Few things get me as excited as penny stocks do.
Why?
Because the volatility always keeps me on my toes!
Now, that volatility cuts both ways… but if there’s a coming catalyst event that holds the potential for a positive bump on a stock, I’m paying attention.
A big headline could move a $2 stock a lot more than it would move a $200 stock – usually.
I came across a headline like this recently, and it moved me to take a small position in a little-known electric car company.
With a big contract announcement looming, I’m hoping the stock price is going to move up as this company positions itself in the “fast lane” as it chases down TSLA.
The company is Mullen Automotive (MULN).
And to be honest, there are actually two catalysts that could have a huge impact on the stock price…
- They’ve promoted a former TSLA executive to a significant C-suite appointment, and…
- The CEO says they are about to announce a huge contract order from a Fortune 500 company.
On these bits of news, I jumped into MULN at $3.06.
I have a small position in MULN at $3.06 looking for middle $3’s to exit. Ultimately I think it could go to $4, especially with the recent insider buying and outstanding ‘big contract’ catalyst looming, per the CEO.
My goal is to get out somewhere in the mid-$3s.
However, I think with the strength of insider buying on top of these catalysts, my opinion is that it could go to $4.
This is just one trade… I build a daily watchlist of 5-10 penny stocks just like this one – along with details on why I like the trade and what I’m looking for – and send it to every member of JasonBondPicks.
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