One of the most important things to keep in mind as an investor is that even if you make the right calls, market conditions can trigger adverse events. This isn’t just a broader market phenomenon either. When it comes to finding penny stocks to buy, the volatile swings are usually compounded. So it’s even more important to make sure you’ve got the right list of penny stocks put together. It’s also just as important to monitor that list before deciding to buy penny stocks on that list.
It’s true that penny stocks have the potential of generating enormous returns. However, and obviously, the wrong pick can also result in deep losses. Lately, we’ve seen several penny stocks make their way to new highs. We’ve also seen some of the long-standing penny stocks reach brand new lows. As the market continues its turbulence, it’s important to keep your risk tolerance in check. Needless to say, we’ve got 2 penny stocks to watch as August goes into full swing.
Electric delivery vehicle maker Workhorse Group Inc saw its stock explode during the summer. It emerged that Workhorse was the frontrunner to acquire the Lordstown, Ohio plant belonging to automobile giant General Motors.
Although it’s true that it would’ve been a significant deal for Workhorse, the optimism about the deal seemed to evaporate. This came after the release of the company’s Q2 2019 results. Total sales amounted to a mere $6000 for the quarter and soon enough the stock plunged by as much as 20% to $3.17, recovered well from its session’s low of $2.58.
Nevertheless, the stock is still up a whopping 300% over the past three months. The stock could see high volatility in the coming weeks as the stock has already fallen 40% in a week.
Retail chain J C Penney Company Inc (JCP Stock Report) has been in trouble for years but continues to remain on the penny stock watch list for many investors. This year JCP stock has performed poorly as the company’s massive debt burden finally started to show.
The penny stock has experienced declines two days in a row on Monday and Tuesday this week. On Monday, the stock declined by as much as 5.6% as the United States’ trade war with China intensified. Moreover, JC Penny stock made a new low of $0.61 on Tuesday. Analysts believe the decline on Tuesday was primarily due to investors’ doubts about the immediate future of the company.
The stock is one of the biggest penny stock losers with a slump of 60% since early March.