3 Penny Stocks to Watch For the Holiday Week
With the holiday season fast approaching, investors are searching for those year-end penny stocks to watch. While 2020 has not been a great year for the economy, it has been fruitful for the stock market. During the year, the pandemic resulted in several industries increasing in value.
This includes biotech, energy, digital communications, and more. With so much happening this year, investors need to stay up to date on current events. This will help make sure that there are no unexpected moves in one’s portfolio. But, with all of the events that have occurred in 2020, there are plenty of ways to find top penny stocks for your watch list.
The best way to start is by making a list of proposed penny stocks. This can be a starting place for investors to begin their search. Once you have a list, the next step is doing as much research as you can. This involves looking at balance sheets and press releases to get a good idea of where a company is, and where it may be headed. As always, the best trader is the most informed one out there. And with the internet at our fingertips, finding information about penny stocks has never been easier. So, as the year comes to a close, let’s take a look at three penny stocks to watch for the holiday season.
- HEXO Corp. (HEXO Stock Report)
- Kosmos Energy Ltd. (KOS Stock Report)
- Torchlight Energy Resources Inc. (TRCH Stock Report)
Penny Stocks to Watch #1: HEXO Corp.
HEXO Corp. is one of the most popular Canadian marijuana penny stocks right now. Given the fact that so few NYSE & NASDAQ listed pot stocks are still under $1, HEXO has become a favorite of Robinhood traders. After a less than stellar fiscal fourth quarter of 2020, HEXO recently announced its Q1 2021 results.
In Q4 2020, the company saw its net sales grow by around 75% year over year. Despite this, it still pulled in a sizable loss of around CA$169 million. In its most recent results, however, it looks like things may be moving up for the Canadian pot stock. One of the main business prospects that HEXO is working on is the production of cannabis-infused beverages. After forming a joint venture with Molson Coors, the company quickly moved into the beverage market. In the first quarter, HEXO reported that its beverage brand, has a 35% market share for cannabis-infused drinks in Canada.
Furthermore, Q1 2021 net revenue came in at around CA$29.5 million. This represents almost CA$2.3 million more than it brought in during the prior quarter. The most staggering part of the earnings report comes as the company reported an operating loss of CA$2.6 million. As you can see, this is miles less than the CA$106 million loss it brought in during the previous quarter.
For the year, HEXO is still down by around 35% which is slightly disheartening. But, with these positive results, it looks like the company is working to make a comeback. Wha’ts more is that the upcoming inauguration of Joe Biden as the 46th President of the United States could be a high sign for pot stocks in 2021.
Penny Stocks to Watch #2: Kosmos Energy Ltd.
Kosmos Energy Ltd. is an oil and gas exploration company based in Texas. The company has a large footprint in several countries around the world as well. This includes Ghana, Equatorial Guinea, and the Gulf of Mexico in the U.S. Recently, Kosmos announced that it divested its assets worth around $200 million to Royal Dutch Shell Plc. Specifically, this deal should give Kosmos around $95 million in cash up front with future payments totaling around $100 million.
Kosmos states that it will use around $30 million of these funds for the exploration of several projects in the Gulf of Mexico. With this, it should be able to add carbon-free and affordable energy to its portfolio. Additionally, this sale should help to save the company north of $125 million within the next two years.
On Friday, shares of KOS stock were up by around 5.7% during intraday trading. In the past month, shares have shot up by over 40% and since mid-September, by over 110%. This sizable gain reflects the bullish interest that energy companies have seen in the past six months. With covid cases hopefully going down in the near future as vaccine hopes rise, the demand for energy may increase as well. This would hopefully add bullish interest to companies like Kosmos among other energy penny stocks.
Penny Stocks to Watch #3: Torchlight Energy Resources Inc.
Torchlight Energy Resources Inc. is another energy company working on the acquisition and development of several projects around the U.S. While some companies focus on oil projects abroad, Torchlight states that its primary focus is on the U.S. This includes markets such as West and Central Texas, as well as around the entire Permian Basin. Since the start of the year, Torchlight Resources has made several interesting announcements.
On Monday, December 14th, the company announced that it has signed a definitive agreement for a business combination with Metamaterial (MMAT Stock Report). With this, John Brda, CEO of Torchlight stated that “we are very excited to sign the definitive agreement with Metamaterial. We believe this transaction provides our shareholders with the best opportunity moving forward. Metamaterial offers proven disruptive technology with strong environmental, social, and governance priorities.”
Brda went on to state that “This transaction provides our shareholders with access to the multi-billion-dollar markets that Metamaterial serves and new applications that are being revolutionized with their sustainable technologies, while still allowing our shareholders at closing of the transaction to participate in the proceeds of our oil and gas asset divestitures.”
A deal like this is not at all uncommon in the energy sector. With this partnership, the two should hopefully be able to produce some fruitful results. In the meantime, investors should make sure to watch the energy sector as a whole heading into 2021.
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