Should These Stocks Under $4 Be On Your Watch List In November 2020?
By definition, penny stocks are any share of a stock trading under $5. With this in mind, we see that there are quite a lot of options when it comes to penny stocks to watch. Whether you’re new to trading or a seasoned veteran, there is plenty of opportunities to be had with penny stocks. But, there are a few tips and tricks to avoid seeing unexpected volatility in one’s portfolio.
The first thing to know is that research is a penny stock investor’s best friend. With the power of the internet at our fingertips, finding information about a given penny stock is easier than ever before. When researching a penny stock, investors should look at financials, press releases, and any announcements the company is making. In addition, investors should make sure to look at a penny stock’s volume to see if there is enough liquidity within it.
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Lastly, investors should familiarize themselves with the market that a penny stock is in. It is very difficult to make an investment in a market that one knows little about. As stated earlier, information is an investor’s best friend. With the right research at hand, investors can begin to craft a list of all penny stocks to watch. And in the past six months, we have seen many penny stocks rise significantly in value. With all of this in mind, just because these can be bought for under $4 right now, are they going to be the best penny stocks to buy?
5 Penny Stocks to Watch: November 2020
- Nokia Corp. (NOK Stock Report)
- Party City Holdco Inc. (PRTY Stock Report)
- Tonix Pharmaceuticals Holding Corp. (TNXP Stock Report)
- AYRO Inc. (AYRO Stock Report)
- ReneSola Ltd. (SOL Stock Report)
Penny Stock to Watch #1: Nokia Corp.
Nokia Corp. as you probably know is major tech company with operations around the world. Earlier in the year, the Covid pandemic led to NOK stock dropping by as much as 50%. In only a few weeks after this drop, shares of NOK stock shot back up past its previous highs. YTD, NOK stock is only down by around 2%, which is not bad considering the effects of Covid on the rest of the stock market. In the past few months, the company has been working tirelessly to build out its 5G infrastructure. With the release of the newest iPhone with 5G capabilities, 5G seems to be taking over in a big way.
The company stated recently that it has partnered with A1 Austria to provide private wireless services to A1 Austria’s campus. With the latter having almost 5.4 million mobile customers, this could be big news for Nokia Corp. In the meantime, Nokia has been working on producing scalable technology and software infrastructure to support a 5G boom.
This includes cloud and industrial IoT, network slicing, and more. Although the deal with A1 Austria may seem small, it has much broader implications for the application of 5G networks. All things considered, NOK stock looks like one of the 5G penny stocks that investors could take a closer look at.
Penny Stock to Watch #2: Party City Holdco Inc.
Party City Holdco Inc. is a penny stock that has climbed in value by a staggering 545% over the past six months. On November 9th, PRTY stock announced its quarterly earnings for the third quarter of 2020. In the report, the company announced that it had $0.10 in EPS, beating estimates by more than $0.50.
Only a year ago, PRTY stock posted a loss of $0.28 per share. Over the previous quarter, Q3 delivered earnings of 121% which is quite substantial. In addition, the company posted revenue north of $533 million. This number also beat estimates by more than 10%. While shares of PRTY stock are only up by around 48% YTD, it looks like in the long term it could have some decent momentum.
Brad Weston, CEO of Party City stated that “in a pandemic-impacted environment, we stabilized our top-line sales and grew adjusted EBITDA almost threefold in the third quarter. There are three key themes that are reflected in this performance. First, the strides we are making to increase relevancy and elevate our customer experience across channels so we reinforce and strengthen our position of authority when it comes to celebrations. Second the discipline and control with which we are operating our business. And third, the customers desire and willingness to celebrate.”
While Covid may be on the rise, it looks like Party City has managed to work around the pandemic. With this, investors can decide if PRTY stock is right for them.
Penny Stock to Watch #3: Tonix Pharmaceuticals Inc.
Tonix Pharmaceuticals Inc. is a clinical stage biopharmaceutical company working on the development and acquisition fo several drugs. These drugs are utilized to treat various diseases and conditions in those who need them. The company states that it is working heavily on CNS or central nervous system drugs as well as immunology products.
Recently, the company has been working on its TNX-1800 vaccine candidate which could be a fervent enemy against Covid-19. In addition, the company has several drugs that are in Phase 3 trials as of November 2020. On November 9th, the company announced its third-quarter financial results for the period ending on September 30th.
In the results, CEO of the company Seth Lederman stated that “this is an exciting time for Tonix as we advance TNX-1800, our Covid-19 vaccine candidate, and expect to report our first data from animal studies before year end.”
In terms of financials, the company announced that it had more than $55 million in cash. In the quarter, it only used around $15 million for research and development purposes which puts it in a cash strong position. Despite this, the company still reported a net loss of around $0.09 per share. As a Covid-related biotech penny stock, we have to remember that TNXP stock can be quite volatile. With this in mind, it does remain an interesting penny stock to watch.
Penny Stock to Watch #4: AYRO Inc.
AYRO Inc. is a U.S. based producer and provider of all-electric vehicles. The company works by supplying fleets of these vehicles to those who can use them. Additionally, the company is focused mostly on the needs of urban transportation in a sustainable way. With the increasing popularity of electric vehicles, AYRO stock has seen a great amount of critical appeal in the past year.
In the past month, shares of AYRO are up by around 10%. However, for the year, shares are down by around 30%. On November 6th, the company announced its third-quarter financials. Before stating the numbers, investors should consider that the company has yet to begin selling its vehicles on a widespread basis.
At the current point in time, it is simply working on perfecting the technology and building out a network of contracted buyers. The company reported revenue for the third quarter of around $388,000 with over $27.9 million in free cash. Total, it reported an EBITDA loss of around $2.1 million. While these numbers may seem disappointing, the company did establish a partnership to produce more than 20,000 light-duty trucks over the next three years. This partnership is reportedly worth as much as $300 million. While AYRO stock may not be at the scale of other large EV producers, it seems as though the potential for the company is in the long term. It’s also worth mentioning that the stock is up over 300% year-to-date, post-merger.
Penny Stock to Watch #5: ReneSola Ltd.
ReneSola Ltd. is a company that works with its various subsidiaries to produce and operate solar power projects. The company states that it has three primary segments to its business. First, it works in solar power project developments. This simply means that it produces solar power components for sale to large scale power projects.
Second, the company works in EPC services. Lastly, it states that it is building out its electricity generation revenue. On the other side, ReneSola has stated that it is working on building out infrastructure to support community power needs. This includes solar gardens and more.
On November 12th, ReneSola announced its preliminary third quarter results. Within this, it stated that it expects revenue to come in at around $8-10 million. Gross margins are also projected to be at around 42% which is at the high end of the estimates. Yumin Liu, CEO of ReneSola stated that “solid revenue, coupled with our strong focus on prudent cost control, has enabled us to deliver robust bottom line results. We are encouraged by the pipeline of project activity and remain optimistic about multi-year growth prospects.”
As stated with other leading penny stocks, a lot of the potential for ReneSola remains in the long term. With this in mind, investors can only hope that SOL stock continues to grow in the next few years and beyond. SOL stock is also up more than 190% year to date after reaching highs of $4.19 on Thursday morning.