Watching penny stocks can be a tough business. The market can be so choppy that it’s difficult to know when or where the next success will come from. Sudden jumps are a part of the biz, and savvy investors keep their eyes wide open.
Penny Stocks to Watch
LM Funding (NASDAQ:LMFA) is prone to sudden jumps. Looking at its chart history in May of 2018, on several occasions, the stock lept anywhere between 30–40% in only a few days. If you were an investor during this period, you would have made significant returns had you sold on a high.
The firm operates as a specialty finance company. It provides funding for non-profit community groups and associations. It “offers funding […] by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments.”
Though of lesser value now than a year prior, the LMFA penny stock is in the green again: up 3.02% and selling for $1.35 USD at the time of writing.
But it has been a tough 2018 for the company. In its latest Q3 report, the company showed revenue of $0.78 Million USD or -25% less than the year previous. This translated as earnings-per-share of -$0.94 USD for investors.
The company said the following in its Q3 press release:
“In the third quarter, we took critical steps to improve our capitalization structure and balance sheet […] We were successful in closing a $6 million financing transaction that has significantly improved our financial flexibility and allowed us to regain compliance with NASDAQ. With this additional working capital, we can focus on providing solutions to condominium and homeowner associations.”
Short Term Penny Stocks?
With a market cap of $3.01 million USD and negative earnings, the LMFA penny stock may not show exciting numbers, but it could be a potential short-term hold for investors. It offers a low-price buy-in rate and could make moves skyward again.
It’s a far cry from reaping major rewards for investors unless you want to hold onto this stock for years and pray. But for short-term investors, the company may turn it around in 2019.
What do you think?
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