5 Penny Stocks To Watch For In September

Whether you like it or not, volatility is here to stay for now so it may be wise to learn the basics of making money with penny stocks. August was a big month for a number of penny stocks. Some of these stocks managed to retain big gains since the first week of the month. Needless to say, these cheap stocks tend to ignore regular market catalysts.

Though some penny stocks can see a slight impact, the general consensus is that much of the money made with penny stocks can come from certain catalysts. So it’s important to be watching closely for things like news, analyst reports, and even sector updates. For example, marijuana stocks have been beaten down for quite some time. But these low priced stocks tend to be cyclical in nature.

The same can be said for other sectors. Energy stocks and gold stocks have also realized significant momentum during the summer. But as the third quarter enters its last month, what are some penny stocks to watch? Well, it all depends. Can you afford to be watching your computer screen or smartphone all day?

If you can, then there are penny stocks to watch every day. But if this isn’t you or if you work a day job, there are different criteria to keep in mind.  Much of it includes a longer-term outlook and certain penny stock chart patterns that could suggest a sustained move for a given stock. Also, ensure that you have a plan when it comes to buying penny stocks. Don’t just jump headfirst into a trade. Put a strategy together, make a list, and even write down your trading rules to follow.

September typically sees more investors come back into the market. This momentum usually continues into the winter. So proper timing can be key. On this list of penny stocks, you may see some old names but also a few new favorites if the stock prices move in the right direction.

Community Health Systems, Inc. (CYH)

Shares of Community Health Systems (CYH) have been beaten down most of the year. But recently, that has changed. In fact, since hitting 52-week lows of $1.79 last week, CYH stock has rebounded by as much as 43.5%. But there wasn’t any news so what happened?

Taking a quick search on Google produced an article that talked about Community Health Systems and a certain issue the company has been dealing with. Specifically, it talked about how Quorum and Community Health Systems may be approaching a resolution of certain lawsuits. These are related to the spinoff of Community Health from Quorum. “In the class action complaint, originally filed in 2016, shareholders argued CHS and Quorum overestimated Quorum’s future financial performance and underestimated its operating costs, which led to inaccurate financial guidance before the spin-off.”

Additionally, we took a look at company filings from the last few weeks. What did we find? Two Form 4 filings released on August 29 show Wayne Smith and Benjamin Fordham purchased shares of the company. Mr. Smith, CEO, and Chairman specifically, bought 1,200,000 shares of CYH at an average price of $1.99 a share.

Option Care Health (BIOS)

Another one of the penny stocks to watch this month includes Option Care Health (BIOS). The company itself provides home and alternate site infusion services. The company recently merged with BioScrip this year and has since done a name change. This has been a much-anticipated event for the companies and effectively creates the largest independent home and alternate site infusion services provider in the US.

Though the company has been having trouble meeting the NASDAQ minimum price requirement following the merger, it would appear that BIOS stock is within $0.50 of that target. The company will be participating in the Morgan Stanley Global Healthcare Conference later this month. CEO John Rademacher will be conducting presentations.  

Needless to say, since late April, shares of Option Care are up considerably. At that time, the stock traded at 52-week lows of $1.56. This month, BIOS has already breached $3.50 a share.

SRC Energy, Inc. (SRCI)

This is another penny stock to watch after merger news. SRC Energy (SRCI) and PDC Energy announced a definitive agreement to merge. PDC will be the prevailing company in the all-stock transaction. Furthermore, the proposed deal will have SRCI bought out at a value of $1.7 billion. The two companies have plots near each other in an area called the DJ Basin in Colorado and spans into Wyoming.  With the action that oil and gas stocks have seen in August, it may be prudent to have a few of these penny stocks on your watch list in September.

Since the beginning of August, shares of the company have been on the rise. Keep in mind that the merger deal was rumored to be a possibility during the first week of the month. Helping to fuel the run, energy stocks took center stage amid global trade concerns. Bear in mind that this new deal comes during a period of M&A activity heating up for oil and gas exploration companies. Callon Petroleum picked up Carrizo Oil & Gas for roughly $1.2 billion in July. Comstock Resources also agreed to buy Covey Park Energy for $1.1 billion just a month prior.

In any case, after SRCI stock hit new 52 week lows on August 1, the stock has done nothing than increase in price. Shares saw recent highs of $5.15 before starting September off. So it will be something to keep in mind as the third quarter enters the last month.

MoneyGram Inc. (MGI)

One of the penny stocks that has had a great summer has been MoneyGram (MGI). First, it inked a deal with popular crypto company Ripple. Following this, MGI stock exploded to highs of $3.92. Of course, the stock dipped steadily during the following weeks. However, MoneyGram didn’t just stop at crypto news. The company had also begun putting deals together with the likes of HD Bank, Sentbe, and Canada Post.

Thanks to this continued string of positive news, the penny stock recovered dramatically. In fact, closing out August, MGI stock made a new 2019 high. It’s interesting to point out that this move wasn’t a parabolic move. Rather, the stock price has steadily risen over the course of a few months. Compared to the big jump MGI stock saw when it made the Ripple announcement, this latest increase has been recognizably steadier.

Besides the company progress, MoneyGram has been cleaning up its capital structure as well.  MoneyGram entered into a new first lien credit agreement as well as a new second lien credit agreement with Bank of America acting as administrative agent. Through this agreement, MoneyGram has now extended or repaid in full all outstanding debts under its current credit facility. Obviously, these are a few things to keep in mind during September as well.

TherapeuticsMD, Inc. (TXMD)

Healthcare goes along with the same trend that biotech stocks typically follow. TherapeuticsMD develops and commercializes women’s health products. The company has been working to commercialize advanced hormone therapy products including Bijuva, BocaGreenMD, and Imvexxy.

What has helped the company along recently was progress from its second-quarter operations. The healthcare penny stock reported strong revenues above guidance for the quarter. It also raised its full-year guidance to a range between $29.45 million and $34.20 million. “We expect IMVEXXY and BIJUVA® to have extensive coverage for commercially insured lives by the end of the year. We are pursuing preferred status for IMVEXXY on Medicare Part D plans and expect coverage decisions by the fourth quarter, which is significant given the higher proportion of IMVEXXY Medicare Part D business,” Robert G. Finizio, TherapeuticsMD CEO said in the earnings release.

Thanks to healthy growth, the bull trend for this stock continued throughout August. Even after pulling back from highs of #3.31, the end-of-the-month trend appears to be back in an upward direction. Of note, however, are analyst actions around the stock. Oppenheimer cut its price target from $10 to $9 but maintained its rating at Outperform for the time being. The company also had to settle with the SEC for $200,000 for violating disclosure regulations. Apparently the company shared inside information with research analysts without disclosing that to the public.

Posted In: Penny StocksMarkets
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