3 Penny Stocks Under $5 For Your June 2021 Watchlist
As we move further into the second half of June, penny stocks are heating up. This is marked by high trading volume and bullish investor sentiment. A few months back, many investors feared a market slow down as uncertainty surrounding the pandemic was high.
However, now that case numbers are in control, many believe we could largely avoid this. It’s worth noting that trading in the past two or three months has been quite slow. While volume has been average, most days have ended with stocks trading sideways. This is usually referred to as the ‘Summer Slump’. However, we have to take into consideration the effect of retail traders such as those on Robinhood and those finding penny stocks on Reddit.
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Because this is a relatively new phenomenon, we could see increased volume as trading is more accessible than ever. So, as we enter more or less uncharted territory, there are plenty of penny stocks to buy. It all comes down to understanding what to look for and where to look.
As Covid hopefully comes to an end, investors remain excited about the future. When and how this will play into trading remains to be seen. Considering all of this, let’s take a look at three hot penny stocks to watch that you may not have heard of.
3 Penny Stocks to Watch For Your June List
- Progenity Inc. (NASDAQ: PROG)
- GBS Inc. (NASDAQ: GBS)
- Transocean Ltd. (NYSE: RIG)
Progenity Inc. (NASDAQ: PROG)
One of the more trending biotech penny stocks right now is Progenity Inc. This company develops and commercializes molecular testing products in the United States. One of its products is Innatal, which is a noninvasive prenatal screening test offered to women early in pregnancy to screen for chromosome abnormalities.
The company caught attention recently due to its COVID-19 advancements. It’s worth noting that Progenity is actively developing COVID-19 PCR testing services. While this is big news, we have to take into consideration that Covid testing may be declining as case numbers fall. However, its other products could be reason enough to consider it a penny stock to watch.
Shares of PROG stock are increasing in value after a new announcement was made. On June 10th the company announced a $40 million private placement of common stock shares. Progenity will issue 16,194,332 shares of common stock at $2.47 per share. This will close on June 14th and could have an impact on PROG’s stock price.
Large private placements are common in the biotech industry. They allow companies to move forward on projects and fund future endeavors. Because capital is the main source of innovation, it is always important for investors to consider. On June 11th PROG stock increased by more than 28%. With this information in mind, is PROG a contender for your list of penny stocks?
GBS Inc. (NASDAQ: GBS)
GBS Inc. is a biotech company that creates biosensor diagnostic technology. Its main product is the Saliva Glucose Biosensor used for diabetes management. In addition to this, It develops other types of diagnostic tests, which helps to broaden its market scope. These include tests in the areas of immunology, biochemistry, tumor markers, hormones, and more.
It has an active research agreement with Johns Hopkins Bloomberg School of Public Health to develop saliva-based diagnostic tests. Genetic tests like these have become extremely popular as more individuals wish to find out their unique genetic data. This includes at-home testing kits and more, which have risen in demand in the past year or so.
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On June 8th the company released a new update. GBS announced that 90% of patients questioned are in favor of a saliva-based glucose test as an alternative to finger-prick tests. 7 out of 10 patients who took the survey showed interest in purchasing the product.
“People living with diabetes need to feel confident and comfortable using a glucose monitoring device to help manage and supplement their medication administration. Having a pain-free alternative to finger-pricking will increase the number of patients regularly testing, and thus allowing them to easily manage their health with minimal impact to their lifestyle.”
The CEO of GBS, Harry Simeonidis
While this is only a survey, it does show the potential importance of this glucose test. Right now, the current options include more invasive, finger-prick devices to read the body’s glucose level. This can be cost-prohibitive and unnecessarily invasive.
Only a few days after this press release was put out, GBS stock increased by more than 18% in the market. Is this a sign that people will be willing to adopt GBS’s technology and lead it to commercialization? Only time will tell, but for now, it seems like investors are interested in the company. On June 11th, GBS trading volume is over 11 million compared to its average of about 300,000. With this in mind, will GBS make your penny stock watchlist?
Transocean Ltd. (NYSE: RIG)
Transocean Ltd. is a company that provides offshore contract drilling services at oil and gas wells. This energy penny stock owns or has partial ownership in 37 mobile offshore drilling units, including 27 ultra-deepwater and 10 harsh environment floaters. It contracts drilling rigs, equipment, and work crews to drill oil and gas wells. Currently Transocean serves oil companies, government-owned companies, and other independent corporations related to the sector.
As the pandemic comes to an end, many investors believe that energy demand could increase dramatically. Interestingly enough, this makes sense as more and more people could be traveling shortly. Recently, the company announced an agreement with a shipyard to delay delivery and defer payments of Newbuild ultra-deepwater drillships.
“These agreements clearly represent a monumental achievement for Transocean. As the result, we will take delivery of the two highest specification ultra-deepwater drillships in the world, and the only two assets capable of drilling and completing 20,000 psi wells.
Notably, as a critical element of these agreements, we will receive shipyard financing, which materially improves our year-end 2022 liquidity by over $450 million, thus extending our runway and providing us with additional investment flexibility as the industry recovers.”
The President and CEO Jeremy Thigpen
Now, despite some ups and downs, RIG stock has increased dramatically in the last 6 months. Back in December 2020, RIG stock was at about $2.50 per share on average. Now as of June 11th, 2021 RIG stock is at about $4 per share on average. Considering this, will RIG stock make your watchlist this week?
Which Penny Stocks Are You Watching Right Now?
As we move further into the Summer, there are plenty of penny stocks to watch. This includes both big-name and lesser-known companies. No matter the size of the penny stock, investors need to always commit to researching and finding information about the company they wish to invest in.
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While this can be challenging, it is better to do due diligence than to try and get lucky. With all of this in mind, which penny stocks are you watching right now?
