Why Are Traders Watching These 4 Penny Stocks Right Now?
Whether you’re new to penny stocks or a seasoned investor, there are plenty of options when it comes to stocks to watch. In the past six months, the investor ecosystem has changed dramatically due to Covid. While at first, we saw a large bear market erupt, soon after the bulls rushed in to find value where it could be seen. Now, only six months later it seems as though there is a lot of upward momentum in the stock market. In addition, two vaccines have come out in November showing efficacy of as much as 95%.
With this, many penny stock investors are finding hope in the future of the stock market. One thing to keep in mind is that despite widespread bullish sentiment, there is still plenty of volatility abound. This means that prices can swing very quickly in one way or another. But, with volatility comes an opportunity to capitalize on swift price action. With so many penny stocks to watch how can we as investors find the ones that make the most financial sense?
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The short answer is by doing as much research as we can. With the internet at our fingertips, investors can find out the financials of a given penny stock as well as what it plans to do in both the short and long term. With this information in hand, crafting a list of penny stocks to watch can be easier than imagined. All things considered, here are four top penny stocks to watch that could potentially see a spike in value.
Top Penny Stocks to Watch: November 2020
- Nano Dimension Ltd. (NNDM Stock Report)
- Phunware Inc. (PHUN Stock Report)
- Marin Software Inc. (MRIN Stock Report)
- Weidai Ltd. (WEI Stock Report)
Penny Stocks to Watch: Nano Dimension Ltd.
Nano Dimension Ltd. provides intelligent fabrication machines. These machines are used across the board for things like drones, cars, satellites, and more. Recently, the company announced that it had closed on a registered direct offering of 16.72 million shares. In the agreement, the company will raise as much as $50 million in working capital. The company states that these funds will be used to continue day to day operations as well as for future endeavors. In addition, on Thursday, November 12th, the company announced its Q3 2020 financial results. The company stated that it ended the quarter with around $45 million in cash with a net loss of around $20 million.
While these may seem like grim results, the company states that it expected such. Yael Sandler, CFO of Nano Dimension stated that “these are not disappointing results per se. As we have projected starting April 2020, the reduced revenues in 2020 as a result of the Covid-19 pandemic being prolonged and re-emerging crisis, we’re in fact expected to be lower than we have achieved. Actually, in APAC, the revenues have seemed to already start a modest recovery in the fourth quarter of 2020.”
With the market that it works in projected to grow substantially in the future, it seems as though Nano Dimension has a lot to look forward to. With that in mind, investors can decide whether or not NNDM stock is right for them. Year-to-date, NNDM stock is up around 84% as of Tuesday’s high.
Penny Stocks to Watch: Phunware Inc.
Phunware Inc. is a company that works with its MaaS software to allow companies to use a fully integrated cloud platform for app development. The software also allows for the monetization, management and engagement of consumers for various mobile applications. The company states that every month, more than one billion devices are in contact with its platform.
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With more people than ever using smartphones due to Covid, it seems as though Phunware has a unique positionally in the tech industry. Recently, the company announced a partnership with Phynd Technologies Inc. to produce technology that could benefit healthcare services in the U.S. With its MaaS software, the company will be able to offer patients a portal for scheduling as well as for doctors to view a patients record.
As of late 2020, Phynd Technologies states that it works with around 350 hospitals and more than 35 health systems around the country. Alan Knitowski, CEO of Phunware stated that “you can’t engage what you can’t manage and you can’t manage what you can’t measure, so we’re excited to introduce our mobile solutions for engagement to healthcare providers who rely on Phynd to provide centralized enterprise data management at scale.”
Since Q3 financials are scheduled to be released on Thursday investors could have a lot to keep track of.
Penny Stocks to Watch: Marin Software Inc.
Marin Software Inc. is a cloud-based digital advertising company that has seen an uptick in critical appeal in the past few months. In the past month, shares of MRIN stock have shot up by over 77%. In addition, on November 17th, shares of the company shot up by almost 23% during intraday trading. The company stated that it provides software for marketing agencies to utilize around the world.
This includes the U.K. and the U.S. which are two of its largest markets. The company also states that its forward allows customers to access all of their social media advertisements in one unique platform. Recently, the company announced its Q3 earnings for 2020.
In the earnings report, CEO Chris Lien, stated that “the increase in online commerce that has been generally observed since the beginning of the Covid-19 pandemic combined with the upcoming Q4 retail season both highlight the importance of Amazon as part of a digital marketing strategy. Marin’s integration with Amazon Attribution unlocks what is currently a black box for many advertisers and helps them better understand the full value of their Google and Facebook investment.”
In terms of its financials, the company posted around $7 million in net revenue with a non-GAAP loss from operations of $2.8 million. With some financial restructuring on the way, it will be interesting to see how things unfold in the future for Marin. What we do know is since the start of 2020, MRIN stock is up around 65% so far.
Penny Stocks to Watch: Weidai Ltd.
Weidai Ltd. Is a company that works as an auto-backed financing solutions business based in China. The company utilizes a risk management system to turn used cars into an investment strategy. In addition, its platform allows institutional financing for those who wish to buy used cars in the Chinese market. The company recently announced its quarterly results for the period ending on June 30th.
In the results, the company ended with net revenue of $123 only from its loan servicing fees. In addition, other revenues came in at around $9 million. For the six months ending on June 30th, the company reported utilizing $85 million in operating costs and expenses.
While the company did pull in a net loss of $69 million, it does look like it is growing quickly. In the past month alone, shares of WEI stock are up by over 75%. However in the past six months, shares have only come up by around 5%. One of the main reasons that investors like Weidai Ltd. is due to the growing size of the Chinese economy. With this, more people could be buying both new and used cars.
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And, as a provider of loans for these vehicles, it looks like Weidai could be able to capitalize upon this notion. As a volatile penny stock to watch, there is a good deal of risk with Weidai Ltd. But, investors can weigh this risk and determine if WEI stock can be considered a penny stock to watch or avoid entirely.
