1 2 A penny stock is generally considered a company whose share price is less than $5. Frequently, but not always, they are small- to micro-cap companies that trade over the counter (OTC). These are companies whose share price may preclude some classes of investors from holding them, which contributes to increased volatility and potential opportunity. The following six non-OTC companies have outperformed the S&P 500 in the past week and month, but also have some modicum of fundamental strength. As a fundamental investor, the general strategy is to buy companies at a discount. When...

1 2 After outperforming since the middle of 2018, large cap companies have been trading even with small cap companies for the past few months. The recent performance may be an indication of a shift to small cap stocks, particularly if the market were to take another leg higher in the coming months. Looking for investment opportunities with small companies that have quality balance sheets may provide the bullish leadership. What’s in a balance sheet? The balance sheet includes the company’s assets, liabilities and equity. A company with no debt is a company that can’t go bankrupt. A co...

Franchise Group Inc (NASDAQ: FRG) is set to announce the Q2 earnings on August 6 after the market close (AMC) and the CEO is buying shares leading into the announcement. The buying activity preceded the company’s selection of their number 1 draft pick for Chief Franchising Officer, Todd Evans, who was announced on Monday. The company acquires franchised and businesses looking to franchise in the retail sector. The company currently has four operating segments for Liberty Tax, Buddy’s, Sears Outlet and Vitamin shoppe. With taxes and vitamins, the company appears to be well-positioned dep...

On July 27, 2020, Cemex broke out of a symmetrical triangle formation that began with the high on June 8. The price surged on high volume before consolidating over the past week. While the price hasn’t broken higher as its testing the resistance on June 8, the option activity appears to be anticipating the price will hold $3. The company broke out on June 8 following their earnings report, with earnings that came out in line with estimates. Since the announcement, the company has seen positive revisions to next quarter, current year and next year. The revisions provide a more bullish ou...

Kinder Morgan Inc (NYSE: KMI) was founded in February 1997 by Richard Kinder and William Morgan. It began with the acquisition Enron Liquids Pipeline, a publicly traded limited partnership. The company today attracts dividend investors with its 7.75% yield and the deal just sweetened with the additional acquisition by Richard Kinder. In 2014, the company shook the master limited partnership (MLP) world when it brought all of their majority owned MLPs under one corporate structure. The company that had pioneered the MLP industry had now abandoned the structure because of the limited oppo...

National Beverage Corp (NASDAQ: FIZZ) produces sparkling water, juices, energy drinks and carbonated soft drinks. On Friday, the company closed 7.86% lower on significant volume. As the price was wilting, the bearish option activity was heating up. The move was a breakout from a bullish channel since April and coupled with the option activity is a signal for a much larger bearish move. While there was no significant news that caused the price to fall, the option activity was significant on Friday. The option volume was over 10 times the average with almost all of the volume occurring on...

1 2 I call these kinds of companies my COVID-19 list. It’s not that they’re infected, it’s just that they have been affected either positively or negatively by the closures that have happened across the world. The shift to online spending has certainly helped companies like Amazon, and the closing of malls and the concern about going out in public affected retailers like Macy’s negatively. As we look forward to this week, these companies may give us a handle on the direction of consumer spending. While we’re highlighting five companies in this post, there are a number of other compani...

1 2 On Thursday, the Advance GDP numbers came out and it posted the largest decline in U.S. history at 32.9%. This should create alarm for the very dire predicament we find ourselves in. This may create more desire on the part of Congress to put an infrastructure bill before the president to sign. As the infrastructure chorus builds, these infrastructure names may start to gain. In 2019, America’s Transportation Infrastructure Act was signed and at $287 billion became the largest amount of funding provided for highway reauthorization in history. That seemed like a lot of money at the ...

After a disastrous earnings, Bed Bath & Beyond Inc (NASDAQ: BBBY) has been climbing the hill over the past few weeks and finds itself at its pre-earnings high near $11.50. As the price faded from its high yesterday, the put option volume surged to nearly six times the average and is indicating another leg lower. On July 8, the company announced earnings that saw its EPS miss the estimates by over 60% and the price closed nearly 25% lower the next day on substantial volume. Since that day the price has grinded higher following a short bottoming phase. Since the announcement, the curr...

CBAK Energy Technology Inc (NASDAQ: CBAT) is an energy technology company that manufactures and sells lithium batteries in globally. The batteries are used for a variety of purposes including electric vehicles, bicycles, electric motors, tools, and other applications. In June, the insiders stepped up their buying just before the breakout. After the price pulled back on light volume, the company is breaking out again. On Thursday, the stock closed 17.2% higher. The company is a penny stock, but the volume has been surging since early June when the buying began. The price yesterday did fi...