Penny stocks are high-risk, high-reward assets that tend to capture the attention of retail traders on a daily basis. A mix of low price, small share structure, and underlying catalysts has become the recipe for big breakouts. Today marks the final trading day of 2021 in what has been one of the wildest years in the stock market. We’ve seen the rise of the retail trader, massive volatility, and, yes, even new all-time highs. It will certainly be interesting to see what the New Year has in store.
Penny Stocks TL;DR 30-Second Summary
- High volatility and potential for quick gains is a main attration to penny stocks for most traders
- One of the ways to look for early potential is during premarket hours.
- This involves searching for top stocks between 4AM ET to 9:30AM ET
- Though premarket stocks don’t always have follow through into regular hours, the early indications are noted as a possible candidate for the regular session
- Today we look at a handful of premarket penny stocks to watch during the final morning session of the year
One of the ways that traders hunt for early momentum in the market is by observing premarket trends. For those just learning about premarket trading, I’m talking about the hours that the market is open before the opening bell: 4 AM ET to 9:29 AM ET. Something to remember about this is that not all traders have access to this feature.
It’s something that can make premarket stocks a bit more unpredictable when the market officially opens. Needless to say, if you’re able to identify consistent trends, then there could be some continuation. Today we look at a few premarket stocks to watch before the end of the year.
Premarket Penny Stocks To Watch
- Lexicon Pharmaceuticals Inc. (NASDAQ: LXRX)
- Nutriband Inc. (NASDAQ: NTRB)
- Siyata Mobile Inc. (NASDAQ: SYTA)
Lexicon Pharmaceuticals Inc. (NASDAQ: LXRX)
Shares of Lexicon Pharmaceuticals jumped after the closing bell on December 30th. The biotech company announced the submission of a New Drug Application to the FDA. It’s seeking approval for marketing and sales of Lexicon’s sotagliflozin, a treatment for those suffering from heart failure and living with diabetes.
The clock has started ticking with the FDA now having 60 days to review and determine the completeness of the Application. With supporting data from a Phase 3 SOLOIST study and Phase 3 SCORED study, Lexicon hopes to have enough information to move forward.
“The submission of the NDA for sotagliflozin brings us one step closer to the possibility of bringing this innovative new investigational treatment to those who are suffering from heart failure and living with type 2 diabetes on a daily basis…We look forward to working closely with the FDA during the review process.”
Lonnel Coats, Lexicon CEO
Since this news came out after the closing bell on Thursday, momentum has carried over Friday as traders have begun circulating this news.LXRX stock jumped to highs of over $4.30 during premarket trading on December 31st.
Nutriband Inc. (NASDAQ: NTRB)
Low float penny stocks have been a big trend to follow recently. Basically, anything with either a confirmed public float below 20 million or an Outstanding Share count around the same level has come into the fold. Nutriband meets both of these criteria by a long shot with fewer than 10 million shares outstanding. If you’re unfamiliar with low float penny stocks, these can be incredibly volatile, result in big gains quickly and big losses just as fast. That’s due to fewer shares available to trade in public hands.
Closing out 2021, Nutriband seems to have already started the party. The company’s news that it was issued full patents from the Korean Intellectual Property Office sparked early momentum in NTRB stock. The patent is for its “Abuse and Misuse Deterrent Transdermal System” related to Nutriband’s AVERSA platform. According to the company “The patent underpins 4p Therapeutics’ abuse-deterrent transdermal system, AVERSA, which uses taste aversion to address the primary routes of abuse for opioid-based transdermal patches.”
Read: Best Penny Stocks to Buy in January 2022? 3 to Watch Next Week
Nutriband’s AVERSA platform is incorporated into transdermal patches to prevent abuse and potential abuse of drugs. During premarket hours on December 31st, NTRB stock surged to more than $6.
Siyata Mobile Inc. (NASDAQ: SYTA)
Another low float premarket penny stock to watch is Siyata Mobile. The company has fewer than 10 million shares outstanding, placing its float even lower. Siyata specializes in push-to-talk devices and cell signal booster systems. Over the last few weeks, attention has focused on new product launches and purchase orders stacking up before the end of the year.
These deals include $550,000 in orders from customers in the US and Europe, the Middle East, and Africa (EMEA) in early December. The sale was for the company’s low-cost SD7 device. This was closely followed up by $1.3 million in orders for police and first responder customers in the EMEA.
While no new updates have come about since a few recent filings can be seen. These filings show a prospectus for Siyata to sell up to 6,250,000 units. Also, the most recent amended filing from December 28th shows an Assumed Offering Price per Unit of $3.20. Check out all of SYTA stock filings here.
Premarket Stocks To Watch & Risk
If you speak with most retail traders, finding the “home-run” trade is a goal. Premarket stocks can bring a lot of excitement before the opening bell. However, in many cases, the stocks climbing premarket are the same that tend to fade once the 9:30 AM ET bell rings.
Read: Most Active Penny Stocks To Watch Before 2022
For this reason, it can be a prudent practice to take into account these early trends but then wait for new trends to form during regular market hours. All in all, the choice to avoid or buy penny stocks is up to you. Knowing what catalysts are in play can help you determine to underlying potential or longevity of certain moves being made.
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