The amount of limelight on penny stocks has increased significantly throughout 2020. Due to the low prices of these assets, they have become quite popular. This is especially prevalent in 2020, as people have been searching for new ways to make money. The pandemic has made things financially hard for many, so people have turned to the stock market as a way to do this. The low cost of penny stocks has attracted new investors, as you can enter the market for less money.
There is a catch with entering the market of penny stocks though. These low trading assets can often be highly volatile. Within an instant, a penny stock can shoot up in value and make investors a ton of profit. But at the same time, the opposite can happen, causing investors to lose money.
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This would make penny stocks seem like a high-risk, high-reward asset. Well, compared to larger-cap stocks, this can be true. It can be difficult to decide which penny stocks you are going to invest in. Here are 4 penny stocks to watch heading into the second half of October.Penny Stocks Under $4 To Watch: Walcott Resources Ltd.
First on this list of penny stocks to watch is Walcott Resources Ltd. (OTC WALRF Stock Report)(CSE WAL). Walcott Resources is a mining company that has property in many locations. The company will mainly acquire land, explore, and mine for precious metals and resources. Walcott has been rather active at its Tyr Project in Australia. Some estimates for these mines show that it could yield around 4,710 grams per ton of silver ore. Additionally, the mining and acquisition company has focused on its Cobalt Hill property that covers a mass section of lanes. In total at this property, Walcott owns 100% of the 8 mineral tenures within. So what’s been going on with Walcott recently?
Well, Walcott provided a Cobalt Hill update back in September on the 11th. The precious metal mining corporation stated that it will be following up on areas of the property that are known to have a high grade of gold mineralization. This is expected to occur in several places throughout the Cobalt Hill region. In addition to this news, on September 18th, more was announced from Walcott. It reported the closing of a brokered private placement for $2,865,750, and DTC eligibility for its common shares.
The company plans to use this financing for activities on the Company’s Cobalt Hill coppergold‐cobalt property, completion of the proposed acquisition of 1256714 B.C. Ltd. and exploration of the acquired silver projects and for general working capital purposes. Walcott also expects to re-open two of its historic silver mines at the Tyr Project, with a high resource estimate in the area. It will be interesting to see the future advancements from this mining company in light of the recent market volatilityPenny Stocks Under $4 To Watch: Huttig Building Products
In addition to stronger housing and a rotation into industrials stocks, Huttig Building Products Inc. (HBP Stock Report) has experienced a stronger surge in trading recently. The penny stock gapped up strongly on Thursday with a well-above-average trading volume.
One of the contributing factors is, as has been the case, the real estate sector. Most real estate shares rose on Thursday. Huttig Building Products provides millwork, building materials, and wood products. Earlier in August the company has received an unsolicited acquisition proposal from Mill Road Capital Management to purchase the company for around $2.75 a share.
This is important because a potential catalyst to consider right now is a recently filed 13D filing. This showed that Mill Road Capital position in the company, of course. However, the amendment to the original filing had details that included a change to the buyout offer. On October 14, 2020, Mill Road sent the letter to the chairman of the Huttig’s board proposing to acquire all outstanding shares of the Issuer at a price of $4.00 per share.
This has triggered a surge in the penny stock on October 15th. Shares reached early highs of $3.75 during the morning session, trading more than 12 million shares by 10:30 AM EST.Penny Stocks Under $4 To Watch: Lineage Cell Therapeutics Inc.
Lineage Cell Therapeutics Inc. (LCTX Stock Report) is a clinical-stage biotech company that develops and commercializes therapies that treat degenerative diseases. Its solutions are offered in many places internationally and in the United States. Its primary product is OpRegen that is a retinal pigment epithelium cell replacement therapy for age-related macular degeneration. Let’s look into the recent news for the company.
LCTX stock price is up because Lineage announced encouraging preliminary Phase 1 study results with VAC2 for the treatment of non-small cell lung cancer. This is in partnership with Cancer Research UK. VAC2 showed a “remarkably potent induction of immune responses in all patients dosed to date.”
On October 14th the penny stock reached a high of $1.37 and continued higher on Thursday. Lineage also reported this week that updated interim results from a Phase 1/2a study of OpRegen® will be presented at the 2020 American Academy of Ophthalmology Annual Meeting. The meeting happens from November 13 to the 15th.Penny Stocks Under $4 To Watch: Rolls Royce Holdings
Rolls Royce Holdings (RYCEY Stock Report) has been one of the top names on our watch lists recently. One of the main focal points of traders is how far down the stock has actually fallen. Some analysts simply think that it’s oversold at these levels. Had you looked at this penny stock at the start of October, that might’ve proven correct. Shares rallied from under $1.40 to highs of over $3 earlier this week.
“RR [Rolls-Royce] is set to post record gains for this week as investors are buying the stock as it is way too cheap,” said Naeem Aslam, chief market analyst at AvaTrade.
What’s it look like this week? Rolls Royce stock reached highs of $3.07 on Monday but have consolidated since. Thursday’s session saw a bit more upward momentum, however. This follows the company’s latest update announcing a $13.9 million investment in its Power Systems business for new R&D expanding its MTU power generation manufacturing facility in Minnesota.
Andreas Schell, CEO of Rolls-Royce Power Systems said, “This investment in our Mankato plant will help us to meet the growing demand for energy in the Americas with locally manufactured products. Mankato will thus become an even more important part of our worldwide production network in the future.”