What Do These 4 Penny Stocks to Watch Have to Offer in 2021?
As 2021 is upon us, there are plenty of penny stocks to watch. With a new year comes the potential for several areas of the stock market to see heightened popularity. While trading on January 4th got off to a good start early on, by midday, many stocks were trending down. Despite this, we did see large gains with some leading penny stocks. There are several factors that are currently affecting the price of certain stocks. For one, the runoff senate race in the U.S. could be a big driver of what happens in the coming years. In addition, President-elect Joe Biden will soon be sworn in as President of the U.S. In 2021, we also have to consider the lingering effects of the COVID pandemic.
While vaccines are being distributed around the world, in the meantime case numbers are still rising dramatically. In the stock market, this has put a large focus on biotech penny stocks. This year could be one of great growth compared to 2020 and there’s no doubt that it will take some time to return to normalcy. But, we continue seeing stronger bullish sentiment backing the stock market, regardless of short-term bearish trading. With all of this in mind, let’s take a look at a few penny stocks that have grown in popularity recently.
Top Penny Stocks to Watch
- Havn Life Sciences Inc. (HAVLF Stock Report)
- MannKind Corp. (MNKD Stock Report)
- Qutoutiao Inc. (QTT Stock Report)
- China SXT Pharmaceuticals Inc. (SXTC Stock Report)
Top Penny Stocks To Watch: Havn Life Sciences Inc.
Havn Life Sciences has been one of the top mushroom penny stocks or psychedelic stocks to watch over the last few months. Shares of HAVLF jumped from around 60 cents in early December to highs of $1.25 during the month. The sheer level of hype behind the boom in psychedelic stocks is undeniable right now. What began as a fringe idea with a handful of companies going public had gasoline poured onto it once Peter Thiel-backed Compass Pathways (CMPS Stock Report) went public on a major exchange last year.
Now the attention is on what companies plan to do next in order to secure strong footing in the market. One of the angles taken is beefed up leadership and experienced advisors. In this case, the executive chairman of Havn has also built a name in both emerging markets like cannabis, early on, as well as nutraceuticals. Vic Neufeld, former CEO of Aphria, which was one of the frontrunners of the early cannabis boom sits in this position. His track record speaks for itself in my opinion. But what’s more to consider when looking at mushroom stocks is the path being laid out to actually start making money.
Havn, of course, focuses on the biotech angle of psychedelics. But it has also put forth a retail/nutraceutical initiative to capitalize on the growing interest in mushrooms as a health product. Havn’s “Havn Retail” is executing its business plan for nutraceutical products and has developed seven natural healthcare products that are set to launch this quarter. This includes the launch of its e-commerce platform. Furthermore, Nesters Market retail chain will list and promote the full range of Havn Life’s natural health supplements across its stores in British Columbia as well.
Top Penny Stocks to Watch: MannKind Corp.
MannKind Corp. is a biopharmaceutical company based in the U.S. On January 4th, shares of MNKD stock rose by around 4% during intraday trading. Currently, MannKind is working on several novel treatments for everything from diabetes to hypertension. The company’s flagship product known as Afrezza, is an inhalable insulin that can help individuals to treat diabetes on a daily basis. Last month, MannKind announced that it had acquired QrumPharma Inc. QrumPharma is a company working on developing treatments for various pulmonary infections. This includes treatments for Nontuberculous Mycobacterial lung disease or NTM.
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Michael Castagna, CEO of MannKind states that “we have focused on building a stronger pipeline to treat unmet needs for orphan lung diseases, an area where we can leverage our experience and technology to create differentiated therapeutic products. This acquisition brings us a lead program that is expected to enter Phase 1 In late 2021.” Acquisitions like these are quite popular in the biopharmaceutical industry. This is because they allow both larger and smaller companies to grow simultaneously.
In addition, this deal should give MannKind access to a larger portfolio of products that it can then market and distribute. The goal with this is for MannKind to be able to strengthen its entire portfolio of pharmaceuticals that it offers. One thing to keep in mind is that this deal may take time to show profitability. But, in the meantime, MNKD could be one of the penny stocks to watch.
Top Penny Stocks to Watch: Qutoutiao Inc.
Qutoutiao Inc. is one of the larger gainers of the day on January 4th. By intraday, shares of QTT stock were up by as much as 25% to $2 per share. For some context, QTT works as a mobile platform operator. This includes the distribution and sharing of digital content. Qutoutiao states that it also operates the platform known as Midu Novels. This is a free application that allows its users to have access to literature on the go.
The app utilizes advertising in order to support its content. Based in China, Qutoutiao has become synonymous with the digital market and application industry. A few weeks ago, QTT reported its Q3 earnings report for the period ending on September 30th. In the report, QTT states that it’s EPS grew by around 70% year over year. While revenue delved by 15% or so to $166,400,000, this can mostly be attributed to the effects of covid on all businesses.
While the revenue aspect of this report is slightly disheartening, it’s EPS growth should be more in focus. This is quite a large jump, and especially so considering the size of the company. Qutoutiao states that its revenue is driven completely by both advertising and marketing services. These services are offered on their wide variety of content aggregation platforms. In the past 12 months, shares of QTT stock have dropped by around 50%. But, in the past week, shares are up by over 23%. Of course, QTT stock is quite volatile which is illustrated by its 25% gain on January 4th. But, as a tech company, investors could consider QTT stock one to watch.
Top Penny Stocks to Watch: China SXT Pharmaceuticals Inc.
China SXT Pharmaceuticals Inc. is as its name suggests, a pharmaceutical company based in China. The company states that it “engages in the research, development and commercialization of various traditional Chinese medicine products”. This includes a long list of products that are provided under its three brands. These are Suxuantang, Hui Chun Tang, and Tong Ran Tang. At the end of last year, SXTC states that it sold to more than 116 pharmaceutical companies, 56 individual pharmacies, and almost 80 hospitals. One thing to keep in mind is that SXTC is a relatively small company.
With a market cap of around $28 million as of January 4th, China SXT Pharmaceuticals is not necessarily competing with the larger companies. But this has been a major benefit to SXTC as its competition in the traditional Chinese medicine market is relatively low. In addition, the company receives a great deal of funding from the Chinese Government, which allows it to grow quickly and research/develop new medicines simultaneously.
With increased Covid cases around the world and in China, SXTC has seen heightened popularity in the past year or so. On January 4th, shares of SXTC stock shot up by a solid 15% intraday. Since September, shares are up by over 65%. While SXTC stock is quite volatile due to its size, it could be one of the penny stocks to watch heading into the early part of the month in light of this recent volume surge.