3 Popular Penny Stocks to Watch in January 2022
As another trading day comes to an end for penny stocks and blue chips, we’re witnessing extremely high volatility in the stock market. When trading began today, it looked as though the market was headed for a bullish day.
However, at midday, stocks fell following a record jump in the price of wholesale goods as well as surprising jobs data. The data showed that more than 230,000 people applied for unemployment last week, and the December PPP grew by 9.7% YoY. While investors are bullish about the future of penny stocks, small roadblocks like this can cause sizable volatility and uncertainty in the stock market.
“We’re going to have the best growth we’ve ever had this year, I think since maybe sometime after the Great Depression. The consumer balance sheet has never been in better shape; they’re spending 25% more today than pre-Covid. Their debt-service ratio is better than it’s been since we’ve been keeping records for 50 years.”The CEO and Chairman of JPMorgan Chase, Jamie Dimon
All of this is very positive news and shows that the stock market could be headed for steady growth in the future. Considering this, let’s take a look at three penny stocks to watch right now.
3 Penny Stocks That Are Popular Right Now
- CytoDyn Inc. (OTC: CYDY)
- Yamana Gold Inc. (NYSE: AUY)
- Genius Brands International Inc. (NASDAQ: GNUS)
CytoDyn Inc. (OTC: CYDY)
One of the bigger gainers of the day so far is CytoDyn Inc. By EOD, shares had shot up by over 26% to north of $0.68 per share. While it’s difficult to say why CYDY stock is up, we do know that the company was supposed to host a webcast and live Q/A today. However, by midday, the company announced the cancellation of this event.
Right now, the main subject of CytoDyn is its CCR5 antagonist compound known as leronlimab. This drug has the potential to be used in several therapeutic indications and has received Fast Track Designation from the FDA. The Fast Track Designation concerns this drugs potential to treat HIV as well as metastic cancer. The company has already completed Phase 3 pivotal trials for this compound combined with antiretroviral therapies in those with HIV.
Now, it is working to resubmit its BLA or Biologics License Application after receiving a Refusal to File back in July of 2020. Moving forward, we continue to see a sizable amount of bullish sentiment in the biotech industry. And while CYDY is not working on a Covid treatment or cure, it is still receiving a lot of attention right now. With that in mind, will it be on your list of penny stocks to watch?
Yamana Gold Inc. (NYSE: AUY)
With a 1.5% gain on January 13th, Yamana Gold has many investors watching it right now. This gain brings its five day uptick to almost 10%, which is quite substantial for a mining stock. The main reason for today’s gain comes as the company announced its preliminary fourth quarter and full year 2021 operating results.
In the results, the company was able to exceed production guidance as well as generate strong cash flow. The company stated that it ended the year with more than $305 million in cash and cash equivalents. This represents over $65 million more than it had at the end of the third quarter. All of this information puts AUY in a strong position to continue growing and building out its current mining operations.
If you’re not familiar, Yamana is a pure-play producer of gold and silver based in Canada. The company has significant land positions in many countries throughout the world including Canada, Brazil, Chile and Argentina. With this positive update, it’s no wonder that investors are paying attention to the company right now. Considering this, will it be on your penny stocks watchlist?
Genius Brands International Inc. (NASDAQ: GNUS)
With a modest uptick in price during trading today, GNUS stock saw increased volume over its recent trading sessions. Today, the company announced that it had terminated two employees for cause, however, business will continue as usual under the current leadership. This news caused a small movement with GNUS price, however, nothing material was changed.
Right now, there is a large market emphasis on entertainment penny stocks. And, as a leading player in the production, marketing and licensing of children’s entertainment products, Genius Brands has seen heightened attention. Additionally, the company announced today that it has launched the Kartoon Channel! Kidaverse following the acquisition of Ameba TV.
“The single strongest message we receive from parents is the concern about safety for children on screens, whether it is program content or roaming around the internet and various apps. The premise of the Kartoon Channel! Kidaverse is to provide children with fun, positive, engaging digital media AND to provide them with a safe and parent-controlled product.”The CEO of Genius Brands, Andy Hayward
This is exciting news for the company and investors alike and should help it to maintain its placement in the entertainment industry. Whether this makes GNUS stock worth buying or not is up to you.
Can Penny Stocks Make Gains This Month?
With around half of January done already, many investors are wondering whether penny stocks can show bullish sentiment as the year gets further underway. To understand this better, we have to consider both what is going on in the stock market and our own individual trading strategies.
On one hand, we are witnessing Covid and the Omicron variant wreak havoc on world markets. While case numbers have begun to show signs of letting up in certain areas, others are seeing rapid rises.
Aside from this, we are also witnessing a major amount of volatility as a result of the U.S. economy. This includes factors such as labor statistics, inflation, and interest rate hikes in the near future.
So, as prudent investors, we need to take all of these into consideration when forming our strategy. With all of that in mind, do you think that penny stocks can bring in bullish sentiment throughout the rest of January?
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