Penny stock investments have always been regarded as a viable option for investors who are looking to make significant returns from small outlays. However, the markets have been in turmoil in recent days, and hence, it is necessary to trade cautiously when it comes to investments in penny stocks.
Since penny stocks are by nature volatile, an investor needs to be careful at a time when the wider market is also highly volatile. On that note, here is a closer look at four penny stocks that have made significant gains over the course of recent days.
Penny Stocks In Focus This Week #1 Nautilus
One of the penny stocks that ought to be added to the watch lists at this point in time is that of Nautilus Inc (NLS Stock Report). This past week, the company announced its projections for the first fiscal quarter, and it proved to be a significant boost to the stocks. Nautilus announced that the year on year sales are expected to rise by as much as 11% and hit $94 million.
Due to lockdowns, there is now a higher demand for home exercise equipment, and that has driven the higher sales at Nautilus. After the announcement was made, the stock jumped by as much as 57% as investors piled on to it.
Penny Stocks In Focus This Week #2 Mallinckrodt
On the other hand, Mallinckrodt (MNK Stock Report) emerged as another possible option for those who are looking to invest in penny stocks. Last week it emerged that Mallinckrodt reached agreements with institutional investors regarding its senior notes that were due in 2020.
By way of these agreements, the company is going to exchange around $495 million of its outstanding 4.875% notes for 10% First Lien Senior Notes. The latter will be due in 2025. The announcement resulted in a rally in the stock, and it soared by as much as 110% over the course of the week.
Penny Stocks In Focus This Week #3 Biocept
The coronavirus pandemic has also led to a rally in the stocks of those companies who are involved in tackling the crisis. One such company is Biocept Inc (BIOC Stock Report), and this past week, the stock soared after it emerged that the company is going to start coronavirus testing.
It has emerged that EUA testing, which is approved by the FDA, is going to be provided in Biocept’s lab in San Diego. The news is a significant one, and the Biocept stock managed to record gains of as much as 25% on Friday.
Penny Stocks In Focus This Week #4 Plug Power
Last but not least, investors could also have a closer look at Plug Power (PLUG Stock Report), which may have given up a lot of gains but is still up by as much 6% in 2020 so far. The stock is now trading at $3.60 a share, and Colin Rusch of Oppenheimer believes that the company has made major strides in its target of hitting its long term revenue targets.
Hence, Rusch is optimistic about Plug Power in the long term. Investors could do well to keep an eye on the stock.