4 Names For Your List Of Penny Stocks to Watch Before Next Week
As the year gets off to an interesting start, there continues to be a great deal of bullish sentiment surrounding penny stocks. January 7th posed yet another bullish day of trading with only seven days behind us in 2021 thus far. Now, we should keep in mind that not all penny stocks are going to be winners. But research can help you find the best penny stocks to trade. Ask any trader what their number one piece of advice is and they’ll probably tell you its research. This involves research into the current events that are going on as well as with individual companies that traders are interested in.
Right now, there are several aspects that are affecting the prices of many penny stocks. The first and most obvious of those is COVID. Now, we can break the COVID niche down into a few categories as far as traders are concerned. First, we have the front-line companies such as vaccine producers. Next, there are ancillary companies benefiting from COVID such as those working in digital communications and tech.
Lastly, we have the penny stocks that could bounce back as the pandemic begins to subside. This could be anything from renewable energy penny stocks to electric vehicle companies and more. The example of covid is just one of several factors that are going on right now. As prudent investors, now is the time to take the opportunity to figure out how certain events will play out in the stock market. With all of that in mind, here are four penny stocks that investors are talking about.
Penny Stocks to Watch For January 2021
- Centennial Resource Development Inc. (CDEV Stock Report)
- Foresight Autonomous Holdings (FRSX Stock Report)
- Orbital Energy Group Inc. (OEG Stock Report)
- Novan Inc. (NOVN Stock Report)
Penny Stocks to Watch: Centennial Resource Development Inc.
Centennial Resource Development Inc. saw its shares push up by around 16% by end of day on January 7th. While no news came out that was specific to CDEV, the industry it works in trended higher for the majority of the day. Centennial Resource Development is an independent oil and natural gas company.
It states that its assets are in the Delaware Basin, which includes West Texas and parts of New Mexico. As an energy company, CDEV has a lot that it could benefit from in the coming months. With a vaccine currently in distribution, it will definitely take some time before things return to normal. But, leading up to the end of the pandemic could see an increased demand for energy.
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As people begin to travel by car and plane once again, investors believe that the demand for energy will rise steeply. Now this could take place across a long period of time, but there’s no doubt that oil and gas will be in need. As of January 2021, the energy industry is still down from its pre-covid highs. With that comes the potential to find companies like CDEV that could have bullish momentum left. In the past six months, shares of CDEV stock are up by over 134%. As the pandemic begins to lessen, the hopes are energy companies benefit. Will Centennial be on that list of penny stocks?
Penny Stocks to Watch: Foresight Autonomous Holdings
Foresight Autonomous Holdings is a penny stock that we have been covering for several months. The company operates as a tech business specializing in the development and design of sensor systems for automobiles. This includes LiDAR sensors as well as advanced algorithms for detecting accidents before they happen.
This type of technology is increasingly becoming commonplace in new automobiles. With driver safety in mind, FRSX has become a big name in the world of both in line of sight and beyond the line of sight programs. One of the aspects that offer FRSX a lot of potential is its cost-effectiveness. If an auto manufacturer was to produce similar technology, it would take months of R&D and a lot of capital. Obviously, this is not cost-effective.
Foresight Autonomous Holdings has worked to make its products extremely cost-efficient and beneficial in areas where it is needed. The company states that its products are aimed at the Advanced Driver Assistance Systems or ADAS market. With autonomous driving becoming very popular with companies like Tesla Inc. (TSLA Stock Report), products like Foresight’s are also seeing heightened attention.
On December 28th, Foresight announced a $26 million registered direct offering. With this, the company should be able to maximize its balance sheet and fund general corporate expenses. As an exciting tech company, Foresight continues attracting new investors to its business model.
Penny Stocks to Watch: Orbital Energy Group Inc.
Orbital Energy Group Inc. is another penny stock that has been on our radar for a few months. On Thursday, January 7th, shares of OEG stock shot up by around 33% to end the day. Since July, shares of OEG stock are up by a staggering 365%. It’s important to keep in mind that a large portion fo the energy industry has grown in that time period. This is due to the various milestones we’ve reached in combatting covid. Additionally, investors should note that OEG stock is quite volatile. With this in mind, let’s take a look at why investors are talking about Orbital Energy. Instead of operating as an energy company directly, Orbital Energy owns several subsidiaries that operate throughout the industry.
This includes Orbital Gas Systems Inc., Orbital Power Services, and Orbital Solar Systems among others. These companies work by providing solutions to the various needs of the energy industry. This could be anything from gas sampling to construction and emergency response solutions. As you can see, Orbital Energy is quite broad in its business model.
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On December 31st, the company announced that it had entered into an agreement with institutional investors to raise around $10 million. This deal, which involves OEG selling around 5.55 million shares of common stock, should help to increase its balance sheet. Additionally, the money will go to further research and development as well as general corporate purposes. Investors should keep an eye out for OEG’s next quarterly report to see where this fundraising fits in. All things considered, OEG could be one of the penny stocks to watch as energy remains a focus in the market.
Penny Stocks to Watch: Novan Inc.
Novan Inc. is different than all of the other penny stocks on this list. As a biotech company, Novan Inc. is currently working on developing new substances for use in the fight against COVID. The company states that it is a clinical development-stage biotech company utilizing its advanced platform known as Nitricil. This nitric oxide-based tech platform allows for the treatment of a wide variety of illnesses.
This includes those found in general health, dermatology, gastroenterology and infectious diseases. Currently, the company states that its lead product is known as SB206. This is an antiviral substance used in treating molluscum contagiosum. A few weeks ago, the company announced that it engaged the company Catalent, to help with the development of Berdazimer Sodim for Covid-19. For some context, Catalent works as a provider of drug delivery technologies including those used in biologics and gene therapies.
Paula Brown Stafford, CEO of Novan states that “we are pleased to be working with Catalent, and to benefit from its expertise in drug development and manufacturing, which is of particular interest to us in our Covid-19 program. We look forward to advancing into preclinical IND-enabling studies and taking another step toward unlocking the potential of our proprietary nitric-oxide based medicines.”
