3 Penny Stocks to Watch With High Volume in April
Using volume to find a penny stock to watch can be a great strategy. However, there are plenty of other factors to consider. For the under $2 range, investors are usually looking for penny stocks with plenty of play in their pricing. This ensures high volatility and therefore higher chances of potential profit (and losses).
Now, with any penny stock, investors tend to utilize a swing trading method. This means buying and selling in a short time frame. It’s worth noting that some investors will hold a penny stock for its long-term potential. However, most tend to use these financial instruments as a way to secure short-term gains.
When trying to craft a potentially valuable penny stock watchlist, investors need to understand that having a trading education is one of the most important steps. This can help investors to identify trading patterns, short and long-term trends, and entrance and exit strategies. While penny stocks do trade similarly to blue chips, there are some nuances that separate the two.
For one, any stocks under $5 will most likely be more speculative than others. Because of this, it’s important to consider outside factors that could impact a stock’s price in the short term. This includes press releases, notable events, balance sheet announcements, and any similar news. While penny stocks can be traded on fundamentals, it’s important to utilize a balance of the two. Considering all of this, let’s take a look at some of the best penny stocks to watch under $2 right now.
3 Penny Stocks to Watch
- Acasti Pharma Inc. (NASDAQ: ACST)
- Luokung Technology Corp. (NASDAQ: LKCO)
- Torchlight Energy Resources Inc. (NASDAQ: TRCH)
1. Acasti Pharma Inc. (NASDAQ: ACST)
While Acasti Pharma hasn’t released too much data in the past month or so, we can look at its older press releases to understand where the biotech penny stock is at. For some context, Acasti is a biopharmaceuticals producer working on the development and commercialization of prescription drugs. These drugs utilize OM3 fatty acids to treat ailments such as hypertriglyceridemia among others.
Its flagship therapeutic known as CaPre, is an OM3 phospholipid therapeutic being developed for patients with severe forms of HTG. To understand ACST, let’s take a look at its most recent balance sheet. Back in February, the company announced its third-quarter results for fiscal 2020. In the results, it managed to lower its operating losses by over $4 million from $6.1 in Q3 2019 to $2 million in Q3 2020.
While it did take in a net loss of $3.2 million, this is substantially less than the $12.1 million it took in the same quarter of the previous year. As we see, Acasti is working hard to get its financial situation under control. This includes its $75 million ATM or at-the-market offering which is still in the works.
Its double-digit percentage gain on April 26th is hard to explain as no news came out during the day. But, we have seen moves like this occur in the past few months with ACST. So, if you’re looking for a volatile penny stock to watch, ACST could be worth looking into.
2. Luokung Technology Corp. (NASDAQ: LKCO)
Luokung Technology Corp. is a tech penny stock that we’ve been covering for quite some time now. On April 26th, shares of LKCO are up at midday by more than 17%. While no company-specific news came out on Monday, we can look at the industry it is in and some older announcements to try and comprehend this price movement. Acasti is a leader in the world of big data processing technology. This includes location-based services and much more.
Operating out of China, Luokung provides integrated DaaS, SaaS, PaaS, and IoT-related data products. It utilizes its patented technology to help integrate smart tech into cities and industrial-level projects. This includes transport, smart industry, and as mentioned earlier, smart cities.
Only a few weeks ago, the company announced that it had regained compliance with the NASDAQ minimum bid price requirement of $1 per share. This is not groundbreaking news by any means, but it does show that the company could be headed in the right direction. Additionally, only a few weeks earlier it announced the closing of the acquisition of eMapgo Technologies Co.
After raising $120 million through several fundraising opportunities, the company was finally in a financially stable place to complete this acquisition. eMapgo or EMG, is one of the largest providers of precision mapping services in China. This includes navigation, map production, internet map service, and GIS engineering. Reports show that this company has more than 24% of the total market share for in-dash navigation in China.
This acquisition, however, extends way beyond offering map services to consumers. Rather, with the combination of EMGs map services and Luokung’s big data processing, the pair can build on offering intelligent transportation, autonomous driving, remote sensory imaging, and more. This partnership could also serve to solidify LKCOs placement in the big data industry. Considering all of this, will LKCO be on your watchlist?
3. Torchlight Energy Resources Inc.
Moving into the oil and gas sector, Torchlight Energy Resources is an energy penny stock with several intriguing prospects. The company is based in Texas, where it acquires and operates a range of domestic oil field properties. Its assets are focused in West and Central Texas, and are concentrated specifically in the Permian Basin. Only a few weeks ago, the company provided an update on a previously announced business combination with Metamaterial Inc.
Metamaterial is a Canadian specialty materials company, which through this reverse merger, could become a major asset to Torchlight’s business. However, the real purpose behind this deal is to offer Metamaterial a straightforward way to become listed on a large U.S. exchange. In return, it will own 75% of the combined company, with the rest being owned by TRCH shareholders. While the transaction was supposed to close several weeks ago, investors are now waiting on the pair to get all of the proper information and approvals filed.
The hope is that the deal will come to a close as soon as the second quarter of this year. However, this should be taken with a grain of salt. Because of this, investors view TRCH as a more volatile penny stock. And while there’s nothing wrong with that, investors should keep this in mind to help adjust strategies accordingly. Additionally, investors should consider the large correlation that TRCH has to the energy industry and specifically oil and gas in the U.S. With these things in mind, is Torchlight worth watching?