Are These Penny Stocks A BUY Right Now?
Penny stocks have been seeing renewed attention in the past few weeks. With the election currently in flux and COVID on the rise, investors are always looking for the next opportunity. With penny stocks, volatility can be usually quite high. This is something that gives swing traders a big advantage over those holding positions for the long term. For those who swing trade, it all comes down to finding a penny stock with solid growth potential and confidence-inspiring financials. As we enter the end of 2020, there are some penny stocks that are showing more potential than others.
Specifically, in the first week of November, we have seen a great amount of bullish potential amongst small cap stocks. What’s important as a trader is not to discriminate against one market. Rather, we can look at the greater bullish interest in the stock market, and see that there is opportunity everywhere. In the past week, marijuana stocks, biotech stocks, and psychedelic stocks have shot up greatly in value.
Penny Stocks to Watch: November 2020
- Oncternal Therapeutics Inc. (ONCT Stock Report)
- Blueknight Energy Partners L.P. (BKEP Stock Report)
- Coty Inc. (COTY Stock Report)
- NewAge Inc. (NBEV Stock Report)
While these are not the only areas of the stock market that have seen bullish interest, they have brought a great deal of attention. With all of this in mind, let’s take a look at four trending names today. Are these penny stocks to buy or avoid for the rest of November?
Penny Stocks To Buy [or avoid]: Oncternal Therapeutics Inc.
Oncternal Therapeutics Inc. is a clinical stage biopharmaceutical company working on the treatment of several types of cancers. The company states that it develops drugs that use different pathways into the body to produce a different biological response. One of the major drugs in its pipeline is known as cirmtuzumab. This drug is known as an investigational monoclonal antibody that can treat patients suffering from a rare type of lymphoma. In addition, the company has several other drugs that it is working on getting approval for. In terms of its financials, the company recently announced its third-quarter update this week.
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James Breitmeyer, President and CEO of Oncternal stated that “in the third quarter we continued advancing our oncology pipeline while strengthening our balance sheet. We expect to provide additional data updates on our clinical trials in patients with mantle cell lymphoma, Ewing sarcoma, and chronic lymphocytic leukemia in the fourth quarter.”
On November 5th, shares of ONCT stock had shot up by more than 180% during intraday trading. This is due to the very promising outlook from the company on its drug cirmtuzumab. With this in mind, ONTC stock has turned some heads in the stock market today. Given the fact that shares pulled back late in the afternoon, will it continue as one of the penny stocks to buy now or wait on?
Penny Stocks To Buy [or avoid]: Blueknight Energy Partners L.P.
Blueknight Energy Partners L.P. is considered to be an energy penny stock with operations that span from asphalt to crude oil. The company announced its Q3 financial results on November 4th, leading to a 10% gain in its share price on November 5th. In the results, Blueknight announced net income of roughly $14.4 million leading to an adjusted EBITDA of $18.6 million. In addition, its cash flow shot up by 26% year over year which is quite substantial.
“Our business had another solid quarter and our performance year-to-date continues to outpace last year. For the first nine months of the year, net income, adjusted EBITDA, and distributable cash flow were higher by $1.7 million, $2.1 million and $8 million, respectively. With these results…we now expect to meet or exceed our 2020 guidance for adjusted EBITDA, distribution coverage, and leverage.”
Andrew Woodward, CEO of Blueknight Energy
As an energy company, Blueknight was hit quite hard by the COVID pandemic. But, over the past six months, shares of BKEP stock have stayed relatively stable. With COVID hopefully coming to an end soon, we could see industrial production resume around the world. If this occurs, could Blueknight see a greater amount of bullish interest from investors? So for those who want a solid penny stock to watch with equally solid financials, BKEP stock may be one of the penny stocks to watch right now.
Penny Stocks To Buy [or avoid]: Coty Inc.
Coty Inc. is a beauty product conglomerate comprised of more than 77 wholly-owned brands. While COTY stock could have a lot of potential, investors should keep in mind that it is quite a volatile penny stock to watch. YTD, COTY stock is down by around 70%. And while this may seem disheartening, it looks like the bulls have begun to fill in during the past few weeks.
Since early October, shares of COTY are up by around 15% and the majority of those gains have been seen in the past two weeks alone. Early in October, analysts at Jefferies announced that it had upped its rating from hold to buy. In addition, it assigned a price target of $4 for the company.
The analysts believe that the new CEO of the company should provide a great deal of expertise for Coty. The company appointed industry veteran and previous L’Oreal executive, Sue Nabi back in July. Since then, the company has been working to resolve issues with its balance sheet. One Jefferies analyst stated that “we expect near term fundamentals to remain weak.”
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But, this was followed up with a statement arguing that the potential for COTY stock is in the long term. Sure, Coty Inc. has had some troubles in the past few years, but with a new CEO at the helm, could things start looking up for the cosmetics penny stock to watch?
Penny Stocks To Buy [or avoid]: NewAge Inc.
NewAge Inc. is a Colorado-based producer and provider of health and wellness products. While most similar businesses operate entirely in brick and mortar stores, NewAge has worked to capitalize on the e-commerce front. With this, it has access to e-commerce as well as traditional retail and wholesale channels. The company states that it has products in as many as 75 countries around the world. Recently, the company announced that it has added the brand ZenWTR to its portfolio of products. This highly sought after brand is something that could help to push organic growth for the company.
Brent Willis, CEO of NewAge stated that “the NewAge Direct Store Distribution (DSD Division)…is having one of its highest performing years on record. The division experienced significant disruption earlier in the year due to COVID-19 and the shutdown of the majority of its foodservice and on-premise customers. Despite that obstacle and numerous complexities with the traditional grocery and convenience retailers, the group has offset those impacts to deliver record performance so far in 2020.”
On November 5th, shares of NBEV stock had shot up by as much as 11% during intraday trading. In the past month, shares of NBEV have climbed by almost 65%. With this type of gain not going unnoticed by investors, NBEV stock continues to be a high growth penny stock to watch.
Why Are Small Cap Stocks So Popular in 2020?
While these four penny stocks to watch may be very different from one another, they all share a high degree of forward momentum. As stated earlier, it is very important to research a company’s financials on top of seeing solid performance. Additionally, investors should not be afraid to find new industries when searching for penny stocks to buy. In 2020, penny stocks continue to be very popular among both retail and institutional investors. With low barriers to entry and solid growth potential, penny stocks remain some of the most intriguing stocks to watch in November 2020.