4 Penny Stocks That Investors Are Watching Before December 2020
As we head into December, many penny stocks are continuing their November rallies. Following the emergency use authorization of Regeneron’s experimental Covid treatment, many believe that the pandemic could soon come to an end. With this heightened positivity in the stock market, there are plenty of penny stocks to watch.
For some context, the term penny stock simply means any security that is trading under $5. With this, there is a wide range of options when looking for penny stocks to watch. When first creating a list of penny stocks, investors should pick a few industries that are standouts. This includes industries like biotech, psychedelics, healthcare, and online communication platforms.
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While these are not the only places where value exists for penny stocks, they have seen a great deal of popularity in the past few months. While there are new treatments coming out to fight Covid-19, investors should continue to trade using the pandemic as a guideline. This means searching for penny stocks that have some correlation to the Covid pandemic.
Hot Penny Stocks to Watch
- Fuel Tech Inc. (FTEK Stock Report)
- Waitr Holdings Inc. (WTRH Stock Report)
- SM Energy Co. (SM Stock Report)
- Adomani Inc. (ADOM Stock Report)
At this point, investors should think out of the box to find where value may be hiding that others have yet to discover. As always, investors should also make sure to do the research into any given penny stock to watch. With this information in mind, let’s take a look at four penny stocks that investors are watching before December 2020.
Hot Penny Stocks to Watch: Fuel Tech Inc.
Fuel Tech Inc. is a company that works on the development and commercialization of various pollution control products. The company states that it also works in the water treatment and process optimization industries. Fuel Tech is currently working with a wide range of industrial businesses and municipalities to provide cleaner energy solutions.
This includes its Fuel Chem technology which works by increasing the efficiency and reliability of combustion units. The company states that its products have a wide range of applications including biological waste treatment and waste odor management. Recently, the company announced its Q3 2020 financial results for the period ending on September 30th.
In the report, Vincent J. Arnone, CEO of the company stated that “I am very proud of how our team has continued to navigate these challenging times. As a result of their efforts, we are seeing encouraging signs across our enterprise. We remain intensely focused on providing custom engineered solutions that fulfill the unique needs of each of our customers.”
In the report, the company announced that revenue grew by 26% to $8.2 million over the Q3 2019 period. Additionally, the company reported that its expenses declined by more than 16% to $3.2 million. Lastly, the company stated that its adjusted EBITDA grew to $2.7 million from a $0.8 million loss in Q3 2019. With all of this information in mind, it looks like FTEK stock could be considered a penny stock to watch.
Hot Penny Stocks to Watch: Waitr Holdings Inc.
Waitr Holdings Inc. is a standout amongst penny stocks as it is one of only a handful of publicly traded food delivery companies. Waitr Holdings works as a platform that allows online food ordering and delivery. As you may well know, services like these have seen increased popularity due to the Covid pandemic.
While Waitr Holdings does compete with UberEats, Doordash and GrubHub, it has been able to find its own niche. While these other businesses have worked on expanding a national footprint, Waitr Holdings is focused on regional expansion. In its most recent third quarter, the company reported an adjusted EBITDA of $13 million.
Carl Grimstad, CEO of the company, stated in regard to free-flowing cash and the potential of issuing new shares that “I don’t want to make any comments on the future, but right now, we’re in a pretty strong cash position. And as we are — as we sit here today, it’s not something that we’re contemplating.”
In addition, Carl Grimstad’s leadership skills have helped to inspire confidence amongst potential investors. All things considered, investors can choose whether or not WTRH stock is a penny stock to watch.
Hot Penny Stocks to Watch: SM Energy Co.
SM Energy Co. is an energy company that works in the exploration, development and production of crude oil and natural gas. Based out of Texas, the company held as much as 462 million barrels of oil at the end of last year. With hopes for a Covid vaccine higher than ever, many believe that the transportation industry could soon begin to function again.
This includes travel by car and plane. With this, investors have watched the price of crude oil begin to move upward in the past week or so. As an oil production company, SM Energy has a lot to gain from increased oil prices. With this, shares of SM stock were up by as much as 13.6% as of intraday trading on November 23rd.
Earlier in November, SM Energy Co. announced its third quarter financial results. In the earnings report, the company posted an adjusted loss of $0.05 per share. This was much less than the estimated $0.23 that was projected by Zacks. During the quarter, the company was able to lower its operating expenses alongside $281 million in revenue.
Although this revenue is lower than in the same quarter of the previous year, this loss represents the effects of the Covid pandemic on energy companies. Additionally, oil production has increased year over year by around 2% to almost 60,000 barrels per day. At $4.11 per share as of midday on November 23rd, SM stock looks like an interesting penny stock to watch moving forward.
Hot Penny Stocks to Watch: Adomani Inc.
Adomani Inc. is one of the leading gainers on November 23rd, posting a 59% gain during intraday trading. For some context, Adomani Inc. is a provider and producer of zero-emission drivetrain systems. Unlike other EV penny stocks, Adomani provides technology that can be adapted to existing vehicles. Its products include motors, generators, gearboxes, and more. In addition, it is also a provider of battery packs, inverters, chargers, and wiring harnesses for use with its products. On November 12th, the company announced its Q3 2020 financial results for the period ending on September 30th.
CEO of the company, Phil Oldridge, stated that “we continue to believe that, if we are able to free up…funding, resume our sales and marketing efforts that have been severely curtailed by the COVID-19 virus restrictions, effectively execute our revised, more conservative business plan, and capitalize on the opportunities that are presented to us, we will be profitable hopefully in 2021.”
During the quarter, the company was able to lower its cost of sales significantly from $5.3 million in Q3 2019, to $116,000 in Q3 2020. Although sales did slow in this quarter due to Covid, many investors believe that Adomani could be a leading competitor in the EV space. While that remains to be seen, investors should keep a close eye on ADOM stock moving into the next few months.