Should You Buy These Penny Stocks Right Now?
As we turn the corner in January, the second half of the month could be as good for penny stocks as the first half. Although every industry is different, there is an overarching theme of bullish sentiment surrounding these cheap stocks right now. The main reason for this is the speculative nature of stocks under $5. With the increase in news and current events over the past year, speculation seems to be higher than ever. Now usually, the mindset surrounding trading is to pick either a short or long-term strategy. But, with so much volatility in the stock market right now, short term trades could be a better strategy.
Now, in order to use the short term time frame, traders need to be consistently watching their positions as well as the news. This is the best way to stay ahead of the curve when it comes to price movement. In January 2021, Joe Biden’s presidency, the pandemic, and the U.S. economy are all in focus. These factors could change the investor landscape in both the short and long term.
The best way to take advantage of this is to consider how each of these things will affect the overall markets. With the advanced trading tools that are available to all retail investors, finding stocks to watch has never been easier. All things considered, here are 5 hot penny stocks to watch in January 2021.
Top Penny Stocks To Watch Before Next Week
- Transenterix Inc. (NYSE: TRXC)
- Adamis Pharmaceuticals Corp. (NASDAQ: ADMP)
- United States Antimony Corp. (NYSE: UAMY)
- Ashford Hospitality Trust Inc. (NYSE: AHT)
- Sensionics Holdings Inc. (NYSE: SENS)
With an almost 10% gain so far on January 14th, TRXC stock continues to be in focus. In the past month, shares of Transenterix are up by over 240%. This is a very large gain and something that should be taken with a grain of salt. On one hand, gains like these are somewhat unsustainable. On the other hand, it is quite encouraging for penny stock investors.
The company operates as a biotech firm specializing in producing tools used in minimally invasive surgery. Its specialty is in the field of digital laparoscopy. It utilizes robotics, and AR/ AI, to improve upon the shortcomings of certain surgical procedures. The company’s flagship product known as the Senhance Surgical System utilizes the company’s own Intelligent Surgical Unit in order to perform robotic surgery.
On Tuesday, January 12th, the company announced that it had entered into a securities purchase agreement for a registered direct offering of 25 million common shares. This week the company formally closed on the $31.25 million raise. These proceeds will go toward working capital and general corporate purposes, as well as on the research and development of new products.
With the raise done and cash coming in, TransEnterix could have what it needs to move forward with its strategy. This big question is can momentum continue or will dilution risk become a factor?
Adamis Pharmaceuticals Corp.
Adamis Pharmaceuticals Corp. is a company that we have covered several times in the past few weeks. With the rise in interest surrounding biotech companies, ADMP stock is greatly in focus. Adamis states that its focus is on producing pharmaceuticals for use with allergies and specific respiratory illnesses.
Because of the pandemic, investors are focusing on biopharmaceutical companies that are working on this area of the body. Currently, Adamis has a large pipeline of drugs for use with many different ailments. This includes APC-1000, APC-6000, Tadalifil, and its newest addition, Zimhi (high dose naloxone injection). While the company does focus on allergenic and respiratory treatments, its pipeline is much broader.
It includes both drugs that work on overdose treatments as well as hormone replacement and more. This type of broadness is something that is beneficial for investors to consider. Because pharmaceutical companies make revenue purely off of selling drugs, the larger the pipeline, the greater the potential of seeing revenue increases.
Additionally, investors should also consider the length of time it takes to see a drug receive federal approval. Recently, the company received a complete response letter from the FDA stating that Zimhi needs to be resubmitted. The company responded by stating that ZImhi has a lot of potential to save lives given how bad the opioid pandemic has gotten in America. While it works on getting Zimhi approved, is ADMP a penny stock to watch?
United States Antimony Corp.
An example of an interesting mining penny stock is United States Antimony Corp. The company explores and develops various mines that produce silver, gold, antimony, and zeolite among other things. Its primary markets are in the U.S. and Canada and are used in everything from plastics to textiles and more. One of the interesting qualities of UAMY is that it is much more diverse than some other mining companies. This is due to its broad array of market opportunities. The company states that its Zeolite division provides zeolite for use in all types of sewage treatment, environmental cleanup, and filtration needs. This is just one industry that UAMY works in.
Back in November, UAMY announced that it had completed its initial drilling program at the Los Juarez Gold, Silver and Antinomy mine. After a stock placement that occurred back in July, the company quickly began the exploration of this mine. After several months of mining, the company stated that it was able to sample a majority of the land for its mineral qualities.
Currently, investors are waiting to find out the results of the sampling, as they should come out within the near future. The company has stated that mining levels should return to pre-covid levels within the coming months.
Ashford Hospitality Trust Inc.
One of the larger gainers of the day on January 14th is AHT. During trading, shares of AHT stock shot up by around 18% to just shy of $3. Ashford Hospitality Trust offers investors an interesting value point. As a REIT specializing in hotels, AHT stock delinked by around 80% during the early stages of the pandemic. This makes sense given that travel and real estate purchasing was down to low levels.
Since that time, however, travel has begun to pick up again, meaning that Ashford Hospitality could see more business. On one hand, AHT is down from around $27 per share in January of 2020. This means that there may be an opportunity to find a valuable REIT at a very low price.
While the recent price gains could be attributed to short term volatility, it does look like AHT has a lot to offer investors. A few weeks ago, the company announced that had secured a commitment for up to $350 million in corporate funding. CEO of Ashford, J. Robinson Hays, stated that “we’re encouraged b the news regarding vaccines and believe this strategic financing commitment provides substantial capital and ample liquidity for Ashford Trust to capitalize on the upcoming recovery in the hospitality industry.”
Traders should consider the time that it will take in order for the pandemic to lessen in severity. While we are still in early stages of vaccine distribution, the hospitality industry could begin to pick back up. With this in mind, is AHT a penny stock to watch?
One of the companies we’ve been watching since the start of December is Senseonics Holdings. The company’s implantable glucose monitoring systems are used by those suffering from diabetes, via its Eversense product. While it’s coming off of a mixed quarter, the last few weeks have been strong for SENS stock. Shares began spiking toward the end of December after the company was granted a U.S. patent. It was titled “Remotely-powered sensing system with multiple sensing devices”.
The company then reported a business update. This included a boost in forward guidance for 2021 revenue of between $12 million and $15 million. It also included Q4 revenue expectations of $3.5 million. That guidance was $1 million higher than its previous Q4 guidance.
Tim Goodnow, PhD, President and Chief Executive Officer of Senseonics explained, “The inclusion of implantable CGM in the physician fee schedule for 2021 will improve access to Eversense for Medicare patients who are uniquely suited to benefit from the features of the system. Looking forward to 2021, while the US patient population represents a substantial growth opportunity for Senseonics and Ascensia, we ultimately expect OUS revenue to continue to account for over half of total revenue.”