Are These 3 Penny Stocks on Your January Watchlist?
With January getting off to an interesting start for penny stocks, there is a lot for investors to consider right now. As we’ve all seen, the largest impacting factor on the stock market is Covid and specifically, the Omicron variant. With cases in the U.S. hitting over 1 million per day, many believe that in the next month or so, we could see those numbers begin to drop.
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However, in the meantime, this is causing major volatility for both penny stocks and blue chips. While at first volatility may serve to incite fear, it can be used as an advantage for those with the right trading strategy. And as any investor will tell you, having a proper and well adjusted strategy, will mean the difference between winning and losing with penny stocks.
In addition, understanding what is going on in the world and how it pertains to your portfolio, will be a major advantage for profitability. So, while there is a lot to understand about investing in penny stocks in 2022, there is also a lot of hope for the future. Considering all of this, let’s take a look at three penny stocks to watch in January 2022.
3 Penny Stocks to Watch in January 2022
- Data Storage Corp. (NASDAQ: DTST)
- BRF S.A. (NYSE: BRFS)
- NLS Pharmaceuticals AG (NASDAQ: NLSP)
Data Storage Corp. (NASDAQ: DTST)
One of the biggest gainers in the past few days DTST stock. By midday on January 5th, shares of DTST had jumped by over 30% to just north of $4 per share. If you’re not familiar, Data Storage as its name may suggest, provides a range of tech solutions focused on the IaaS industry.
This includes data storage protection, IT services, business continuity, tech security and much more. It works in industries such as healthcare, government, education and more, which have all substantially broadened its reach.
The main reason for Data Storage’s recent moves comes as the company announced a multi-million dollar contract with a major U.S. sports franchise. Through its subsidiary, Flagship Solutions Group, the company will offer modernized and encrypted storage infrastructure.
“We are pleased to announce this important contract with a major U.S. professional sports franchise, as it illustrates the traction we’re gaining in the market.
We were selected based on the scalability and performance of our solutions, which provides further validation of our Flagship acquisition last year. This award is also a direct result of our new marketing strategy, focused on key industries: sports & entertainment, banking & finance, healthcare and government.”
The CEO of Data Storage, Chuck Piluso
This is great news for the company and should help it to further its reach into the sports market. In addition, it should provide lasting funding to continue with other business endeavors for the near future. With that in mind, will DTST stock be on your list of penny stocks to watch?
BRF S.A. (NYSE: BRFS)
In the past few days, shares of BRFS stock have been climbing. This includes an almost 6% gain on January 6th, which is no small feat considering the overall market trajectory on that day. While it’s hard to say why BRFS stock has been on the move, we have seen large bullish sentiment with several Brazil-based companies in the past few trading days.
The most recent news for BRFS stock came a few weeks ago when the company announced a proposed capital increase. This increase would occur through issuing 325 million new common shares with the goal of bringing in around $1.17 billion.
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Some investors are speculating that the minority shareholder in the company, Marfrig Global Foods SA, could potentially acquire a controlling stake in the company. However, it’s important to consider that this is purely speculative at this time. But, with penny stocks, we do tend to see speculation play a large role in how they trade. In the past, Marfrig has had a large track record of M&A deals, signifying that this could potentially be one of them. So, with this in mind, do you think that BRFS stock is worth buying or not?
NLS Pharmaceuticals AG (NASDAQ: NLSP)
Another penny stock that has been on the move recently is NLS Pharmaceuticals. Following a major gain last week, shares have since corrected slightly. However, we are still seeing a more than 12% gain in the past five days. While many large gains like this can occur without news, NLSP made an exciting announcement on January 4th.
The company stated that it received a patent in the U.S. for its extended-release formulation of Mazindol.
“Our intellectual property estate has been significantly strengthened since our initial public offering in February 2021, putting NLS in a solid position as we anticipate reporting Phase 2a results for Quilience® (mazindol ER) to treat narcolepsy in the first quarter of 2022.”
The CEO of NLS, Alex Zwyer
With any biotech company, patents are always crucial to how they trade. And while this is in no way a be-all-end-all deal, it should be important to the company’s future. This drug could be used in the treatment of narcolepsy, which has a large unmet clinical need right now. Considering this, does NLSP deserve a spot on your penny stocks watchlist?
Which Penny Stocks Are You Buying This Year?
Right now, there is a large amount of movement with penny stocks of all types. But, to identify where the value is in the stock market, investors need to have a consistent understanding of how to trade penny stocks and what is going on in the market. The biggest impacting factor on penny stocks and blue chips right now continues to be the Omicron variant.
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While many expect cases to begin dropping within the next few weeks, it does look like markets will remain volatile until that point. For that reason, understanding on a daily basis, how markets are moving, will be a major benefit to your portfolio. Considering all of this, which penny stocks are you buying this year?
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