3 Penny Stocks To Watch Next Week
While the end of 2020 can’t come soon enough, there’s still time left to find penny stocks to watch. Throughout 2020, several industries have seen massive growth due to the pandemic. With that, these industries have also promoted sizable growth in that time frame. When it comes to finding penny stocks to buy, investors should always think about current events that are going on in the world.
Right now, we can use the COVID pandemic, to try and find areas of the stock market that may not have been capitalized upon yet. First, we have biotech and biopharmaceutical companies. These have seen a lot of bullish momentum in the past few months due to various vaccine developments. While not all biotech companies are working on a COVID treatment or vaccine, they all tend to be correlated with one another.
Second, we have digital learning and online communications stocks. The importance of these companies has become extremely clear during the pandemic. And because there is no end date to COVID, interest in these companies continues to increase. Lastly, we have energy stocks. This may seem counterintuitive at first given that less energy is being consumed right now. But, the play here is to try and find undervalued energy penny stocks, before they potentially move back to pre-COVID levels. With all of this in mind, we can begin to search for stocks that may have hidden value. After researching them, will any of these be on your list of penny stocks to buy or should you avoid them entirely?
- Corbus Pharmaceutical Holdings Inc. (CRBP Stock Report)
- SG Blocks Inc. (SGBX Stock Report)
- Cleveland BioLabs Inc. (CBLI Stock Report)
Penny Stocks to Buy [or avoid]: SG Blocks Inc.
SG Blocks Inc. is one of the bigger gainers of the day on December 18th. During the trading day, shares of SGBX stock shot up by around 18% to its EOD price of $4.55 per share. For some context, the company has been working to use its state of the art lab facilities in order to offer COVID testing.
SG Blocks produces “technologically advanced” cargo shipping containers. These containers offer smart tech services as well as green construction. During the pandemic, however, the company has found that its services are extremely necessary for things like COVID testing, for example. SG Blocks is working on producing modular and portable shipping containers that can serve as testing and vaccine distribution sites. The company also recently announced a partnership with Memorial Healthcare in Wayne County.
The company’s also inked a deal getting its foot in the door of the electric vehicle space. Earlier this quarter SG and Blink Charging Co. (BLNK Stock Report), an owner/operator of EV charging equipment and services entered into an exclusive Master Development and Production Agreement. Blink’s EV charging solutions will be deployed along with SG Blocks’ container-based modular building structures. Essentially, the two will create EV charging containers providing charging solutions for EV drivers. Considering how hot electric vehicle stocks have been, SGBX could also be one to watch right now.
Penny Stocks to Buy [or avoid]: Cleveland BioLabs Inc.
Cleveland BioLabs Inc. is another one of the biotech penny stocks to watch next week. The company is currently working on immune-stimulating treatments. Its proprietary platform utilizes immune receptor activators in the body to help reduce the side effects of radiation-related ailments and vaccines.
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The company is currently working on its product known as entolimod, which is an immune-stimulating substance that can provide a counter to the adverse effects of radiation oncology. On December 18th, shares of CBLI stock shot up by around 31% to $2.84 by EOD. Since September, shares of CBLI stock are up by over 70%.
A few months ago, the company announced a merger with Cytocom inc. The deal, which will be done through an all-stock transaction, should help to produce novel drugs. Cleveland states that the merger will work to focus on the development and commercialization of immunotherapies. These therapies are in use for the treatment of cancer and infectious diseases. Partnerships like these are important for the biotech industry as they allow the development of new and groundbreaking platforms. Considering that the company’s annual meeting took place on Friday, it will be interesting to see how things unfold at the beginning of next week.
Penny Stocks to Buy [HC Wainwright]: Corbus Pharmaceutical Holdings Inc.
Corbus Pharmaceutical Holdings Inc. is a clinical-stage pharmaceutical company working on the development and commercialization of novel therapeutics. The company has a large focus on chronic, inflammatory, and fibrotic diseases. Corbus states that its lead product, lenabasum, is used in the treatment of systemic sclerosis. The drug utilizes the endocannabinoid system in order to facilitate the delivery of the substance. Currently, the company states that the drug is in its Phase III clinical trials. This means that it is nearing the end of the process, and moving toward the final stages. Recently, the company announced the results for its ROCE or return on capital employed.
The company states that in its most recent third quarter, it brought in around $1.23 million in sales. With a loss of around $38 million, the company posted an ROCE of -1.16%. This is not an outstanding number, but it does make sense considering that the majority of its drugs are not yet approved for sale. As we’ve covered in many other articles, a large portion of biotech companies will usually post large losses until they have a steady revenue stream from approved drugs.
This seems to be the current case with CRBP. The obvious goal is to move beyond its Phase 3 study and gain approval. In light of this, analysts like HC Wainwright maintain a Buy rating on the stock. The firm also carries a price target 100% higher than Friday’s close; $3.
