Why Are These Penny Stocks Gaining Momentum In Q4?
As December begins, penny stocks have continued to show solid forward momentum. While this month was exciting for penny stocks, there are several factors for the near future that could keep this momentum alive. For one, as President-elect, Joe Biden has several implications for the next few months of investing. With his potential election comes the possibilities for several markets to increase in size. This includes marijuana penny stocks, renewable energy penny stocks, EV penny stocks, and more.
Second, as vaccine doses begin to be produced in greater numbers, we might soon see the Covid pandemic come to an end. This could mean the restarting of many industries including travel, fossil fuels, and more. By definition, penny stock simply means any security that is trading under the $5 mark. This leaves a great deal of room for investors to discover unknown penny stocks that could be ripe for expansion.
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Although not all penny stocks are ones to watch, with careful research, investors can begin to find the ones that are. This research involves looking at balance sheets, press releases, and more. If it’s out there, it’s worth looking at. With all of this information in hand, investors can feel confident in finding the right penny stocks to watch for them. With that in mind, here are five stocks to watch that are under $5. Will they be the best penny stocks to buy right now? I’ll leave that up to you
Penny Stocks to Buy [or Avoid]
- Acasti Pharma Inc. (ACST Stock Report)
- Zomedica Corp. (ZOM Stock Report)
- Evogene Ltd. (EVGN Stock Report)
- Titan Medical Inc. (TMDI Stock Report)
- Hexo Corp. (HEXO Stock Report)
Penny Stocks to Buy [or Avoid] #1: Acasti Pharma Inc.
Acasti Pharma Inc. is a biopharmaceutical company based in Canada. The company states that it works on the research, development, and commercialization of several pharmaceutical drugs. In its pipeline are products such as CaPre, a therapeutic that is currently in Phase 3 trials to treat hypertriglyceridemia.
Recently, the company provided an update on its business for the second fiscal quarter of 2021 for the period ending on September 30th, 2020. In the results, the company discussed its Trilogy 1 & 2 substances which are currently in Phase 3 clinical trials. In addition, the company announced that it had hired Oppenheimer & Co to work as its financial advisor. The goal with this is to see what possibilities there are for a potential merger or strategic acquisition in the long term.
Jan D’ Alvise, CEO of Acasti stated that “we remain committed to maximizing value for shareholders, and as previously disclosed, we are actively exploring and evaluating a range of strategic options. We have also taken a number of proactive steps to preserve our cash by reducing staff, discontinuing all commercializing activities and putting R&D activities on hold.”
Although the company has been burning through cash at a significant rate, investors believe that the steps it is taking could help to mitigate this. All things considered, ACST stock remains a penny stock to watch. Including Tuesday’s premarket high, ACST has climbed 46% since the start of Q4.
Penny Stocks to Buy [or Avoid] #2: Zomedica Corp.
Zomedica Corp. is a U.S. based provider of veterinary health products. The company states that it is working on producing products that serve the unmet needs of the veterinary industry. This includes diagnostic tools, medical decides and more. While the company is working to improve the lives of domestic animals, it also states that its products help to improve productivity in the workplace and revenue growth.
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Recently, the company announced its Q3 2020 financial results for the period ending on September 30th. In the results, the company announced revenue of $5 million for the quarter. This is compared to a loss of $2.8 million for the same quarter of the previous year.
During the quarter, the company also doubled its expenses for research and development from Q3 2019. But, it also managed to lower its administrative expenses from $1.4 to $1.3 million. At the end of the quarter, Zomedica reported having as much as $52 million in cash on hand. This is a staggering figure when compared to a cash on hand amount of around $510,000 for the third quarter of 2019.
Around $28 million of this amount came from financing activities during the quarter. All of these numbers show us that Zomedica Corp. is seeing steady growth over the 2019 year. In addition to increasing its cash balance, the company also was able to push revenue much higher. Since the start of Q4 and including Tuesday’s premarket highs of $0.178, ZOM stock has climbed 78% so far.
Penny Stocks to Buy [or Avoid] #3: Evogene Ltd.
Evogene Ltd. is an international biotechnology company working on computational predictive biology as its main platform. The company utilizes this platform to produce therapeutics, herbicides, pesticides, and medicinal cannabis. Recently, the company announced its Q3 2020 financial results. In the results, the company discussed the four main sectors of its business; Biomica, Lavie Bio, Ag Plenus, and Canonic. Earlier in November, Evogene announced that it had completed a registered direct offering with around $12 million. With biotech companies, fundraising events like these are often necessary to continue research and development.
In addition to its financial results and this fundraising round, the company also announced that it’s subsidiary, Canonic, has received IMC-GAP approval from the Israel Medical Cannabis Agency to begin commercializing its high-tech cannabis farms. Having this approval will help to not only show the benefit of this technology, but also to further its own research and development.
The company states that it should be able to deliver its first round of medical cannabis seedlings from its farms by next year. The company also stated that it could begin sales by early 2022.
Penny Stocks to Buy [or Avoid] #4: Titan Medical Inc.
Titan Medical Inc. is another biotech company but it is quite different from Evogene. Titan is working on the production of medical devices that utilize robotic assistance to perform their duties. This includes the Enos system, which is being researched for its potential to complete single access surgery. In addition, the platform offers multi-articulating instruments and high definition viewing systems. Some investors believe that this technology could be a game changer for the medical world. While the company works mostly as a R&D business, it has licensed its technology to Medtronic Plc. But, it still holds global rights for the commercialization of the Enos System.
Recently, the company announced its Q3 results for the period ending on September 30th. In the results, the company announced having over $24 million in cash on hand. David McNally, CEO of the company stated that “Titan made significant progress during the third quarter of this year. We recommenced the development of our robotic single access surgical system, unveiled “Enos” as its new brand name, and updated out corporate identity.”
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With this quarter showing that Titan has several things in the works, it could continue to work towards being a leader in the medical devices sector. All things considered, it’s up to investors to choose whether or not it is a penny stock to watch. Additionally, TMDI stock has climbed 106% this quarter after reaching premarket highs of $1.55
Penny Stocks To Buy [or Avoid] #5: Hexo Corp.
Hexo Corp. has been on our lists of marijuana penny stocks to watch this quarter. Since the beginning of October, HEXO stock has climbed 119% so far. This clocked in after shares hit early highs of $1.45 on Tuesday. While the main focus is U.S. marijuana stocks right now, the broader sector trend remains bullish. What’s good for the goose is good for the gander I suppose.
Aside from participating in industry conferences, Hexo has revamped some of its branding. This week the company announced that it repositioned its UP Cannabis brand with a differentiator of 20% THC or higher in all dried flower products each time. The company launched a new campaignto support the UP brand relaunch in the market, as well.
“Canadian cannabis consumers have been clear with their demands since legalization and, until now, the entire industry has struggled to give consumers what they are looking for. We know that they want consistently superb quality and high THC at a competitive price,” said HEXO CEO and co-founder Sebastien St-Louis.
As far as U.S. business is concerned, keep in mind the deal between Hexo and Molson Coors (TAP Stock Report). The two inked a deal for a partnership and joint venture. Earlier this year, they expanded their partnership in Colorado. Called Truss CBD, Molson holds a majority stake with the focus initially on CBD beverages.
