The markets are experiencing something we haven’t seen in quite some time & penny stocks aren’t immune either. In the stock market today, equities dropped hard. The big story was tech selling off. With bond yields on the 10-year note reaching their highest level in a year, traders were skittish, thinking this could point to inflation playing a new role.
Fed Chair Jerome Powell explained earlier this week that the economy still has a long way to go, essentially easing inflation concerns. He explained that it could take more than 3 years to hit the Fed’s inflation goals. But this latest uptick in bond yields has been a cause for some interesting trading.
So should you worry? The camps are polarized right now regarding the future of inflation. But what we do know is that it could take years for that to happen to its fullest extent. The market continues to froth, however, and valuation has come into the picture a lot more recently. Whether you see this as an overreaction, a fear of economic uncertainty, or something else, there are still stocks in the market producing considerable gains.
Where’s the momentum today in this sea of red? Well, for one, there are still plenty of penny stocks to watch today. Despite the massive sell-off in hundreds of names, some low-priced stocks are surging. They aren’t sector-specific or industry-specific but they have grown in popularity on Thursday. Let’s take a look at a few and you can decide if they’re top penny stocks to buy or avoid before the end of the month.Penny Stocks To Buy [or avoid]
- ASLAN Pharmaceuticals Limited (NASDAQ: ASLN)
- Nexgen Energy Ltd. (NYSEAMERICAN: NXE)
- Dogness Corporation (NASDAQ: DOGZ)
- TDH Holdings Inc. (NASDAQ: PETZ)
This was actually one of the big winners of the morning session. ASLAN Pharmaceuticals saw its shares explode to highs of nearly $5.40 during one of its most active sessions in months. The move came after ASLAN announced a securities purchase agreement to raise approximately $18 million through a private placement to new institutional investors, Vivo Capital and Surveyor Capital (a Citadel company). The terms of the deal had the company raising money at $3.52, which was a discount to the closing price on Wednesday.
Usually, when we see discounted offerings, stocks tend to consolidate. However, this was clearly a different case for ASLAN. I think a lot of it had to do with management’s commentary on the matter. Dr. Carl Firth, Chief Executive Officer, ASLAN Pharmaceuticals, said, “These additional resources position us well as we look forward to unblinding the interim data from our ongoing study of ASLAN004 in atopic dermatitis in early March and look towards initiating our phase 2b program later in 2021.”
Though the stock has pulled back from those highs, ASLN continued trading above its opening levels during power hour. What’s also worth noting is that institutional interest isn’t just a “recent” thing. Earlier this month, Temasek Holdings reported a 4.6% stake in the company.Nexgen Energy Ltd.
Despite a slower day for bulls in the stock market today, shares of Nexgen popped. The energy penny stock continued on its multi-week bull run. Year-to-date, NXR stock is up over 40%, and it has come on the back of a recent uptick in energy stocks, in general. Nexgen is a uranium exploration and development company. This has been a red hot space with the incoming administration. Nuclear energy and other alternative forms of power have become the “go-to” for many traders.
Government planning and global initiatives for a net-zero carbon future have pushed the focus on related companies. This month, Nexgen announced positive results of an independent Feasibility Study, Mineral Reserve, and Mineral Resource update. This was of its basement-hosted Arrow Deposit, on the company’s 100% owned Rook I project.
“Delivery of the Feasibility Study is a significant milestone which transitions NexGen into the next key stage of advancement. The results will be included in the Environmental Assessment and Licensing processes which incorporates engagement, consultation, monitoring and data collection since 2013,” said Leigh Curyer, Chief Executive Officer.
Considering the immense selling pressure that most stocks experienced today, NXE has barely wavered. Will this remain a case heading into March amid the latest economic uncertainty that’s shaking markets?Chinese Pet Penny Stock Popped
I know I explained that this wasn’t a sector or industry-wide trend for these stocks. However, two of them were in the same niche. Both Dogness Corporation and TDH Holdings Inc. surged during the power hour session. Shares of DOGZ popped to highs of $2.39, while PETZ surged to $4.64 before the closing bell. The moves also came on the back of momentum that was well-above average.
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Both penny stocks were in the spotlight earlier this month, in tandem, each reaching highs of as much as $14.52 in the case of PETZ. The interesting part of it was that there weren’t any apparent catalysts to speak of. After recently consolidating over the past 5 sessions, momentum is again coming back into these Chinese pet penny stocks.PETZ
Neither has had any corporate filings in quite some time. Furthermore, the only one of these two companies with any recent news was Dogness. The company raised money to put toward corporate enhancement initiatives and product portfolio expansion. Also, the raise came after the company had reported strong holiday sales expecting continued demand in 2021. Needless to say, Thursday’s move comes without much to pair with it. While speculation may be playing a larger role, the fact remains that DOGZ and PETZ are outpacing broader markets at the end of the week.DOGZDo You Know How To Trade Volatility?
This week is a prime example of why you should learn how to trade. Don’t just think “stonks always go up” daily. It’s times like these that remind everyone that the market will do what it does no matter what people say on Twitter. In this regard, it’s important to have your strategy perfected for both bull and bear market trends. Learn how to day trade, find A+ set-ups, and know when to enter and exit properly to profit from the volatility in the market.