Penny Stocks on the Move on Oct 15: GSAT, LQMT, BZNE
Today the US stock markets are wavering, as there is still no clear signal for the outcome of the political crisis in the country. The Senate is at a stone’s throw from approving a new consensus about the debt ceiling and government funding. Yesterday, the US President Barak Obama announced there was a progress in the negotiations with the Republicans.
Yet, even if the Senate approves an increase in the debt ceiling, the decision will have to be ratified by the House of Representatives, which is dominated by the Republicans. This is why investors prefer to avoid risks at this stage which is why most of the US stock market indexes are struggling to find direction today.
The OTC markets are slightly down today following the general mood of uncertainty. Thus, the OTCM ADR index has fallen 0.10% to 1,521.23 points since the start of the trading session and there is a tendency for closing the gap at the opening bell.
Despite the overall uncertainty on the OTC markets there are a couple of heavily traded penny stocks which are going up today and may present a good opportunity for speculation.
Globalstar, Inc. (GSAT) – The most heavily traded penny stock today is heading down, as it has been showing some technical signs of exhaustion in the last couple of days. The company has already reached a market cap of $570 million which is not a common sight on the penny stock market.
Additionally, GSAT has just retested the recent 52-week high without being able to push through the resistance at $1.50. If the stock continues to move down, it is likely that it may form a double top pattern which is considered bearish by technical traders.
The stock has not received any fundamental support for more than a month now which is additionally diluting the demand for the stock. GSAT has not issued a press release since mid-September when it announced the participation of the company in Imperial Capital’s 2013 Global Opportunities Conference.
Thanks to this public presentation the interest towards the company’s stock increased, so that GSAT managed to surge from $1.10 to $1.50 per share without the support of any additional news releases.
Yet, in the last couple of days the stock has been meeting a strong resistance at $1.50 and this week market speculators are witnessing a correction phase in the stock’s performance. The correction is in full force today, as GSAT is currently trading 1% lower at $1.39 per share on a lower than average volume of 1.5 million. The trade value generated by GSAT since the start of the trading session has already exceeded $2 million.
Liquidmetal Technologies, Inc. (LQMT) – LQMT is enjoying an increased buying pressure today without any official reason for it. The stock is climbing despite the uncertainty that is prevailing the OTC markets today and despite the fact that there have been no corporate updates or filings since last Wednesday.
Currently shares of LQMT stock are trading 11% higher at $0.1545 per share on a lower than average volume of 6.2 million. At the beginning of the trading session the stock also spiked up to an intraday high at $0.1769 per share.
With this move the stock is trying to return back above the 50-MA but at the moment it is positioned exactly at the moving average and the next stock movements will show whether LQMT will start a new trend or continue its consolidation after the big up-move in July.
On Wednesday last week LQMT announced the delivery of its customized induction melt system, developed to adapt standard plastic injection molding machines to manufacture Liquidmetal components. This news boosted the stock as its value rose 19% to $0.1491 per share during the day on a higher than average volume.
Biozone Pharmaceuticals, Inc. (BZNE) – BZNE continues its speculative streak of trading sessions. Today the stock has surprised market speculators with a sharp upward spike which happened out of the blue, like all the recent performance of the stock.
Without any new press releases or corporate filings at hand the stock is moving sharply up today, to the extent that BZNE has recovered a big chunk of its lost value when it crashed down at the beginning of October.
All of these speculative movements have been happening without any material stimuli. It looks like BZNE stock movements have been caused mostly by a couple of insider transactions which have been officially reported in the last couple of weeks.
Currently shares of BZNE stock are trading 29% higher at $0.71 per share on a higher than average volume of 2 million. So far traders have exchanged a dollar volume of $1.3 million in a total of 570 transactions with BZNE stock.