Will These Penny Stocks Head Higher In December?
Investing in penny stocks can be a thrilling experience for investors, considering the fact that it is possible to make enormous returns from a small investment. However, it is also true that an investor needs to do a lot of research in order to make such returns. But due to the availability of hundreds of penny stocks, one needs to be quite discerning when it comes to putting together the best list.
One of the best ways of going about it is by watching the market closely. You’ve also got to be aware of things like penny stock news. When it comes to updates, pay close attention to the full press release. You may notice that some companies will announce something like a corporate update but later in the release they will briefly cover another topic.
I’ve seen this done a bunch lately when it comes to certain companies raising money. Instead of putting a standalone release out, these companies will include the information in a larger announcement.
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But just because a company does this, doesn’t mean it’s trying to cover anything up. Sometimes information of that nature is as simple as what these companies put in their PR’s. I’m sure it is difficult to devote an entire PR to something that just needs a few lines of text to convey.
All the same, you should do your utmost to read through announcements completely and then look at the company’s filings to see if there are any disclosure statements to go along with it. Now, with this in mind, here is a look at three penny stocks that should be in the watch lists of all investors.
Penny Stocks To Watch #1 KushCo Holdings (KSHB)
The cannabis sector may be going through tough times but it proved to be a good few weeks for KushCo Holdings Inc (KSHB Stock Report). The penny stock rose by as much as 12% on Wednesday after analyst Owen Bennett at Jeffries gave the stock a ‘buy’ rating. In addition to that, Bennett set the target price at $3.50. This reflects a premium of more than 100% from the closing price on Wednesday.
It was no surprise that investors soon piled on to the stock and a rally ensued. According to the analyst, KushCo is currently trading at a cheap valuation. He believes that its valuation is the cheapest in the cannabis sector. On top of this latest move, shares of KSHB stock have performed well since last Monday. The pot stock started last week at $1.42. On Black Friday, shares have already reached highs of more than $1.70. This marked a 2-week jump of over 20%.
Penny Stocks To Watch #2 Paringa Resources (PNRL)
The other penny stock that recorded enormous gains on Wednesday: Paringa Resources Limited (PNRL Stock Report). On Wednesday, the company announced that it was awarded a royalty to SP2 Royalty Co. This was for its Buck Creek Mining Complex. Thanks to that deal, the company managed to raise as much as $9 million. As soon as the news broke, the Paringa stock started rallying.
It is a significant development and the rally was no surprise. The stock gained as much as 457% on the back of the development. PNRL stock opened the day at $1.57 and shot up to highs of $8.75. Despite a dramatic pullback to $5.20, hopes remained high for the penny stock to continue its move on Black Friday.
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However, when the market opened, PNRL was once again a penny stock. Shares traded well under $3; even below $2.50 in the early morning. The question now is this, “Can Paringa recover in December or are shares doomed for a further decline?”
Penny Stocks To Watch #3 ASLAN Pharmaceuticals (ASLN)
Another penny stock that has seen a massive rally over the past week was ASLAN Pharmaceuticals Limited (ASLN Stock Report). This was one of the top penny stocks to watch later this month. We actually discussed it in detail in our article last week conveniently titled, “Penny Stocks To Watch Before Next Week.”
ASLN stock has gained as much as 971% ever since the company announced data from the preclinical testing. This was for its acute myeloid leukemia treatment product ASLAN003, which was published in a leading journal. The company announced that the Haematologica Journal published the data in its November issue. It’s funny to think that on the day we published our first article on the company, shares opened at $0.66. On Black Friday, ASL has promptly hit highs of over $7 a share.
Does this seem familiar? Look at the PNRL situation. Though it didn’t happen as quickly, ASLAN stock has skyrocketed in parabolic fashion. Can the penny stock keep up the pace or is it set to follow the same fate of Paringa?