We tend to focus on penny stocks with news as the first line of information. Many times this information can lead to a clear reason why certain stocks are moving. Whether it was from a corporate filing or actual press release, news can be the lifeblood for stocks. However, you can’t ignore other types of news either. Penny stock news isn’t just what comes out on a company’s newswire. It’s also what’s being reported on from a broader perspective.
If 2020 has taught us anything it’s that industry and sector updates can trigger a big move for penny stocks. Now, I’m sure many of you are already familiar with sector news catalysts. For the better part of the first few years, cannabis was legal, the sector news drove momentum. Sure, companies would update and see momentum build.
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But when it came to “the big news”, it was the legalization news that took things to a whole different level. I will give a caveat here, though. News has a shelf-life among traders. Some updates circulate for weeks and others may circulate for only of a few hours. The follow list is made up of penny stocks that can be purchased for under $3 right now. After the latest sector and company news, however, are these penny stocks to buy or pass on?Coronavirus Penny Stocks To Buy [or sell]
One of the big initiatives pushing certain penny stocks has been COVID-19 vaccine hopes. On top of that, we’re also seeing plenty of news about things like face masks pushing attention to PPE penny stocks too. A few weeks ago we did a whole piece on Personal Protective Equipment. This week we’re seeing stores like Walmart and even Publix making an assertive push mandating the wearing of face masks. It comes as the number of confirmed coronavirus cases has reached new record levels in the U.S.NovaBay Pharmaceuticals
NovaBay Pharmaceuticals Inc. (NBY Stock Report) was also another one of the penny stocks we’ve watched closely throughout the duration of the coronavirus. Since March, NBY stock has been on the move. It has now jumped from around $0.30 to as high as $1.85. Initially focused on for its KN95 face mask, NovaBay attracted attention as one of the “epicenter penny stocks“.
With major grocery chains going as far as to require face coverings, it makes sense for NBY to grab some extra attention. What’s more is that NovaBay has also expanded on the personal protective initiative. No they don’t have a novel mask that changes colors if you have COVID. Earlier this month, the company announced results from an independent study on its Avenova®. Results showed that the product was able to kill SARS-CoV-2 and now heads to the EPA. The goal is to get it on the EPA’s approved list of disinfectants.
Since we started following NBY stock, things have changed a lot in the market. In March, shares were trading around $0.30. This week, NBY stock hit a high of $1.94.Dynatronics Corporation
Dynatronics Corporation (DYNT Stock Report) is another one of the epicenter penny stocks to watch. Similar to NovaBay, DYNT stock has perked up this week. Though it hasn’t seen the same explosive long-term move, the penny stock has sporadically jumped here and there over the last few months. Dynatronics isn’t a formal “face mask stock”. It does offer something else. The company 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.
In late-June, the company also promoted its Solaris TriWave Light. In a corporate tweet, Dynatronics took a step away from the COVID news. In its tweet, the company said, “Light Therapy has been used to effectively treat a number of soft-tissue injuries, pain and inflammatory conditions. With the @DynatronicsCorp #TriWave Light, an accessory to the #SolarisPlus, you can have Light Therapy in the palm of your hand.”
What’s more is that in July, Dynatronics inked a Master Service Agreement with Millstone Medical Outsourcing, LLC. Milestone is to provide fulfillment and distribution services. It will store and distribute products as directed by Dynatronics.SiNtx Technologies Inc.
SiNtx Technologies Inc. (SINT Stock Report) is another one of the trending coronavirus penny stocks this month. We discussed the company earlier this week a few days after it closed a $9.7 million raise. SINT stock has steadily climbed ever since late March. But most recently, the end of June and start of July took this penny stock to a whole new level.
On July 14th the company reported that it regained compliance with NASDAQ listing requirements. A lot of the earlier momentum this month stemmed from a late-June announcement related to coronavirus. SINTX announced positive testing results demonstrating the anti-viral properties of its silicon nitride which may be useful in the reduction of the spread of COVID-19.
The company said that study results demonstrated that its silicon nitride inactivates the SARS-CoV-2 virus within a minute after exposure. Later in the week, however, SINT stock has once again started taking off. Thanks to more attention on coronavirus and prevention, could this be another case of a sympathy move or is something more at play?Education Technology Penny Stocks To Buy [or sell]
Similar to PPE penny stocks, EdTech penny stocks have received notable attention recently. If you remember, we did a smaller piece of coverage over the weekend which included info on Boxlight Corporation (BOXL Stock Report) among other penny stocks to watch this week. Boxlight provides technology solutions for the global education market. This morning Boxlight announced it was the recipient of two Tech & Learning Awards of Excellence for its Boxlight-EOS Distance Teaching Essentials and MySTEMKits 3D printing curriculum.
As we’ve seen, stay at home orders have caused parents to focus on education for their children in an “at-home” setting. That would mean more reliance on technology right now. Sure enough, this week we’ve seen several of these other EdTech penny stocks making moves. The biggest question I have is with regard to if it’s a full-on trend or just a short-term fad.
As we tweeted out earlier today, with such a huge run from BOXL stock, for example, it’s never a bad idea to keep your overall strategy in mind. As I’m sure many of wich that type of move lasts forever, you also have to consider that there could be profit-taking at some point. So is BOXL stock still worth it? A lot of that rides on what happens next in the stock market I think.Color Star Technology Co. Ltd.
Another one of the EdTech penny stocks we identified was Color Star Technology Co. Ltd. (HHT Stock Report). HHT stock has been one to watch for most of the week this week so far. On Monday, shares traded around $0.98 and by Thursday, HHT stock reached highs of $1.70. Not a bad move for a 4-day span. From a technical perspective, this was a pivotal week for Color Star stock in my opinion.
Major moving averages like the 50- and 200-Day Moving Averages historically act as support and resistance levels. In light of recent above-average trading volume, HHT stock has had enough momentum to break through its 200 Day Moving Average. The last time it did that was back in September of 2019.
Last week, Color Star announced a Framework Agreement with Moremoon Cartoon Cultural Diffusion (Shenzhen) Co., Ltd. Among several initiatives, the company looks to offer multiple varieties of products on its “Color World” Platform. Subscribers of the platform have access to online education.
But the latest initiative seems to have expanded that a bit further. On Wednesday, Color Star announced that it plans on hosting the “Color World” online concert on September 9th, 2020. The “live events” arena has dramatically changed thanks to COVID-19. Will this help build more bullish sentiment around the company leading up to September?