Penny stocks are the favored category of stocks for thousands of investors in the market, largely because of the possibility of significant returns. These stocks can often generate enormous gains for the investor, and therein lies the attraction for penny stocks.
However, when markets are in turmoil, then even penny stocks can suffer from the blowback, something which happened on Monday. On Tuesday, the markets in the United States made a tentative comeback of sorts after the carnage yesterday. It appears that investors are considering the possibilities of an actual recession and the continued threat of the novel coronavirus.
Tuesday’s gains in the market came about after the Dow Jones crashed by as much as 3000 points on Monday, which was the biggest crash since the infamous ‘Black Monday’ crash back in 1987.
As a matter of fact, all three major indices in the United States crashed hard on Monday. Volatility is also at significant levels, but despite that, some penny stocks are rising sharply this morning. Here is a quick look at five penny stocks that have recorded significant gains today.
Penny Stocks Moving Sharply Higher: Co-Diagnostics Inc (NASDAQ:CODX)
CODX stock is one of the biggest gainers this morning, possibly helped by the United States Food and Drug Administration announcing today that individual tests will be allowed to authorize labs to conduct the coronavirus test from now on. It is a move to raise the number of tests significantly.
The FDA also announced that the labs in question will not have to apply for Emergency Use Authorization with the agency either. The agency also informed that as many as 90 test developers have approached the FDA for assistance. In light of this development, the stocks of many companies that are involved in developing tests for the coronavirus, such as CODX, might jump. Investors could keep an eye on such stocks.
CODX stock is now up 35% to $12.40.
Penny Stocks Moving Sharply Higher: Blue Apron Holdings Inc (NYSE:APRN)
Another penny stock that is soaring today is Blue Apron, the well-known ingredient, and recipe meal kit delivery firm. The stock has soared by 55% today and hit $5.91 a share.
APRN stock has soared by 165% so far this week, and it is believed that it is soaring due to widespread social distancing that is being practiced by American citizens.
Since restaurants are being closed, and many are working from home, it is believed that Blue Apron’s meal kits might see a massive surge in demand. Investors could track this stock today.
Penny Stocks Moving Sharply Higher: Pluristem Therapeutics (NASDAQ:PSTI)
The United States-listed Israeli company, Pluristem Therapeutics, is another penny stock that has soared this morning after an important development. The company announced that the Israeli Ministry of Health has allowed Pluristem to treat patients suffering from coronavirus with its PLX Cells product.
The approval is only for a per-patient basis and only meant for compassionate treatment. Despite that, it cannot be denied that it is a significant development for the company. Pluristem stock soared by 10% on the back of the news this morning, and it goes without saying that it is likely going to be in focus for now.
Penny Stocks Moving Sharply Higher: iFresh (NASDAQ:IFMK)
Another penny stock that has been on an upward trajectory this morning is iFresh stock. IFMK stock is soaring on the back of the announcement from the Asian-American grocery that it has acquired a 70% equity stake in Xiamen DL Medical Technology. Xiamen is a company that specializes in research and development in medical and non-medical items.
According to the terms of the agreement, iFresh is going to pay $600,000 upfront and issue 900,000 of its shares. In exchange, it has got a 70% equity stake. The news resulted in a rally in iFresh stock this morning, which gained 21% today.
Penny Stocks Moving Sharply Higher: Happiness Biotech Group Ltd (NASDAQ:HAPP)
Last but certainly not least is HAPP stock, which is gaining this morning on the back of a major announcement from the company. Happiness announced this morning that it has started producing the daily protective masks that are being used by thousands of people to guard against coronavirus.
The company also announced that it is going to ramp up its capacity to 500,000 protective masks per week. The announcement suggests that there is going to be a massive demand for such masks as the coronavirus pandemic intensifies in the coming days. This penny stock gained 11% this morning.
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