One of the most useful ways to look at penny stocks is their volume. Effectively, investors don’t even need to know what business a company is in or whether they’ve released any stock-moving news – volume tells us a lot of what we need to know.
Of course, no one would recommend investing in a company without knowing what they do but the point remains, a hard look at penny stocks by volume can offer a powerful metric. As a result, high volume penny stocks are often highly coveted.
Imagine, if you will, a penny stock that trades around $1 and usually sees about one million trades a day. One day you’re looking for penny stocks with high volume and you see this stock has traded over 4 million shares that day – it’s likely that something happened to move the stock. Moves like this are especially interesting to traders who don’t look at averages. Instead, they look for stocks that trade more than a certain amount.
So, if you’re looking for a new penny stock, volume can be an important metric.
That’s because these irregularities can offer particular insight into how the market views these companies. If there’s a big jump one day, you should look at what might be the catalyst for the jump. You can then weigh that against other metrics and what the company is going through and decide if it’s a good investment for you to make.
After all, penny stocks are particularly known for their volatility. So, if you find a stock with above-average levels of market activity, it could mean extra growth potential.
What follows is a list of our top volume penny stocks to pay attention to.
Pioneer Power Solutions is involved in the manufacture, sale, and distribution of on-site power generation equipment. This equipment is used in the industrial, commercial, and backup power markets.
The company was founded in 2008 and is based in Fort Lee, New Jersey.
PPSI’s primary segments are transmission & distribution and critical power solutions. Working in the former, Pioneer Power offers equipment solutions to help its customers manage their electrical power distribution systems to their desired specifications. The critical power solutions segment provides servicing on its customer’s power generation equipment.
The company’s stock has seen a lot of recent upward momentum. In August, shares were up 9 percent after Nathan Mazurek, the company’s chairman, president, and CEO, bought 1,000 shares at an average price of $1.40. That caused the insider’s stake in the company to move to 31,000 shares.
Insider transactions like this can be used as a measure of good faith in the company. And it seems Mazurek may have been on to something. As recently as October 6, the company’s shares were up more than 205 percent after the company announced an annual meeting for shareholders scheduled for November 12.
That market wasn’t very keen on PPSI previous to the spike, given that the company’s stock was showing negative returns for the year. But the turn around meant a 111 percent year-to-date climb for the stock.
2. Ocean Power Technologies (OPTT)
As mentioned in our last article on renewable energy penny stocks, OPTT come out strong here.
This Monroe, New Jersey-based company specializes in renewable energy, providing electric power and communication solutions, as well as services for remote offshore applications.
The core of OPTT’s business is its PowerBuoy wave energy conversion technology, which is theoretically scalable to hundreds of megawatts, with the wave power-generated energy suppliable to the grid via a submarine cable. The customers for this technology include companies and government entities.
These buoys convert the ocean waves into electrical energy in order to recharge their batteries, allowing for devices in remote locations to receive a continuous supply of uninterrupted power. The technology has uses for a number of different types of companies including defense and security firms. With this technology, they don’t need to send crews out for regular maintenance on remote devices. The tech can also be used as an unmanned charging dock for devices like water drones.
Ocean Power Technologies was founded in 1984 and went public in 2007. It originally planned to provide power to average people, but after the strategy didn’t work the company pivoted to focus on niche uses.
As recently as October 6, the company’s shares were up by more than 40 percent from its previous closing price. In five trading sessions, OPTT racked up 115.84 percent of gains after the company announced a new $12.5 million common stock purchase agreement with Aspire Capital Fund.
Under the terms of the deal, Ocean Power will sell as much as $12.5 million shares to Aspire over 30 months. The company says it will use proceeds from the sale to build more of its PowerBuoys. The devices will be built as needed to keep up with demand, the company said.
3. XpresSpa Group Inc (XSPA)
XpresSpa Group is a health and wellness company headquartered in New York City. The company was founded in 2006 and has around 500 employees.
XSPA provides airport spa, cryotherapy, compression therapy, and salt chambers solutions. It also offers travel products and accessories and serves customers in the United States, Holland, and the United Arab Emirates.
Until recently, the market didn’t have a great view of XSPA. The “luxury spa treatment in airports” business model didn’t seem to be attractive to investors. But the company’s business model shifted following the onset of the coronavirus pandemic, which seems to have piqued the interest of more than a few investors and analysts.
While people still travel during the pandemic, they are much less concerned with relaxing during their travels as they are worried about their overall health and safety. As such, XpresSpa decided to re-concentrate its existing infrastructure toward screening and testing services at airports.
Initially, that caused the stock to fall slightly. But the solid business move seems to have turned the stock around recently.
Trading began to climb after the company announced it will begin rapid testing for COVID-19 at both JFK International Airport and Newark Liberty International Airport. Rapid testing will also be available at all future XpresCheck locations after opening, the company announced.
Indeed, as of early-October, XSPA became the target of unusually large options trading activity. Traders acquired 22,848 call options on the stock, representing an increase of 220 percent compared to its typical daily volume of 7,140 call options.
4. Aqua Metals, Inc. (AQMS)
Aqua Metals’ core business is slightly more esoteric than some of the other companies on this list. The company produces recycled lead by using an electro-chemical process. It then sells hard lead, lead compounds, and plastics.
Stephen R. Clarke, Thomas Murphy, and Selwyn Mould founded the company in 2014. It is currently headquartered in McCarran, Nevada.
The stock has been under pressure of late, but the struggle may soon come to an end. Analysts who use candlestick charting to analyze stocks have pointed out that AQMS stock recently saw what is called a “Hammer Chart Pattern,” which can signal a stock is nearing its bottom.
That has been coupled with an increase in earnings estimates for Aqua Metals. In October, the stock gained a Zacks Rank of “Buy,” suggesting the stock could be due for a breakout. Traders will be looking to see if AQMS can build momentum and continue to move higher.
The change followed a string of news releases from the company. On October 6, trading firm Jane Street Group announced it was buying 28,900 shares of AQMS at a total value of approximately $40,000. Another trading firm, Advisory Services Network, also increased its stake in the company by 13.7 percent during the second quarter. Advisory Services now owns 94.000 shares of AQMS.
Moves like that from institutional investors obviously indicate a high level of confidence in a company.
Aqua Metals has also been collecting insurance payments to the tune of tens-of-millions-of-dollars. The most recent payment was $5.279 million, which is just part of the total $12,500,000 owed to the company. That indicates that Aqua Metals will have a lot of cash to play around with in the months and years to come.
Moreover, the company announced the selling of its McCarran, Nevada plant as part of its accelerated equipment supply and licensing strategy, which includes the disposition of non-core assets.
The plant was built and then operated through 2019 and to manufacture000 ingots of ultrapure AquaRefined lead. The company said it believes it has achieved the demonstration purposes of the plant, resulting in the successful validation of AquaRefining technology and commercial sale of ultrapure lead. All of that is to say, following the sale of this asset, they will have even more cash on hand.
5. Asia-Pacific Wire & Cable (APWC)
Asia Pacific Wire & Cable Corporation works in the Electrical Equipment & Parts industry. The company was formed in 1996 and, through its subsidiaries, manufactures and distributes telecommunications, power, and electronic power cable, and enameled wire products in the Asia Pacific region.
The company also provides project engineering services in the supply, delivery, and installation of power cables.
APWC has seen a lot of volatility in the past, but a fair amount of volume as well. Recently, the were trading at a high of $2.24 per share against a low of $0.89. Over the last 52 weeks, APWC was up 45.19 percent while the S&P 500 is up 14.28 percent.
Analysts peg the surge on the company’s recent earnings report. The company announced booked profit margins of -0.20 percent, a return on equity of -0.50 percent, and a return on assets of -0.20 percent, which put APWC on the watchlist of many traders.
That news caused APWC to become a penny stock with high volume, with investors supporting the value proposition. 10-day volume for the stock stands at 0.39 million with more growth possible in the weeks to come.
Analysts have been impressed by Asia Pacific Wire & Cable Corporation’s solid data, but the company has also demonstrated impressive underlying fundamentals. As it stands, APWC presents an intriguing risk/reward case study. Traders will be watching to see if its recent report will help raise the stock in order to test its recent resistance levels.
6. RCM Technologies, Inc. (RCMT)
RCM Technologies works in the engineering and construction industry and has over 3,000 employees.
The company was founded in 1971 and is currently headquartered in Pennsauken, New Jersey. It provides business and technology solutions in the United States, Canada, Puerto Rico, and Serbia, operating in three market segments: Engineering, Specialty Health Care, and Information Technology.
Its engineering segment provides a range of services, including project management, analysis, configuration management, and more. The Specialty Health Care segment provides long- and short-term staffing, executive search, and placement services. The IT segment provides enterprise business solutions, application services, and vertical market-specific solutions, among others.
RCMT works with aerospace and defense, energy, financial services, health care, life sciences, manufacturing and distribution, and technology industries, along with educational institutions and the public sector.
As of early-October, the company’s shares topped a trading volume set at approximately 3,940,691 for the day - higher as compared to the average daily volumes of the shares, making it a contender for highest volume penny stocks on this list.
Moreover, at least two analysts of given RCMT a “Buy” rating, while no analysts say its overweight or should be sold.
According to its most recent earnings report, RCMT reported an $8.5 million profit with revenues increasing to $32.65 million. On top of that, the company has free-cash flow of $17.63 million as of June, 2020. All of that should make it an attractive prospect for those looking to invest in high volume stocks under 5 dollars.
If you’re looking for high volume penny stocks today, you would be hard-pressed to find better options than these. Penny stocks’ high volume can offer a powerful metric, but should be used in tandem with other research methods. Make sure you do your due diligence.
After all, a penny stock, high volume or not, is a volatile investment prospect. These high penny stocks may offer potential rewards, but there’s a lot of potential downsides as well.
Still, low price, high volume stocks can be a great way to make some money if your savvy, patient and have a particularly high risk tolerance.