Throughout the pandemic, investors have worked to find penny stocks that may add value to their portfolios. While this can be easy for seasoned investors, newcomers may need a bit of advice to get started. With the introduction of Robinhood and other trading platforms, investing in penny stocks has never been more accessible.
But, because there are so many retail investors looking for penny stocks to watch, finding winners can take a bit of time and research. The most informed trader is always the one who has the best chance of seeing potential returns. And with the power of the internet, any trader can be the most informed one out there. When searching for a penny stock to watch, investors should utilize a few pieces of information.
The first and most obvious of these is a company’s financial statements. These are released quarterly and show everything from a company’s financial position to how much profitability and debt it has on the books. This is one of the best ways that penny stock investors can choose winners in the long term. Many investors tend to flock to companies that show big intraday gains.
But, if the fundamentals are bad, in the long term things could go south. The second most important thing to consider is what a company is doing to stay on top in the foreseeable future. This information can be found by searching through press releases and any announcements made by the company.Penny Stocks to Watch
- CytoDyn Inc. (CYDY Stock Report)
- Taseko Mines Ltd. (TGB Stock Report)
- Sesen Bio Inc. (SESN Stock Report)
- Drive Shack Inc. (DS Stock Report)
- Beasley Broadcast Group Inc. (BBGI Stock Report)
CytoDyn Inc. is considered to be a late-stage biotech company working on the commercialization and development of several novel drugs. This includes its leading product which is known as Pro-140. This substance is used as an anti-viral agent against HIV and breast cancer. Currently, the company is in several Phase I/II trails for this substance. In addition, the company is working on its drug known as leronlimab for its use in treating patients with Covid. On December 15th, the company announced that it is working on a Phase 3 trial of this drug for severe covid patients. The trial, which has 390 patients, should produce results within the next month or so.
Nader Pourhassan, CEO of the company, stated that “we are very thankful for the concerted efforts by so many healthcare professionals to reach full enrollment so quickly in these trying times. To the best of our knowledge, we are the first company to complete a Phase 3 trial for Covid-19 severe-to-critical population.”
This is a major step for both dealing with covid and for CytoDyn as a company. With results potentially coming in the short term, it looks like CytoDyn has a lot to look forward to in 2021. Additionally, as a biotech company, CYDY stock has a steep correlation with any news that comes out about covid. With this in mind, investors can decide if CYDY stock is a penny stock to watch this month.Penny Stocks to Watch #2: Taseko Mines Ltd.
Taseko Mines Ltd. is a popular mining company that produces everything from copper to gold and silver. The company reportedly has several mines around the world. This includes the Yellowhead copper project, the Harmony Gold Project, and the Florence Copper Project among others. While it does mine a variety of metals, the company primarily is known for its copper mining operations. Last month, Taseko Mines announced that it had closed on a bought deal offering worth around $23 million.
The offering, which involves the sale of 27.75 million common shares at a price of $0.83 per share, should help to deliver a great deal of capital to the company. This is quite common for mining companies as capital is the main driving force of the business. The company states that these funds will go primarily to the advancement of its Florence Copper Project. In addition, the funds will be used for corporate and working capital.
During the past month, shares of TGB stock have shot up by almost 50%. In the past six months, that number jumps up to over 150%. One of the main reasons that TGB stock has seen so much popularity is due to its role as a mining company. With covid on the rise, many investors have turned to potentially safer penny stocks to watch. Because mining stocks are historically quite stable in the face of adversity, TGB stock has managed to be included in this list.Penny Stocks to Watch #3: Sesen Bio Inc.
Sesen Bio Inc. is another late-stage biopharmaceutical company working on the engineering, development, and commercialization of several novel drugs. This includes its drug known as Vicineum, which is in use for those with invasive bladder cancers. In addition to Vicineum, the company is also developing its drug Durvalumab. This drug is currently in a Phase 1 trial for its treatment of NMIBC. Recently, the company announced that it has entered into a manufacturing and supply contract with its Chinese partner, Qilu Pharmaceutical Co. In the agreement, Qilu will serve as the manufacturing hub for the commercialization and supply of Vicineum in China.
Thomas Cannell, CEO of Sesen Bio stated that “NMIBC is a disease area that has chronically suffered from manufacturing and CMC issues with significant impacts on patient care. Given this, we have taken a thoughtful approach to our supply chain and partnerships in order to meet the significant global demand for Vicineum. Qilu has a large and experienced manufacturing team and currently supplies products for commercial sale around the world.”
With this, it seems as though Sesen Bio is working heavily to capitalize on the Chinese pharmaceutical market. Sesen Bio has continuously illustrated its focus on treating various rare types of cancer. With a massive demand for its products around the world, some investors believe that SESN stock could have long term potential. Whether or not this makes it a penny stock to watch remains up to individual investors to decide.Penny Stocks to Watch #4: Drive Shack Inc.
Drive Shack Inc. is a company that works in the leisure and entertainment industry primarily on the East Coast. The company differs from other penny stocks on this list in terms of the industry it operates in. Recently, the company announced that it will be reopening its 65,000 square foot golf facility located in Orlando, FL. You might be thinking, what is an entertainment penny stock doing on this list given the current state of Covid?
Well, the answer is that many investors believe that companies like DS could be undervalued. This is due to the lasting effects of covid on businesses in 2020. When covid hit, entertainment penny stocks took a big and albeit, understandable dive in value. Since then, however, news has come out regarding a vaccine and the potential light at the end of the tunnel. This could mean that entertainment penny stocks will get more notoriety in the future.
In the short term, DS stock may remain quite volatile. But, if a vaccine is widely available in the U.S., we could see more people returning to everyday activities. This includes leisure activities like golf and other entertainment sources. Hana Khouri, CEO of the company states that “we’ve seen a resurgence in demand since reopening our other entertainment golf venues. Creating innovative ways to drive traffic into all our venues, while providing a safe space for guests to connect and socialize, remains a top priority.”Penny Stocks to Watch #5: Beasley Broadcast Group Inc.
Beasley Broadcast Group Inc. is a media company working to provide radio services in the U.S. The company states that it has access to more than 19 million listeners per week. The company states that it in total, has as many as 64 stations that span 15 markets throughout the U.S. With its massive radio reach, Beasley Broadcast Group has become one of the largest radio media companies in the industry.
In addition, the company has a long history in the media industry, with almost 60 years of experience behind it. Recently, the company announced its Q3 financial quarter results. In the report, net revenue jumped up by a staggering 63% over the previous quarter to around $49.6 million. And while you may think radio has no place in 2020, Beasley Broadcast Group has continued to show otherwise. In the third quarter, BBGI brought in around $0.11 in EPS. This is quite substantial and amounts to around $8.1 million in operating income.
In the earlier part of this year, Beasley was affected heavily by the covid pandemic. But, now that more people are in their cars and traveling once again, radio seems to be getting back on track. Caroline Beasley, CEO of the company, stated that “the strong recovery of our business continued in the third quarter of 2020. It is clear that the immediate actions we took to address the pandemic including reducing station operating expenses, headcount reductions, furloughs, and negotiated discounts with landlords, service providers and partners, have contributed to Beasley’s ability to rebound quickly.” With all of this in mind, investors can choose whether or not to consider BBGI stock a penny stock to watch.