The S&P 500 is pushing approaching new highs, and the market looks strong. The S&P 500, DJIA, and NASDAQ are trending higher in pre-market trading. However, the upcoming week features some important market-moving events that penny stocks traders should have on their radar. This week’s hottest penny stocks are all high-beta picks, so traders need to pay attention to these key catalysts.
First, expect corporate earnings to continue to drive this rally. Facebook (FB), Apple (AAPL), and AT&T (T) are all scheduled to report this week, and those three companies have a combined market cap of over $1.9 trillion. If any of these bluechip tech stocks have a poor quarter, it could shake up the entire S&P 500.
On the macro scale, markets are watching Wednesday’s Federal Reserve meeting closely. With 94% of Fed fund futures expecting a cut, Wall Street badly wants another rate cut but there’s no guarantee the Fed will oblige. Also, Friday’s job report will be a key litmus test for the state of the U.S. consumer. The economic data released in October was poor, but investors are betting that a strong consumer can carry the market. If Friday’s job report is weak, there could be some widespread selling.
With all that in mind, let’s get to this week’s best penny stocks to trade.
Marathon Patent Group (NASD: MARA)
This blockchain stock posted solid gains last week after the firm announced the deployment of a fleet of new crypto-mining assets at its Nebraska facility. The company previously announced that it would shift its assets to Nebraska from its previous location in Canada. Marathon said the move would save the company $60,000 a month in operating costs. The blockchain technology firm expects to deploy 3,500 mining rigs over the next two weeks and another 3,700 by December 15th.
Once the new network is deployed, Marathon will be one of the largest Bitcoin mining companies in North America. Marathon Chairman and CEO Marrick Okamoto made the following statement in a company press release: “This deployment of our recently acquired Miners and redeployment of our existing Miners will establish a very low-cost operation while substantially increasing the company’s cash flow.” The announcement, combined with a major rally in bitcoin, was enough to power the stock to 22% gains. If the Bitcoin rally keeps up, Marathon could be one of the best blockchain penny stocks on the market.
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Auryn Resources Inc. (NYSE: AUG)
Auryn Resources just struck gold, literally. Shares of AUG jumped over 13% last week after the company announced that at its Committee Bay drill site near Nunavut, Canada. The summer drill program discovered a 30-meter stretch of gold ore. “Although this was a modest program, the outcomes were significant,” said Ivan Bebek, Auryn’s executive chairman.
While a gold strike is certainly worth noting, Auryn’s use of advanced machine learning software to improve its explorations is exciting. Auryn’s exploration team discovered that high conductivity is a direct indicator of the presence of valuable minerals. The company says its teams will incorporate these findings into its exploration strategy. The utilization of this new technology could potentially help the firm find more gold and reduce the cost of drilling substantially.
Auryn’s COO and Chief Gelogist, Michael Henrichsen, is confident that this new targeting technology will be a game-changer. “Our latest geophysical advancement in targeting may resolve one of our biggest challenges to date, which has been identifying high-grade mineralization,” said Henrichsen, “Our technical team maintains the strong belief that Committee Bay has the potential to host world-class high-grade gold deposits.”
Shares of NNVC rallied over 13% on the news.
NanoViricides, Inc. (NYSE: NNVC)
Biologists have struggled to treat viral infections for hundreds of years, but this biotech firm specializes in formulating anti-viral treatments. Share prices rallied last week after the company announced its planned development of proprietary anti-viral nanomedicines.
The company is gearing up production for clinical trials but, so far, its flagship treatment looks promising. The new drug can potentially treat a wide range of viral infections, including swine flu, HIV/AIDS, and herpes. However, the firm announced last Friday that it would focus its clinical efforts on treating Herpes Simplex Virus Type 2 (HSV-2) and Varicella Zoster Virus (VZV) – which causes chickenpox and shingles.
The potential market for anti-viral medication is enormous. According to a 2014 report, the market could reach up to $65.5 billion by 2023. Investors like the direction this company is going. NanoViricides President and Executive Chairman, Anil Diwan, is confident in his team’s approach. “Our team believes that the dermal topical cream for the treatment of shingles rash will be the first drug heading into clinical trials which again caters to a market over a billion dollars,” Diwan stated, “There is at least two more years until commercialization and for revenues to flow into the Company, but we could potentially license the program out to Big Pharma after Phase I/II. However, it is clear, that with such a large addressable market size and hardly any competition, the success of the human trials would result in a positive ongoing stream of revenue.”
Anything can happen during clinical trials, so success is far from certain. However, if this biotech stock can deliver on these lofty expectations, there is an enormous potential upside in this company. Shares of NNVC jumper over 13% after the press release hit the news wires.
This Week’s Top Penny Stocks: More Hot Stock Picks
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