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Which Penny Stocks are the Top to Invest In for 2020?
Below is the transcript, as well as the video. Enjoy and please leave comments below!
Matthew: Hey, what’s going on everyone. Matthew from therighttrader.com back again with another video. Today we’re going to be covering the best penny stocks to buy in 2020 and beyond. If you watch this video past 2020 and the stocks are still in the same thesis that I’ll explain with the charts and everything in this video, then they’re probably still at play. Penny stocks are risky, and it’s hard to find good ones, but there are some out there. I think I’ve compiled a really nice list of penny stocks that are actually somewhat stable and have somewhat of good reasoning to them and some safety to them.
I’m really happy with the list that I have. Feel free to leave your picks down below in the comments section. Of course, there’s a ton of penny stocks out there. It’s not to say that maybe the one that you’re holding is bad or whatever. We’re going to be covering five best penny stocks for 2020 and beyond. With that being said, make sure to leave a like and subscribe if you haven’t already.
Just so we’re clear, the term penny stock, this is on the SEC website, refers to a security that’s less than $5 per share. That’s the definition that I’m going to be going by in this video. A lot of these are between 1$ to $4 typically. First off, we’ve got Full House Resorts. This is a Las Vegas resorts and casino stock. It is currently sitting right at $3 with a small market cap of 81 million, so a ton of room to grow here. You can briefly see on this chart, it’s testing that $4 level quite a bit. Now if we come over to the more detailed chart, we can just throw in our horizontal resistance level and see that $4 is big resistance.
If you pay attention, we have been uptrending. On top of that, we have also been moving and testing that $4 mark quite a few times. That’s what I like because you can only test a resistance level so many times before you break above it. We tested it once over here, actually a couple of times over there, a couple of times over here, once again over here, and we’re coming right back on and again for the fourth time here. We can definitely break above $4 and get a very nice push pretty quickly up to that $9 mark, that all-time high, and probably even above that afterwards.
Like the fact that it’s testing this $4 mark that often and also that we do have that uptrend support so as to even if it takes a couple more times, we will be able to break out of it sooner rather than later. I’d like to set up here for full house resorts. Now moving to the second stock, we’re going to be looking at Catalyst Pharmaceuticals. This is a biotech stock. A market cap of 412 million, which is not much for the biotech industry. You’ll see on the chart, a lot of spikes and it really looks like something is cooking here. I like this price action. We’re going to take a look right now on the more detailed chart, but it seems pretty clear to me that first off we’ve got a bit of a cup and handle formation over here.
Best Penny Stocks of 2020? Check out the Video
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If we take a look at the typical cup and handle formation, you’ve got it right here. You got the drop, the base and then they move higher. Moving over to this chart, the exact same thing. Even on a bit of a stronger scale because we’re having these really strong and crazy spikes that could be just hype or nothing to pay attention to. If we draw our uptrend line, we are indeed uptrending very nicely and we’re getting these spikes which could lead to a move to $10 and above pretty easily. We have our all-time high at $7.35, right around there. Any move above that will push us to $10. I could see this one getting even above $10 as well. Yet another really nice pick there.
Related: Check out The Right Traders Guide to Dividend Stocks.
Next up we’ve got AK Steel Holding. This one hasn’t done much recently. A market cap of $1 billion, also a stock around $3. If we look at the chart, this is a stock that’s been around forever, which I like. It’s a rare thing to say, with penny stocks. It started trading back in ’94. It tends to have these little spikes here and there. $2 is about as low as this stock goes. We’ve got the history to prove that if we take that low over here.
Around $2.21 is a pretty typical area to bounce off of. We’ve bounced it over here, over here, here, and right where we are right now, which is the key thing. Because buying this on support to me would be the best time to get this so that you can benefit from any spikes in steel or with the company itself because these spikes do happen and very easily pushes the stock up to $10, at least when it does happen. We’ve even seen some that pushed it higher. It tends to bounce between $2 and $10. Getting it on $2 is a very nice opportunity, in my opinion. Keep in mind, nothing in this video is financial advice, just my personal opinion.
Moving on to our next stock, it’s going to be another biotech stock, BioCryst Pharmaceuticals. This one’s been around for a while as well. A market cap of right around $500 million. We’re going to jump right into the detailed chart here to see what’s going on. If I zoom out once again, a stock that has had a lot of history to prove itself. This is a similar situation as AK steel, where it tends to find support around $1.50 at the very lowest that it’s ever went. Tested it a couple of times but never really move below that. We always bounced higher and actually moved quite a bit higher very easily pushing $8, $10, sometimes even $15 or $20.
That’s a pretty big deal. Getting in at $3 or around there and writing it up to $10, $15 or $20 is a huge opportunity. On top of that, this one tends to spike when there’s new diseases going around. I remember back during the Ebola, it shot up all the way up to $20. I think this could happen again with the coronavirus. There’s a lot of things set up especially based on the fact that it’s on support right now, to move it back up to that $10 mark.
For the last stock here, we’ve got a bit of a wild card. Keep in mind, with penny stocks it’s always a bit of a gamble. The wild card is Ignite International Brands. This is an MJ stock. It’s Dan Bilzerian’s company. It went public very recently. It currently has a market cap of $116 million dollars. It’s sitting right above that $1 mark. What I like with it is that you’ll see on the chart, it doesn’t really tend to move below $1. It’s staying above that $1 support level for the most part. On top of that, it’s also actually starting to kick back up. Once we get back above $1.10, maybe 20 cents, things could really start to pick up.
With a stock that’s so new and hasn’t really had time to explore its true potential, this one could go up a ton just on hype factor alone. If there’s any type of hype whatsoever that goes on with this one, it could really skyrocket. The sky’s the limit with this one. Like I said, a very small market cap of $119 million. It’s currently right on support at $1. As long as we don’t go sinking below $1, the path should be upwards on this one. Our first bit of resistance is going to be getting above that $2 mark. That’s already a 100% increase from where we’re at now. After that, like I said, we could really shoot up to $5, $10, $15 very easily just on a hype factor alone, let alone if the company starts doing well. A very interesting opportunity as well.
With that being said, this completes my video of the best penny stocks. Please remember that penny stocks are risky and that this video isn’t a recommendation to buy or sell any of these penny stocks. Trade it and invest at your own risk. With that being said, hopefully, you enjoyed this video. Please make sure to subscribe. Also, don’t forget to check out my stock price prediction videos. I’ve covered a whole bunch of stocks for 2020. Don’t forget to check out my technical analysis master course. It’s the ultimate guide to technical analysis. For less than $20, it comes with a 30-day money-back guarantee. It’s gotten great reviews. You’re not going to find a technical analysis course as good as this for less than $20. Thanks for watching everyone. See you next time.
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About Tim Schmidt
Tim Schmidt is an Entrepreneur who has covered retirement investing since 2012. He started this website to share his expertise in using his Self-Directed IRA. Most recently he's been advising individuals to diversify into precious metals ahead of a certain recession. He invested with Goldco.