3 Penny Stocks to Add to Your Watchlist in October 2021
Right now, there is major movement among both penny stocks and blue chips. And, with so many catalysts contributing to the volatility in the stock market, how can we as investors stay ahead? Well, the best way to do so is to stay as informed as possible. This means keeping a constant eye on the news, and consistently updating your trading strategy to follow suit.
While the pandemic is the most pressing issue right now, other factors such as the price of oil, economic inflation, and a potential resurgence of cases in Fall are all on investors’ minds. As a result, many traders are cautiously optimistic right now. The result of this is the sizable volatility we’re witnessing daily with penny stocks right now.
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And despite the larger market being down today, plenty of penny stocks managed to climb. This is something that we see often as penny stocks do not like to play by the rules. But, no matter the market conditions, having a strategy and sticking to it will always be your best chance at making money with penny stocks.
This is especially true in the end of September 2021. Whether your strategy is based on long or short-term trading, make sure that it is well defined. Considering all of this, let’s take a look at three penny stocks to watch in October 2021.
3 Penny Stocks You Should Know About Right Now
- Yamana Gold Inc. (NYSE: AUY)
- NovaBay Pharmaceuticals Inc. (NYSE: NBY)
- Iterum Therapeutics plc (NASDAQ: ITRM)
Yamana Gold Inc. (NYSE: AUY)
Yamana Gold Inc. is a mining penny stock that managed to climb by more than 2.7% by EOD on September 28th. If you’re unfamiliar, Yamana is a company that operates properties for precious metals mining in various locations around the world. Yamana is currently the third-largest gold producer in Brazil. The precious metals that the company searches for include gold and silver ores, which in turn, make it a pure-play mining company. Yamana Gold actively operates in Canada, Chile, Argentina, and Brazil.
Back in July, Yamana Gold announced that it was cutting its projected expenses to expand the Jacobina complex in northeastern Brazil. The company expects to expand this complex by up to 74% after tests at its processing plant were better than initially expected. Because of this, Yamana plans to increase its annual production capacity at Jacobina from 180,000 ounces to 230,000 ounces of gold by the second half of 2023.
The company has stated that this plant can handle a workload of 8,500 tonnes of raw material per day. Chief Executive Peter Marrone noted that it was “much more efficient than we initially anticipated”. This is a big update and shows that AUY could have better than expected results in its next data release. Considering this, will it make your list of penny stocks to watch?
NovaBay Pharmaceuticals Inc. (NYSE: NBY)
NovaBay Pharmaceuticals Inc. is a biotech penny stock that climbed by over 7% on September 28th, before ending the day up by around 3.8%. While this is substantial on its own, it’s even more impressive considering the overall bear market we witnessed today. For some context, NovaBay is a company that creates medical devices targeted at the eye care industry.
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Its Avenova product is a solution for cleaning and removing foreign materials from around the eye and the eyelid. In addition, the company offers CelleRx Clinical Reset which is a soothing facial spray. On top of all of this, NovaBay offers KN95 masks, which have been especially important during the pandemic.
On September 28th, the company signed an agreement to acquire DERMAdoctor. DERMAdoctor is a privately-held company that creates dermatologist-developed skincare products. The company has been acquired for $15 million, made up of $12 million cash and $3 million in earn-out payments if DERMAdoctor achieves predetermined financial targets in 2022 and 2023. DERMAdoctor currently offers over 30 products under its various lines on stores such as Amazon and its own website.
“This acquisition will significantly increase NovaBay’s presence in the U.S. beauty market with the addition of over 30 products currently sold by DERMAdoctor, which were developed under the leadership of Dr. Audrey Kunin, a well-known leader in the skincare product industry.”
The CEO of NovaBay, Justin Hall
This transaction is expected to fully close in the fourth quarter of 2021. On the same day of the announcement, NBY stock’s volume is more than three times its average in the market. After this new acquisition, will NBY stock make it on to your watchlist in October?
Iterum Therapeutics plc (NASDAQ: ITRM)
Iterum Therapeutics plc is a biotech company that creates anti-infectives for multi-drug resistant pathogens. Currently, Iterum is working on sulopenem which is in Phase 3 clinical trials to treat uncomplicated UTIs. This drug is also used to treat other forms of UTIs and complicated intra-abdominal infections. We’ve been discussing ITRM stock for quite some time and with a slight bullish turnaround in the past few days, it could be worth keeping track of.
On September 28th, the company provided an update from the FDA Type A meeting held about oral sulopenem. The goal of this meeting was to discuss the steps needed to potentially resubmit its New Drug Application for oral sulopenem to treat uncomplicated UTIs. This comes after the FDA requested additional data to support the approval of the drug which resulted in a massive bearish pattern for ITRM only a few months ago.
CEO Corey Fishman said, “We had a successful meeting with the FDA and have established various potential paths forward to address the request in the CRL for additional data in support of our NDA.” Now, the company is evaluating the optimal design for another Phase 3 study to be completed before resubmitting the New Drug Application. It will be interesting to see comes of this IND in the next few months and beyond. With all of this in mind, does ITRM have a place on your list of penny stocks to watch or not?
Which Penny Stocks Are You Watching Next Month?
If you’re confused about which penny stocks to watch next month, you’re likely not alone. Because there are so many moving parts to the stock market right now, it can be challenging to create a comprehensive and cohesive penny stocks watchlist. But, because there is so much momentum in the market, there is a lot of movement to take advantage of.
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As stated earlier, the best way to do so is to have a strategy and stick to it. In addition, never let emotion get in the way of your trading strategy. So, with all of this in mind, which penny stocks are you watching next month?
