Q2 STOCKS TO BUY

CBD Deal Sparks Major Upside for This Penny Stock

SQBG stock is pacing for its best day in three years

Digital Content Manager
Feb 28, 2019 at 12:47 PM
facebook X logo linkedin


The shares of Sequential Brands Group Inc (NASDAQ:SQBG) are soaring today, after the apparel and lifestyle concern announced it would be partnering with Canopy Growth (CGC) to develop a line of CBD-based products. Martha Stewart, whose consumer brand is owned by Sequential, was named as an advisor in developing the new line for animals and humans. SQBG is now up 30% at $1.55 -- pacing for its biggest one-day jump since February 2016 -- and options traders are rolling the dice on more upside. 

The stock hit a seven-year low of $0.67 on Dec. 27. Since then, however, SQBG shares have more than doubled, and are set to end atop their 200-day moving average for the first time since August.

The stock's typically quiet options pits are seeing heavy activity today, with more than 1,100 calls on the tape. Most of the action has transpired at the March 2.50 call, where it appears traders are buying the options to open. By doing so, they expect SQBG shares to topple $2.50 by the close on Friday, March 15, when front-month options expire. 

Analysts have been pretty quiet on the penny stock, with the three who do follow SQBG all maintaining "hold" positions. However, the consensus 12-month price target of $1.25 is now a nearly 20% discount to current levels. A round of upgrades and price-target hikes could lure more buyers to the table. 

An unwinding of short interest could boost Sequential Brands, too. The 3 million shares sold short currently represent 8.5% of the stock's available float, and would take over 62 sessions to cover, at SQBG's average daily volume.

 

 

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter