To call it a comeback would mean you have to come back from something. Wise words from rapper, Drake however they’re about as true as any Yogi Berra quote. And “Yes” Mr. Berra, “It ain’t over till it’s over.” Today the Dow went on to test new June highs during the morning session attempting to surge past the 18,165 levels and break a slump that’s lasted the better part of two weeks (May 19). Will it happen? Only time will tell but what we have seen in a surge in market activity that’s gone far beyond the NASDAQ and NYSE and stretched into the small cap and micro cap markets.
Penny stocks and sub penny stocks to trade in Wednesday’s session have been from companies that focus on anything from biotech to biofuels and everything in between. As many know, the name of the game with penny stocks has always been “risk”. The more volatile and risky an stock could be, the better the payout (or loss) that can follow. With companies like Coates International, Ltd. (OTCMKTS:COTE), U.S. Precious Metals, Inc. (OTCMKTS:USPR), Enviro-Serv, Inc. (OTCMKTS:EVSV), Accurex, Inc. (OTCBB:ACXA), and even FBEC Worldwide, Inc. (OTCMKTS:FBEC) seeing increased volume and price over the last 30 days, it’s no wonder why more investors and day traders have been flocking to penny stocks recently.
On Tuesday, Coates International, Ltd. announced major progress from its operations. The company delivered updated firm orders totaling $50,486,200. This was looked upon as “a good sign as [Coates International] just started production at [its] headquarters in New Jersey” as stated by President and CEO, Mr. George J. Coates. Since Monday the stock price has surged to new highs, which it has not seen since December of 2014.
U.S. Precious Metals has been the tail of market momentum pushing through levels of resistance over recent weeks. After trading near lows of $0.11 in April to recent highs of $0.1999, interest has built with more attention building around gold prices and the relationship to market sentiment. According to several reports out late last month, Gold has begun to show a modest rebound through the end of May after finishing the month up roughly 0.4%. Additionally, with the concern regarding a declining GDP, gold as a traditional “Fear Play” could also begin to see others flock to it for security as speculation has the market hanging on every word that market analysts write. Even more so, gold has also been used as an inflation hedge.
The strong dollar serves as a partial catalyst for the increase in crude oil and when crude oil prices are on the rise, it can drive up the costs of merchandise for the everyday consumer (historically, companies tend to pass along the cost of raw materials for production). This, in turn could become a boon to potential investors to turn their focus on gold and could also make for a potential “rising tide” to come into play with gold related companies.
Enviro-Serv, Inc. has also been gaining market exposure over the last month after the Company began to announce major milestone developments for its pest control business. Enviro-Serv announced franchise plans for the Pestmaster franchise as well as the closing of its largest termite extermination deal to date. Since early May, shares of EVSV have gained in price by as much as 1,400% following a move from $0.0001 lows to as high as $0.0015. Recently the stock has settled out and is trading consistently between $0.0009 and $0.001 with sporadic jumps to .0013 and .0014.
Accurex, Inc. is also gaining ground after a recent run up to highs of $0.70 broke a long span of downward selling pressure. Though the stock had been trading at much higher prices earlier in the year, shares of ACXA have found a 5 day trend between $0.50-$0.70. Despite not having an incredible amount of news out, the company’s management has been featured on stock market media shows like “New to the Street” which streams to major markets in the US.
FBEC Worldwide recently announced that it had entered into a Letter of Intent with G. Randall & Sons Inc to handle the Company’s development and packaging of “H.E.M.P. (High Energy Massive Power),” a 2-ounce, hemp-infused, five-flavored energy shot supplement. “We look forward to our relationship with Dr. Strause and G. Randall & Sons Inc. to manufacture our H.E.M.P. energy shot supplement and other H.E.M.P. beverages we plan to launch this year as well. With our engagement of BAXCO Pharmaceutical to manufacture our proprietary hemp extracts, I believe that we will become a leading company in the hemp industry.” stated Robert Sand, Chairman and CEO. Since trading earlier in the year around price levels of $0.01, both share volume and price have increased substantially. In fact shares of FBEC have jumped up in price by as much as 800% after the stock hit highs of $0.09 5 weeks ago. Current trading has seen more activity between $0.046-$0.056.