Best Penny Stocks to Trade: October 16, 2019

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best penny stocks to trade oct 16

NEW YORK, October 16, 2019/ TheStockDork / — The market had a strong day yesterday. Most of the major indices notched gains greater than 1% on the session. The DJIA was the only exception, but it still managed to gain 0.89%. Today, it looks like these are the best penny stocks to trade.

Comstock Mining (OTC: LODE)

best penny stocks to buy 10-19
A Comstock mine near Silver City, NM.

Comstock announced that it would extend the closing deadline on the sale of its Lucerne property to Tonogold Resources, Inc. (TNGL). The deal was previously scheduled to close on the 15th of October, but yesterday’s extension delayed the sale until October 31. Comstock is selling the property to Tonogold for $15 million cash and will retain a 1.5% NSR royalty on the property.

Comstock Executive Chairman and CEO, Corrado De Gasperis, commented, “Tonogold has been working diligently toward closing and has assembled an impressive list of investors. We are excited about the exploration and development plans and look forward to closing in the next few weeks.”

If the two companies can not close the deal, Tonogold can extend the deadline to November 10th. However, another extension will cost the firm $1.5 million in non-refundable deposits and stock fees.

Westwater Resources (NASDAQ: WWR)

This one of yesterday’s highest gaining stocks, but it’s already coming back down to Earth. Westwater Resources stock exploded yesterday when the company announced it had received a shipment of battery-grade graphite that it would use to expand into the battery materials business. Westwater primarily operates in the uranium market, which is in the midst of one of the worst bear markets in history. The graphite delivery fueled some hopes that WWR could expand into new businesses that have better outlooks than the uranium market.

WWR penny stocks
Operations at a graphite mine. Westwater rallied after news that it received its first shipment of battery-grade graphite.

A lot of traders bought into this stock when the U-232 proposal landed on the President’s desk, hoping that a presidential order would help lift up the market. However, President Trump didn’t take any action to assist the domestic uranium market, and uranium stocks tanked on the news. It appears that many shareholders were looking for an opportunity to exit. WWR is down over 18% in pre-market trading today.

Expect a lot of short-term volatility for this stock. It could present some opportunities for stick-and-move trades.

TDH Holdings, Inc. (NASDAQ: PETZ)

This Chinese company sells several different brands of pet food in Asia and Europe. Yesterday, the stock popped 78% without any obvious news hitting the market. While there was no clear catalyst for yesterday’s rally, PETZ regained compliance with NASDAQ listing regulations in August after its shares closed at or above $1 per share for ten consecutive trading sessions. Previously, the company was in danger of being delisted from the exchange.

Chinese stocks make for tricky trades in this political climate. However, you can still find winners if you’re not afraid of volatility. This stock is trading with above-average pre-market volume and it’s only lost 1.5% of yesterday’s gains so far. The company might be worth researching in more detail to determine if yesterday’s rally was legit or just market noise.

CTST penny stock logo
CannTrust Holdings Inc. (CNW Group/CannTrust Holdings Inc.)

CannTrust Holdings Inc. (NYSE: CTST)

It’s not often that you see a stock rally because the company is burning its inventory. On Monday, CannTrust announced it would destroy a total of $75 million worth of cannabis plants and other inventory in order to regain regulatory compliance. The company’s license to produce cannabis was suspended on September 17th after Canadian regulators ruled that the company was illegally growing cannabis in unlicensed grow rooms. Destroying the inventory is the first step towards restoring the license.

CannTrust hasn’t been allowed to grow cannabis since its license was suspended. It’s restoration is a top priority for the Canadian cannabis company. The company reassured investors that it was taking additional steps to ensure there are no slip-ups in the company’s future. Interim CEO Robert Marcovitch stated the following, “CannTrust is confident that its detailed remediation plan will not only address all of the compliance issues identified by Health Canada, but it will also build a best-in-class compliance environment for the future.

CTST rallied over 32% yesterday, just a day after announcing the inventory adjustments.

These are just a few of the best penny stocks to trade today. Keep your eyes open for breaking news, above-average trading volume, and other signs of abnormal activity to find even more great penny stock trades for today.

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Chris Dios is an American writer and entrepreneur based in the Greater NYC area.

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