Are These 4 Penny Stocks On Your Watch List?
As we approach the halfway point of February, a lot is going on globally, affecting penny stocks. Before we get into those factors, let’s discuss why penny stocks are so heavily influenced. There are three reasons why this is the case in my opinion. For one, penny stocks are under $5, and this means that they are inherently subjected to more volatility than blue-chip stocks.
This is commonly known among penny stock traders and is something to keep in mind. Second, the past few months in the stock market have been more volatile and speculative than ever before. If we factor in Covid, the economy, political tensions, and everything else that’s gone on in the past year, this makes more sense.
Lastly, we have the newfound influence of retail traders in the market. With platforms like Webull and Robinhood, there are now billions of dollars worth of capital that were likely not there even five years ago. While this access is definitely a positive, retail traders tend to be more sentimental and speculative. Again, this is not a bad thing but simply a factor to keep in mind.
These three things combine to show where the current state of investing in blue-chip and penny stocks is. Once we’ve got that down, now we have to consider how these factor into both short and long-term timeframes. With all of this in consideration, here are four penny stocks that could be worth be worth watching in the short or long term.
Penny Stocks To Watch
- Luokung Technology Corp. (NASDAQ: LKCO)
- NGL Energy Partners LP (NYSE: NGL)
- Onconova Therapeutics Inc. (NASDAQ: ONTX)
- 9 Meters Biopharma Inc. (NASDAQ: NMTR)
Luokung Technology Corp.
Luokung Technology is a penny stock that we’ve discussed quite a few times in the past several months. On Friday, February 12th, shares of the Chinese tech company rocketed higher by midday. The company produces a large range of both drone-related products as well as autonomous vehicles. And while many big gains go without news, Luokung made an exciting announcement only a day ago. On Thursday, the company stated that it would be raising around $15 million in capital through a direct offering of almost 17 million shares. This offering comes after another $5 million capital raising endeavor, that took place only a week prior. In addition to these announcements, the company has been looking for acquire eMapgo Technologies.
This company made a large announcement that it had entered into a partnership with Beijing New Energy Automobile to work on the production of autonomous vehicles. Although this acquisition is not finished, it is an exciting prospect for investors to consider. Luokung has two unique market opportunities as of February 2021.
On the one hand, the company is working to provide drones for potential use in the autonomous shipping of goods. While this technology may seem like a sci-fi novel, it is very much real at this point. Also, the demand for autonomous vehicles is continuing to rise as the tech becomes better and better. So as an innovative company with capital on hand, is LKCO a penny stock to watch?
NGL Energy Partners LP
If you’re looking for an interesting energy penny stock, NGL Energy Partners could be worth watching. The company works in the crude and natural gas industry, providing logistics, storage, and services. While it is not a pure-play energy penny stock, the company operates in the industry’s midstream area. This also qualifies it as an ancillary energy company. One of the benefits of this is that investors can have exposure to the energy sector without the risk of investing in a pure-play oil and gas company. With a substantial gain on February 12th, let’s examine why NGL has seen so much momentum in the past few months. Earlier this week, NGL Energy announced its Q3 fiscal 2021 results. In the results, the company made several exciting announcements. This includes an adjusted EBITDA of $125 million, which is less than the $200 million it reported in Q3 2020.
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Investors should take this decline in EBITDA with a grain of salt. If we consider the pandemic’s effects on energy consumption and production, the decline in EBITDA makes sense. In addition to this, the company announced the successful start of its Poker Lake pipeline. This pipeline alone could produce upwards of 350,000 barrels per day of oil. Mike Krimbill, the CEO of NGL, stated that “Subsequent to the quarters end, we successfully extended our short-term debt maturities and provided the Partnership with improved liquidity and a long term runway with which it can concentrate on deleveraging the balance sheet with an eye towards reinstating both the preferred and common unit distributions.”
Obviously, the company is working hard to beat out any issues regarding Covid on production. And while the short term may affect demand, NGL could be worth watching in the long-term.
Onconova Therapeutics Inc.
Onconova Therapeutics is another penny stock that we’ve been covering for several months. In that time, it has also made some exciting announcements. On February 10th, the company announced the pricing of its $25 million common stock offering. This offering will consist of 25 million common shares at a price of $1 per share. With this funding, Onconova will continue its work on cancer-fighting drugs and the development of rigosertib for Covid-19. The latter of these is one of the main reasons that Onconova is seeing heightened attention. The company is currently in a Phase I study to see if rigosertib can be in use for the treatment of Covid. While this is definitely a reason to keep an eye on ONTX, the company also has an extensive pipeline of other compounds.
These compounds are currently in the various stages of the approval process. This includes a recent New Drug Application that it filed with the FDA for ON 123300 and permission to start a Phase I trial. Steven Fruchtman, CEO of Onconova, stated that “we are grateful to receive this timely, favorable response from the FDA to initiate a Phase I trial with ON 123300. We are advancing the process to secure Institutional Review Board approval, and affirm our expectation that the first patient will be enrolled during the first half of 2021.”
9 Meters Biopharma Inc.
NMTR is another penny stock that has made some significant strides over the course of the past few months. Similar to ONTX, 9 Meters is currently working on a potential treatment for Covid-19. Its compound known as larazotide is a tight junction modulator that has shown positive effects in several lung models of those with Covid-19. A few months ago, it announced that it had entered into an agreement with the European Biomedical Research Institute of Salerno (EBRIS).
The goal of this is to evaluate the efficacy of larazotide in treating respiratory complications from Covid. Alessio Fasano, Presidente of EBRIS, states that “we are delighted to collaborate with the 9 Meters team in order to secure larazotide and investigate its safety and tolerability in a formulation suitable for lung delivery, which will ultimately advance our goal of testing this novel tight junction modulator in patients with SARS-CoV-2 infection.”
Because it is involved in Covid related research, NMTR stock has seen heightened popularity in the past few months. Obviously, this does make it more volatile than a biotech company that isn’t involved in treating Covid. Most likely, it will take a good deal of time before results are released from this trial. In the meantime, however, the company has several other compounds in its pipeline. These compounds are in the various stages of approval. And with several fundraising rounds in the past few months, NMTR is working hard to expedite these processes.