4 Penny Stocks to Watch For Early December 2020

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Over the past few months, investor interest in penny stocks has shot up dramatically. The main reason for this is the cost of penny stocks as well as the potential of a post-covid economic boom. During 2020, we have seen the stock market have quite a volatile trajectory.

At the beginning of the year, things were looking good before the Covid pandemic hit. Soon after, we began to saw penny stocks and the stock market as a whole, fall significantly in value. While this was not great for those invested in the market at that time, since then, many penny stocks have rebounded to all-time highs. 

On November 24th, the Dow Jones Industrial Average hit an all-time high of $30,045 during intraday trading. This came as President Trump announced he would begin the transition of power to President-elect Joe Biden.

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On Monday, November 30th, the Dow dropped by around 1% during intraday trading, which most believe to be a small correction from the all-time high. But, with this bullish sentiment infiltrating the market, the hopes are high for big gains in the future. Of course, we still have to put in the work to find winning penny stocks to watch. But, with all of this in mind, here are four penny stocks to watch for December 2020

4 Penny Stocks to Watch For December 2020 

Penny Stocks to Watch #1: Cocrystal Pharma Inc. 

Cocrystal Pharma Inc. is a clinical stage biotech company working on the research and development of several antiviral drugs. On November 30th, shares of COCP stock shot up by as much as 13.5% during intraday trading. In the past five days, that number shoots up to almost 150% in gains which is quite substantial. So, why has this relatively unknown pharmaceutical penny stock shot up so much in value recently? Well, there are a few reasons behind COCP stock’s recent bull run. One of the main reasons behind this is the company’s work in its Covid-19 program. 

Dr. Gary Wilcox, CEO of Cocrystal stated that “we have made significant progress since initiating our Covid-19 program this year by strengthening our patent portfolio around these molecules, conducting a proof of concept animal study, initiating preclinical studies, and identifying additional inhibitors using our proprietary platform. In addition to advancing our development programs, we closed the quarter with $31 million cash, which provides funding for the expansion of our Covid-19 and influenza A programs.”

So in addition to being a part of the fight against Covid, Cocrystal also announced some solid Q3 2020 financial results. These two reasons seem to be the major backers behind the company’s recent gains. With Covid cases still rising, COCP stock could continue to be considered as a penny stock to watch. 

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Penny Stocks to Watch #2: Marimed Inc. 

Marimed Inc. is another one of the big gainers on November 30th, pulling in almost 40% in gains by midday. In the past month, shares of MRMD stock have shot up by almost 250% which is very significant. For some context, Marimed Inc. is considered to be a wellness-focused cannabis company. In the past month or so, many marijuana penny stocks have shot up in price due to the recent election outcome.

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Investors believe that this new administration will be the most pro-cannabis presidency that we have ever seen. Additionally, Kamala Harris has been quoted stating that on day one, she will work to decriminalize cannabis. Recently, Marimed Inc. reported its Q3 2020 financial results. In the results, the company stated that it brought in $13.5 million in revenue, representing a 220% climb over Q3 2019. Additionally, the company reported that its profit shot up by around 220% as well in the same period to roughly $8.7 million.

Jon Levine, CFO of Marimed stated that “during the quarter, we improved our balance sheet and financial flexibility by converting short-term, high interest rate debt to longer-term debt on much more attractive terms. We appreciate our lenders and investors continued support and believe this result reflects both the recognition of our progress to date, and shared confidence in our business strategy.”

As stated before, many investors believe that the cannabis industry will continue to grow greatly within the next decade. Due to many marijuana penny stocks still being relatively cheap, it seems as though the long term potential is palpable. With this popularity only increasing with time, Marimed Inc. could continue to be one of the penny stocks to watch. 

Penny Stocks to Watch-Marimed Inc. (MRMD Stock Report)

Penny Stocks to Watch #3: HEXO Corp. 

HEXO Corp. is another marijuana penny stock that has made significant gains in the past few trading sessions. In the past month, shares of HEXO stock shot up by around 55% including a 16% gain on November 30th. HEXO Corp. is one of the major suppliers of marijuana working out of the Canadian cannabis industry.

With the advent of Covid, the public has turned to cannabis in greater numbers than ever before. While we saw U.S. marijuana penny stocks shoot up earlier in the year, Canadian cannabis stocks have taken their time. While HEXO is based in Canada, the company has significant potential in the U.S. if the proper legislation is passed. 

In the past few quarters, HEXO has shown some dreary results. Although its losses did increase, the company still managed to push up its consolidated revenue by around 76% over the previous year. Sebastien St-Louis, CEO of HEXO stated that “Hexo’s toppling growth this quarter reflects the ongoing performance and success of our 2.0 products and the high quality of our offering which repeatedly resonated with consumers.”

The 2.0 he is referring to is legislation that passed in Canada earlier in the year, allowing the production and sale of concentrated cannabis products. While things got off to a slow start, companies have since been seeing a great deal of popularity with these products. With the cannabis industry growing substantially, penny stocks like HEXO, could be worth watching for the near term. 

Penny Stocks to Watch-HEXO Corp. (HEXO Stock Report)

Penny Stocks to Watch #4: Federal National Mortgage Association 

Federal National Mortgage Association or more commonly known as Fannie-Mae, is an association that provides financing services for mortgages and loans in the U.S. The group states that it works in two primary sectors. First, it provides loan services to single-family structures including fixed rate and adjustable rate mortgages. Second, the company works in multifamily mortgages where it offers similar services.

These loans are backed by the Federal Housing Administration in the U.S. In addition, these loans are quite popular when the economy moves upward. Of course, the Covid pandemic has affected the housing market greatly. But, given the potential of a vaccine for the public coming into play, we could see the economy begin to bounce back. 

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This would mean that more people could be purchasing homes, and therefore more loans would be given out. On November 30th, shares of FNMA stock shot up by over 10% during intraday trading to around $2.96 per share. In the past month, that number jumps up to around 58% in gains. While trading Fannie Mae can be quite speculative, as stated before, growth tends to occur correlatively with the growth of the economy. So, if things are looking good from a broad perspective, we could see FNMA stock begin to show more bullish momentum. With the price under $3, FNMA could be considered to be a penny stock to watch.

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