If there’s one thing traders are familiar with it’s COVID-19. More specifically, coronavirus penny stocks have kicked things into high gear. Major headlines covering big developments like new vaccine candidates have definitely helped boost shares of public companies. But then you can’t forget about some of the “pick and shovel” companies in this new “coronavirus sector”. I’m talking about the companies providing things like disinfectants, sanitizers, and personal protective equipment.
In fact the PPE portion has become one of the most lucrative and involves far less R&D. Think about it. Masks are one of the PPE’s that everyone’s beginning to use right now. Furthermore, a spike in cases has also given even more reasons to look at PPE companies. Some Oregon counties will be required to wear face masks while in indoor public spaces, under a directive Gov. Kate Brown is planning to put into effect next week.
Additionally, Gov. Gavin Newsom on Thursday ordered all Californians to wear face coverings while in public or high-risk settings. This includes when shopping, taking public transit or seeking medical care. Long story short, it looks like face masks could be in high-demand following more states/counties enacting mandates to wear them. So why not put a list of penny stocks together?Penny Stocks To Watch: NovaBay Pharmaceuticals
Shares of NovaBay Pharmaceuticals (NBY Stock Report) saw its shares surge on Thursday. Following the news out of California, NBY stock rallied to high of over $1. Novabay sells the popular KN95 face mask on its site so it makes sense why NBY stock has caught some momentum in light of these new mandates.
Last month, NovaBay also entered into an agreement with TLF Bio Innovation Lab, LLC, which was retroactively effective as of April 1, 2020. The terms of the agreement have TLF acting as manager for a market “relaunch” of a product called CelleRx. It’s described as a lifestyle hygiene product. The company was also working on a point of care test. The test uses a drop of whole blood for the detection of COVID-19 antibodies.
According to NovaBay results become available in approximately 10 minutes and detects for the presence of both IgM and IgG. Needless to say, NBY stock has benefited strongly from the latest surge of interest in PPE stocks. The biggest question is can this momentum continue following these updates or will it be a short-term catalyst?PPE Penny Stocks To Watch: iFresh Inc.
When you look at iFresh Inc. (IFMK Stock Report) PPE stock might not be the first thing to come to mind. I wouldn’t blame you either. For the first few times this company caught a surge of momentum, it was in reference to its grocery and delivery service. The comapny even expanded its delivery service to other states last month.
But IFMK stock has caught another gust of momentum for another reason. You guessed it, face masks. If you remember, earlier this year iFresh announced that it signed a purchase agreement to acquire 70% interest in a face mask company. After paying $600k, iFresh will be the proud new owners of 70% interest in Xiamen DL Medical Technology Co. It then began offering facemasks through its chain and online retail sites.
Right now iFresh’s online grocery delivery service has been expanded to Florida, Maryland, and Massachusetts, in addition to New York. Clearly the sympathy here stems from the latest round of rules set in place by state governments. IFMK stock jumped in late-afternoon trading on Thursday closing near its high of day.Penny Stocks To Watch: Dynatronics Corp.
If you’re looking for PPE penny stocks to watch, Dynatronics Corp. (DYNT Stock Report) is likely another name on the list. While DYNT stock may not be a formal “face mask stock” it does offer something else. Dynatronics offers disinfectant products among other things. If you do a quick search on the site, it offers for sale “CaviCide” disinfectant cleaner and “Protex” disinfectant spray.
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While DYNT stock hasn’t had the most impressive last few months, June has been different. Since the beginning of the month, shares have been climbing. On June 1, the penny stock traded around $0.66. On June 18th DYNT stock traded as high as $1.15.
Some people on social media sites were citing it as a “facemask” company. But if you actually search for the product on the company’s website, the only mask you’ll find is a CPR mask. Needless to say, with the expectation of a wider spread for infection, it’s likely one of the companies that would be positioned to benefit.PPE Penny Stocks To Watch: China Pharma Holdings
Say what you will about penny stocks. If there’s one thing we all can agree on its that a little news can mean big things for certain stocks. In this case, China Pharma Holdings (CPHI Stock Report) has also benefited from the rising interest in personal protective equipment stocks. CPHI stock has been climbing consistently since the second week of the month moving from around $0.40 to highs of $0.70 on Thursday. This move comes as COVID-19 cases have surged once again.
The company has a specialty pharmaceuticals subsidiary based in China. Earlier this year China Pharma announced that its subsidiary launched mask product lines. “The global outbreak of COVID-19 has led to a surge in demand for protective equipment such as masks. In this circumstance, we take the time to launch mask production lines, adhering to our corporate mission of providing basic medical protection measures to the general public, and fulfilling our social responsibility with practical actions,” said China Pharma’s CEO Li Zhilin in the April press release.
According to the company, masks are produced in cGMP certified pharmaceutical manufacturing facilities to ensure safety and health. Considering that Beijing has become a hot bed for new COVID cases recently, there could be a reason to look at China-based companies. In this case, China Pharma has clearly realized growing interest this month as new cases emerge.PPE Penny Stocks To Watch: Edison Nation
While not nearly to the same extent as the others, Edison Nation (EDNT Stock Report) has previously rallied in the past due to coronavirus headlines. In mid-April the company received over $10 million in orders for the purchase of PPE. At the time, the company said orders were for everything ranging from sanitizer to face masks. Shares ended up jumping to highs of $5.20 and considering it had traded at $1.55 a day prior, that news catalyst appeared to be significant at the time.
As we can see, EDNT stock slid back to its 50-day moving average where it’s been sitting ever since. At the end of May, Edison announced that it acquired a 50% interest in Global Clean Solutions, LLC. Why was that important? According to Edison, Global Clean not only had 2 brands of sanitizer, it was also in the process of developing a “patent pending” hands free sanitizer stand. “The partnership with Global provides Edison with a platform to broaden its offerings in the growing hand sanitizer market,” said Chris Ferguson , CEO of Edison Nation at the time of the update.