In the past few weeks, investors have seen a great deal of bullish interest in penny stocks. This is not to say all penny stocks have had bull runs, but rather a select group. There are several factors currently in play that could shift the trajectory of penny stocks in the coming months. The most important factor is covid and the potential of a vaccine.
In the U.K., the government approved a covid-vaccine for emergency use during the first week of December. Whether or not this will create a domino effect for the U.S. remains to be seen. But, the fact that a vaccine is going into widespread use means that we could soon see the light and the end of the covid filled tunnel. With this, many penny stock investors are not only bullish but hopeful about the future as well.
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If a vaccine rollout is successful in the U.S., we could begin to see a widespread economic recovery. In the meantime, it’s worth searching to find penny stocks to watch. These penny stocks could be both covid related and not. But regardless, investors should always make sure they have the right information at hand to make an educated decision. This means knowing financial statements, balance sheets, and what a company is doing in both the short and long term. With this information, investors can feel confident in their penny stock watchlists. All things considered, here are four penny stocks to watch before next week.Penny Stocks to Watch Before Next Week
- Companhia Energetica Minas Gerais ADR (CIG Stock Report)
- Curis Inc. (CRIS Stock Report)
- Novan Inc. (NOVN Stock Report)
- H2C Holdings Inc. (HCHC Stock Report)
Companhia Energetica Minas Gerais ADR is one of the major suppliers of energy in Brazil. The company states that it engages in the generation and distribution of energy in Brazil, which includes hydroelectric power, thermoelectric and wind/solar power. In addition, CIG states that it provides technology and systems for public services that relate to energy generation and distribution.
As we can see, CIG works in a myriad of different areas of the energy market. On Thursday, December 3rd, shares of CIG stock shot up by a modest 1.5% during intraday trading. In the past month, however, shares are up by almost 40%. On December 7th, CIG is supposed to report its earnings report for the latest quarter.
To prepare for this, let’s take a look at its most recent quarterly report. In its last report, which was posted on May 15th, the company posted an EPS of $0.08. in addition, its annual revenue came in at around $1.37 billion. While this is around $0.15 billion less than Q3 2019, we have to account for there effects of Covid on energy consumption. With its GAAP EPS for the latest quarter coming in at around $0.17 per share, it looks like CIG stock is growing at a decent rate. With all of this in mind, CIG stock could continue to be considered a penny stock to watch. Fourth-quarter-to-date CIG stock is up over 40% so far.Penny Stocks to Watch: Curis Inc.
Curis Inc. is another penny stock to watch, coming in with around 5% in gains as of midday on December 3rd. As a biotech company, some investors believe that Curis Inc. has a high correlation to the covid industry.the company states that it is currently working on new drugs and therapies for use in immune-oncology and other areas of cancer treatments.
In its pipeline, the company has several drugs including Fimepinostat, CA-170, CA-4948, CA-327, and Erivedge. These drugs represent a broad overview of how the company is working to treat cancer. On November 10th, the company reported its Q3 2020 earnings for the period ending on September 30th. In the report, the company announced that EPS increased year over year by a staggering $0.11.
While revenue decreased by around 4%, this is not much considering the effects of covid on all industries. In addition to this, the company recently announced that it will be participating in a virtual conference on cancer treatment on Tuesday, December 8th. In this conference, it will discuss data from two of its Phase 1 clinical studies of CA-4948. Events like these are important for investors because they allow the public to get a glimpse into what a company is doing. With this event only a few days away, investors can decide if CRIS stock is a penny stock to watch. Since the beginning of Q4, CRIS stock is up roughly 75% so far.Penny Stocks to Watch: Novan Inc.
Novan Inc. is up about 15% for the quarter so far however the last week has been noticeably stronger. Since last Friday, NOVN stock has jumped 26.5%. Excitement has built up following a series of corporate tweets put out recently. First, just before the Thanksgiving holiday, Novan tweeted out that it is working to advance its berdazimer sodium through preclinical development as a potential treatment for COVID-19. This week Novan reported that its looking to file an IND in the first half of next year for its coronavirus program.
Now, if you’ve been following our updates on the company, you’ll remember some of the developments from October. The company announced positive in vitro results of its NITRICIL™ platform technology showing the potential efficacy of NITRICIL™ as an antiviral against SARS-CoV-2. In addition to this, keep in mind that it’s year-end and the first quarter of 2021 isn’t that far away.
In its latest corporate update, Paula Brown Stafford, President and CEO of Novan alluded to milestones to keep mindful of.
“The last few months have been marked by many significant achievements for the Company and the advancement of our priority development pipeline. We initiated our pivotal Phase 3 study, B-SIMPLE4, and even during the current global pandemic, I am pleased to report that enrollment has remained on track and is targeted to complete in the first quarter of 2021.”Penny Stocks to Watch: H2C Holdings Inc.
H2C Holdings Inc. jumped big after hours on Thursday. The penny stock reached highs of $4.06 shortly after the closing bell rang. This brought its quarter-to-date move to 61% (so far). This extended a multi-week uptrend that initially began when the company announced approval of an amendment to the company’s certificate of incorporation. This was to increase the number of authorized shares of common stock of H2C to 160,000,000 and saw the conversion of up to 35,000 shares of Series B preferred stock of the company in connection with its current $65 million rights offering. H2C then followed this with news of a new CEO, Wayne Barr, Jr., who was the interim CEO.
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The company has also been benefiting from several industry trends. The reason being is that H2C is a holding company with a hand in several hot sectors currently. HC2 has operating subsidiaries across multiple segments, including Infrastructure, Clean Energy, and Life Sciences. During the third quarter, its Clean Energy segment helped offset some of its losses from other operating arms.
One of the big reasons that I think HCHC stock is moving like it is on Thursday can be found in its filings. In a FORM 4, Director Avram Glazer reported the purchase of 2.6 million shares at average prices ranging from $3.3596 to $3.5431. I’ll let you do the math on that. The big question now: will this momentum translate positively heading into Friday’s morning session?