Though the market's legs may be getting a little wobbly from the weight of recent gains, a handful of penny stocks appear to just now be coming into their own (some admittedly more than others). Here are five picks you may want to consider with that in mind.
Note these came to our attention not for short-term 'trading' purposes, but through a search that looks for stocks building a technical and fundamental foundation suggestive of longer-term potential.
On the other hand, they're still penny stocks. so being nimble is still important.
In no particular order...
HKN Inc. (HKN) The stock's been going like gangbusters since mid-April, but yesterday's high-volume jolt was very interesting.... there as no news. We're seeing a bit of a retreat today, but that's to be expected. Technically you'd want to wait until resistance is broken before taking a plunge. Fundamentally, this oil/gas stock may have already turned the corner.
ParkerVision Inc. (PRKR) It's been subtle so far, but a couple of accumulation days since April (paired with some really tall candlesticks) are a red flag... in a good way. The penny stock seems to be finding support at $2.90, while it's simultaneously testing bullish waters.
EnDevCo Inc. (EDVC) Slow and steady. Volume is building while the penny stock is inching higher. This oil and gas company posted last quarter's numbers on Thursday; the market seemed to like them fairly well. Technically speaking, EDVC has already broken out by moving higher than the March/April ceiling. A move to 61 cents would push the stock above its 100 day average line.
Plastinum Polymer Tech Corp. (PLNU)Be careful of thin trade here, but PLNU seems to have turned a downtrend into an uptrend. And, buying volume has started to pick up as well. Again, we stress the PLNU market is a very shallow one.
Collectors Universe Inc. (CLCT)This penny stock has quietly gained more than 100% since December, yet has not once made its way into a highly-overbought situation. Given the consistent stair-step pattern we've seen the bulls make, and factoring in the support being provided by the 20 day moving average line (at $4.19), we think this one is at least a safe candidate...relatively speaking.
That's it for now, and of course, make sure you do your own due diligence to make sure any of these ideas are right for you. If not, no worries - check back next week for the next batch.
Even though these stocks are being put on our mental watchlist, you won't know if we're actually trading them or not (or how, or when) unless you're a subscriber to the free Small Cap Network newsletter, Sign up today, and start making some real money.
