Should These Penny Stocks Be On Your Watch List?
With Gamestop Corp (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC) still at the top of mind, investors are searching for the best penny stocks to watch. While blue-chip stocks don’t usually post triple or even quadruple-digit percentage gains in a short time frame, penny stocks are well-known for doing so.
One thing to keep in mind is that the same thing can happen in the opposite direction shortly after a big bull run. While a lot depends on one’s own strategy, it also takes some creative thinking to find the best penny stocks to buy. One thing that has changed in the past few months is the power that retail investors have.
While the Gamestop fiasco may have been short-lived, symbolically, it illustrated that the little guys have a chance at swaying the market. With this has also come a heightened degree of speculation in the stock market. So, as the dust settles with these select blue-chip stocks, now could be the time to find some penny stocks of interest.
Penny Stocks to Watch
- Senseonics Holdings Inc. (NYSEAMERICAN: SENS)
- Marin Software Inc. (NASDAQ: MRIN)
- Sos Ltd. ADR (NYSE: SOS)
- SuperCom Ltd. (NASDAQ: SPCB)
Senseonics Holdings Inc.
Up 12% at midday is Senseonics Holdings Inc. We’ve discussed SENS stock several times in the past few months. During that time, we’ve seen several days of double-digit gains for SENS stock. For some context, Senseonics is a medical technology company with a focus on diabetes-related devices. This includes the production of glucose monitoring devices as well as tracking related software. In its product pipeline are devices such as the CGM Systems, Eversense, and Eversense XL. These devices are produced to ease daily life and glucose monitoring in those who have diabetes. A few weeks ago, the company announced the closing of an exciting $115 million bought deal offering. This deal consists of roughly 60 million common shares, sold at $1.925 per share.
During its third quarter of 2020, SENS brought in roughly $767,000 in sales. While this is not much, the company is still working on the commercialization of its products. This is quite common for biotech companies, as revenue will usually be quite low for a period of time prior to widespread adoption. In addition, fundraising methods like these are well-known for biotech companies, as it allows for short term growth and a boost on balance sheets. Whether or not this makes SENS a penny stock to watch is up to you.
Marin Software Inc.
Another big daily gainer so far is MRIN stock. By midday on February 5th, shares of MRIN stock shot up by around 18% to $2.77 per share. Marin Software has risen greatly in popularity in the past few months. This is due to a variety of reasons. As an advertising and marketing software company, Marin provides a large range of services to businesses around the U.S.
This includes its MarinOne software, which is an e-commerce, search, and social platform for advertisers. The company works directly with customers to offer ad services pertaining to Facebook, Instagram, Twitter and more. During the pandemic, e-commerce sales have shot up dramatically. Because of this, advertising budgets have also pushed up substantially.
Additionally, the company has been working with Amazon Attribution to offer advertisers an easy online sales solution. A few months ago, the company announced its Q3 2020 financial results for the period ending on September 30th. In the results, CEO Chris Lien stated that “the increase in online commerce that has been generally observed since the beginning of the Covid-19 pandemic combined with the upcoming Q4 retail season both highlight the importance of Amazon as part of a digital marketing strategy. Marin’s integration with Amazon Attribution unlocks what is currently a black box for many advertisers and helps them better understand the full value of their Google and Facebook investment.”
Sos Ltd. is another penny stock that we’ve been covering for quite some time. Up 13% for the day so far on February 5th, shares of SOS stock have risen by nearly 160% since mid-September. Sos Ltd. is a company that provides marketing data, technology, and solutions for the emergency services industry. This includes medical rescue, car rescue, and more. Its product pipeline includes a large range of software for insurance companies, financial institutions, healthcare providers, and more. The company also offers cloud computing services and works in crypto mining/big data. As you can see, Sos Ltd. has quite a broad market that it operates in. And its broadness is one of the reasons that some investors consider it a penny stock to watch.
While many big gains go without news, Sos Ltd. made an exciting announcement on February 5th. Before trading, Sos stated that it has entered into a framework agreement with the Leibodong Hydropower Station in Sichuan. The goal is for Sos Ltd. to receive hydropower and electricity for a large crypto mining and big data center. The Chairman of Sos, Yandai Wang, stated that “one of the key success factors for cloud crypto mining is to secure cheap power in regions with rich renewable energy resources. Southwest China, such as Sichuan province, is one of such regions. Sos will continue to search for cheap and sustainable electricity to execute its aspiring cloud crypto mining strategy.”
The biggest gainer of the day on this list is SuperCom Ltd. By midday, shares of SPCB stock were up by around 28% to $1.80. SuperCom is a provider of both traditional and digital security solutions. This means that it provides identification and security products to a large range of customers around the world. This includes governments, organizations, and other private and public entities. SuperCom offers a proprietary software known as e-Government, which allows for advanced biometrics and personalization services. These services are used in everything from identification tracking to border protection and more. On Thursday, February 4th, the company announced the closing of a $7 million financing deal.
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This deal consists of a two year, unsecured, subordinated promissory note to an institutional investor. Arie Trabelsi, CEO of SuperCom, stated that “we are pleased to have secured this capital, which will support our emphasis on expected growth in the future. Numerous wins in government tenders displacing our competition, proprietary technology introducing new abilities and superior performance, a growing need of nations to utilize electronic monitoring and cybersecurity technology.”
With the pandemic hopefully slowing down in severity, security needs may begin to increase. While SPCB stock can be quite volatile, it does look like the company has a planned and public trajectory for investors to look at.