3 Penny Stocks To Watch In December
Penny stocks are unique in the aspect that they don’t always adhere to the overall market trends. This week, most of the blue-chip stocks you hear about on CNBC or Fox saw little change since the beginning of the week. Most analysts are monitoring the U.S. – China trade situation. Why do I say relatively unchanged after such a strong Wednesday session?
For most of the week and month of December for that matter, the broader market is trading in a tighter range. Remember earlier this year when there were massive swings in price? Lately, that hasn’t been the case for larger-cap stocks. For this reason, it’s likely why we’ve seen so much more action with small-cap stocks and micro-cap stocks during recent weeks.
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So, if you think that you’re hearing a lot about finding penny stocks to buy, that’s probably because you are. When markets lack volatility, the general consensus is to focus on where there, in fact, is volatility. As we know, there’s no shortage of such activity when you look at penny stocks.
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The best way of going about finding good names to add to your list of penny stocks is by watching the market closely. Find which stocks might have had recent news, filed corporate updates or even have upcoming industry presentations.
There are many other where to find penny stocks to trade but we won’t get too detailed on that front in this article. You can check out some things on penny stock basics on the site when you get time. With that said, here is a look at three penny stocks that could be watched by investors this month.
Penny Stocks to Watch In December #1:
The first company on this list of penny stocks, ImmunoGen, Inc. (IMGN Stock Report), recorded impressive gains on Wednesday. IMGN stock gained by as much as 12.4% as investors flocked to the stock in anticipation of the American Society of Hematology (ASH) Annual Meeting. That begins this coming Saturday.
The company is all set to present data from the phase 1 clinical trial of its product IMGN632 at the event on Monday. In anticipation of the presentation, there is a lot of interest in the stock at this point in time. It goes without saying that investors could keep an eye on the development and watch the stock closely. Earlier this year, ImmunoGen traded as high as $6.13 before plummeting to 52-week lows of $1.78 in the months to follow.
However, since that time, IMGN stock hasn’t been one to ignore. In fact, since late May, the biotech stock has upheld a bullish trend overall. As of this quarter, the penny stock has rallied as much as 133% after hitting highs of $4.10 this week.
Penny Stocks to Watch In December #2:
Chesapeake Energy (CHK)
The other penny stock that could be worth watching is oil and gas company Chesapeake Energy Corporation (CHK Stock Report). We have discussed Chesapeake numerous times and the recent trend seems to have struck a chord with investors this week.
The company may have had a hard time with its debts but it has also announced a number of debt deals, recently. On top of that, the rising oil prices have also had an effect on the CHK stock and its rise on Wednesday. The stock rallied by as much as 34% this month as the price of West Texas Intermediate rose as well. On Wednesday, the price of West Texas Intermediate hit $58.50, which reflects a surge of as much as 4.2%.
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Despite all of this momentum, keep in mind that CHK stock has a history of breaking out and quickly consolidating. If you look at the chart from the entire year, it paints a much different picture than we’re seeing in December so far. Chesapeake has a great first quarter but since then the overall trend has been very bearish. So as much as investor sentiment was positive this week, don’t forget to keep fundamentals in mind when it comes to Chesapeake Energy.
Penny Stocks to Watch In December #3:
Nio Inc. (NIO)
Last but not least, Nio Inc (NIO Stock Report) was another gainer among penny stocks this month. But can that continue through the beginning of 2020? The Chinese electric vehicle manufacturer has been in all sorts of trouble for much of the year. The latest rally actually commenced after the company announced better than expected deliveries. The stock has jumped almost 38% over the past 3-weeks.
On top of that, Nio recently signed a new partnership with Intel’s Mobileye (INTC Stock Report) as well. That may have been another trigger for the optimism. This week the company reported more delivery numbers for November.
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Nio said it delivered 2,528, which is 2 more cars than it delivered in October; yes two total cars more than the previous month. Ask anyone and they’ll say that this is a flat trend. Yet the company attempted to paint it as something that, in my opinion, was much bigger than reality.
“In November, we achieved another month of solid delivery results as we expanded our sales network by adding more NIO Spaces.”Founder and Chief Executive William Li
Deliveries are great but solid delivery results that came in higher by 2 total units is a bit of a stretch in my eyes and likely a reason why shares have started to tumble on December 5. That being said, many experts still believe that investors should exercise caution with this stock. No matter your stance, NIO stock has been one to watch since the start of the 4th quarter.