Ran a scan on the 687 stocks priced $0.10 to $1.99 that trade w/ avg vol > 50k. Some of these might be worth making a short-term bet bet on on a purely technical basis, though typically not on a fundamentalist one.
E.g., though HYMC --charted below-- has a clean balance sheet, and Simply Wall Street gives it 6 green checks for ‘Financial Health’, they also note “Currently unprofitable and not forecast to become profitable over the next three years”, and they give it 5 red checks for “Valuation”. So, do your Due Diligence.
FHS, FLGC, SPRO, BYFC, HYMC, DOGZ, DOMA, DSS, ALRN, EAST, WAVD, VVPR, VATE, MFH, BOXL, NCNA, VS, HCDI, DRRX, EAR, AGLE, LLL.
Here’s a typical chart with a 3rd panel that compares the stock to RSP (aka, a proxy for the broad market).
Ran fundamentals on that list of penny stocks. Two --FLGC and DRRX-- have clean balance sheets AND very high growth forecasts, or exactly the same profile as the stocks that get promoted in the Stock Adviser newsletter, with this difference. By the time SA gets around to recommending them, the stocks have already made their move and are better shorts, not because they have suddenly become “bad stocks”, but because they have become “over-bought”. That’s just how markets work. Prices go up, and prices go down. Stocks get over-bought, and they get over-sold, just as Ben Graham describes in his intro to value investing, The Intelligent Investor. So the key is ‘Good Timing’, which is why technical analysis matters.