Trading Penny Stocks in 2021 and 3 Small-Caps to Watch
With another day of trading penny stocks comes a new list of potential winners. But, scouting out which small-caps may be worth buying right now can be complicated without the right tools. For this reason, let’s go over some tips when it comes to trading penny stocks for beginners.
The first and most important step to consider is understanding what type of trader you are as well as your investing goals. This will help to ensure that the penny stocks you choose, will align with your overall strategy.
Once you’ve done this, the next step and arguably the most tedious is the research stage. This is where you take every penny stock you’re watching, and break them down individually. The information you should be looking for includes financials and balance sheets, future prospects, important news, and any other speculative information you can find. With the power of the internet, researching penny stocks has never been easier. And, this will help to inspire confidence in the list you’ve created.
The final step to finding the best penny stocks to buy is to understand current events. By looking at the news and what’s going on in the world, investors can gain a better understanding of which industries or penny stocks may be on the move. So, considering all of this, let’s take a look at three penny stocks to watch in 2021.
3 Penny Stocks For Your 2021 Watchlist
- Sonnet BioTherapeutics Holdings Inc. (NASDAQ: SONN)
- Senseonics Holdings Inc. (NYSE: SENS)
- NLS Pharmaceuticals AG (NASDAQ: NLSP)
Sonnet BioTherapeutics Holdings Inc. (NASDAQ: SONN)
Up by a staggering 145% in morning trading are shares of SONN stock. While no company-specific news from today is driving the price of SONN stock right now, it did release its Q3 2021 financial results and a business update at the beginning of this week. In the results, the company stated that it managed to complete an almost $16 million at-the-market financing deal.
“Throughout the quarter, we’ve continued to make several advancements toward the clinic with our proprietary Fully Human Albumin Binding pipeline assets, and our partnered product. We are progressing our SON-1010 and SON-080 programs, with IND applications on track to be filed with the FDA for both before the end of 2021, with an additional IND for SON-1210 during the first half of 2022.”The CEO of Sonnet, Pankaj Mohan, Ph.D.
As an oncology-focused biotech company, Sonnet BioTherapeutics is making big waves right now. While its gain today is highly indicative of its overall speculation, it is impressive nonetheless. In addition, the company’s work on cytokines, peptides, antibodies, and vaccines also brings it to the forefront of the biotech industry right now. Considering its sizable uptick and the company’s bright future, will SONN stock be on your penny stocks watchlist moving forward?
Senseonics Holdings Inc. (NYSE: SENS)
Another decent gainer of the day is Senseonics Holdings with share pushing up by around 7% at midday. We’ve covered SENS stock several times over the past few months for its sizable growth and continued updates to investors. For those unfamiliar, Senseonics is a producer of continuous glucose monitoring or CGM systems. This includes its Eversense line of products, aimed at testing glucose levels in those with Diabetes.
The Eversense system is a product that fits under the skin and continuously provides the user with constant updates about their glucose levels. This is a breakthrough in the world of Diabetes, as previous methods involve invasive blood drawing. Last week, Senseonics announced its Q2 financial results for the 2021 year. In the results, it brought in more than $3.3 million in revenue alongside a $50 million at-the-market equity offering.
“In the second quarter we made progress driving increased patient and provider awareness of Eversense through a targeted direct-to-consumer advertising campaign and presentations of the PROMISE Study, an evaluation of our 180-day sensor, at the ADA and ATTD conferences.
As announced, we submitted this data to the FDA, we are pleased with the strength of the data from the PROMISE Study which we believe represents a top-tier CGM safety and accuracy profile.”Tim Goodnow, CEO of Senseonics
Considering that millions suffer from diabetes around the world, Senseonics has a large market opportunity here to change the industry. With this in mind, will SENS stock be on your list of penny stocks to watch this year?
NLS Pharmaceuticals AG (NASDAQ: NLSP)
Continuing with the theme of sizable gainers today is NLSP stock, pushing up by around 12% in morning trading. While the other two penny stocks mentioned above did not release any news to spark their gains today, NLSP made an exciting announcement in early morning.
The company stated that it received a Notice of Allowance from the U.S. Patent and Trademark Office for its patent application No. 16/083,131. This covers the oral formulation of its compound mazindol and its treatment of attention deficit disorders. For those unfamiliar, a Notice of Allowance is a sign from the U.S. PTO that a patent should be granted soon.
“We are extremely pleased to have received this Notice of Allowance from the USPTO for our proprietary mazindol formulation as we advance the development of Quilience (mazindol ER) to treat narcolepsy and potentially other sleep-wake disorders.
Earlier this year, we were granted similar patents in both the European Union and Canada, and we expect that the insurance of this patent will provide intellectual property protection for Qulience across the major markets in our business plan.”Alex Zwyer, CEO of NLS
This is big news for the company and investors alike. And while it may take some time before a formal patent is issued, the hopes for high for NLSP stock right now. Considering this, is NLSP worth watching in 2021?
Are These Penny Stocks Worth Buying in 2021?
Finding the best penny stocks to buy in 2021 is all about understanding where the market is headed. With so many factors occurring simultaneously, it can be difficult to stay up to date with each and every one.
However, if investors use the research tools at their disposal, making a watchlist of the best penny stocks can be much easier than previously imagined. Considering this, are these penny stocks worth buying in 2021?