When it comes to penny stocks, strong disclosures are an absolute must: this arena is only for extreme speculation. Given the unpredictable nature of ultra-cheap securities, most financial advisors won’t even mention the concept. Chances are, whatever you put into this market subcategory, you will end up losing.
That doesn’t sound inviting because it’s not. However, penny stocks continue to attract investors, even after films such as “The Wolf of Wall Street” detailed at length all the ways this class of securities can betray the hopes of their proponents.
Why do people continue to be in this treacherous arena? Simple – if the stars align just right, there’s a lot of money to be made.
So, if you already made up your mind to speculate anyway, you might as well do so the smart way. That’s where Barchart’s Hot Penny Stocks On The Move can help cut through the clutter and identify potentially viable prospects.
Here’s how this works: the Hot Penny Stocks list focuses on the most compelling enterprises whose shares have made the biggest moves over the last five days. Further, this performance is sorted through multiple criteria involving percentage change and average volume metrics. In this manner, the list identifies penny stocks that are “showing a consistent pattern in trading volume and price activity over the last week.”
One of the top names that Barchart identified is a company with which I’m very familiar: Vivos Inc (RDGL).
Strong Technical Momentum Puts the Spotlight on RDGL Stock
Based in Richland, Washington, Vivos is a late-stage development firm. According to its corporate profile, the medical device specialist is “engaged primarily in the development of brachytherapy devices for therapeutic applications.”
Before diving into the technical argument, I’d like to disclose that I own a position in RDGL stock. Further, I have discussed this idea both online and off, encouraging as many people as would listen to consider acquiring shares. Therefore, it is important to recognize this bias and that you must conduct your own research.
With that disclosure out of the way, one of the reasons why Barchart’s Hot Penny Stocks screener identified RDGL stock was that it broke out of a sideways consolidation at around the 7-cent level in March, eventually settling in a range at around 10 cents last month.
Since April 24, RDGL stock has witnessed a robust series of upside moves, triggering the aforementioned screener. At the moment, the Barchart Technical Opinion indicator rates Vivos as a “100% Buy” and ranks the company as a Top 1% asset regarding short-term signal directions.
Not only that, RDGL has been consistent, being rated 100% on Thursday, last week and last month. And while circumstances can change day to day, as of this writing, RDGL stock distinguishes itself by commanding maximum “Current Strength” and strongest “Current Direction.”
Perusing Vivos’ point-and-figure chart, the near-term upside target lands at around 38 cents to 50 cents. To get there, RDGL stock must cross several resistance barriers. Per Barchart’s Trader’s Cheat Sheet, they are as follows:
- Pivot Point 3rd Level Resistance: 0.2787
- Pivot Point 2nd Level Resistance: 0.2603
- Pivot Point 1st Resistance Point: 0.2377
- Price 3 Standard Deviations Resistance: 0.2254
- Price 2 Standard Deviations Resistance: 0.2235
- Price 1 Standard Deviation Resistance: 0.2210
The good news is that RDGL stock has already demonstrated during Thursday’s price action that it can hit 24 cents with relative ease. So, a move toward 38 cents appears realistic given the momentum.
Spotlight on the Science
Financially, Vivos doesn’t currently have much to write home about. For example, in the year ended December 2023, the company posted sales of $20,000. Net loss came out to $2.89 million, which is not an unexpected print based on the speculative nature of RDGL stock. On the positive end, the company carries a strong balance sheet and features no debt.
However, financial prowess (or lack thereof) isn’t currently the focus. Rather, it’s the science. Vivos specializes in brachytherapy, which is a procedure that involves placing radioactive material inside the body, thus enabling the delivery of radiation directly to the treatment area.
Fundamentally, one of the core catalysts behind the rise of RDGL stock centers on the total addressable market. Per Grand View Research, the global brachytherapy market reached a valuation of $907.76 million in 2022. Experts project that the segment may expand at a compound annual growth rate (CAGR) of 7.1% from 2023 to 2030, culminating in an industry value of $1.62 billion.
The other key to the sharp rise in RDGL stock is Vivos’ unique RadioGel methodology. Unlike traditional brachytherapy delivery vehicles, Vivos integrates its radioactive therapeutic material in a hydrogel vehicle. This approach enables the therapeutic to spread evenly throughout the entire tumor without spreading to and impugning upon surrounding healthy tissue.
Speculation Builds
Now, the catalyst that lit the match behind the skyrocketing of RDGL stock is Vivos’ efforts in attempting to secure an investigational device exemption (IDE). Per the latest update, Vivos is scheduled to submit the aforementioned RadioGel therapeutic as an Early Feasibility IDE application in the second quarter.
That leaves a little less than two months. Should approval become official, speculators are assuming that RDGL stock will immediately gain more credibility and attention, thus driving up the share price even higher. What’s more, RDGL is currently traded over the counter. Should it be promoted to an exchange such as the Nasdaq, that would add even more visibility to the enterprise.
Of course, we’re still talking about a penny stock and nothing in life is guaranteed. Nevertheless, if you’re going to swing for a grand slam home run no matter what, you might as well wait for your pitch. With the combination of compelling fundamentals and Barchart’s technical spotlight, RDGL stock at the very least deserves to be on your radar.
On the date of publication, Josh Enomoto had a position in: RDGL . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
