4 Hot Penny Stocks to Watch in 2021
Penny stocks are some of the most popular securities among traders right now. And, there’s a good reason for that. For one, the low price of penny stocks means that they have the potential to make major intraday jumps or falls in value.
For example, it is common to see a penny stock go from $2 to $4 in the span of a few weeks, doubling in that period. However, it is not common to see a blue-chip stock go from $50 to $100 in the same time (unless it’s GME stock). This means that the opportunity to see large moves in your portfolio in both directions is plausible.
What Are Penny Stocks?
With penny stocks, it is extremely important to stay up to date on the news. By nature, penny stocks are all under $5. This means that the amount of shares trading hands, or volume, can often be in the millions or even hundreds of millions.
Because of this, things move very fast, and speculation can be one of the largest impacting factors to watch out for. This should not serve to incite fear, but rather it should show how important understanding current events is when it comes to investing in penny stocks.
The next thing to consider is that liquidity is key. While some penny stocks to watch will trade hands hundreds of millions of times per day, others will only do so in the thousands or hundreds of thousands. This is not usually a large issue if you’re looking to hold. However, if you wish to buy and sell penny stocks in a short time frame, low volume means that liquidity is difficult to come by.
The last aspect to consider is the fundamentals and analyst sentiment regarding specific penny stocks. Many websites will offer information such as the latest balance sheets, any corporate updates, and analyst recommendations. While these tend to be less impacting on a stock price than speculation, they are still incredibly important to consider. So, with all of this in mind, let’s take a look at four penny stocks to buy [or sell] in 2021.
4 Penny Stocks to Watch in 2021
- Orphazyme ADR (NASDAQ: ORPH)
- Support.com Inc. (NASDAQ: SPRT)
- vTv Therapeutics Inc. (NASDAQ: VTVT)
- Amesite Inc. (NASDAQ: AMST)
1. Orphazyme ADR (NASDAQ: ORPH)
Up by a ludicrous 880% at midday is ORPH stock. Before we even take a step further, it’s worth noting that the volatility here is incredibly high. This means that risk is equally as high. But, looking at its gain today, this is all very obvious.
While no company-specific news came out today, we are seeing a great deal of bullish momentum with most biotech penny stocks. For some context, Orphazyme is a biopharmaceutical penny stock, working on heat shock protein response-based treatments. These can be in use for a variety of rare diseases including Gaucher Disease, Niemann-Pick disease type C, and more.
Heat shock proteins or HSPs are in development for diseases that cause protein aggregation, protein misfiling, and lysosomal dysfunction. Last month, Orphazyme announced topline data from a pivotal trial of arimoclomol in Amyotrophic Lateral Sclerosis or ALS. In the trial, the compound did not meet either primary or secondary endpoints, which is not the best news for investors.
“We are disheartened by these results, as we had hoped arimoclomol might represent a viable new approach against the formidable challenge of this devastating disease. With over 18 months of evaluation, this trial represents one of the longest-running clinical studies in this category. While unsuccessful, the data generated will contribute meaningfully to the scientific dialogue on this challenging disease.”Thomas Blaettler, MD, CMO of Orphazyme
While positive trials are ideal, not every drug will work every time. However, having this vast research bank could help ORPH to move forward on other compounds. So, considering today’s push of over 880% to north of $50 at the time of writing, is ORPH a penny stock to watch?
2. Support.com Inc. (NASDAQ: SPRT)
Up by around 21% at midday is SPRT stock. Support.com is as its name suggests, a provider of technical support solutions by home-based employees. It works with a large range of both enterprise and top-tier businesses to offer industry-leading call resolution rates across the board. Given the number of people stuck at home during the pandemic, the need for phone support has presumably increased substantially. This is seen through the solid rise that SPRT stock is seeing right now and in the past few months.
Last week, SPRT announced the launch of its on-demand fintech and cryptocurrency customer support. This includes service offerings such as 24/7 support for cryptocurrency and NFT platforms, exchanges, and other companies involved in this market. As well know, any penny stock relating to the crypto and blockchain industry has seen dramatic growth over the past few months. And, given that we are only just breaching the surface of what crypto can do, moves are being made by new companies every day.
Lance Rosenzweig, CEO of Support.com states that “big swings are the nature of fintech and crypto. We offer support services that can move as fast as the market.” In addition to this announcement, the company states that it will also accept bitcoin as a form of payment from its customers. This is a big deal and shows both the validity of crypto and the forward-thinking nature of SPRT. With all of this in mind, is SPRT stock worth adding to your watchlist?
3. vTv Therapeutics Inc. (NASDAQ: VTVT)
vTv Therapeutics is a penny stock that we’ve covered numerous times in the past few months. With a sizable 8% or so gain today, VTVT stock is once again on the radar. While no news was reported today, again, this could be a result of the large momentum with biotech stocks today. To understand VTVT, let’s take a look at its current financial situation. Last month, vTv reported its Q1 2021 financial results as well as some corporate updates.
“The vTv team continued to build on the clinical success of our type 1 diabetes program during the quarter by obtaining Breakthrough Therapy designation from the FDA for TTP399 and by initiating a Phase 1 study to understand TTP399’s impact on ketoacidosis.”CEO of VTVT, Steve Holcombe
Financially, VTVT ended the quarter with a net loss of around $5.9 million. Additionally, it brought in revenue of around $1.0 million. Lastly, vTv ended the quarter with roughly $8.4 million in cash on hand, up by over $2 million from the previous quarter.
While these numbers may seem disheartening at first, low revenue and losses are common with biotech stocks. This is true until a product is either commercialized or licensed out. Because vTv is working hard to get TTP399 close to commercialization, VTVT stock could be considered either a short or long-term play. Considering these factors, will it be on your list of penny stocks to watch?
4. Amesite Inc. (NASDAQ: AMST)
Another major gainer of the day is Amesite Inc., pushing up by roughly 41% at midday. While shares did hit a daily high of +76%, they did correct shortly after. Again, no news was reported today, causing this large spike in price. So, let’s look at the company to see if we can deduce a reason.
Amesite is a high-tech artificial intelligence software producer offering everything from cloud platforms to content creation services. It offers these products to businesses, universities, and other educational institutions. This allows its reach to be quite broad. Last week, the company announced the launch of remote upskilling courses on Microsoft Azure, in partnership with Wayne State University.
“As a Microsoft Partner, we had access to the Azure FastTrack for ISV program, where we engaged with senior-level engineers to help us develop a truly cloud-native solution. Through the Partner Program, we can reach a vast network of professionals through Microsoft’s connections to universities and companies across the country, on Microsoft Azure.”CEO of Amesite, Dr. Ann Marie Sastry
According to the research group, Knowledge Sourcing Intelligence, the worldwide digital education market could be worth as much as $319 billion within the next four years. This would represent a CAGR or continuous annual growth rate of 9.23% from 2020 to 2025. While Amesite is working to get its market share up, it looks like these partnerships are helping to boost its position. With its large share price increase today, AMST stock could be worth keeping an eye on.
Penny Stocks Continue to See Bullish Momentum
As we move further into the Summer, penny stocks continue to see solid bullish momentum. While this isn’t necessarily the case across the board, there are quite a lot of penny stocks increasing by substantial amounts as illustrated above.
Some of the penny stocks on this list are unicorns in the amount they gained today. But, no one is complaining about a stock rising in the triple-digit percentage points. However, looking at the stocks mentioned above, we see just how volatile investing in small-caps can be.
And, if you can play your cards right, there are plenty of ways to take advantage of this high volatility. Considering this, which penny stocks are on your June 2021 watchlist?