Are These On Your List Of Penny Stocks To Watch In December?
No matter if you trade blue-chip stocks or penny stocks, you need the right stock market education to understand what you’re actually looking at. Without understanding how to invest, let alone day trade, the stock market will be ambiguous. Most new investors and traders may have a bit of confusion at the beginning. Let me explain a bit more.
For people looking at penny stocks as their first method of using the stock market to make money, you’re likely looking for a quick means to do so. Where there’s nothing wrong with that, most will listen to someone on Twitter or a message board thinking they’re following a reputable “guru.” More times than not, this is far from the case.
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These are usually people who think they know how to trade penny stocks. But the reality is that many of these “gurus” are actually promoting penny stocks. They are showing you a stock but not how to actually trade it. This is the main difference between a successful trader and someone who just makes a little money trading penny stocks, which is education.
Understand how to read the market, decipher stock charts, and have an ability to translate corporate filing info. These are things that real traders and financial commentary outlets like PennyStocks.com will do. Considering the fact that penny stocks have the potential to sometimes generate huge returns quickly, it’s important to take a closer look at these stocks before investing. With the right education and trading strategy, you’ll have a better chance of actually turning a handsome profit. On that note, here is a look at three penny stocks that are worth watching.
Penny Stocks to Watch in December #1: Lexicon Pharmaceuticals
The first name on this list of penny stocks had a strong second half of the year. Lexicon Pharmaceuticals, Inc. (LXRX Stock Report) fell to lows of $1.13 after bad news in late July trigger investors to sell off shares. Much of the concern stemmed from bad earnings and lagging revenue figures. Despite this case, LXRX stock has performed very well since that time.
The stock made significant gains on Thursday and into Friday after the company reported an update on its LX9211 treatment. It’s an oral small molecule inhibitor of adaptor associated kinase 1 (AAK1). Yesterday Lexicon announced positive data from the Phase 1 study of the product.
The data showed that LX9211 continues to improve. “We are pleased that the initial clinical data for LX9211 in the multiple ascending dose study supports continued advancement of the drug,” said Praveen Tyle, Ph.D., executive vice president of research and development at Lexicon. “LX9211 was well tolerated with dose-proportional pharmacokinetics, similar to what was seen in the single ascending dose study. We expect to initiate a proof-of-concept study for LX9211 early next year.”
Lexicon stock rallied by as much as 12% after the announcement. But as you can see, the company’s progress showed a night and day difference from its levels during the summer of this year. Since then LXRX has rallied over 300% so far.
Penny Stocks to Watch in December #2 SeaChange International
The other penny stock that recorded gains on Thursday video delivery platform firm SeaChange International (SEAC Stock Report). This came after the company announced financial results for the third quarter. SeaChange managed to generate revenues of $20.5 million for the quarter. This came as an improvement to the $18.6 million generated during the same quarter of 2018.
More importantly, SeaChange swung back to a gain this quarter as it reported profits of $2.1 million. In the prior-year period, it had suffered a $18.6 million loss. The results proved positive for the stock and it enjoyed a rally that resulted in gains of 10.5%. But this isn’t an isolated issue.
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SEAC stock had a banner year this year as well. On January 2, the penny stocks began the year trading at $1.25. Considering it hit highs of $4.56 yesterday, I don’t think many could argue with a rise of 265% for just holding a penny stock for most of the year.
Penny Stocks to Watch in December #3 Workhorse Group
Finally, Workhorse Group Inc (WKHS Stock Report) was another notable gainer on Thursday. This came after it managed to sell one of its latest inventions. The company completed two transaction with Moog Inc., a worldwide designer and manufacturer of control components. The sales included WorkHorse’s SureFly electric vertical takeoff and landing aircraft. It also saw the company sell off its HorseFly operating unit.
“Building strong relationships through partnerships and transactions with world-class operators like Moog has always been a key area of focus for our company,” said Workhorse CEO Duane Hughes. “In selling SureFly, we have been able to monetize a secondary asset, which will provide us with additional working capital for our core business, which is the manufacturing of electric last-mile delivery vehicles.”
In addition to that, the Workhorse also established a joint venture with Moog with regards to its HoneyFly delivery aerial system. The market received these developments favorably and the stock managed to climb.
“Through our HorseFly JV, we’re looking forward to taking another existing Workhorse technology and leveraging the experience and resources of an established enterprise to tackle new markets and create outcomes there are greater than just the sum of the parts.”Duane Hughes, Workhorse CEO
For the better part of the year, WKHS stock has been on several watch lists throughout 2019. It first came to our attention after a Trump Tweet sent shares soaring. Though it isn’t at its highest levels of the year ($5.37), WKHS is still up over 425% year to date.