We are watching the penny stocks market closely to bring you winners and losers. Often investors need to act fast as price fluctuations in this market happen in the blink of an eye. That’s why we are bringing you two big movers in July. These penny stocks may not deliver long-term, and even the short-term is skeptical. But for savvy risk-averse investors, a quick profit could be found.
Let’s check them out.
Penny Stocks Moving in July: Downward Spiral
The retail sector is not for the faint-hearted, especially in recent years; we’ve watched numerous iconic department stores close their doors—some indefinitely.
One in big trouble is American department giant J.C. Penney Company Inc. (NYSE:JCP). The reason is a large debt coupled with big losses. The damage is so great that the company has reportedly met with investment bankers and lawyers in order to restructure its $4 billion debt. However, despite the optimism, investors believe bankruptcy is more plausible.
Shares dropped below $1 after the company announced further losses of $154 million in Q1 2019 last week. Shares continue to tank and are now selling for $0.79 USD, representing a 26% loss since the Q1 report was released. The likelihood is this penny stock will keep falling.
An Upward Trend
Cannabis company Flowr Holdings Corp (TSXV:FLWR) (OTCPK:FLWPF) managed to jump 20% in a 24-hour period last week. The boost was needed; after all, this penny stock lost over 35% thus far in the month of July.
The turnaround happened after the company decided against a share offering it had previously announced. The idea was to raise $125 million CAD in order to acquire cannabis production facilities developer Holigen Holdings Ltd. But it bucked the idea in favor of protecting its investors, saying that the current market conditions weren’t suitable for such a raise.
Following this news, shares skyrocketed over 20%. Unfortunately, they dipped the following day, making it anyone’s guess as to where they will go next. Currently, they sell for $4.08 CAD.
What are your thoughts on these two penny stocks?
Featured Image: DepositPhotos © Rangizzz