Today, the stock market is back in a bull mode as the Dow, S&P, and Nasdaq are all pointing toward a higher morning session. Of course, after a bit of a drought over the last few days, traders are now seeking opportunities, and penny stocks could be one area of focus. Something to keep in mind is what I’m about to tell you next. While penny stocks tend to trade on their own accord, sometimes disconnected from the broader market, sector and industry trends can prevail.
Case in point, Friday, tech stocks are helping push the market early on. With this, we can see that several tech penny stocks are making a move higher. While this could set the tone for the market, in general, it’s also worth checking other trends – call them micro-trends. These are niches within the industries that have gotten a lot more attention recently. You’ve also got to think about the biotech angle in the market. Though benchmark ETFs like the Nasdaq Biotech (IBB) have pulled back, advancements continue being made. This includes companies not only focusing on vaccine development but treatments & devices for other indications as well.
I’m talking about things like “green energy technology” and “electric vehicle stocks,” for instance. The Biden administration has made it known that it wants to lay the groundwork for a green energy future. So technology related to this is likely a hot topic for plenty of traders. Looking at the bigger picture, the stimulus is still in the spotlight.
The House is planning to pass its version of Biden’s $1.9 trillion coronavirus relief blueprint by the end of the month. In an interview with CNBC, Treasury Secretary Yellen explained that “The price of doing too little is much higher than the price of doing something big…We think that the benefits will far outweigh the costs in the longer run.”
What Are The Best Penny Stocks To Watch Right Now?
This brings us to the topic of the day. What are the best penny stocks to watch or buy right now?
- Tesoro Enterprises, Inc. (OTC: TSNP)
- 9F Inc. (NASDAQ: JFU)
- United States Antimony (NYSE: UAMY)
- ObsEva SA (NASDAQ: OBSV)
- Bellus Health (NASDAQ: BLU)
Tech Penny Stocks To Buy [or avoid]: Tesoro Enterprises, Inc.
We rarely cover many OTC penny stocks for the simple fact that there are any outside catalysts at play in many instances. With the obvious draw to cheap stocks on Reddit, Facebook, TikTok, and other social media, the “hype factor” has recently played a big role. That hype can also include manipulation because OTC penny stocks don’t have to follow the same standard reporting practices as other listed companies on the Nasdaq or NYSE. Needless to say, you do have some companies that continue drawing attention, and Tesoro Enterprises is one of them.
The biggest point of interest for traders has been on the company’s deal with HUMBL, Inc., of which the company will also change its name once a transaction is completed. HUMBL falls under the market’s fintech category, and as we know, it’s been a red hot sector so far. HUMBL connects consumers and merchants in the digital economy via its core product lines HUMBL ® Mobile App, HUMBL Marketplace, and HUMBL Financial.
This month the company launched its BLOCK ETX products in over 100 countries. It allows retail investors “one-click” software services on new digital asset trading markets. It allows customers to purchase and hold these digital assets in pre-set allocations through their own exchange accounts. With the rise of things like digital currency, for instance, this area of fintech is still fresh and, in turn, has gained a lot of speculative interest in the market. After pulling back from its highs of $1.93 earlier in February, Friday seems to have marked a turn-around (so far) as TSNP stock has gone green for the first time in weeks. Will this move last?
Another fintech company that has been discussed frequently is 9F Inc. It has also gained attention from the bitcoin and blockchain stock trading community. The company’s Superbrain platform uses AI, cloud, and blockchain technologies to provide financial institutions and merchants with customizable modular packages. In particular, 9F specializes in technology geared toward the finance industry, which has recently gone through some rebranding.
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9F recently changed its online stock brokerage service to Fuyuan Securities. This is a licensed brokerage in Hong Kong that gives access to offshore investment products. This allows investors to gain access to stock trading in places like Hong Kong and the U.S.
The company has also attracted interest from larger investors this month. In a 13G filed 9 days ago, Lei Sun showed a 31.2% stake in Class A ordinary shares. So with increased buying like this and a surge in blockchain tech/fintech, JFU could remain one of the penny stocks to watch this month. Keep in mind that JFU has been in a massive upswing recently, so there could be a risk of a pullback as well. Keep this in mind if JFU is on your watch list right now.
United States Antimony
This isn’t as much of a pureplay tech stock as it is one that’s part of a broader ecosystem. Yes, US Antimony is a mining company but what it mines plays a big role in the emerging green energy trend. We touched on this company numerous times in the past. For most of this week, shares were halted pending news. Late Thursday evening, the company finally released this news showing that it had received a warning letter from the NYSE.
The Exchange warned that the company sold shares of its stock in a manner that violated certain sections of its Company Guide. These were related to 2 transactions involving the sale of just over 26 million shares involving the same group in a very short timespan.
Regardless of this letter, once shares resumed trading on Friday, UAMY stock took off to highs of $2.56 with a surge of trading momentum. The clear interest in companies with exposure to things like rare earths and EV battery components has shifted interest in the market to companies like US Antimony. The company mines everything from precious metals to antimony & zeolite. In particular, zeolite has been a center of attention for alternative battery metals. It’s been studied by companies like General Motors (GM) in addition to electrolyte additives.
Concerning the capital-raising efforts, the company announced the raise of over $140 million to put toward infrastructure improvements at its Mexico & Montana antimony installations and its Idaho zeolite operation, among other things.
Biotech Penny Stocks To Buy [or avoid]: ObsEva SA
ObsEva has been one of the companies we’ve discussed starting in January of this year. At the time, the company gave an update on the clinical program surrounding its Yselty (Linzagolix) treatment. The late-stage drug is on the road to commercialization and the company plans on submitting its New Drug Application in the US during the first half of this year
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In its business outlook published this month, ObsEva’s CEO Brian O’Callaghan explained key initiatives of the company. Of particular interest, he said, “Recent M&A and partnering activity in the women’s reproductive health and prostate cancer landscape underscores the potential of these currently underserved patient populations as well as the importance of retaining, rather than relinquishing, the inherent value of our assets. As we approach multiple catalysts in 2021, we will continue to seek opportunities and partnerships that preserve our control and maximize the value of our pipeline candidates.”
Wedbush, H.C. Wainwright, and SVB Leerink all gave updated price targets and Buy ratings on the company this year. Wedbush’s $28 target is the highest, with SVB Leerink’s being the lowest at $5. Given the company’s latest outlook and current analyst ratings, will OBSV be one of the biotech penny stocks to watch this month?
We’ve covered Bellus ever since it became a penny stock last year. The company’s shares plummeted after the company released bad data in one of its trials. Bellus’ BLU-5937 is being developed for refractory chronic cough and is currently dosing in a Phase 2b trial. This is the same treatment that ended up taking the stock lower last year following an update. Knowing this, it will be interesting to see how the second time around ends up.
Institutional interest has been building in the company this month. A series of 13Gs came out showing positions from RTW Investments, Fonds de solidarité des travailleurs du Québec, Point72 Asset Management, Polar Capital Holdings, and Invus Public Equities.
You’ve also got analysts getting behind the stock as Bellus heads into these trials. Late last month, the Royal Bank of Canada initiated coverage with an Outperform rating on the stock as well as an $8 price target. RBC joins other bullish analysts like Evercore ISI, which has an Outperform on the stock and a $12 target. Given the progress made since 2020’s big breakdown, BLU could be one of the biotech penny stocks to watch.