Penny stocks have continued to bring in newfound attention in the stock market. The term penny stock itself simply means any stock that is trading under $5. As you can see, this opens up quite a long list of possibilities. And with so many choices, how can we as investors find the right penny stocks to buy? Well, for starters we have to identify our unique investing strategy. This begins by first choosing what goals we have for our portfolio.
If one is investing for long term growth, there are specific penny stocks that fit that category. On the other hand, investors who are swing trading, many benefit from the volatility that penny stocks often offer. The next step in creating a list of penny stocks to watch is to identify the market that a penny stock exists in. This could be anything from electric vehicle penny stocks to mining penny stocks and more. This is where it can get tricky for some. With this, it is best to create a list of penny stocks that look interesting and then move on to the next step. The next step is research.
- What Are Good Penny Stocks To Invest In? 5 Real Estate Stocks To Watch
- 5 Hot Penny Stocks To Watch Right Now; 3 Up Over 150% In 2020
This involves learning anything you can about a given company and its role in its unique industry. Additionally, investors should be aware of a company’s financials as well as what it has in store for the future. With this information in mind, you can then begin to feel confident in the penny stock watchlist that you have created. All things considered, here are four penny stocks that you may want to add to your watchlist.Penny Stocks to Watch For November 2020
- Coty Inc. (COTY Stock Report)
- Greensky Inc. (GSKY Stock Report)
- Northwest Biotherapeutics Inc. (NWBO Stock Report)
- Selecta Biosciences Inc. (SELB Stock Report)
Coty Inc. Is a multinational beauty product supplier with products in many countries around the world. The company recently announced its financial results for the period ending on September 30th. The company announced net revenue coming in at $1.69 billion which is down by 13% year over year. But, we have to keep in mind that this is a solid improvement over the previous quarter. Sue Nabi, CEO of Coty stated that “our first-quarter results are a testament that a stronger, more focused and more flexible Coty is emerging in the middle of the Covid-19 pandemic and better prepared to face any future market disruptions.”
Nabi went on to state that “Impressively, the organization has continue dot adapt to the new normal, executing on our financial and operational priorities, including profit and cash flow protection, strong innovation performance, e-commerce momentum, and strengthened positioning in core markets.”
While Coty Inc. has had some trouble due to the Covid pandemic, it has worked hard to move around these struggles. The company stated that it has improved several of its in-house brands including the Prestige and Mass brands. With all of this considered, COTY stock continues to look like it could be a strong Covid penny stock to watch. Of course, we have to remember that COTY stock is quite volatile. But, this is something that is to be expected in a penny stock of this size.Penny Stocks to Watch: Greensky Inc.
Greensky Inc. is a technology company that is working on offering point of sale products to consumers, banks and merchants. The company states that it has financed over $26 billion worth of commerce since its inception. Recently, Greensky announced its third quarter 2020 results. In the results, the company states that it pulled in $3 million in net income with an adjusted EBITDA of $39 million.
David Zalik, CEO of Greensky stated that “I am pleased to share that Greensky enjoyed a very productive third quarter on multiple fronts. Our solid third-quarter operating results reflect the continuing durability of our home improvement business, despite the ongoing challenges related to Covid-19. Despite a modest decline in third-quarter revenue, our overall servicing portfolio continued to grow and our average transaction fee rate also grew by 40 basis points over the prior year.”
In terms of revenue, the company brought in around $142 million, which represents a 7% decline year over year. Again, we have to consider the effects of Covid on any business including Greensky. With a 17% increase on EBITDA over the same quarter of the previous year, it looks like GReensky could be in a solid position to see potential future growth. But, that remains up to penny stock investors to decide for themselves. As a tech company, it looks like Greensky has been able to secure a position in the Covid penny stocks to watch category. While it is a volatile company all in all, it does look like it could have forward momentum in the future.Penny Stocks to Watch: Northwest Biotherapeutics Inc.
Northwest Biotherapeutics Inc. is a biotech company that is working on the development of personalized immune therapies. These therapies are used to treat those suffering from cancer in both the U.S. and abroad. The company states that it based its products on the DCVax platform, which utilizes the patients immune system to attack the unwanted cells. Currently, its DCVax-L is in a phase 3 trial that is attempting to see its efficacy in treating rare types of brain cancer. In addition, its drug known as DCVax-Direct is in phase 2 trials to see whether or not it can treat inoperable tumor based cancers.
In the past six months, shares of NWBO stock are up by over 720%. This is quite an astounding growth rate and can be attributed to several factors. The majority of this upward momentum is due to the company’s DCVax-L treatment. In the current phase-3 trial, the company has spent 14 years working to evaluate this one substance. While this may seem like a long time, it is quite standard for trials to go on for extended periods of time.
As it appears, the company has a lot riding on this phase 3 trial. If things go well, there’s no telling what kind of momentum the company could have. While a lot of this is speculation, it’s up to investors to decide if NWBO stock is the right penny stock to watch.Penny Stocks to Watch: Selecta Biosciences Inc.
Selecta Biosciences Inc. is a biotechnology penny stock that is working on developing therapies to treat unwanted immune responses. The company has several drugs currently in its pipeline that are being studied. But, its flagship drug known as SEL-212 utilizes the ImmTOR immune tolerance platform which is groundbreaking technology. This drug is utilized in the treatment of chronic refractory gout and can be used with other ailments as well. In its most recent third quarter, the company announced that it generated around $4.6 million in revenue. This beat out the estimate done by Zacks by almost $1 million.
On Friday, November 13th, shares of SELB stock shot up by as much as 7% during intraday trading. Year to date, shares of SELB stock have returned more than 44% to investors. This is quite a large amount especially when we consider the effects of the Covid pandemic.
But, if we look at the chart we see that SELB stock is also quite volatile. This is something that we have seen amongst biotech penny stocks during Covid. In the past thirty days, shares of SELB stock are up by over 55%. This can help to show that there is a great deal of bullish interest in the company. While it is a volatile penny stock to watch, investors can continue to do the research to see if SELB stock is right for them. So far, this quarter, SELB stock is up over 100%.