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Top Penny Stocks to Watch September 2019

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Written by Timothy Sykes
Updated 1/12/2023 16 min read

Wow. It’s already time for my top penny stocks to watch September 2019 edition.

Before I get to this month’s watchlist, I want to cover a very important idea. I see a lot of people trying to force trades when there are no great setups…

You don’t have to trade every day. Learn to be patient and wait for the big percent gainers.

When you force trades, it’s too easy to lose confidence, waste time, and lose money. So when there aren’t any good setups, use the time to study the past. If you trust me on this, you can save yourself a lot of frustration.

Also, when the two largest world economies are fighting each other in a trade war, you never know what’s gonna happen. One tweet could change everything. More on that in the “Broader Market” section below.

How to Create a Penny Stock Watchlist

Write this down on a sticky note and put it next to your monitor: focus on big percent gainers. That’s where I always start. Use StocksToTrade. I use it every day and recommend that everyone use it, including you. The built-in scans are designed to find exactly the kind of stocks I like to trade.

After I find the big percent gainers, I check trading volume, look for a news catalyst, and always check a longer-term chart. At least a one-year chart, but depending on the stock, I might look further back.

Tim Sykes
© 2018 Millionaire Media, LLC

How to Use My Top Penny Stocks to Watch Lists

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Below are some key points about using these lists. My goal is for you to become self-sufficient. The sooner you learn to create your own watchlist, the better. Even if you’re not trading yet.

  • Use my list as a guide and NOT as a recommendation to trade.
  • Develop the skills to become a self-sufficient trader. It takes time. The only shortcut I can give you is … study your ass off.
  • NEVER follow my alerts to enter or exit a trade. Use them only to learn my thought process.
  • Penny stocks can, and sometimes do, move fast. While this creates opportunity, it also creates risk.
  • Learn the patterns I teach but always be willing to adapt to changing markets.
  • Join the Trading Challenge for my daily watchlist.
  • Do your own research. Try to understand why I’ve put a stock on this watchlist.

[Disclosure: Some of the stocks mentioned below have been traded or otherwise discussed by Tim Sykes as part of his daily watchlist provided to Trading Challenge, TimAlerts, Pennystocking Silver, and Millionaire Masters Program subscribers. Tim Sykes may or may not hold open positions on these stocks at any given time. This list is not a recommendation to buy or sell any stock. Do your due diligence. Full earnings claim disclosure here.]

The Broader Market

It kills me that we’re in this market where, frankly, you just have to be so careful. With one tweet from our president, one article, or one new piece of news regarding the U.S.-China trade war, the overall market can go up or down 1%, 2%, 3%, and even 4%.

Inverted Yield Curve a Sign of Recession? 

On August 14, the yield on 10-year U.S. Treasuries fell below the two-year yield. When long-term yields fall below short-term yields, it’s called an inverted yield curve. It’s considered a sign of potential recession in the near future. An inverted yield curve preceded each of the last seven U.S. recessions.

Federal Reserve Economic Symposium 2019

All eyes were on the annual Federal Reserve meeting in Jackson Hole, Wyoming, August 22–24. On August 23, Federal Reserve chair Jerome Powell made his first public comments since the Fed’s rate cut on July 31.

Powell’s comments on August 23 signaled the Fed’s intention to provide stimulus if necessary. Any action will be based on their existing framework — using unemployment and real interest as a guide for monetary policy.

In his speech, Powell said, “Fitting trade policy uncertainty into this framework is a new challenge. Setting trade policy is the business of Congress and the Administration, not the Fed. Our assignment is to use monetary policy to foster our statutory goals.” 

Trade War Update

On August 23, China announced plans to impose tariffs on an additional $75 billion worth of U.S. products in retaliation for U.S. tariffs on $300 billion of Chinese goods.

The new round of Chinese tariffs goes into effect in two phases matching the dates of new U.S. tariffs. The first phase of new tariffs went into effect on September 1. The second phase goes into effect on September 15. Also, on December 15, China will reinstate 25% tariffs on U.S. automobiles.

Stock Futures
© 2018 Millionaire Media, LLC

The Twitter Uncertainty Factor

President Trump then went on a tweet tirade with remarks about the Fed chair Powell and Chairman Xi Jinping of China.

Things really heated up after a multi-tweet rant about the trade war. The gist of the tweets? ‘We’re the U.S. We don’t need China, and we’d be better off without them.’

That’s not exactly true from an economic standpoint … He also ordered American companies to start looking for an alternative to China.

As you can imagine, the markets reacted negatively. Check out the chart below. It’s not difficult to spot where President Trump’s tweets happened…

SPY: SPDR S&P 500 ETF Trust August 23 — courtesy of StocksToTrade.com
SPY: SPDR S&P 500 ETF Trust August 23 — courtesy of StocksToTrade.com

The problem with the current situation — world leaders using Twitter and the trade war with China — is it can cause a lot of risk. There are different mindsets … Some say it’s good, others say it’s bad. But nobody can debate that it’s very dangerous.

I think this is just one of those times when you need to be especially careful in the markets. Sometimes you just have to say, “You know what? I don’t need any trades right now. I don’t need the risk, frustration, or guessing games … It’s just not worth it.

Remember, sometimes the best trade is no trade.

Now for some penny stocks…

Recap: August 2019 Top Penny Stocks to Watch

Every month I give a brief recap of my top penny stocks to watch from the previous month. This is what happened with stocks on the August watch list

  • Discovery Gold Corp (OTCPK: DCGD) ran 40.6% between August 1 and August 8 when it reached a high of 92 cents a share. The stock then dropped as low as 34 cents a share before grinding back up. At the time of writing, it’s trading in the mid-80 cent range. DCGD is still on my watchlist, but I need to see big volume, good news, and/or better price action before I consider trading it.
  • Northern Dynasty Minerals Ltd. (AMEX: NAK) took advantage of its big spike on EPA news by completing a shelf offering. The company raised roughly $11.5 million in the deal with a plan to use the cash for operating expenses. Shares dropped close to the offering price of 75 cents per share, and it continues to trade in the mid-60 cent range.
  • Research Frontiers Incorporated (NASDAQ: REFR) continued its upward trend on news of a big contract with Brazilian armored car outfitter SER Company. The stock hit a 52-week high of $5.38 per share on August 19. At the end of August it was consolidating in the mid $4s.
  • Veritas Farms, Inc. (OTCQB: VFRM) is trading in the low $1.30s after reaching a high of $2.29 on August 5. Positive earnings reported on August 15 kept the stock trading sideways most of the month. It hit a month low of $1.05 on August 27 before bouncing back to the $1.30s. It looks like it’s in a consolidation phase.
  • Valuesetters, Inc. (OTCPK: VSTR) managed to hold most of its gains from the early August spike. As I said in last month’s update, this one is ultra-low price. It would take massive volume and news for a potential trade.

Here are a few of the stocks I’m watching now…

Top Penny Stocks to Watch September 2019 

I find it incredible that so many people hate penny stocks. Even with all the uncertainty surrounding the trade war, our often-hated niche can produce some of the best plays in the entire market for traders like me.

Ironically, on the same day as Chinese tariff announcements and President Trump’s Twitter rant, one of the best stocks in the entire market was a Chinese stock…

Fuwei Films (Holdings) Co. (NASDAQ: FFHL)

Fuwei Films Co. is a Chinese manufacturer and distributor of BoPET film. The company’s products are used in a variety of industries including electrical, imaging, and consumer-based packaging.

FFHL spiked 194% in one day on positive second-quarter earnings.

Take a look at the one-year FFHL chart:

FFHL 1-year chart — courtesy of StocksToTrade.com
FFHL 1-year chart — courtesy of StocksToTrade.com

FFHL is a low float stock. On August 23 — the day of its initial spike — the float rotated over seven times. Recently, some earnings winners are multi-day runners, so I’m watching this as a potential buy. If it gets overextended, I won’t chase. But I will look for a potential dip buy into a big morning panic.

Arcadia Biosciences, Inc. (NASDAQ: RKDA)

Arcadia Biosciences, Inc., develops ‘health and nutrition ingredient traits’ for increased agricultural productivity. Some examples of the ag science they’re developing are water-use efficiency, drought tolerance, nitrogen-use efficiency, and so on.

RKDA spiked premarket on August 9 after its subsidiary Verdaca received USDA approval for a drought-tolerant soybean. Then, in a newbie-crushing short squeeze, the stock continued to run — reaching $8.85 after hours on August 13.

Just as it seemed the shorts finally got their way on August 14, Arcadia announced positive earnings and the stock not only held but hit a new multi-month high.

Take a look at the RKDA one-year chart:

RKDA 1-year chart — courtesy of StocksToTrade.com
RKDA 1-year chart — courtesy of StocksToTrade.com

On August 26, Arcadia spiked again on news of an exclusivity deal with Arista Cereal Technologies and Bay State Milling Company in key wheat markets, including the U.S.

Arcadia announced a management-succession plan and filed a new prospectus with the SEC on August 28.

RKDA appears to be consolidating in the mid to high $7s so my main focus is potential dip-buys, preferably into a big morning panic.

Workhorse Group Inc. (NASDAQ: WKHS)

Workhorse Group develops and manufactures high-spec electric vehicles for commercial use.

Back in May, WKHS spiked on a tweet from President Trump announcing ‘great news for Ohio’ as the company negotiated the purchase of GM’s Lordstown, Ohio plant. The deal, which at the time was only in the negotiation stages, was far from a sure thing.

The deal still isn’t final. GM spokesman Jim Cain says a search for financing won’t begin until the completion of due diligence. Also, it turns out Workhorse is set to be an investor in the new plant rather than the owner. They would then license technology to the new venture run by Workhorse’s founder and former CEO.

WKHS has seen several multi-day runs since May. The most recent came after an announcement to begin production of 1,100 NGEN electric step vans in the fourth quarter of 2019. Most of the production run is part of a deal recently inked with United Parcel Service (NYSE: UPS).

Here’s the one-year WKHS chart:

WKHS 1-year chart — courtesy of StocksToTrade.com
WKHS 1-year chart — courtesy of StocksToTrade.com

WKHS is only a potential buy for me on big volume and good news. But it’s worth watching because of the current market environment. Our president’s ‘America first’ sentiment and the move toward electric vehicles could keep WKHS on the radar for a while. Keep an eye out for tweets…

Vivus, Inc. (NASDAQ: VVUS)

Vivus, Inc., is a U.S.-based biopharmaceutical company that develops ‘next-generation therapies to address unmet medical needs in human health.’ The company has several commercial products on the market, including QsymiaⓇ — a weight-management drug used in conjunction with other therapies.

VVUS has a history of multi-day runs. Recently, the stock spiked on positive news from a pilot study combining QsymiaⓇ with gastric sleeve surgery.

Here’s the two-year VVUS chart:

VVUS 2-year chart — courtesy of StocksToTrade.com
VVUS 2-year chart — courtesy of StocksToTrade.com

I traded VVUS for a nice gain on August 20, the day of its recent spike. You can read more about that trade in this recent edition of the Millionaire Mentor Update. As you can see from the chart above, that was also the stock’s highest trading volume in over a year. So to trade VVUS again, I’d ideally like to see big volume and/or news.

Now, for the last of our top penny stocks to watch in September 2019…

Natural Shrimp Incorporated (OTCQB: SHMP)

Natural Shrimp is an indoor gourmet shrimp-farming company. In February, the stock went full supernova after this news touting eco-friendly methods.

SHMP was the hottest stock in the market for several days. I traded it three or four times  during the run, including my biggest dollar winner of 2019 on February 12. That morning panic dip buy was worth more than $4K to my account.*

[My results are not typical. I’ve studied and traded for years to develop exceptional skills. Trading is risky. Never risk more than you’re willing to lose.]

The supernova was a near 900% spike in seven trading days! Gotta love penny stocks…

This one-year SHMP chart shows the full picture:

SHMP 1-year chart — courtesy of StocksToTrade.com
SHMP 1-year chart — courtesy of StocksToTrade.com

Recently, SHMP spiked on news of an $11 million equity line of credit and release of a company video. While the stock’s been teasing big potential moves, it likely needs more volume and news to really spike. Watch it closely!

Check out the one-month SHMP chart:

SHMP 1-month chart — courtesy of StocksToTrade.com
SHMP 1-month chart — courtesy of StocksToTrade.com

That’s it for top penny stocks to watch in September 2019.

How to Use Top Penny Stocks to Watch September 2019 Update

Your goal is to become a self-sufficient trader. Use this list — and all my watchlists — as a tool for your education. Study the charts, research the reasons behind big price movements, and watch the stocks trade. Also, check out this post on creating watchlists.

Whatever you do, be safe over the coming weeks and months. It’s difficult to predict the markets at the best of times … But with the trade war playing out on social media and in the news, it’s nearly impossible. Trade with smaller position sizes and be even more focused on risk management.

Are you a trader? How does the current market affect your trading and watchlist criteria? New to trading? What have you learned in this post that you can use today? Comment below — I love to hear from all my readers!

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”