Are These Penny Stocks Worth Watching Right Now?
Right now, investors see a lot of momentum in penny stocks. While not every day ends in the green, there have been many days in March so far with a large bullish sentiment. The majority of this has to do with the political and economic climate in play night now.
After Fed Chair Jerome Powell gave a speech last night, many investors still fear long-term inflationary effects. This would be a logical result of the trillions in stimulus given out in the past few months. But, Powell continues to state that investors should not fear this, and the next few years could be filled with economic prosperity.
If we look at any major crisis in the past, such as WWII or the Housing Crisis of 2008, we see massive positive economic response years later. While Covid has not lasted as long as these, the economic impact has been quite large. Because of this, many investors expect the economy to come back in full force as vaccines continue to be distributed.
More than 20% of the U.S. population has received a vaccine dose, and the light could be at the end of the tunnel soon enough. In the meantime, there are still plenty of potentially valuable options for penny stocks to watch. It all comes down to knowing where to look. With that in mind, here are 4 high-volume penny stocks on the watch list for this week.
High Volume Penny Stocks to Watch
- TD Holdings Inc. (NASDAQ: GLG)
- Reed’s Inc. (NASDAQ: REED)
- Aslan Pharmaceuticals Ltd. (NASDAQ: ASLN)
- Document Security Systems Inc. (NYSE: DSS)
TD Holdings Inc.
TD Holdings is a service provider for the commodities industry in China. This involves purchasing non-ferrous metal products and then selling them to its downstream partners. TD Holdings operates almost as a logistics company, supplying an entire chain with a one-stop-shop for many commodity needs.
It engages in warehousing, logistics, information, and futures trading as well. Only a day or so ago, it announced the signing of a letter of intent or LOI with Chenzhou Dingmei Silver Co. Ltd. This letter will give TD Holdings the right to acquire a sizable molybdenum-copper ore mine in Kazakhstan. The CEO of TD Holdings,
Ms. Renmei Ouyang, states that “the planned acquisition of the molybdenum copper ore mine in Kazakhstan signals the start of our scouting efforts for upstream resources in ore assets. The Company will advance its strategic investments in commodities-related oil and ore resources with its planned collaboration with Chenzhou Dingmei serving as its first move into the ore mine resource field in Kazakhstan.”
This is a big move for TD Holdings as it could add a vertical layer to its business. Right now, it operates mostly as a middle man for selling ore products. But with this acquisition, margins could become much larger in the future. This announcement came only a week after the company exercised warrants for an aggregate of over 808,000 shares. This announcement follows another fundraising method that occurred last month, bringing in roughly $24.5 million in a private placement. So as a well-funded and intriguing penny stock, GLG could be worth watching.
If you’re a big ginger beer fan, you’ve probably heard of Reed’s Inc. Reed’s is considered the number one brand for all things Ginger Beer in the U.S. Also, it owns Virgil’s brand, which is the best-selling independent, natural craft soda brand in America. Currently, Reed’s products are sold in more than 40,000 retails around the nation. Reed’s presents an interesting case for investors as it has not been as adversely affected by the pandemic as others have.
As a beverage company, Reed’s has seen more demand over the past year than in many prior. The company recently stated that it is scheduled to release its fourth quarter and full-year report for 2020 on March 30th.
Last month, the company announced an expansion in its North American market through a partnership with Unique Foods (Canada) Inc. This agreement allows Unique Food’s to be a major distributor of healthy beverages. This includes both Reed’s Ginger Beer and Virgil’s line of beverages. Norman Snyder, CEO of Reed’s Inc. stated that “we are thrilled to launch this new partnership with Unique Foods, and we look forward to further developing our Reed’s and Virgil’s brand presence and availability in Canada. Consumers are looking for all-natural and healthier beverages, and this enhanced distribution infrastructure now brings our portfolio to a wider audience in the Canadian marketplace.”
With this exciting news in mind, Reed’s could see its market become much broader. While it may take some time before these products hit the shelves, it is an exciting prospect to consider. Whether this makes REED a penny stock to watch is up to you.
Aslan Pharmaceuticals Ltd.
Shares of ASLN stock shot up on Thursday after announcing the appointment of Dr. Kathleen Metters as its new Independent Director. With her years of experience in the pharmaceutical industry, Metters should be a valuable asset to the Aslan team. For some context, Aslan is a clinical-stage immunology company.
It develops innovative treatments for a wide range of ailments, affecting both large and small public groups. This includes its monoclonal therapy known as ASLAN004, which is being studied for its potential benefit on atopic dermatitis. Also, it is developing ASLAN003 for use in autoimmune disorders.
A few weeks ago, Aslan announced the pricing of its public offering of 15 million American Depository Shares or 75 million ordinary shares. The gross proceeds from this will total around $60 million before fees and commissions. Aslan states that this funding will be used to fund the Phase 2b dose-range-finding trial for ASLAN004 in those with atopic dermatitis. Also, it will pay $2.25 million of a principal amount on a loan it entered into in 2019. In a study conducted earlier in the year, ASLAN004 showed potential in treating both moderate and severe forms of this dermatitis.
The company reports a 75% and 90% decrease in eczema index in almost 70% of patients compared to a placebo. This is highly encouraging data and shows that ASLAN004 could be a viable option for those suffering from this illness. With this information in mind, ASLN on this list of penny stocks to watch.
Document Security Systems Inc.
As its name suggests, Document Security offers a wide range of brand protection products. This includes blockchain security, direct marketing, and other needs for a broad range of industries. It works on a distribution sharing system that offers shareholders shares of subsidiaries as DSS engages in IPOs.
When it first began, Document Security Systems offered counterfeit detection and deterrent technologies, smart packaging, and other products. However, in the past few years, it has transitioned its business to encompass other aspects of the business and security infrastructure market. A few weeks ago, the company announced a $30 million convertible promissory note to help bring in proper funding.
Chairman of DSS, Chan Heng Fai, stated that “this investment will help to accelerate Sharing Services sales and growth, as well as international expansion. I believe Sharing Services is now extremely well capitalized to be a dominant player in the global marketplace over the next two years.”
Sharing Services is a subsidiary of the company that acquires and develops innovative health and wellness products. It sells directly to consumers domestically and abroad. And with so much emphasis on tech right now, investors are constantly looking for the next big thing. With this in mind, is DSS stock worth watching?