Are These 3 Under $4 Penny Stocks Worth Buying in 2021?
While finding cheap penny stocks can be a great way to make money in 2021, there are a few things that investors need to understand. First and foremost, penny stocks can and are usually quite risky. The volatility that we see with stocks under $5 however, is one of the main reasons that so many investors trade them. Because of the rampant price fluctuations, the potential to make money with penny stocks is out there.
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One of, if not the most important factor to investing in penny stocks is understanding what is driving market momentum. In November 2021, the main factor on everyone’s minds is the newest Covid variant known as Omicron. While we don’t know much about the new variant, we are seeing fears reminiscent of earlier upsets. On Friday, November 26th, investors witnessed a major market crash which was corrected by today’s rebound. Both of these show that the stock market is in a very fragile place right now.
To take advantage of market volatility, investors should have a thorough understanding of their own trading strategy and how to trade penny stocks in general. This will give you the best chance of profitability, especially in a market like we are witnessing right now. So, with all of this in mind, let’s take a look at three penny stocks to watch under $4 right now.
3 Under $4 Penny Stocks to Add to Your Watchlist
- Kosmos Energy Ltd. (NYSE: KOS)
- Chembio Diagnostics Inc. (NASDAQ: CEMI)
- SeaChange International (NASDAQ: SEAC)
Kosmos Energy Ltd. (NYSE: KOS)
Kosmos Energy Ltd. is an energy penny stock in the oil and gas industry that climbed by more than 6% during today’s trading. If you’re not familiar, Kosmos searches for and manufactures its at its oil and gas properties in many areas around the world. The company’s properties are located in the United States Gulf of Mexico, Equatorial Guinea, and Ghana. It also has a gas development off the coasts of Mauritania and Senegal.
On November 7th, Kosmos released its third-quarter financial figures for 2021. The company generated a net output of 49,300 barrels of oil equivalent per day (boepd) and a sales volume of 32,700 boepd. Kosmos earned a total of $199 million in revenue during this time period. In addition, the company generated a net loss of $29 million and an adjusted net loss of $43 million.
“Looking forward, growing production and increased exposure to current oil prices as 2021 hedges roll off give us visibility to materially higher EBITDAX and cash flow in 2022, with leverage expected to continue to fall. Over the next year, we also expect to substantially de-risk the delivery of Tortue Phase 1 while advancing Phase 2 to maximize the value of our significant gas resources in Mauritania and Senegal.”
The Chairman and CEO of Kosmos, Andrew G. Inglis
In the past YTD period, shares of KOS stock have grown by around 60% and in the past twelve months by over 115%. Based on this new info, will KOS be on your list of penny stocks to watch?
Chembio Diagnostics Inc. (NASDAQ: CEMI)
Chembio Diagnostics Inc. is another penny stock that climbed on November 29th. By EOD, shares of the biotech company pushed up by over 5% which is no small heart. If you haven’t heard of Chembio, it is a company that develops diagnostic assays for illness detection. The company has recently gained prominence due to the fact that it provides COVID-19 testing kits. Chembio also creates diagnostic tests for HIV, Syphilis, Zika, and other diseases.
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On November 29th, the company received approval from the South Africa Health Products Regulatory Authority (SAHPRA) for its DPP SARS-CoV-2 Antigen test. This allows for the marketing and distribution of this test. The test can be used at point-of-care locations by professional healthcare providers. This test has been designed to detect the virus antigens in only 20 minutes via nasal swab.
“We are pleased that independent evaluation of the DPP SARS-CoV-2 Antigen test again demonstrated strong sensitivity and specificity performance. This is another validation of the DPP technology that expands the regulatory approvals received by our COVID testing portfolio”.
resident and CEO of Chembio, Richard Eberly
Considering the rise of the newest Covid variant, it makes sense that a company like Chembio would be in focus. So, amid higher than average volumes and an increasing stock price, will CEMI be on your watchlist in December?
SeaChange International (NASDAQ: SEAC)
SeaChange International is a tech company that provides video products, advertising, software, and more. One of its products is SeaChange Adrenalin which is a multiscreen video back office platform. Its services are offered for content owners, operators, and broadcasters all around the world. This allows its customers to launch and grow TV and streaming services in a cost-effective way.
On November 29th, SeaChange announced a multi-million-dollar contract renewal. This contract renewal was completed with a company that is among the largest multiple-system operators in the U.S. The company will provide its premium support and services for the company to optimize and streamline its content chain. This includes automatically orchestrating content workflows for VOD services.
“The contract renewal is another testament of our ability to continuously provide an enduring value proposition for our longstanding customers. Our superior software solutions go hand-in-hand with our proven customer engagement model, which is centered around delivering premium support and services to ensure our systems perform seamlessly and at the highest efficiency at all times.”
The SVP and Chief Revenue Officer of SeaChange International, Chris Klimmer
On November 29th, the same day as the update, SEAC stock increased by over 7%. Despite a YTD drop of around 37%, it appears as though we’re witnessing a slight bullish turnaround. Noting this new advancement, will SEAC be on your penny stock watchlist in December?
Can Penny Stocks Continue to Grow Next Month?
Finding the best penny stocks to buy is all about understanding where to look. With so much going on in the stock market right now, it can be complicated to make money without the right information by your side.
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Because of that, considering what’s going on in the stock market and how to use that as an advantage, will always give you the best chance at profitability. With all of this in mind, do you think penny stocks can continue to grow in value?
