Let’s be honest, the stock market took a serious beating yesterday. It was one of the bigger plunges in recent memory as fear of a second wave of the coronavirus is starting to take hold around the country. And, for good reason. As the economy slowly opens back up, specific regions around the United States, including South Carolina, Texas, and Arizona are seeing extensive growth in cases pop up. All-in-all, the Dow sunk roughly 1,900 points at one point.
With the coronavirus infections passing the 2 million level in the U.S., including over 112,000 deaths on record, Treasury Secretary Mnuchin has announced the country will not shut down again even if there is a serious breakout of coronavirus cases.
Because of these circumstances, there has been an extensive rise in retail traders joining the penny stock world. Several of these new retail traders have seen significant gains as penny stocks have been red-hot, but there have also been many who have seen the volatility wreck their accounts first hand.
The key is to make sure you are educated and do your due diligence before entering any position. Sure, a major headline can be a true game-changer, but is it old news? Could the stock’s chart be ugly and filled with tons of potential resistance. There are many questions one should ask themselves before diving in. That said, a strong news headline can be a difference maker that gives a penny stock a ton of momentum. Here are a couple penny stocks to watch closely after major news came out on them.
Your No. 1 Friday Penny Stock To Have On Your Radar: eMagin Corporation
eMagin Corporation (NYSE American: EMAN) designs, develops, manufactures, and markets organic light emitting diode (OLED) displays on-silicon micro displays; virtual imaging products that utilize OLED micro displays; and related products. It offers super video graphics array (SVGA) + OLED micro displays; digital SVGA OLED-XL; super extended graphics array OLED-XL/XLS and OLED-XL; video graphics array OLED-XL; and widescreen ultra-extended graphics array OLED-XL/XLS. The company also provides design reference kits, which include a micro display and associated electronics to help original equipment manufacturers (OEMs) evaluate micro display products; near-eye virtual imaging modules that incorporate its OLED-on-silicon micro displays with its lenses and electronic interfaces for integration into OEM products; immersive head mounted display products; and night vision smartphone camera attachment and goggles. It serves OEMs in the military, aviation, and consumer market sectors.
eMagin Corporation, or the “Company”, announced it has been awarded $5.5 million under the Industrial Base Analysis and Sustainment (IBAS) Program for Organic Light Emitting Diode (OLED) Supply Chain Assurance. These funds are for procurement and installation of capital equipment in eMagin’s NY-based manufacturing facility, which we believe will enhance our manufacturing capabilities.
This IBAS award will be managed under the Cornerstone Other Transaction Authority (Cornerstone OTA) and fully funds Phase I of a three-phase agreement. The IBAS Cornerstone OTA was created to focus on strengthening the U.S. Manufacturing and Defense Industrial Base. eMagin’s OLED microdisplays are used, or designed in, many current and future defense Programs of Record including a broad range of PEO Soldier programs, F-35 HMDS, and other aviation helmet programs.
The capital funding provided during Phase I will be used to procure key equipment and tooling, which the Company believes will improve all aspects of eMagin’s OLED microdisplay production, including increased throughput and capacity. The IBAS agreement indicates additional awards through Phases II and III. Provided that funding becomes available, these later phases would enable eMagin to procure and install equipment designed to increase the production capability of products based on eMagin’s advanced dPdTM technology.
Andrew Sculley, CEO, said, “We are very pleased to be recognized by the Department of Defense as the only domestic producer of OLED microdisplays designated as a cornerstone of the U.S. manufacturing base. We view this as a recognition of the value of our OLED microdisplays in defense programs and an endorsement in what we believe to be our superior OLED technology.”
Your No. 2 Friday Penny Stock To Have On Your Radar: FuelCell Energy, Inc.
FuelCell Energy, Inc. (Nasdaq: FCEL), together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed power generation. The company offers SureSource product line based on carbonate fuel cell technology in various configurations, including on-site power, utility grid support, distributed hydrogen, and micro-grid, as well as multi-megawatt applications; and SureSource Recovery power plants for natural gas pipeline applications. It also provides SureSource Capture system that separates carbon dioxide from the flue gases of natural gas, biomass, or coal-fired power plants, as well as industrial facilities; and SOFC/SOEC and Energy Storage, a solution for energy storage using solid oxide technology.
FuelCell Energy reported financial results for its second fiscal quarter ended April 30, 2020 and key business highlights.
- Revenues of $18.9 million, an increase of 105%, compared to $9.2 million
- Loss from operations improved to $(8.1) million compared to $(17.6) million
- Net loss decreased to $(14.8) million compared to $(19.5) million
- Adjusted EBITDA of $(3.3) million compared to $(14.5) million
- Gross profit of $0.2 million (0.9% gross margin) compared to gross loss of $(3.6) million ((39.5)% gross margin)
- Operating expense of $8.3 million, a decrease of $5.7 million, or 41%
- Backlog of $1.34 billion, an increase of $80.8 million, or 6%
“First and foremost, our focus remains on the health and safety of our employees as we navigate the unprecedented COVID-19 pandemic. Despite this challenging environment, I’m pleased with our second quarter performance, where we achieved significant progress in executing our “Powerhouse” business strategy,” said Jason Few, President and CEO. “We have made strides in advancing our integrated business model, which includes developing and managing generation assets. We remain focused on accelerating revenue growth, which more than doubled this quarter, fueled by increases in Generation, Service and Advanced Technology. At the same time, we continued to manage costs and enhance gross margin.” Mr. Few concluded, “Despite the challenges of the current global environment resulting from the COVID-19 pandemic, we continued to execute against our project pipeline and advanced our work with ExxonMobil Research and Engineering Company in pursuit of commercializing our proprietary carbon capture solution. We still have work to do but are on a clear strategic path to continue making progress and achieving our goals.”
Your No. 3 Friday Penny Stock To Have On Your Radar: Yunhong CTI Ltd.
Yunhong CTI Ltd. (Nasdaq: CTIB) develops, produces, distributes, and sells consumer products in the United States and internationally. The company offers novelty products, including foil balloons; latex balloons under the Partyloons name; and toy balloon products, which include punch balls, water bombs, and Animal Twisties, as well as other inflatable toy items. It also provides vacuum sealable bags and rolls of film for household storage, and vacuum sealing machines under the Ziploc brand name; and bags for vacuum storage use under the Zipvac brand name. In addition, the company offers packaging films and custom film products for food, and other commercial and packaging applications; produces and distributes home organization and container products; assembles and sells Candy Blossom product line; and distributes party goods. It primarily serves various retail outlets, including general merchandise stores, discount and drugstore chains, grocery chains, card and gift shops, and party goods stores, as well as florists and balloon decorators. The company sells its products directly, as well as through a network of distributors and wholesalers, retail chains, and independent sales representatives.
Yunhong CTI Ltd. announced that its Board of Directors has taken a range of Board refreshment actions, including adding two new independent directors; having two long-serving directors retire; and naming Yubao Li to succeed John Schwan as Board Chair. All of the board changes are effective immediately.
Joining the board are Ms. Wan Zhang and Ms. Yaping Zhang. With these two appointments, and the retirements, the total board membership remains unchanged at 7.
The Board elected Ms. Wan Zhang as a new independent director. Ms. Zhang is currently Senior Manager at Taikang Bybo Dental Group, Beijing, China, leading group strategic planning and operations supervision. Before joining Taikang, Ms Zhang served as Senior Manager at PKU Healthcare Group, Beijing, China, with responsibilities spanning resource integration, project financing, policy research and strategic planning. From 2014-2018, Ms. Zhang was a Manager & Board Secretary at Capital Healthcare Group, Beijing, China, working in the Strategic Investment department. She also worked as Board Secretary & Assistant to Director of Operations at Capital Healthcare’s subsidiary-Aiyuhua Women’s and Children’s Hospital, Beijing, China. During her time at Capital Healthcare, Ms. Zhang developed the Group’s annual plan, and was responsible for financing, investment, M&A, and business development in specialized hospitals and clinics. Ms. Zhang’s previous experience includes as Assistant Board Secretary at Tsit Wing Group, Hong Kong. Ms. Zhang began her career with Albert YK Lau & Co. (Certified Public Accountants Hong Kong), Hong Kong, as Auditor & Board Secretary. Ms. Zhang is proficient in English, Cantonese and Mandarin. She was a student member of Chartered Secretaries in Hong Kong and, is a Certified Board Secretary of ShenZhen Stock Exchange. Ms. Zhang graduated from Wuhan University with a Bachelor of Science degree in Biology and Lingnan University with a Master’s degree in International Banking and Finance.