Penny Stocks To Watch Before Next Week
Penny stocks are well-known for being high risk. When it comes time to buy them, there are plenty of different emotions that come about. Though it’s important to keep emotion out of trading, sometimes you can’t help but let it slip. This week the market, overall was bullish and trading volumes were a little lower. Considering the upcoming holiday and New Year weeks, it makes sense that the markets might be a bit lighter.
But that doesn’t mean there haven’t been plenty of opportunities to take advantage of volatile trades. In fact, some of the biggest movers were among small-cap stocks this week. Keep in mind that day trading carries risk beyond general market risk, especially when considering penny stocks to buy.
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In many cases, we’re talking about companies with very thinly traded markets. This typically lends a hand to those big swings traders like to see. With that comes swings in both directions. So as exciting as a big move higher can be, you don’t want to be there when there’s just as big of a pullback after. But what about IPOs? Without prior history, how can you trade penny stocks that are brand new?
We saw this exact scenario unfold this week with the IPO of Wunong Net Technology Co (WNW Stock Report). The Chinese eCommerce platform company had an IPO price of $5 on Tuesday. By Thursday morning, WNW stock had reached highs of $160.68. While no one would’ve expected such a move, this former penny stock demonstrated exactly why people look for penny stocks to buy. It also came with a 3,113% move in the share price.
This is just one example of how quickly penny stocks can break out big. Heading into the end of the week, are these on your list of penny stocks to watch right now?
Hot Penny Stocks To Watch #1: Havn Life Sciences
Havn Life Sciences (HAVLF Stock Report) has been one of the top mushroom and psychedelic penny stocks to watch. The better part of the last few weeks has seen shares of the company explode. In fact, since the start of December, Havn’s stock price has rallied as much as 96.8%.
The mushroom boom, as they call it, has traders looking for early entry. Many have compared this to the early days of another “fringe” industry: cannabis. What we’ve learned, if anything at all, is that leadership is key. During the early days, one of the former trailblazers in the cannabis industry, Vic Neufeld, took the helm of Aphria. During his time there, he leads the company on a path that resulted in a top-tier position among marijuana stocks. Now, after retiring, Neufeld has apparently found a seat at a new table. That “table” is the Board of Havn, and he sits as Executive Chairman.
Obviously, it’s not just about leadership. In the psychedelic space, a clear path to revenue is also necessary. Not many people fully grasp the potential of this market yet. But they know what happened with marijuana stocks. This morning, Havn provided an update on its retail roll-out and plans for next year. Specifically, Havn Retail & its 7 natural healthcare products are set for launch next quarter, focusing on functional mushrooms.
Hot Penny Stocks To Watch #2: Farmmi Inc.
A mushroom stock of a different kind, Farmmi Inc. (FAMI Stock Report) focuses less on psychedelics and more on functional food. The company has gained attention from traders thanks to a simple, yet apparently effective sales strategy. As a result, the company continues announcing new sales wins in 2020; yes, even amid the pandemic.
The most recent victory came this week. Farmmi’s subsidiary received a multi-product order from a Japanese customer. This sale added to a growing list of closed deals in December. Earlier in December, Farmmi closed on a multi-product follow up order for export to Israel.
Farmmi’s aggressive sales strategy seems to have helped. What should the market watch when it comes to this mushroom stock? Aside from the clear uptrend FAMI has been on this quarter, earnings will be a key indicator of this sales strategy’s effectiveness. With slower revenue growth during the first 6 months of the year, some are catching up to do.
Hot Penny Stocks To Watch #3: AgEagle Aerial Systems, Inc.
There’s no doubt about it; tech stocks are hot right now. Whether it’s a communications company or a cloud computing stock, tech appears to be the place to be right now. How will that look in 2021? Many expect markets to continue experiencing a bullish tone. So far, in 2020, tech has outpaced many of the other industries that have crumbled thanks to the pandemic. But, it may have been the pandemic that actually helped some of these companies flourish.
Certainly, social distancing measures and the general lack of physical contact have consumers focusing on a new normal. In light of this, we’ve got government organizations following suit. This isn’t just because of social distancing but also to help mitigate things like traffic and pollution. By taking on an urban air mobility program, some countries are looking to the sky to fulfill this goal. AgEagle Aerial Systems Inc. (UAVS Stock Report) seems like it would fit in just fine when discussing the topic. We’re talking about a drone company that just signed a deal and made an investment into a Drone Delivery Station manufacturing company.
Through their deal with Valqari LLC, the two will work to produce Valqari’s Drone Delivery Station. Also, it’s good knowing that the company was selected as an industry partner for the U.S. DOT’s Unmanned Aircraft System Integration Pilot Program as well as the BEYOND program. CTO Michael Kratsios stated that “the IPP propelled the American drone industry forward, allowing for unprecedented expansions in testing and operations.”
Hot Penny Stocks To Watch #4: Lexicon Pharmaceuticals Inc.
Lexicon Pharmaceuticals Inc. (LXRX Stock Report) has been on the move since early November. In fact, after hitting new 52-week lows of $1.03 on November 9th, shares experienced an explosive move. The stock rallied as high as $4.10 and after consolidating earlier this week, LXRX shares are back on the move.
Some of the things that helped give the penny stock a boost were related to its Phase 3 Studies, SOLOIST & SCORED. Both achieved their primary endpoints targeting the treatment of heart disease. Thanks to this, Lexicon raised eyebrows from the analyst community. Both Gabelli & Co, and Citigroup upgraded the company to Buy. Citigroup went further and raised its $2.10 price target to $6.
This week a few things have gone on that biotech traders might want to keep an eye on. First, Lexicon entered a collaboration with AC Bioscience for its LX2931 treatment. It’s not currently in active development at Lexicon, however, AC Bioscience will use preclinical and clinical data for the compound. The agreement will see Lexicon receive upfront payments and future milestone payments of up to $5.3 million in aggregate.
Something else to note is the two FORM 4s filed on Thursday. They showed Artal International and Invus Public Equities reporting share purchases. This has also helped add some fuel to the fire this week.
Hot Penny Stocks To Watch #5: Ampio Pharmaceuticals
Ampio Pharmaceuticals Inc. (AMPE Stock Report) is another one of the biotech penny stocks to watch right now. Shares have been on the rise for the last 4 months, with more recent sessions showing significantly higher trading activity. If you remember, earlier this year, the company was in the spotlight for its COVID treatment.
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More specifically, its Ampion treatment for COVID-19 patients is for respiratory distress. The phase 1 clinical trial for inhaled Ampion started toward the end of October. A patent portfolio backs this lead drug with intellectual property protection extending through 2032.
Why have AMPE stock on watch this week? The company gave an update on its clinical trials. Ampio completed its Phase 1 clinical trial and began the initial steps for a global Phase 2 for its intravenous Ampion treatment for COVID-19. This will likely be a key point of focus not only this week but heading into the new year. Phase 2 of Ampion will further evaluate the treatment’s potential. As we’ve already seen, favorable Phase 1 data has been well-received by traders so far.
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