Why Are These Penny Stocks Gaining Attention In December 2020?
As 2020 comes to a close, there are plenty of penny stocks to watch. While finding penny stocks may seem like a daunting task at first, it can be made much easier with a few simple tips. The first tip that all investors should take into consideration is research. This is arguably the most important step in finding penny stocks to watch, and should not be taken for granted. When first researching a penny stock to watch, investors should look at price action. How has it performed in the past week? How has it performed in the last month? And, how has it performed in the last six months? If all looks good here, it is time to move on to the more time-consuming part.
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This involves careful research into a company’s financial statements, quarterly reports, and press releases. This information can help investors to decide whether or not a company has value and what it looks like internally. With this, investors should be looking at debt amount, free-flowing cash, profitability, revenue, and any fundraising the company has done.
In addition, press releases can help to determine what a company is up to in both the short and long term. While not all penny stocks are winners, using these steps can help to find the ones that could be. With all of this in mind, let’s take a look at 5 interesting penny stocks that investors are watching right now.
Penny Stocks to Watch Today
- Novan Inc. (NOVN Stock Report)
- Biolase Inc. (BIOL Stock Report)
- Express Inc. (EXPR Stock Report)
- Cellectar Biosciences Inc. (CLRB Stock Report)
- NanoVibronix Inc. (NAOV Stock Report)
Penny Stocks to Watch: Novan Inc.
Novan Inc. Is a clinical-stage biotech company working on utilizing its platform known as Nitricil. This platform can help in multiple industries including dermatology, healthcare, infectious diseases and more. In addition, the company also has a product known as SB206, which is a topical antiviral gel. This substance is currently in a Phase 3 clinical trial. At the end of October, the company reported its Q3 financial results. In the results, the company announced that its drug Nitricil can have a positive effect on treating Covid-19.
John Gay, CFO of the company, stated that “while over the past few months we have raised capital to progress our lead asset for molluscum and provide an expected cash runway past our targeted toppling results for our B-SIMPLE4 trial, maintaining our listing on NASDAQ remains a critical priority for the company. We continue to pursue a course of action intended to allow us to work toward regaining compliance in a manner that we believe is in the best interests of the company and its stockholders.”
While data from the trial regarding Covid will not be fully completed until Q2 2021, it does look promising in the interim. Of course, NOVN stock is considered to be a more volatile penny stock to watch. Analysts at H.C. Wainwright have placed a $1.50 price target on the penny stock. That’s 183% higher than Tuesday’s closing price.
Penny Stocks to Watch: Biolase Inc.
Biolase Inc. is a biotech company working in the medical device field. The company states that it produces medical devices that can be used in dentistry and general medicine. One of its key products is a proprietary laser technology that incorporates more than 259 patented technologies to aid in patient recovery. The company has stated that it has sold these devices in as many as 80 countries around the world. In its Q3 2020 financial results, the company announced some exciting numbers. While revenue did drop by around 24% year over year, sequentially, it more than doubled. In addition, the company announced that it was able to raise around $18 million in an equity financing deal.
Todd Norbe, CEO of the company, stated that “our significantly improved third quarter revenue was driven by several factors, including 95% of dental offices having reopened in the United States, dental procedure levels having reached 70-80% of their pre-covid levels, and the fact that our product portfolio reduces the risk of infectious pathogens.”
For the quarter, net revenue came in at around $6.5 million. This represents a quarter over quarter growth rate of 124%. In addition, the company managed to lower its operating loss from $4.9 million in Q3 2019 to $3.7 million in Q3 2020. Maxim Group has a $1 price target on BIOL stock right now; 170% higher than its current levels.
Penny Stock to Watch: Express Inc.
Express Inc. is a popular retail clothing company that saw its stock shoot up by 10.5% during intraday trading on December 1st. One of the main reasons behind this comes as Black Friday and Cyber Monday only recently passed. With this, many retail penny stocks were able to significantly climb in value. As a major retailer based in the U.S., the company has a major e-commerce presence as well. In addition to this, Express Inc. is supposed to release its Q3 financial data on Thursday, December 3rd. During its second quarter of this year, the company posted some less than stellar results. In the quarter, it reported a quarterly loss of around $1.48 per share. This is an earnings surprise of around 30% above expectations.
In addition, the company ended the quarter with around $245 million in revenue. This is roughly half of the revenue it brought in during the previous years second quarter. While this may be painting a dreary picture of Express Inc., the company could turn it around in the upcoming quarter. Of course, a lot depends on what it reports in the latest earnings quarter, but there’s no way of knowing until we see it. In the past month, shares of EXPR stock have shot up by a staggering 190%. Whether or not this momentum can continue remains unknown. But, with this information in mind investors can decide whether or not EXPR stock is a penny stock to watch. It should also be noted that Wedbush placed a $2.50 target on the penny stock; nearly 50% higher than current levels.
Penny Stocks To Watch: NanoVibronix Inc.
NanoVibronix Inc. has been one of the companies to watch, off and on over the last few months. Back in September, NAOV stock made a parabolic move following news that the U.S. FDA exercised its Enforcement Discretion to allow the distribution of the company’s UroShield device in the United States. UroShield® is an ultrasound-based product that is designed to prevent bacterial colonization and biofilm on indwelling urinary catheters and increase antibiotic efficacy. The penny stock jumped to highs of $1.48 but quickly gave back those gains during the weeks to follow.
This week, however, the company has turned some heads once again. NanoVibronix announced positive findings from an independent evaluation of its UroShield® device on patients who have used the device for up to two years. The company said that results have been submitted to the National Institute for Health and Care Excellence for review and consideration.
“As part of our ongoing engagement, we submitted these findings to NICE as part of the process for attaining ‘official guidance’ from the organization, an important step in providing access to all NHS patients at risk of catheter associated urinary tract infections. We believe that these findings should also reinforce our efforts in the U.S. and other target markets.”Brian Murphy, CEO of NanoVibronix.
Keep in mind that NAOV is one of the low float penny stocks. This is likely a reason why there’s been more volatile action in its market. Despite not having a price target, Dawson James does have a Buy rating on the stock. It should also be noted that though this is the most recent, it is from 2019. So whether or not that will actually hold weight now is up to you.
Penny Stocks to Watch: Cellectar Biosciences Inc.
Cellectar Biosciences Inc. is another one of the big gainers on December 1st, rising by around 20% by EOD. In the past month, shares of CLRB stock are up by around 33% which is quite substantial. For some context, the company works as a biopharmaceutical business focused on the development and commercialization of various drugs used to treat cancer. It’s main substance known as CLR 131 is a phospholipid drug conjugate or PDC. This drug is being studied for its potential to aid in the chemotherapy sector. On November 9th, the company reported its Q3 2020 financial results for the period ending on September 30th.
In the results, James Caruso, CEO of the company, stated that “we continue to make good progress towards the fourth quarter initiation of the CLR 131 pivotal study in our lead heme-oncology indication. Our recent FDA guidance meeting was most encouraging and we look forward to providing greater details in the near term.” In terms of its financials, the company ended the quarter with around $18.8 million in cash on hand. In addition, it stated that R&D expenditures stayed at a steady $2.7 million over the previous quarter.
With a net loss of around $3.9 million, the company is working on building out a better financial standing for itself. In the meantime, the company states that it is planning on completing the Phase I/II trial of its CLR 131 drug. With all of this in mind, it could be considered to be a penny stock to watch, meanwhile Oppenheimer has set a lofty CLRB stock forecast. The firm has a $5 target set on the penny stock, almost 230% above Tuesday’s closing price.