3 Penny Stocks to Add to Your Watchlist in January
With the first full trading day of the new year for penny stocks and blue chips done, investors are excited about what the future could hold. Of course, there are quite a lot of unknowns right now that are resulting in higher than average volatility. But, with this large volatility has also come the potential to make money with penny stocks.
If you’re not familiar, penny stocks are highly volatile and speculative. This means that they tend to move frequently based on news and events and with little to no notice. Because of this, understanding exactly what is going on in the stock market and how to take advantage, will be the largest asset to your portfolio. And right now, the main source of movement in the market is the pandemic, and specifically, the Omicron variant.
[Read More] 3 Hot Penny Stocks to Watch in 2022
So, with 2022 here and in full effect, now is the time to refine your trading strategy to keep up with how the market is moving. And while finding the best penny stocks to buy can be challenging, there are plenty that are worth watching. With that in mind, let’s take a look at three penny stocks to watch in January 2022.
3 Penny Stocks to Watch in January 2022
- American Virtual Cloud Technologies Inc. (NASDAQ: AVCT)
- Progenity Inc. (NASDAQ: PROG)
- Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP)
American Virtual Cloud Technologies Inc. (NASDAQ: AVCT)
One of the better gainers of the day today is AVCT stock, which shot up by over 5.7% at EOD. It’s worth noting that we’ve covered AVCT stock numerous times in the past few months due to its staggering rise in value. In the last month alone, shares of AVCT stock have pushed up by over 170% despite a 65% drop in the past twelve months. So, why are shares of American Virtual Cloud pushing up right now? Today, the company announced the filing of a resale registration statement as part of its larger funding plan.
“Any additional capital received from the sale of these securities will be beneficial as we continue to expand our product offerings and accelerate our existing growth strategies with large enterprise customers.”The CEO of AVC Technologies, Darrell J. Mays
Additionally, it stated that its Kandy Business Unit alone could grow from $14.3 million in revenue in 2020 to over $37 million in 2022. These are substantial numbers and reflect both the company as a whole and the tech industry.
If you’re not familiar, American Virtual Cloud provides a wide range of IT solutions. This includes unified cloud communications, managed services, cybersecurity, and much more. With a major emphasis on tech right now, it makes sense that AVCT stock is seeing heightened attention. Considering all of that, will it be on your penny stocks watchlist moving forward?
Progenity Inc. (NASDAQ: PROG)
Another popular penny stock that we’ve been covering in the past few weeks is PROG stock. With a 6% gain today and more than 10% in the last five days, Progenity is on many investors’ radars right now. If you’re unfamiliar, Progenity is a biotech company working in the field of GI health and oral biotherapeutics. It works in genomics, epigenomics, proteomics, and more to engage in the development and production of molecular testing products. The company states that its goal is to offer more precise healthcare products as well as better disease diagnoses. A few weeks ago, the company announced the sale of its affiliate Avero Diagnostics to Northwest Pathology.
“The sale of our Avero Diagnostics affiliate results in a further annual operating expense reduction of approximately $28 million, bringing the total reduction in annual operating expenses to approximately $145 million compared to the second quarter. This reduction, along with capital raised, should extend our cash runway beyond the end of 2022 and reduce our dependency on the capital markets.”The CEO of Progenity, Eric d’Esparbes
With this capital infusion, the company should be able to continue moving forward on its goals. All things considered, does PROG stock deserve a spot on your list of penny stocks to watch?
Tonix Pharmaceuticals Holdings Corp. (NASDAQ: TNXP)
Another big gainer of the day so far is TNXP stock, pushing up by almost 10% at EOD on January 3rd. The main reason for today’s gain comes as the company announced last month that it received IND clearance for its skin test TNX-2100. This skin test has the potential to effectively measure one’s exposure to SARS-CoV-2 as well as potential T-cell immunity.
Although this news came out last month, we are seeing a sizable amount of bullishness in the biotech industry right now. It’s also worth noting that any company working on a Covid treatment or cure, is likely to see more attention right now than in previous months.
This is due to the rise of the Omicron variant and the resulting focus on biotech. So, while it is hard to say what the next steps of this IND approval will be, there’s no doubting that this is an exciting prospect. It’s also worth noting that TNXP is highly speculative right now as it relates to Covid. Considering all of that, is TNXP stock worth buying in 2022 or not?
Can Penny Stocks Be Profitable in 2022?
The short answer to this question is that it truly depends on what your investing goals are. If you are using short-term or swing trading as your method, then there are plenty of ways to take advantage. However, if you’re looking for long-term gains, there are certain penny stocks that may be better suited.
Regardless, having a consistent understanding of your own unique trading goals will be a major asset to your potential profitability. Considering that there is so much to keep track of right now, understanding exactly what is going on in the stock market will help greatly. With all of that in mind, do you think that penny stocks can continue to owe profitable in 2021?
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