Trans-Lux Corp. (AMEX:TLX) and Enova Systems Inc. (AMEX:ENA): Penny Stocks Rally on the Downsing
Performance counts double on bad market days. It’s been a downright lousy week for stocks. In the past five trading days, the Dow, S&P and NASDAQ have dropped more than 4%.
But even on the market’s bad days (or bad weeks, in this case), some stocks buck the trend and hold their ground. Some even take off. That’s what we want to concentrate on today. Stocks that perform well while the market is struggling are trying to tell us something. They’re the strongest of the bunch – buyers are confident that the stock will outperform, even when the rest of the market shows weakness.
Here are two strong penny performers that caught my eye on Friday, when the Dow and S&P plunged over 2%:
- Trans-Lux Corp. (AMEX:TLX): Trans-Lux gapped up on heavy volume. The stock continued to rise in the afternoon, posting gains of about 37% for the day. We’re fairly interested in this penny play – especially since no news events or earnings announcements are inflating the share price. From The Wall Street Journal: “It wasn’t immediately clear what was driving the stock higher. The company, which isn’t covered by any Wall Street analysts, said in a release it doesn’t comment on unusual market activity, according to the New York Stock Exchange’
- Enova Systems Inc. (AMEX:ENA): This watch list stock was one of the best performers on the Amex Friday, rising about 10%. We love the fact that Enova is in the power management business for hybrid vehicles. It’s a cutting-edge industry that gets plenty of attention (and hype). That’s a perfect scenario for a small company like Enova to attract new investors. Pay close attention to this one – we might want to get on board soon…