Penny stock investors are finding themselves looking closer at Lantronix, Inc. (NASDAQ:LTRX)’s shares due to the fact that the stock’s price shifted -0.51%, reaching a price level of $1.95 after the conclusion of the recent trading day.
Lantronix, Inc.’s performance this year to date is 14.71%. The stock has performed 3.17% over the last seven days, -6.25% over the last thirty, and -15.22% over the last three months. Over the last six months, Lantronix, Inc.’s stock has been -32.99% and 41.30% for the year.
Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward. Analysts use common formulas and ratios to accomplish this.
Lantronix, Inc. (NASDAQ:LTRX)’s RSI (Relative Strength Index) is 41.42. RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.
The stock stands -10.07% away from its 50-day simple moving average and also -17.37% away from the 200-day average. Recently, the commodity stands -52.36% away from the 52-week high and 46.62% from the 52-week low. The RSI (Relative Strength Index), an indicator that shows price strength by comparing upward and downward close-to-close movements is 41.42.
It is easy to get caught up in the hype of penny stock email newsletters. Though the newsletters are a helpful resource to get ideas, prudent investors still have to do their own due diligence. Some penny stock newsletters have a disclaimer at the bottom that reads something like “We are not advisors, we’ve received compensation and we may own shares.” Further research must be done to find out if a company actually has operations or is simply someone’s home office. Often, when a promotional campaign has been created, there are larger shareholders selling shares they might have had for years, waiting for a chance to recoup their investments.
This doesn’t mean that so-called “fake” companies aren’t good for short-term trading, though. If you are in the market with disposable money in order to simply make a quick trade, what a company does is less important than making a win on a trade.
When delving into penny stock trading, you must decide whether the risk is worth the reward. Penny stocks can be extremely attractive. Hollywood often makes trading or selling stocks look easy and fun, while millions of dollars are made.
It’s important to know that there is significant risk involved when investing in penny stock trading. Risks can range from something as simple as market volatility to something much more serious, such as completely fake shell companies created for the sole purpose of the “pump and dump”, where brokers promote the stock until prices rise, then dump the stock, leaving poorly informed investors to take the loss.
Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts. Examples of analysis performed within this article are only examples. They should not be utilized to make stock portfolio or financial decisions as they are based only on limited and open source information. Assumptions made within the analysis are not reflective of the position of any analysts or financial professionals.