Apr 03, 2020 (Penny Stocks via COMTEX) -- This was a week for the record books. Not only di we ee record unemployment, but the nonfarm payrolls also showed the toll that coronavirus has taken on the economy. What’s more, is that volume for small-caps overall was down in comparison to some of the larger cap stocks trading this week.
Dominating headlines were coronavirus penny stocks, oil & gas penny stocks, and metals & mining penny stocks. But just because volumes were down, doesn’t mean there weren’t plenty of opportunities to capitalize. One of the top penny stock brokers , Robinhood, showed that, first-hand.
A number of penny stocks on Robinhood weren’t only trading heavier volumes but they also gained significantly in terms of price. Now, this doesn’t mean that these were penny stocks only restricted for Robinhood. But there are a few indicators that Robinhood has which allow its users to see how many accounts actually hold shares of a given penny stock.
Don’t get me wrong, is Robinhood the best broker for penny stocks ? In my opinion, far from it. But its ease of use has attracted many investors/traders since its inception so it’s worth noting the money flow within the application itself. With this in mind, let’s take a look at a few penny stocks on Robinhood that surged late in the day on April 3. It will be up to you to decide if they’re the best penny stocks to buy next week.
This was actually one of the penny stocks we said to keep an eye on for key data updates. SuperCom Ltd ( SPCB Free Report ) recently announced coronavirus-related news. The company is a tracking technology/communications company. But it’s found a way to stick its toe in the exciting waters of COVID-19. It doesn’t have a treatment and it isn’t working on testing kits. SuperCom has designed a “quarantine compliance” tracking technology.
Yep, you read that correctly. If it ever gets to the point of no return, SuperCom offers a way to track you. They offer smartphones and ankle bracelets. After the news broke, SPCB stock skyrocketed to highs of $1.91. But the penny stock has come back down just as quickly as it broke out. During the last week, trading in SPCB has been very choppy without a set trend in either direction. From a day trading perspective, the volatility has opened for potential, single-day jumps.
So why is it on the radar going into the weekend? If you look at Friday’s session, trading was relatively tame up until 2:30 PM EST. At that point, the market started to see some excitement and SuperCom stock jumped to highs of $0.88 right before the close. Was there any news? Well, not from the company directly. But something else to note is what was reported by the state of Massachusetts right around the same time SPCB began moving.
The state became the first in the nation to launch a tracing collaborative to track down people exposed to COVID-19. On top of that, the company appears to have also launched a stand-alone division just for coronavirus tracking, PureCare. So it will be interesting to see if there is any followup to these latest developments.
What list of penny stocks on Robinhood would be complete without at least one oil & gas penny stock? Oasis Petroleum ( OAS Free Report ) saw the second day of surging stock prices as sentiment on the energy section continued to build. Thanks in part to President Trump’s comments this week, oil and gas penny stocks saw the first signs of life in quite some time.
If this wasn’t enough, speculation may also be in play here. So before I continue, understand that there haven’t been any major things set in stone as of April 3 before 6 PM EST. Next week OPEC will meet (on Monday) with Russia and other oil producers in the hope of agreeing on supply cuts and ending a vicious price war. It was called by Saudi Arabia and no final attendee list has been released.
But we do know that it will include producers from outside of the OPEC+ alliance including Russia. That’s according to reports from CNN. It will be interesting to see if a final decision is made and if it will positively impact the energy sector. Again, it’s likely the industry sees speculation based on these developments but important to take note of all the same.
ToughBuilt ( TBLT Free Report ) has been one of the penny stocks on Robinhood that has seen wild trading over the last few weeks. It has also been one that we’ve sporadically discussed for months. While there haven’t been many long-term jaunts of trading trends, TBLT stock has been great for day traders. Just look at the penny stock since the beginning of 2020. It managed to breakout 115% at the start of January. it then crumbled to lows of $0.126. It ran again in February with a jump worth 82%; dropped immediately after. Then in March TBLT stock rallied 74% in a 4-day move before once again dropping.
Friday, we saw ToughBuilt stock break its latest downtrend. Shares started the day at $0.145 and reached highs of $0.163. This comes days after the company released financials showing a few key highlights. First, its revenue increased by 25% for the year compared to 2018. Second, gross profit jumped 60% during the same period. Toughbuilt was also able to decrease it net loss attributable to common stockholders to $0.14 compared to $7.22 during the year prior.
Michael Panosian, Chief Executive Officer of ToughBuilt, commented, "I am pleased to announce 2019 was a year filled with capitalization of opportunities for us due to our aggressive sales and marketing efforts. We are encouraged by our progress and the strong positive market pull we have been receiving for ToughBuilt' s products, as is evident in our increased sales numbers and new commercial agreements. We will continue to make bold, yet strategic, decisions, to accelerate our business and enable us to take advantage of near- and long-term opportunities globally."
Whether or not that translates in the market is yet to be seen. But heading into the weekend, TBLT stock finished on a high note. Additionally, the stock continued to trade actively during post-market hours.
CanFite Biopharma ( CANF Free Report ) was another one of the penny stocks on Robinhood moving on “non-headline” headlines. The company was featured last month just as it announced the filing of a drug and safety update showing positive results in Phase 2 and 3 studies of its Piclidenoson and Namodenoson. Traditionally, the company has focused on CBD treatment for things like liver cancer.
But the attention and potential that coronavirus treatment has shown right now can’t be ignored. As I said, there weren’t any updates from the company. But after doing some digging, I found that ClinicalTrials . gov shows that there’s a study with a start date of April 6. This wouldn’t be important if it weren’t for the focus of the trials.
In a study titled “Piclidenoson for Treatment of COVID-19 – A Randomized Open Label Pilot Trial,” patients with COVID-19 infection will be treated with Piclidenoson. The 40-patient study will be investigated by Zivit Harpaz of Can-Fite BioPharma. Guess when the post date of the study was as well: April 3. Assuming this is meaningful to the company, it will be interesting to see if there is any follow-up sooner than later. In any case, CANF stock managed to reach highs of $1.66 before closing the week at $1.50.