Are These On Your Penny Stocks List?
With so much momentum every day for penny stocks, traders are always looking for the most valuable short and long term prospects. Because the term penny stocks means any security under $5, there are plenty of choices. But, just because there are a lot of choices doesn’t mean that all are valuable. To find the ones that are, traders need to have a strategy at hand and do the proper research. Before making a watchlist, you should identify what type of trader you are. If you’re looking to day trade or hold positions for short periods of time, certain penny stocks may be better suited to your portfolio than others, obviously.
However, if you’re looking for penny stocks to invest in, with long-term potential, there are also solid options to consider but won’t likely be the same ones day traders are initially looking at. Either way, the best chance at meeting your investment goals comes from knowing what they are in the first place. The next step is to identify where potential value could be in the industry.
This means creating a broad list of penny stocks of interest and then filtering down based on financials, growth potential, and how much innovation is occurring. Once you’ve got all this down, it’s time to pick the best choices of the bunch. One thing to keep in mind is that any penny stock will have higher volatility than standard, blue-chip stocks. This is simply something that comes with the territory. So with all of this in mind, here are some penny stocks to watch right now.
Penny Stocks to Watch
- Novan Inc. (NASDAQ: NOVN)
- Castor Maritime Inc. (NASDAQ: CTRM)
- PAVmed Inc. (NASDAQ: PAVM)
Novan Inc.
Novan Inc. is a penny stock that we’ve been covering for several months now. Since December, shares of NOVN stock are up by almost 300%. The company is a clinical-stage biotech company working on several nitric-oxide-based compounds for those who don’t know. These compounds are used in the treatment of both dermatological and oncovirus-mediated diseases.
In its pipeline is an extensive range of substances that are in the various stages of approval. This includes SB208, SB414, and SB207, which are used to treat acne, skin infections, and inflammatory skin diseases. The company has recently sought to identify potential in its Nitricil platform to have an antiviral effect against Covid-19. The studies are working on testing whether or not Nitricil, when inhaled, can be a fervent enemy against contracting the virus. This is a big deal for the company, as it puts it in the category of Covid-19 penny stocks.
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More recently, Novan Inc. has been working on a Phase 3 trial for SB206 to test its efficacy in treating molluscum contagiosum. The trial, known as the B-SIMPLE4 study, will consist of almost 900 patients across 55 clinical sites in the U.S. John Browning, a principle investigator in the study, stated that “we are excited about the response from patients for this study and to have completed enrollment, amidst a challenging time with the current coronavirus pandemic, I believe SB206 has the potential to be an important choice in the treatment landscape of molluscum, which affects millions of people each year.”
Castor Maritime Inc.
Castor Maritime is another interesting penny stock that is working in a unique industry. The company is a provider of ocean transportation services globally. This includes the transport of dry goods such as iron ore, coal, grains, steel, and a slew of others. This means that Castor Maritime has seen a consistent demand for its services over the past year. Obviously, CTRM was affected by the pandemic, but it seems as though it was less so than other, similar companies.
On February 11th, shares of CTRM shot up in the high double digits during trading after an acquisition-related announcement. During pre-market on the 11th, the company announced that it has agreed to purchase two large tankers for a total price of $27.2 million. Each of these ships should provide Castor Maritime with a minimum gross daily hire rate of $15,000.
Upon announcing this, CEO of Castor, Petros Panadiotidis, stated that “we are a company that aims to take advantage of attractive opportunities presented to us, as the shipping cycles evolve. Therefore, we are very excited to be entering the tanker market, at what we believe is an opportune time for this sector. In addition, we believe that the diversification of our fleet across the dry bulk and tanker sector provides us with a natural hedge against the cyclicality of the shipping industry.”
The last part of this quote is quite important. Diversification is essential in almost any industry. While it may take some time to see the full benefits of this acquisition, it is definitely a step in the right direction.
PAVmed Inc.
PAVmed produces medical devices that treat a wide variety of ailments. This includes CarpX, which treats carpal tunnel syndrome, and DisappEAR, which acts as a hearing tube. The company aims to capitalize on various unmet needs in the medical industry. What makes PAVmed different than others is its wide breadth of products in the medical device industry. The company works by identifying these areas and finding ways in which to improve or recreate current solutions. In the past few months, it looks like PAVmed has been working on raising capital to help further its operations.
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This includes the closing of a $13.4 million common stock registered offering that took place in early January. Only a month prior, the company closed on another $8.1 million common stock, direct offering. With this newfound capital, the company is looking to direct a portion of it toward repaying certain outstanding notes. In 2 weeks the company hosts a business update call. There will obviously be an overview of its near-term milestones and growth strategy. In addition, CFO, Dennis McGrath, will discuss fourth quarter 2020 financial results.
