3 Penny Stocks to Watch in 2021
Throughout 2020 there have been several tailwinds, pushing penny stocks. This includes the COVID pandemic, stimulus talks, economic recovery, and now, the hopes for vaccine distribution. All of these factors have either adversely or positively impacted a large range of companies. But, with a new year on the horizon, there are additional factors that investors need to pay attention to.
The election of Joe Biden means that several areas of the stock market could see more positive sentiment. This includes cannabis, renewable energy, and even electric vehicle stocks. Investors should always make sure that they are the most informed ones out there. With the information in hand, investors can predict what and how something will affect a given penny stock. The main point here is to do your research. Don’t just dive into a trade without understanding some of the reasons why a stock is moving.
Of course, most stocks under $5 are usually quite volatile which means that predictions can fall short of reality. With only a few days left in 2020, now is the time to begin making penny stock watchlists for the new year. Consider all of the things that could change in 2021, and utilize this information to pick industries of interest. With all of this in mind, let’s take a look at three stocks that popped on December 29th. Will these be top penny stocks to buy or should they be avoided after today?
Penny Stocks to Buy [or avoid]: SuperCom Ltd.
SuperCom Ltd. (SPCB Stock Report) is considered to be a security company working globally to provide digital and traditional security services. The company states that it provides safety, identification, and security tools to markets for governments and organizations around the world. On December 9th, SuperCom Ltd. stated that it has secured a contract in the Southeast U.S. This contract pertains to its PureTrace GPS smartphone product which is popular amongst a large range of government bodies in the U.S. This product utilizes biometrics, voice communication, and secure messaging to provide a novel security suite for various agencies to utilize.
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Ordan Trabelsi, President of the Americas market for SuperCom, states that “the PureTrack smartphone’s flexibility and robustness continue to allow us to pursue and win across the full spectrum of the offender monitoring market. Regarding this recent announcement, the PureTrack GPS smartphone solution addressed the concerns of work release programs throughout the country. The ability to communicate via voice and txt, as well as the ability to locate and validate offender authorized movements, have wide appeal to programs such as these.”
The security market in the U.S. seems to be an industry with consistent demand. Whether or not this makes it a penny stock to watch remains up to you.
Penny Stocks to Buy [or avoid]: Lightbridge Corporation
Lightbridge Corporation (LTBR Stock Report) has steadily bounced back from its November lows. In fact, since November 2nd, the LTBR stock price has increased over 50% to date. It even saw highs of $4.32 during that period. From a technical perspective, traders should monitor certain levels. One of them is the 200-day moving average, which has been a strong level of resistance all year. This week, LTBR is testing this level again. As of today, the 200DMA sits around $4.06.
Next, traders will want to pay close attention to the company’s next steps in advancing its nuclear fuel technology program. As we know, analysts expect Biden to continue building upon the latest successes that nuclear energy has seen over the last 4 years. In line with this, Lightbridge was recently awarded a patent in Eurasia for its nuclear fuel assemblies. These are made up of multi-lobe fuel rods arranged in a mixed grid pattern. Lightbridge is developing its advanced metallic fuel designed to make both existing and new nuclear power plants more efficient, more cost competitive, and even safer.
Considering the boost that alternative energy stocks have gotten, LTBR could be one to keep in mind. It isn’t the highest volume names on this list. However, with a patent win and potential for nuclear companies during a Biden term, things have already begun heating up following this year’s election.
Penny Stocks to Buy [or avoid]: BioNano Genomics Inc.
BioNano Genomics Inc. (BNGO Stock Report) is another penny stock that pulled in sizable gains on Tuesday. By midday, shares of BNGO stock had risen by around 40% to $1.23. BNGO stock is another penny stock that we have been writing about for weeks. In fact, BNGO stock was written about on Monday, December 28th, prior to today’s meteoric gain. While we can’t predict the future, we can look at the factors that are in play with BNGO stock.
BioNano Genomics works as a biotech firm specializing in genome analysis. What this means is that the company is working on products that utilize AI in order to breakdown the information that lies within the human genome. Its flagship product known as the Saphyr System can help to detect neurodevelopment diseases in patients prior to seeing any symptoms. It does this through a complete mapping of an individual’s gene sequence.
The Saphyr System can be utilized in a large range of lab settings. One thing to keep in mind is that BioNano has seen its revenue decline this year. While this can be attributed to the covid pandemic, investors should watch for revenue and profitability in the future. But, with its groundbreaking technology, it looks like BioNano Genomics could remain a leader in the biotech market. In the past few months, investors have shown a heavy focus on biotech and biopharmaceutical penny stocks. BNGO, in particular, is up more than 200% in December alone. Because BNGO stock is within this category, it has also received a lot of attention. So, is BNGO going to be on your list of penny stocks to buy or avoid heading into 2021?