Will These Penny Stocks Continue Showing Bullish Interest This Month?
With November behind us, December is a new month to find penny stocks to watch. Although we are only a few days into the month, some penny stocks are already finding their stride. While searching for penny stocks to watch can seem daunting, with the right information at hand, anyone can be a pro-trader. To begin trading penny stocks, we first have to make a watchlist. This can be comprised of any penny stocks that investors believe may have short or long-term potential. Once we have a list, we can begin researching the given penny stocks to see which ones may be worth watching.
For starters, investors should focus on the fundamentals of a company. This includes financial statements and any information that a company has released in the past few months. Next, investors should consider what is going on in the world, and what events may trigger certain penny stocks to move upward. In December, this includes biotech penny stocks, EV penny stocks, digital communications penny stocks, and more.
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Right now, the focus seems to be quite heavy on any penny stocks that are related to the Covid pandemic in one way or another. While this is in no way a guarantee, these areas of penny stocks can help investors to start finding value. Once the research is done, it all comes down to picking a handful of the best penny stocks to watch. And, for some help with this, here are five penny stocks that could have year-end potential.
Hot Penny Stocks to Watch Right Now
- Obalon Therapeutics Inc. (OBLN Stock Report)
- SM Energy Co. (SM Stock Report)
- Akers Biosciences Inc. (AKER Stock Report)
- Kosmos Energy Ltd. (KOS Stock Report)
- QEP Resources Inc. (QEP Stock Report)
Hot Penny Stocks to Watch #1: Obalon Therapeutics Inc.
Obalon Therapeutics Inc. is one of the big gaining penny stocks on December 2nd. During the trading day, shares of OBLN stock jumped up by around 16%. As a medical device company, Obalon has been working on several challenging areas of the health and wellness market.
The company states that it is working on a Balloon System that would effectively help to combat obesity in patients. In addition, the company has several treatment centers around California where it utilizes its various products. On November 6th, Obalon announced its Q3 2020 financial results for the period ending on September 30th. In the results, the company managed to bring its losses down to around $0.20 per share from $0.61 in Q3 2019.
Additionally, the company stated that it ended the quarter with around $5.5 million in cash on hand and a very small debt amount. With its balloon system being the only FDA-approved swallowable device of its type, it’s clear that Obalon has carved out a large niche for itself. In addition, the problem of obesity in America and internationally is something that is not going away anytime soon. Because of this, it looks like Obalon has a unique place in the health and wellness industry. With that in mind, investors could consider it to be a penny stock to watch.
Hot Penny Stocks to Watch #2: SM Energy Co.
SM Energy Co. is an independent energy company working in the exploration and production of crude oil in the U.S. The company utilizes the vast resources in the state of Texas to conduct its operations. At the end of last year, the company stated that it had as much as 462 million barrels of oil in its reserve. Recently, the company discussed some key business updates during the Bank of America Securities 2020 Leveraged Finance Conference.
In the conference, the company stated that it has plans for 70 net completions at its Midland Basin project. Additionally, the company currently has three rigs and two completion crews at the 82,000 acre location. In the past month, shares of SM stock have shot up by almost 140%. While there is no major catalyst behind this, investors believe that vaccine hopes could help the energy market.
This is due to the fact that if a vaccine is widespread, the hopes are that travel would resume in the near future. This would undeniably mean more oil consumption and hopefully more business for companies like SM Energy. SM Energy is just one of a handful of companies that are seeing adverse effects from the covid pandemic. While it is working to recover, a lot will depend on what happens in the next few months regarding COVID.
Hot Penny Stocks to Watch #3: Akers Biosciences Inc.
Akers Biosciences Inc. is a biotech company that is working on new treatments for a wide range of ailments. On Wednesday, December 2nd, AKER shares were trading higher after the company’s potential merger partner announced a patent for a new type of cancer treatment. The partner, MyMD Pharmaceuticals announced that it received a patent for a method known as TNF-a which can treat cancer, autoimmune disorders and more.
Earlier in November, the merger between the two companies was announced. The goal with this was to produce immunotherapies that are focused on disorders that are prone to the elderly. The agreement between the two, worth $18 million, was done through a private placement of common stock and warrants.
MyMD has several new and groundbreaking technologies in its pipeline. This includes MYMD-1, which is a new drug that it being utilized in the treatment of autoimmune disorders, and may be able to expand the lifespan of those suffering from these ailments. In addition, the company is also working on a new drug known as SUPERA-1R, which is a synthetic derivative of CBD or cannabidiol.
With this partnership, it looks like Akers Biosciences could have some interesting things in the works. Of course, a lot depends on what type of approval the pair can get from the FDA moving forward.
Hot Penny Stocks to Watch #4: Kosmos Energy Ltd.
Kosmos Energy Ltd. is an oil company that works in the drilling of both oil and natural gas. Because of the supply and demand issues of the past few months, the company has had some issues. The economic shutdown associated with covid have meant that demand for oil is down by a substantial amount. In addition, production was not curbed in time leading to a large oversupply of the substance. In the past month or so, economic activity has begun to surge again, leading to greater interest from investors in energy penny stocks.
As stated earlier, many investors believe that as the pandemic winds down, we could see a resurgence of demand for energy. This includes oil and natural gas. In the past few months, OPEC has worked to reduce the supply of oil to help fight against any massive price drops. On December 2nd, shares of KOS stock jumped up by around 13% during intraday trading. In the past month, that number jumps up to around 80% in gains.
This is quite a substantial amount and shows that the energy sector could be rebounding in the present day. While it is to soon to make a definitive statement, the hopes are that companies like Kosmos Energy can soon see energy demand go up. If that is the case, investors may want to evaluate KOS as a penny stock to watch.
Hot Penny Stocks to Watch #5: QEP Resources Inc.
QEP Resources Inc. is another big gaining energy penny stock, rising by around 10% during intraday trading on December 2nd. In the past month, shares of QEP stock have risen by over 80%. Well, there is no significant news that made QEP stock jump, it seems as though the entire energy sector shot up during trading on the 2nd of December.
While there is no definitive news, some rumors around the industry show that QEP is of interest by other companies regarding a possible merger or acquisition. With a market cap of under $500 million, it makes sense that larger companies would be interested in potentially purchasing or acquiring QEP Resources. In addition, the company has stated that it has more than 380 million barrels of oil in its reserves throughout Texas and North Dakota.
Additionally, the company reported its Q3 financial results earlier in November. In the results, the company stated that it generated around $329 million in net cash. Tim Cutt, CEO of the company stated that “our financial outlook for full year 2020 has continued to improve and we now expect to spend approximately $340 million of capital and generate more than $200 million in free cash flow at strip prices as we continue to prioritize profitability and financial discipline over production growth.”