With great power comes great responsibility. If you know how to trade penny stocks right now, you definitely have some power. This takes into consideration the herds of new traders making their way into the stock market today. Why does this give experienced traders “great power”? Well, compared to the millions of new market participants who might not know how to actually trade, you might have been able to take advantage of this increased liquidity the markets have seen this year.
Consider the following figures just from the first quarter of this year. Charles-Schwab clients opened a record 609,000 new brokerage accounts. Over 280,000 came in March alone, according to the company’s most recent earnings report. Net new accounts for Etrade also surged during the first quarter.
The broker credited for revolutionizing electronic trading reported over 363,000 net new accounts. That’s a jump of nearly 170% from 2019’s first quarter. But the shining star here is Robinhood. The mobile broker posted a record 3 million new accounts in the first quarter.
What that boils down to is a whole new world of penny stocks. There was an article published earlier this afternoon talking about how volumes have picked up this year. “The equity buying spree by the Robinhood community garnered a lot of attention recently and raised concerns about misplaced euphoria among ‘rookie’ investors,” wrote Emmanuel Cau, an equity strategist with Barclays. With this in mind, if you are investing, how are you investing in penny stocks right now?Penny Stocks To Trade [or fade]: iBio Inc.
iBio Inc. (IBIO Analyst Report) has been on our list of penny stocks to watch. In this case, IBIO has been on the list since last December. Most recently iBio has focused on a COVID-19 vaccine. Something else that has brought much more attention to the company is joining the Russell 200 and Russell 3000 Indexes. Despite its CFO resigning, COVID-19 vaccine news has helped give companies, including IBIO a boost in the market this month.
As more confirmed cases have grown, so too has interest around penny stocks like IBIO. What’s more, is that iBio was also selected by IBM Watson Health to receive 18 months of use of the IBM Clinical Development solution for free. IBM Watson Health began offering its ICD solution to eligible trial sponsor organizations as part of its efforts to help support the medical community to address the COVID-19 pandemic.
IBM Watson Health has received interest in the offering from numerous hospitals, sponsors, contract research organizations, and academic institutions, and is currently enabling 15 COVID-19 disease trials. Thanks to news like this IBIO stock has seen a favorable reaction in the stock market this year. Given the uptick in COVID-19 cases, is IBIO one of the penny stocks to trade or will momentum fade?Penny Stocks To Trade [or fade]: Energy Fuels Inc.
Energy Fuels (UUUU Stock Report) was one of the more active penny stocks to track on Friday. UUUU stock saw its highest share volume day since late June with more than 3.4 million shares traded. But what’s more interesting is the price move it had in light of that activity. Share jumped more than 10% and carried through a 3-week uptrend from lows of $1.43 to Friday’s high of $1.80.
The jump also came after the company’s latest update. On July 17th, Energy Fuels announced the recent elimination of a portion of its debt. It also confirmed 2020 uranium production guidance, and updates on the value of its significant uranium and vanadium inventories. On July 14, the Company distributed Cdn$10,430,000 of cash to holders of certain debentures (as of July 8, 2020). This amount represents the redemption of one-half of the total debentures outstanding. As a result, only Cdn$10,430,000 aggregate principal amount of the debentures remain outstanding. These are due on December 31, 2020.
“Assuming no change to our current production or sales guidance, Energy Fuels expects to have about 640,000 to 690,000 pounds of uranium in inventory at the end of 2020. At today’s spot price for uranium, Energy Fuels expects to hold up to US$23,000,000 of uranium inventory value – or possibly significantly more if uranium prices continue to rise due to the major mine production cuts we’re now seeing around the world or other U.S. government- or market-driven factors. Furthermore, we have 1,600,000 pounds of high-purity finished vanadium product in inventory, which is worth about US$8.5 million at today’s spot price,” explained Mark S. Chalmers, President and CEO of Energy Fuels. Will Friday’s momentum continue through the rest of July?Penny Stocks To Trade [or fade]: ResTORbio Inc.
Back in late-May, ResTORbio Inc. (TORC Stock Report) hit the scanner after some irregular volume triggered attention on the company. The company announced the initiation of a randomized, double-blind, placebo-controlled trial of RTB101. Its RTB101 is an investigational orally-administered small-molecule inhibitor of target of rapamycin complex 1 (TORC1). It was going to be compared to a placebo for COVID-19 prophylaxis in nursing home residents.
Approximately 550 subjects are expected to enroll in the study. Subjects will be randomized 1:1 to RTB101 10 mg once daily or matching placebo once daily. Dr. Joan Mannick, Co-Founder and Chief Medical Officer of resTORbio had said, “In previous Phase 2 studies, RTB101 was observed to upregulate innate antiviral gene expression, and therefore RTB101 has the potential to be a pan-antiviral immunotherapy.”
Other than that, there haven’t been many other updates from the company. But it hasn’t stopped TORC stock from gaining ground. On July 17th, things clearly started to surge even stronger as shares broke above the 200Day Moving Average for the first time since last November. It also saw some of its highest trading volumes since May. Will this continue into next week? Leave us a comment below.