, the hype was around unconfirmed rumors of news. The company ended up releasing a statement to put that to rest. In the statement, the company said that “misinformation was spread across social media platforms…indicating a press release planned for June 5th…Any news on topics related to company activities will be distributed at the appropriate time.”
Fast-forward a few months and a lot has happened mainly focused on the company’s main vehicle offerings. In fact, this week the company announced a huge development and a date to go along with it. ElectraMeccanica announced an official start date of August 26th for the commencement of production for its flagship SOLO EV. This is the company’s all-electric, three-wheeled vehicle. The SOLO has a range of over 100 miles and a top speed of 80 mph, making it safe for any road or highway.
“August 26 will be a momentous occasion for our business, and I could not be prouder of all the efforts from our collective team to make our SOLO dream a reality,” said ElectraMeccanica CEO Paul Rivera. Considering this as the “big event” it makes sense that momentum has picked up. Now, will that continue into next month?Penny Stocks To Watch #3: Gevo Inc.
Gevo Inc. (GEVO Stock Report) is one of the companies we started following at the beginning of the third quarter. If you aren’t up to speed, the company focuses on renewable chemicals and biofuels. As of Gevo’s last prospectus for financing deal, the company listed notable clients like Scandinavian Airlines System, Delta Air Lines, and HCS Group GmbH among others. What has sparked some additional interest recently has to do with its latest deal.
Gevo signed a binding Renewable Hydrocarbons Purchase and Sale Agreement with Trafigura Trading LLC. The deal sees Trafigura taking delivery of 25MPGY of renewable hydrocarbons starting in 2023. This is the company’s largest contract to date and, according to management, brings Gevo to over $1.5 billion in revenue when added to other contracts in place. While GEVO stock slid following news of a $51 million raise on Friday, it really hasn’t hurt momentum much this week.
In fact, Tuesday afternoon saw Gevo announcing the formal closing of this raise. Gevo said it intends to use the net proceeds from the offering to “fund working capital and for general corporate purposes, which may include the repayment of outstanding indebtedness.” What will that mean for the company heading into the last 4 months of the year? We’ll have to see how things unfold. Needless to say, GEVO stock made a new high for the week on Tuesday.Penny Stocks To Watch #4: AutoWeb Inc.
Shares of AutoWeb Inc. (AUTO Stock Report) edged higher on Tuesday. While the current 52-week high sits at $3.69, after a brief pullback at the end of last week, AUTO came within striking distance of this level on Tuesday. During market hours, shares rose from lows of $3.12 to aftermarket highs of $3.50. While there wasn’t any news on Tuesday, the recent surge seems to have stemmed from an update last week. Specifically, the company’s preliminary, July 2020 results.
“We are providing our stockholders another intra-quarter update amid the coronavirus pandemic,” said 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.”
AutoWeb is a digital marketing company for the automotive industry. It helps retail dealers and automotive manufacturers market and sell new and used vehicles to consumers. If you look at other automotive-match making services, you’ll see a decent surge of interest this year. Companies like Cars.com, Carvana, and even former penny stock, TrueCar have all jumped up big this year.