Trending Penny Stocks To Watch For The End Of The Week
As we inch further into 2021, investors continue to focus on penny stocks. But, if this year has shown us anything, it’s that volatility and speculation are both very high. During this week, several factors have been impacting the trajectory of the stock market.
In the U.S., the implications of a Biden presidency and the current political turmoil, are big factors to consider. Interestingly enough, this week has been relatively calm for many blue-chip stocks. But, as always, the action amongst cheaper stocks is much higher. As we turn the corner in January, investors seem to be focused on a few industries in particular.
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The first of those is biotechnology. This makes a lot of sense given the pandemic and the resulting capital infusion into the industry itself. But, we are also seeing biotech penny stocks shoot up in value, that have little to no relationship with Covid-19. Aside from this, the overall theme in the stock market seems to be relatively bullish. ETFs like the Russell 2000 Small-Cap (IWM) have continued to pop, hitting new highs consistently.
It appears as though investors are very bullish about the hopeful end to the pandemic, and the economic recovery that could ensue. Now, it will definitely take some time before the effects of the pandemic are done. With that in mind, here are three more penny stocks that are in focus right now.
Penny Stocks To Watch For January 2021
- Obseva SA (NASDAQ: OBSV)
- DBV Technologies ADR (NASDAQ: DBVT)
- Phunware Inc. (NASDAQ: PHUN)
Obseva SA
Obseva SA one of the biotech companies that saw its shares shoot up big on January 14th. During trading and into after-hours, shares of OBSV stock shot up by almost 50%. While no news came out to explain this gain as is the case occasionally, the company did release an announcement earlier in the week. On January 10th, the company provided an update on the clinical program surrounding its substance, Yselty (Linzagolix). It stated that the EMA (European Medicines Agency), had validated it for use in treating uterine fibroids. The company also said that it plans to submit the results of its Phase 3 study in the U.S. by the fourth quarter of this year.
Obseva has several late-stage studies that are currently underway as it appears. Because of this, the chances of seeing the widespread distribution of its drug could be in focus. Now, this does not mean that commercialization will happen anytime in the very near future. But rather, Obseva SA could be heading down a favorable path right now. The Chief Medical Officer of Obseva, Elizabeth Garner M.D., stated that “we are very pleased that the EMA has validated our application for Yselty, a potential best in class treatment for women suffering from heavy menstrual bleeding associated with uterine fibroids.”
DBV Technologies ADR
The next penny stock on this list, DBVT, is yet another big daily gainer on January 14th. During the normal session, shares of DBVT stock shot up by around 34%, ending the day at $3.74 per share. DBV Technologies operates as a France-based biopharmaceutical firm. The company’s focus is on the research and development of treatments that are used as immunotherapies. This includes its flagship product known as Viaskin Peanut, a therapy that recently completed a Phase III trial to treat peanut allergies in children. The company is concurrently working on the production of Viaskin Milk, which is in a Phase I/II trial to treat certain dairy allergies.
While some big gains go without any major news, DBVT’s 34% increase came as the company announced a key update. On January 14th, it stated that it has received a response from the FDA regarding Viaskin Peanut for children. With this response, the company should have enough feedback to be able to move toward regulatory approval.
CEO Daniel Tasse, states that “we are very encouraged by the positive feedback received from the FDA, and we appreciate the clarity provided. We intend to advance a remediation plan for VIaskin Peanut and work closely with FDA to review protocols and re-file our BLA as soon as possible.”
Phunware Inc.
If you’re looking for top tech penny stocks to watch at the end of the week, Phunware might be on the Friday morning watch list. One of the main reasons is for the simple fact that it saw a surge in momentum on Thursday after the close. The regular session saw PHUN stock close at $1.32. However, post-market momentum took the stock to highs of $1.49. There weren’t any headlines to pair with the move. However, it was a noticeable move that took the stock to an interesting technical level.
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As you’ll see on the chart, PHUN has run into resistance around the $1.50 level. We can see this as the case in late December as well as last week. Now, just one week later, PHUN has once again tested this level.
Some of the excitement this month stemmed from last week’s update. Phunware doubled its location-based services software coverage at Baptist Health in South Florida. Its Multiscreen-as-a-Service (MaaS) platform and patented MaaS Location Based Services (LBS) will be used at Baptist Health South Florida through its channel partnership with Presidio, an IT solutions provider. While this catalyst was an important step in Phunwares expansionary plan for 2021, Friday could be a key date to note. The company is set to present at the Needham Growth Conference.
Considering these latest developments, it will be interesting to see how the investing community reacts to the material presented. If PHUN is on your list of penny stocks to watch, 10 AM EST, in particular, is when the presentation begins.
Finding Top Penny Stocks In January 2021
Obviously, we’re talking about penny stocks here. What may be good to watch “today” might not be heading higher later on. However, one thing I will say is that there’ve been plenty of volatile penny stocks that experience short term volatility but in the long-term end up becoming some of the top stocks to watch.
For instance, look at companies like Gevo Inc. (NASDAQ: GEVO) or Bionano Genomics (NASDAQ: BNGO). These were both stocks under $1 not that long ago. But over the course of several weeks, they’ve become some of the most active stocks to watch. Now, if you look at the day-to-day, every day wasn’t an “up” day. There were plenty of days of pullbacks. Overall though, the longer-term trend is clear.
So keep this in mind when putting your list of penny stocks together. Nothing goes up in a straight line forever. There are periods of profit-taking and, if a stock’s trend is truly strong, the intermittent pullbacks won’t matter in the longer term. Will that be the case for some of the stocks on this list? Leave a comment below on your thoughts.
