Why These 3 Penny Stocks Shot Up on Friday
When looking for penny stocks to buy, finding the biggest daily gainers is a very common strategy. This allows investors to seek out companies that could have forward momentum or ones that could be gaining for speculative reasons.
However, with this strategy, it’s worth understanding why certain penny stocks gain and whether it can continue to push up. If you’re unfamiliar with penny stocks overall, it’s important to consider that they are some of the most speculative assets out there.
Because they are under $5, penny stocks typically have high volume, and therefore can move very quickly in value during a trading day. So, to stay on top of this, many investors will go to places such as Reddit or Twitter, to find trending penny stocks that could push up. But, too often this will result in FOMO or the fear of missing out.
Another important aspect of trading penny stocks is to never trade with emotion. This will almost always cause losses and is never a good strategy to use. So, have rules for trading and use them on every trade you execute. Considering all of this, let’s take a look at three penny stocks that exploded today and whether they’re worth it or not.
3 Penny Stocks That Pushed Up Substantially Today
- Medigus (NASDAQ: MDGS) +54.7%*
- Xenetic Biosciences Inc. (NASDAQ: XBIO) +144.6%*
- Moving Image Technologies Inc. (NYSE: MITQ) +12.5%*
*As of 10:45 EST, Friday, July 23rd
Medigus (NASDAQ: MDGS)
Medigus ADR is a biotech company working on finding medical solutions to common issues we face. In addition to this, it also provides internet technology and electric vehicle/charging solutions. Obviously, we see that Medigus is a multi-faceted company with several assets under its belt. But, given its over 50% gain today, let’s focus on its biotech business for now. Today the company announced that it’s 33.24% owned Polyrizon Ltd., showed pre-clinical data from a study regarding Covid-19.
The study concerns Polyrizon’s bio-gel proprietary technology, and shows that it could be an efficacious barrier, preventing Covid-19 infection. The one month trial showed that the product effectively reduces the likelihood of infection from Covid-19, and is both well tolerated and safe. Now, the company plans to engage in more clinical trials, which could have results within 12 months.
This is exciting, and any company involved in either a treatment or cure for Covid-19, has seen heightened momentum. While its over 50% gain does show that MDGS stock is highly speculative, it still is showing a great deal of positivity. Considering this, will it be on your list of penny stocks to watch?
Xenetic Biosciences Inc. (NASDAQ: XBIO)
Today’s almost 150% gain for XBIO stock comes with no news to back it. While this is common with penny stocks at times, usually it does not…