3 Hot Penny Stocks to Add to Your 2022 Watchlist
With the new year only a few days away, there is plenty of bullish sentiment with penny stocks right now. Although the last month or so has not been an easy time for those who invest in either penny stocks or blue chips, we are seeing a major bull rally right now.
What is the Santa Claus Rally?
One of the main reasons for this is what investors refer to as the Santa Claus rally. This is a phenomenon where during the last five days of the year, the stock market tends to trend upward. The rally has occurred for the past several decades and is not marked by any fundamental trading pattern, rather one that is purely social. And with Tuesday showing a bullish start for the fifth consecutive trading day, investors are both excited and fearful about the near future.
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Now, prior to the rally, the entire stock market seemed to drop substantially. This came on the back of the Omicron variant which wreaked havoc on world markets over the last month or so. As a result, many stocks were seeing large bearish sentiment. So, are we truly out of the bear market from the Omicron variant? Or is this simply the result of the Santa Claus rally? Either way, let’s taker a look at three penny stocks to watch during the rally right now.
3 Penny Stocks to Watch During the Santa Claus Rally Right Now
- Reliance Group Global Inc. (NASDAQ: RELI)
- Biondvax Pharmaceuticals Inc. (NASDAQ: BVXV)
- Kandi Technologies Group Inc. (NASDAQ: KNDI)
Reliance Group Global Inc. (NASDAQ: RELI)
One of the largest premarket gainers today is RELI stock, pushing up by over 33% during early morning trading. It’s worth noting that we covered RELI stock several times in the last few days due to its five-day gain of over 88%. As stated yesterday, the majority of the movement with RELI stock right now has to do with its proposed acquisition of Medigap.
In addition, the companies other assets such as 5MinuteInsure.com are proving beneficial for Reliance. In relation to this, the company announced the pricing of a $20 million private placement only a few days ago. The placement, which will sell shares at $4.09, should give the company ample capital to move forward with the acquisition as well as marketing activities for its other assets. If you’re not familiar, Reliance combined advanced tech with traditional insurance services. This includes its 5MinuteInsure.com platform as well as its acquired companies.
Although its major gain in the last few trading days is highly speculative, investors are showing bullish interest in the company. However, with a move like that, traders should also be careful about a potential correction. Considering all of this, will RELI stock be on your penny stocks watchlist moving forward?
Biondvax Pharmaceuticals Inc. (NASDAQ: BVXV)
Another sizable premarket gainer on December 28th is BVXV stock, which shot up by around 31% during morning trading. This brings its five-day gain to a very respectable, 46%. Despite a YTD loss of over 28%, shares of BVXV have seen a sizable bullish turnaround in the last few trading days that has investors excited. So, why is BVXV stock moving right now?
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The main reason for this comes as the company is working with the Max Planck Society and the University Medical Center Gottingen for the development of Covid-19 antibodies. These nano-sized antibodies are appropriately known as NanoAbs. The company states that NanoAbs has the potential to offer “superior affinity to the target, neutralizing the SARS-COV-2 virus, in-vitro, at drug concentrations about 100-times lower than those required by currently commercially available monoclonal antibodies.”
This is major news and is the clear reason why BVXV stock is moving right now. To capitalize on its recent stock gains, the company also announced the pricing of its $9 million underwritten offering yesterday on December 27th. It states that it will offer roughly 3.8 million American Depository Shares at a price of $2.36. These proceeds will go directly toward the NanoAbs project. Whether all of this makes BVXV stock worth adding to your list of penny stocks to watch is up to you.
Kandi Technologies Group Inc. (NASDAQ: KNDI)
KNDI stock is another solid gainer during premarket, shooting up by over 12%. While many large gains occur without news, Kandi recently announced an exciting business update. The company stated that its subsidiary, Jiangxi Province Huiyi New Energy Co. Ltd., entered into a mass production agreement for its lithium iron phosphate battery. It states that the battery density for its LFP 18650 battery is a major achievement.
“As technology-leading LFP batteries move into the market, we believe Kandi and Huiyi can harness synergies based on our complementary strengths in R&D and target markets. We are confident that Kandi can strengthen its market position in the supply chains of various electric vehicles as we integrate Huiyi into our operations.”
The Chairman and CEO of Kandi Technologies, Mr. Hu Xiaoming
If you’re not familiar with the company, Kandi works on the R&D, manufacturing, and sales of a large range of vehicle-related products. This includes EVs and batteries for electric vehicles. It has a sizable number of subsidiaries that all contribute to its overall product offering, which makes it one of the leading manufacturers of EV parts and parts for off-road vehicles. Considering all of this, do you think KNDI stock is worth buying right now or not?
Which Penny Stocks Are You Buying Next Year?
While finding the best penny stocks to buy in 2022 can be challenging, there are hundreds of options to choose from. As a result of the sheer number of options out there, investors need to be picky and have a full understanding of the penny stocks on their lists. This is the best way to have a high chance of making money with penny stocks.
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Now, investors also need to consider what is going on in the stock market and how that will contribute to the stocks on their watchlists. Because penny stocks are so volatile, worldly factors tend to have a large role in how they trade. With all of that in mind, which penny stocks are you buying next year?
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