Should Investors Get Bullish On Penny Stocks For 2021?
With the last day of the year comes a new opportunity to find penny stocks. While we may be able to write off 2020, 2021 could be a year that is filled with a lot of potential. Of course, the pandemic won’t just end at midnight, but there are several factors in our favor for the new year. With vaccines being distributed around the world, it looks like the Covid pandemic could soon begin to lessen in severity.
If this occurs, the hopes are that the economy in the U.S. could swiftly recover. In addition, the election of Joe Biden as President means that there are several industries that could receive a boost as wll. Biden has pledged to bring the U.S. closer to renewable energy dependency, for example.
This means that EV penny stocks and alternative energy penny stocks, could both become a bigger focus. In addition to this, there is still a large focus on biotech stocks and biopharmaceutical companies. Now, within all of these industries, investors still need to be critical of a given company. This means putting in the time to do the research and figuring out everything one can about a given company. But, with the right information by our side, coming up with a list of penny stocks to watch can be a less challenging task. All things considered, here are three penny stocks to watch that are garnering a lot of attention.
- Check Cap Ltd. (CHEK Stock Report)
- ZK International Group Co Ltd. (ZKIN Stock Report)
- Gevo Inc. (GEVO Stock Report)
Penny Stocks to Watch: Check Cap Ltd.
Check-Cap Ltd. is a clinical state biotech company working in the field of medical diagnostics. This includes a heavy focus on colorectal cancer screening and prevention. It does this with its first of its kind C-Scan technology. This tech can detect polyps in the body with little to no preparation from the patient. In addition, this technology can create a 3D map of the colon by utilizing an x-ray capsule and integrated positioning methods.
On November 18th, Check-Cap reported its Q3 2020 financial results for the period ending on September 30th. In the report, the company also updated several exciting announcements for the new quarter. In terms of financials, the company reported an operating loss of around $3.6 million which is $100,000 more than Q3 2019. Additionally, the company ended the quarter with a very comfortable $21.7 million in the bank.
In regard to its C-Scan tech, Alex Ovadia, CEO of the company stated that “the Check-Cap team remains later focused on the Company’s goal of advancing C-Scan towards final clinical stages and market acceptance as a patient-friendly colorectal cancer screening option for the detection of pre-cancerous polyps before they may transform into cancer. There is a great unmet need for a patient-friendly screening option that can help detect polyps before they may turn into cancer and prevent this disease.”
With this new technology in its pipeline, is Check-Cap Ltd. a penny stock to watch heading into 2021?
Penny Stocks to Watch: ZK International Group Co Ltd.
ZK International Group Co Ltd. is a China-based company working on supplying stainless and carbon steel pipe products. These products are used in everything from water to gas projects and more. As of the end of the year, the company states that it holds 33 patents, 21 trademarks, and several industry-leading awards. For some context, ZK International has supplied raw materials for everything from the Beijing Airport to the various projects utilized in the Olympics.
In addition to providing China with these materials, the company also supplies Europe and other parts of Asia with steel. At the end of November, the company announced that its subsidiary, xSigma Corp., is embarking on a decentralized finance project or DeFi. The goal with this is to research the various aspects of blockchain infrastructure. In addition, it will work to see how it can be utilized in a large scale way.
The company states that its unified DeFi project could be the first one of its kind to work off a mass adoption principle. The company also states that its projects ill include a stable cryptocurrency coin exchange as well as high liquidity and functionality for users. The team behind the project includes engineers from Facebook, Harvard, and more. Obviously, blockchain is a relatively new technology that has seen globalization in the past five years. But, with the increasing price of bitcoin, it seems as though blockchain is finding a newfound sense of popularity.
Penny Stocks to Watch: Gevo Inc.
Gevo Inc. is one of the bigger gainers of the day so far on December 31st. During the trading day, shares of GEVO were up by as much as 12.5%. So why the big jump on the day before 2021? Well, the company announced a day prior that it could be issuing and selling around $150 million worth of new common stock. After announcing its 8-K filing, shares of GEVO stock took quite a big dip. This seemed to be driven by investor fear about share dilution and other factors that come into play with new issued shares. But, this still doesn’t explain its big gain today.
Rather, with its convertible debt now in place, the company is showing zero debt on its books with a balance sheet of around $80 million in cash. This is quite a lot as you can see, and shows that Gevo could be in a cash strong position for the new year. If we consider Gevo, which is a relatively young company, we see that there is a strong need for cash.
This cash could be utilized in development projects moving forward. Of course, the issue of share dilution is on the table, but it is not a huge concern right now. Rather, it seems as though Gevo has put itself into a very strong position. This means that it could grow its business in the coming years. Considering the push behind alternative energy stocks, will GEVO make the popular list of stocks to watch next year?