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Do You Have These 3 Penny Stocks On Your Watch-list Right Now?

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Penny Stocks Under $5

Are you familiar with penny stocks? They are stocks that are $5 and under, and catalysts can potentially cause them to go on massive swings in the short-term. That said, catalysts can also cause a negative impact. It might be something like poor trial results or discounted financing deals. You need to make sure if news comes out on a penny stock to read between the lines to see if it will be a positive catalyst or a negative catalyst. Right now, we are only looking at penny stocks with strong, positive news.

Headlines can’t be the only thing you are focusing on when you’re researching penny stocks. Have you looked at their charts? Have you looked to see if they have had any recent filings? Headlines can be a major catalyst for a penny stock, but sometimes they don’t give you a full scope of what is going on behind the scenes for a specific company.

Read More: On The Radar: Here Are 3 Penny Stocks To Watch This Week

Just yesterday we saw a handful of penny stocks catch fire on positive headlines. We even saw some go soaring with no news at all. I recommend watching penny stocks with news that aren’t just trading on “air.” Sure, there are potential profits available on penny stocks with no news, but as I’ve mentioned before, volatility can be fickle. Just as easy as penny stock goes up, it can go down. Those with a strong news catalyst may have a better chance of maintaining their gains since they have factual info to justify their movements.

Your No. 1 Stocks Under $5 To Watch Closely Today: ClearSign Technologies Corporation

ClearSign Technologies Corporation (Nasdaq: CLIR) designs and develops products and technologies to enhance operational performance, energy efficiency, emission reduction, safety, and overall cost-effectiveness of industrial and commercial systems in the United States. Its Duplex Plug & Play technology provides a direct burner replacement solution for traditional refinery heaters.

ClearSign Technologies Corporation has received a purchase order from ExxonMobil to fabricate and install the company’s ClearSign Core™ process burners at its Baytown, Texas refinery.

The test will comprise a multi-burner process heater and burners incorporating the breakthrough ClearSign Core™ NOx reduction technology. This order is the final step in the process to showcase ClearSign Core’s superior NOx emissions technology.

The installation order follows the previously announced engineering order and qualification program that ClearSign performed at its state-of-the-art Seattle R&D facility. That testing was an evaluation over a broad range of typical conditions, including variations in fuel heating values, turndown, and excess air.

“We are delighted to have received this order and to have advanced to this stage with ExxonMobil,” said Jim Deller, Ph. D, CEO of ClearSign. “This is the culmination of a multi-year relationship that spans before my joining the company. This order is the final step in demonstrating our technology with a supermajor at its refinery. This development results from the dedicated work of both our team and the research-and-engineering team at ExxonMobil. We look forward to demonstrating our technology at its Baytown refinery.”

Your No. 2 Stocks Under $5 To Watch Closely Today: Mid-Con Energy Partners, LP

Mid-Con Energy Partners, LP (Nasdaq: MCEP) engages in the acquisition, ownership, and development of producing oil and natural gas properties in North America. The company’s properties are primarily located in the Mid-Continent, Permian, Big Horn, and Powder River Basin regions of the United States in Oklahoma, Texas, and Wyoming areas. As of December 31, 2018, its total estimated proved reserves were 24.8 million barrel of oil equivalent. Mid-Con Energy GP, LLC serves as the general partner of Mid-Con Energy Partners, LP.

Mid-Con Energy Partners, LP announced its operating and financial results for first quarter 2020 and details of the recently announced strategic recapitalization transactions.

As announced on June 5, 2020, the Partnership completed strategic recapitalization transactions, resulting in significant changes to its capital structure and governance to strengthen its balance sheet, create alignment across all unitholders, reduce costs and streamline operations, thereby creating immediate and sustainable value for all unitholders. Highlights of the transaction include:

  • The holders of all of the Partnership’s Class A and B preferred units (collectively, the “Preferred Units”), led by Goff Capital, Inc., (“Goff Capital”) converted their Preferred Units to common units at an average conversion price of $3.12/unit.
  • The equity holders of the general partner contributed the ownership of the general partner to the Partnership in exchange for common units.
  • In connection with these transactions, the limited partnership agreement of the Partnership was amended, the directors of the general partner have resigned, and a new Board of Directors was elected by written consent of affiliates of Goff Capital that now hold a majority of the outstanding common units.
  • Charles R. Olmstead, Chief Executive Officer, and Jeffrey R. Olmstead, most recently Chief Executive Officer and President prior to taking a sabbatical beginning February 1, 2020, resigned from their positions as officers of the general partner.
  • Following these transactions, the Partnership had 14,311,522 common units outstanding.
  • Completed the spring redetermination of the borrowing base under its senior secured revolving credit facility. Amendment 15 to the credit agreement was effective as of June 1, 2020. Amendment 15 to the credit agreement, among other changes:
    decreased the borrowing base from $95.0 million to $64.0 million and establishes a repayment schedule for the borrowing base deficiency;
    permitted the recapitalization transactions;
    introduced anti-cash hoarding provisions and restrictive covenants on capital and general and administrative spending;
    provided for all loans to bear payment-in-kind interest, capitalized on a quarterly basis;
    excluded certain assumed liabilities from the Current Ratio calculation for the quarters ending June 30, 2020, September 30, 2020, and December 31, 2020; and
    required the Partnership’s Leverage Ratio of Consolidated Funded Indebtedness to Consolidated EBITDAX not to exceed:
    5.75 to 1.00 for the quarter ending June 30, 2020,
    5.00 to 1.00 for the quarter ending September 30, 2020,
    4.50 to 1.00 for the quarter ending December 31, 2020, and
    4.25 to 1.00 for the quarter ending March 31, 2021 and thereafter.
  • Contango Resources, Inc. (“Contango Resources”), a subsidiary of Contango Oil & Gas Company (“Contango”) will be the new operator of the Partnership’s properties, replacing Mid-Con Energy Operating, LLC. The transition is expected to be effective July 1, 2020 and the move is expected to generate pro-forma annual cash savings of approximately $6.5 million compared to 2019.
  • The Partnership and Mid-Con Energy Operating, LLC, the existing services provider, entered into an Assignment and Assumption Agreement (the “Assignment and Assumption Agreement”), effective June 1, 2020. Under the Assignment and Assumption Agreement, the Partnership agreed to assume and release the existing services provider from certain liabilities arising out of the existing services provider’s performance of its obligations as operator of the Partnership’s properties under the existing services agreement.

Your No. 3 Stocks Under $5 To Watch Closely Today: Annovis Bio, Inc.

Annovis Bio, Inc. (NYSE American: ANVS), a clinical stage drug platform company, focuses on developing compounds to address neurodegeneration. The company’s lead compound is ANVS-401, which is in Phase 2a clinical trials for the treatment of chronic neurodegenerative diseases, such as Down syndrome, Alzheimer’s disease (AD), and Parkinson’s disease. It is also developing ANVS-301, a compound in Phase 1 clinical trials to increase cognitive capability in later stages of AD and dementia; and ANVS-405, which is in preclinical study for protecting the brain after traumatic brain injury and/or stroke.

Annovis Bio Inc. (NYSE American: ANVS), a clinical-stage drug platform company addressing Alzheimer’s disease (AD), Parkinson’s disease (PD) and other neurodegenerative diseases, today announced it successfully completed the rat cohort of a chronic toxicology study of its lead therapeutic compound ANVS401, reporting no negative side effects.

The six-month rat study was part of a series of animal toxicology studies, funded by a $1.7 million grant from the National Institutes of Health, that began in the fourth quarter of 2019. The safety seen in the rats corroborates the positive results from the Company’s prior one-month safety studies in mice, rats, dogs, and humans. A nine-month dog safety study remains ongoing under the NIH funded program, with results expected in the third quarter of 2020.

Maria Maccecchini, Ph.D., CEO, commented, “The successful termination of our chronic rat tox study is another important milestone for Annovis. Our chronic toxicology studies, which enable us to conduct long-term human studies, provide a solid foundation for ANVS401 as we continue to focus on our current ongoing Phase 2a study in AD and planned two-armed Phase 2a study in PD and AD, ultimately positioning us to move into pivotal Phase 2/3 studies.”

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