Will These Penny Stocks Continue to Climb Into the New Year?
As the holidays come to an end, penny stocks are still looking strong. With so many to choose from, finding the best penny stocks to buy can seem like a challenge. But, with the right research, the task becomes much easier. But, first, what are penny stocks anyway? The definition of penny stocks is simply shares of companies that trade for less than $5. With this comes a big risk/reward scenario to ponder. Are low priced stocks worth watching?
This is obviously something you have to decide as a trader. However, there are a few things to keep in mind before investing. First, these stocks are known for being quite volatile due to their lower prices. For example, if you’ve got a $4 stock, it only needs to move 40 cents to realize a 10% return. You can’t say the same for stocks like Apple (AAPL Stock Report) or Amazon (AMZN Stock Report). In addition, penny stocks can sometimes remain under the radar as there are so many of them out there. Investors should keep in mind that not all penny stocks can be winners. And, the best investor is the one who knows how to separate the winners from the losers.
The next step is considering a certain industry that could have heightened interest. In 2020, this has been anything from biotech to digital communications and more. For this step, investors need to think outside of the box and figure out which companies are more competitive than others. This could be in the product that they are making or the field that they are in. Either way, research will always be your best friend. Once all of these steps are done, you should have a pretty good idea of which stocks are worth watching. Here are three penny stocks to watch heading into the end of the year.
Penny Stocks to Watch: Year End 2020
- Neovasc Inc. (NVCN Stock Report)
- Aqua Metals Inc. (AQMS Stock Report)
- Camber Energy Inc. (CEI Stock Report)
Penny Stocks to Watch #1: Neovasc Inc.
Neovasc Inc. is a biotech company that specializes in medical devices. The company produces these devices for a wide range of cardiac illnesses. Currently, its products are available in Europe and the U.S. as well as in several other countries around the world. In its pipeline are products such as the Tiara, which is used in the treatment of angina. On December 15th, the company announced that it has completed the first three implants of its Neovasc Reducer device in patients in France. The goal with this is to treat patients that are currently dealing with refractory angina.
CEO of Neovasc, Fred Colen, stated that “France is one of the largest markets in Europe, and it represents a meaningful growth opportunity for Reducer. We are currently navigating the reimbursement process for the therapy in the country, and plan to commercialize Reducer more broadly in France through a direct sales force upon reimbursement approval.”
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The Reducer is a small device that it implanted into the heart. The device serves to alter blood flow that results in increased oxygenated blood flow. It is known as a minimally invasive process and can be compared to the invasiveness of receiving a stint. With this, however, Neovasc is working to capitalize on an area of the biotech industry that has yet to see novel therapies.
Penny Stocks to Watch #2: Aqua Metals Inc.
Aqua Metals Inc. is one of the “EV” or electric vehicle penny stocks to watch. While it doesn’t manufacture cars, investors consider the company to be an ESG stock within the EV industry. The company works by refining and recycling various compounds such as plastics and metals. It also provides a high degree of environmental and social standards in its practices.
Part of its recycling involves reducing the environmental impact of battery disposal. The company is working on providing these raw materials for use in the EV sector. In addition, Aqua Metals does not only work out of the EV sector. Rather, it provides raw materials for a wide range of applications. This shows that the company is quite broad in how it operates.
Although it isn’t solely an EV penny stock, it does have direct exposure through ancillary materials it provides. Companies like Aqua Metals are quite interesting as they offer investors a different value point to take notice of in this burgeoning industry. In the past year, interest in EV penny stocks has risen dramatically. With Tesla Inc. (TSLA Stock Report) continuing to bring in attention, EV penny stocks are seeing new highs. In addition, the election of Joe Biden as president means that we could see more positivity surrounding electric vehicles in the coming months. For this reason, Aqua Metals could be a penny stock to watch.
Penny Stocks to Watch #3: Camber Energy Inc.
Camber Energy Inc. is one of the more active penny stocks on Thursday. In fact, CEI stock saw its second-highest trading day of the year. Before we go into why let’s take a closer look at Camber Energy. The company operates out of Houston, Texas, and works in the oil and gas industry. This includes the production and exploration of crude oil, natural gas, and natural gas liquids.
On December 24th, Camber announced a 51% acquisition of Viking Energy Group. The agreement, which is worth around $20.1 million, will be paid in a combination. The first part of the agreement involves canceling $9.2 million worth of debt owed by Viking to Camber Energy. In addition, there will be a $10.9 million cash payment to Camber.
James Doris, President of Camber Energy and now Viking Energy Group as well, states that “we are extremely pleased to have closed this transaction. The new deal is an alternative to the previous merger arrangement, and we believe it is even more beneficial to the stakeholders of both Camber and Viking as it allows the entities, individually and collectively, to immediately pursue other value-added opportunities while concurrently addressing the plan to fully combine the two companies.”
With this merger in mind, investors should stay up to date on the other future endeavors that the companies have planned. All things considered, will this be on your list of penny stocks to watch this week?