3 Penny Stocks to Watch Right Now
While 2021 still has over six months left, penny stocks remain at top of mind. And to find the best penny stocks to buy, investors often need to think outside of the box. It’s worth noting that both penny stocks and blue chips have traded mostly sideways in the past month or so.
This comes after a historic bull run that left many investors deep in the green. But, like all things, the market must correct and those who are investing in penny stocks right now, are feeling the brunt of this.
However, while blue chips often follow a similar path throughout a trading day, penny stocks can trade independently from the larger market. This is because stocks under $5 trade more off of speculation than anything else.
So, if a company or industry puts out news or an announcement, corresponding stocks can rise or fall in value very quickly. However, if the S&P 500 is down or up, penny stocks won’t always rise and fall in the same trajectory.[Read More] 3 Hot Penny Stocks To Buy With Analysts Expecting Up To 383%
Because of this, even when markets are down, there is always an opportunity to be had with penny stocks. And right now, there are so many different factors at play, that creating a valuable penny stocks watchlist is more than doable. Considering all of this, investors need to also understand what is going on in the market.
Right now, this includes everything from cryptocurrencies like Bitcoin and DogeCoin moving wildly, to the ongoing pandemic. With this in mind, let’s take a look at some of the top penny stocks to watch today.
3 Top Penny Stocks to Watch Today
- Color Star Technology Co. Ltd. (NASDAQ: CSCW)
- Obalon Therapeutics Inc. (NASDAQ: OBLN)
- TapImmune Inc. (NASDAQ: MRKR)
Color Star Technology Co. Ltd. (NASDAQ: CSCW)
Up by around 5% at midday is Color Star Technology. CSCW is a tech and NFT penny stock that we’ve been covering for several months at this point. For some context, it operates entertainment technology such as AI, blockchain, AR, and more. The company believes that these products will be the future of the entertainment industry, and it stands on the cutting edge.
Recently, the company announced its move into the NFT or non-fungible token market. One aspect of this is the sale of the movie “Guilt” as an NFT. CEO of Color Star Technology, Mr. Luke Lu, states that “currently, NFT transactions in the market are very active, and we are optimistic about the applications of NFT technology in the entertainment industry. The launch of NFT products for a portion of our movie “Guilt” belongs to the first phase of our NFT development and application.”
Additionally, the company announced only a day ago that it has signed into a Memorandum of Understanding or MOU through its wholly-owned subsidiary, Color China Entertainment Co., Ltd., and the South Korean company, Youa Group.
The goal with this is to jointly develop an NFT application for the Hollywood Film Festival as well as for the International Film Festival databases. Lu states that “ We look forward to financing the cooperation with Movie Planet and Youa Group. The opportunity to work with a top Hollywood entertainment company and a Korean technology company will accelerate our own technological developments.”
Considering all of these exciting updates, will CSCW be on your list of penny stocks to watch?
Obalon Therapeutics Inc. (NASDAQ: OBLN)
Another big gainer of the day is Obalon Therapeutics, pushing up by around 15% by midday. While many big gains go without news, Obalon made an exciting announcement today. Back in January, OBLN announced an all-stock merger with ReShape Lifesciences. After the merger completes, shareholders of OBLN would own 49% of the combined company. This merger has been ongoing for the past several months, leading to uncertainty about the future of the deal.
However, today, Obalon announced that it urges all stockholders to vote for proposals relating to the merger. And while this is not a major deal in itself, it has larger implications for the future of Obalon and the merger with ReShape.
For some context, Obalon is a weight-loss-focused biotech company based in California. Its flagship product is the first and only FDA-approved swallowable, gas-filled intragastric balloon system for the treatment of obesity. Last week, OBLN reported its Q1 2021 financials.[Read More] 7 Penny Stocks to Watch With Crypto News Sparking a Market Dip
In the report, the company posted a net loss of $4.2 million, down from $5.3 million in Q1 2020. Additionally, it ended the quarter with around $9 million in cash on hand. While these numbers are not outwardly encouraging, they do show that the company is working hard to grow.
And while it reported no revenue as a result of Covid slowing operations, it aims to further commercialize this product in the coming months. And with only $0.4 million in debt right now, it looks like the opportunities for it to grow are relatively large. With this in mind, will OBLN be on your penny stocks watchlist?
TapImmune Inc. (NASDAQ: MRKR)
TapImmune Inc. is a clinical-stage oncology company working on the development of T-cell immunotherapies for the treatment of hematological malignancies. It utilizes tumor-specific T-cells that allow the body to mobilize its defenses. Earlier in May, TapImmune announced its Q1 financial results for 2021.
“We had a productive first quarter supported by our recently completed financing, strengthening our overall cash position and enabling continued growth and expansion of our Multi-TAA pipeline.
In addition, we continued to make strong progress on both the clinical and manufacturing fronts. In March, we dosed the first patient in the safety lead-in portion of our Phase 2 trial in post-transplant acute myeloid leukemia, or AML.”CEO of TapImmune, Peter L. Hoang
Financially, the company managed to raise roughly $56.5 million through an underwritten public offering, providing a solid cash runway for the foreseeable future. While it did report a net loss of around $8.8 million, this is largely offset by the sizable cash balance it has right now.
This year, oncology-focused companies have become extremely popular among investors. And for this reason, shares of MRKR stock have also seen heightened interest. So, while investors should keep an eye on how much cash TapImmune is using right now, it looks like it is in an advantageous position moving forward.
Which Penny Stocks Are You Watching?
When finding penny stocks to buy, the best place to start is by understanding what type of investor you are. This can help to narrow down the list of penny stocks you’re watching from the thousands to just a few dozen. And, this will also help to align your portfolio with the right amount of risk for your comfortability.[Read More] Small-Cap & Penny Stocks To Watch In May Hitting It Big In 2021
While not all penny stocks will be winners, using the tools at your disposal will help you to find the ones that are. Considering this, which penny stocks are you watching?