Why Are Investors Paying Attention to These 5 Penny Stocks?
As we enter the second week of December, there are several penny stocks that investors are watching. While unemployment numbers are rising alongside covid cases in the U.S., the long term prospects for the end of the year are mostly positive. As a vaccine for covid hits the market in the U.K., many investors believe that the U.S. will be next in line to approve the novel COVID treatment.
As we wait for this to occur, there are several penny stocks that investors are watching. This includes healthcare penny stocks, biotech penny stocks, electric vehicle penny stocks, and more. While this is not a definitive list, it seems as though these are some of the most popular covid-penny stocks to watch. In the U.S., hopes for a stimulus package are outweighing the dismal jobs report for the month of November.
Small Cap Stocks Are Running Wild
All of these factors are contributing to potential positivity surrounding penny stocks and the whole of the stock market. On Friday, December 4th, we saw a great deal of optimism about the future which is translating into bigger gains for the NASDAQ and the DOW. What’s even better still is that the Russell 2000 ETF (IWM ETF) made fresh, all-time highs. In fact, by the close, IWM was just 22 cents shy of its high of day, Friday. Will this strength in small cap stocks continue next week? I’m sure you and well as I hope to see that become the case.
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As we head further into December, investors should continue to watch job reports in the U.S., as a way to predict what type of movement we could see with penny stocks in the near future. With this in mind, let’s take a look at four penny stocks to watch before the second week of December.
Penny Stocks to Buy [or sell]: Kosmos Energy Ltd.
Kosmos Energy Ltd. (KOS Stock Report) is another big gainer on December 4th, pulling in around 12% in gains during intraday trading. As an energy company, the price of KOS stock is highly correlated to the price of oil. But, it seems as though it goes beyond just the price of raw materials. Rather, the company has seen a great deal of bullish momentum on the potential of a vaccine for covid. You might be wondering why an energy company is correlated to covid, and the reason is quite clear. Because of covid, travel has greatly decreased. This means that the consumption of fuel and energy is much lower than it should be during one of the most travel intensive quarters of the year.
With a vaccine hopefully coming soon, travel could resume in the near future. This means that investors are hopeful on energy penny stocks, with KOS stock being one of a handful of companies. In addition, many of these energy companies are currently sitting on a great deal of supply from overproduction with no matching increase in demand.
On December 4th, the United States Oil Fund LP (USO Stock Report), pushed up by around 1% during intraday trading. In the past month, the USO fund has jumped by over 15%. With vaccine distribution hopefully only a few months away, penny stocks like KOS stock could remain penny stocks to watch.
Penny Stocks to Buy [or sell]: Southwestern Energy Corp.
Southwestern Energy Corp. (SWN Stock Report) is another energy penny stock with decent gains on December 4th. During intraday trading, shares of SWN stock shot up by as much as 5.1%. For some context, Southwestern Energy Co. engages in the exploration, development, and production of natural gas and oil. In November, the company made an exciting announcement that it had completed its acquisition of Montage Resources Corp. This acquisition should hopefully add a great deal of output capacity to Southwestern Energy Corp. For Q4 2020, the company states that it should in total be able to produce around 251 billion cubic feet equivalent (Bcfe). This number is in comparison to around 225 Bcfe without the acquisition of Montage.
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In the past month, shares of SWN stock are up by over 15%. YTD, shares of SWN stock are up by around 28%. Similar to KOS stock, SWN stock is highly pegged to the price of oil and natural gas. While we don’t know when travel will resume to its pre-covid levels, we do know that we are headed in the right direction. Investors should consider that penny stocks like SWN stock, often are less volatile than other penny stocks. Although penny stocks in general can be known for volatility, energy penny stocks can often prove otherwise. So for more risk averse investors, SWN stock could be a penny stock to watch.
Penny Stocks to Buy [or sell]: PDS Biotechnology Corp.
PDS Biotechnology Corp. (PDSB Stock Report) is one of the biggest gainers on December 4th, pulling in around 18.5% during intraday trading. In the past six months, shares of PDSB stock have shot up by around 77%. The company works as a clinical stage-immunotherapy business with a large pipeline of cancer and infectious diseases treatments. The company states that its Versamune platform, can effectively produce a positive antigen response in those who trade it. Recently, the company announced that it now holds a patent in the U.S. for a “Method for Reducing Derived Suppressor Cell Population with Cationic Lipid Vaccine Compositions.”
Frank Bedu-Addo, CEO of the company stated that “the award of this patent provides broad protections for our Versamune platform. Today, there are three active mid-stage clinical trials of our lead program, PDS0101 partnered with leaders in immune-oncology, and we believe that the Versamune platform may prove improved clinical outcomes for patients.” In November, the company announced that its Versamune platform is being co-developed with Farmacore Biotechnology to produce a vaccine for Covid-19. With covid cases on the rise, companies with a correlation to the pandemic have seen great investor interest. Although PDSB stock is quite volatile, investors could consider it to be a penny stock to watch.
Penny Stocks to Buy [or sell]: Evogene Ltd.
Evogene Ltd. (EVGN Stock Report) utilizes computational biotech to help both human health and agriculture. Its main platform known as Computational Predictive Biology utilizes artificial intelligence to help push health developments forward. In mid-November, EVGN posted its Q3 2020 financial results. Ofer Haviv, CEO of the company, stated that “the company recently completed two rounds of fundraising, for a total of $22 million. The leading investors that participated in these deals are strategic and long-term focused investors, and we are very grateful for their confidence and support.”
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Haviv went on to state that “we are confident that the net proceeds that our recent fundraising, combed with our existing cash resources, will provide the funding required to achieve a number of key objectives in the further development of the promising product pipelines of our subsidiaries.”
At the end of September, the company reported having as much as $43 million in net cash. In addition, revenues came in at around $0.3 million for the quarter. While this is not a very substantial revenue amount, it is quite common for biotech companies to post revenue like this. On top of that, Evogene has attracted some bullish interest from analysts at Cantor Fitzgerald. The firm rates it as Overweight and the EVGN stock price forecast from Cantor sits at a target of $9 right now.
