Investing in penny stocks is all about being ahead of the game. While this is not always the case, it often pays to stay up to date with the happenings of the stock market. This means following news events as well as trajectories of both penny stocks and the market as a whole. If we break down the basics, we see that the term penny stock simply means any company that is trading under $5. As you can see, this means that there are quite a lot of penny stocks to watch. For this reason, it’s best to begin by building out a strategy. When looking to do so, there are a few questions investors should ask themselves.
For one, what type of investor are you? If your portfolio centered around day trading and quick growth? Or, is your strategy geared more toward long term gains? While both of these strategies are valuable, it is important to know which one best suits your investing style. Next, investors should ask whether or not they have enough information on a given company. The best investor is always the one with the most information at hand. And with the internet at our fingertips, we all have the power to do so.
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Lastly, investors should understand their short and long-term goals for each option they are trading. This means either knowing the time period one wants to hold a security or knowing what target price to pull out at. With all of this information in hand, finding a penny stock to watch can be quite simple. All things considered, here are five penny stocks to watch for investors of all types.Penny Stocks to Buy [or avoid]
- Exantas Capital Corp. (XAN Stock Report)
- Dynavax Technologies Corp. (DVAX Stock Report)
- Superior Industries International Inc. (SUP Stock Report)
- Soligenix Inc. (SNGX Stock Report)
- Ashford Hospitality Trust (AHT Stock Report)
Exantas Capital Corp. is a company that operates as a real estate investment trust or REIT for short. The company states that it primarily works in the field of commercial real estate in the U.S. With REITs like Innovative Industrial Properties Inc. (IIPR Stock Report) bringing in attention, Exantas Capital Corp. has a lot going for it. The company recently announced its Q3 earnings for 2020. In the results, it announced earnings of $0.17 per share. This well exceeded expectations of $0.10 per share. During the past four consecutive quarters, Exantas Capital has beat out expectations by a wide margin, with this quarter being no exception.
In addition, during the quarter the company posted revenue of around $11.6 million, beating expectations by almost 15%. In the past month, shares of XAN stock have shot up by around 63%. Year to date however, shares are still down by astound 70%. So, what’s driving the new bullish momentum for XAN stock? Well, if we look at IIPR as an example, we see that investors find comfort in the stability of REITs. With geopolitical tensions on the rise and Covid doing the same, investors may be searching for a less volatile asset. Because of this, XAN stock is seeing newfound popularity in the Covid-stricken stock market. With all of this in mind, investors can decide if XAN stock is right for them.
Dynavax Technologies Inc. is a commercial stage biopharmaceutical company that is working on the development of different vaccines. The company stated that its HEPLISAV-B (Hepatitis B Vaccine) is its first commercial product available. The company also stated that it is currently approved in the U.S. to prevent all types of hepatitis B in those over the age of 18.
More recently, the company is working on different vaccine candidates to help aid in the fight against Covid-19 and standard types of influenza. On November 17th, the company announced that it will be participating in an industry-wide conference known as the Evercore ISI HealthCONx Conference. With this, it should be able to spread data regarding what it has been working on in the past few months.
Events like these are advantageous for investors as they allow the public to get a glimpse into what a company is doing in the short term. On November 17th, shares of DVAX stock shot up by around 4.5% by EOD. One of the main drivers behind this is that the company announced that it has begun a Phase I/II clinical trial for its Covid-19 vaccine candidate. If it received approval from the Drugs Controller General of India, it will be able to study its vaccine in depth with the general public. The company states that the results of the trial will be available as soon as February of next year. With this exciting news in mind, DVAX stock could be one to watch this week.Penny Stocks to Buy [or avoid]: Superior Industries International Inc.
Superior Industries International Inc. is one of the big gainers for November 17th. During trading on Tuesday, shares of SUP stock shot up by almost 10% by EOD. For some context, Superior Industries International works as a designer and manufacturer of aluminum wheels for both commercial and retail markets. Within its brand are several sub brands known as ATS, RIAL, ALUTEC, and ANZIO. These brands all provide aluminum wheels to different markets around the world. In the beginning of November, Superior Industries International Inc. reported its Q3 2020 financial results. In the results, the company posted earnings of $0.24 in the past year. This represents a rise of 260% over the past years earnings.
While revenue did decrease by around 9% to $317 million, it still beat estimates by around $5 million. The company stated that for the full year 2020, revenue should come in at around $1.06 billion. On November 2nd, shares of the wheel manufacturer shot up by as much as 25% in early trading. In the past month, shares of SUP stock are up by almost 170%. While there may be less automobiles on the road due to Covid, the demand for wheels remains relatively the same. With a vaccine on the way, people could soon be traveling once again by car. Because of this, SUP stock could remain on the list of penny stocks to watch.Penny Stocks to Buy [or avoid]: Soligenix Inc.
Soligenix Inc. similarly to SUP stock, shot up by around 10% during trading on November 17th. On the 16th, Soligenix announced positive results from its Phase 3 clinical trial of Dusquetide for Oral Mucositis. In addition, the company posted an announcement stating that its Covid-19 vaccine candidate known as CiVax, is being tolerated well and is in later stages of development. While it may seem like the race to find a vaccine is almost over due to announcements from Pfizer and Moderna, it is quite the opposite. Both vaccines made by these companies have large restrictions on how they can be handled.
In short, these two vaccine candidates need to be kept extremely cold in order to stay efficacious for any period of time. This may not be a problem in the short term for countries like the U.S. However, in other areas of the world where refrigeration is not widespread, the vaccine may have little to no use. On the contrary, the vaccine candidate from Soligenix can withstand temperatures as high as 104 degrees Fahrenheit. This is a big breakthrough and could mean that Soligenix has a big standing in the vaccine fight. Whether or not it gets its data as fast as the leading competitors remains to be seen. But, with Covid on the rise once again, investors continue to turn to biotech penny stocks like Soligenix.Penny Stocks to Buy [or avoid]: Ashford Hospitality Trust
Ashford Hospitality Trust has been one of the REIT penny stocks on our list for a few weeks now. We discussed it among other industry stocks as “the sleepers” of the market when it comes to stocks under $5. Ever since March, these real estate penny stock have been steadily rising without much volatility on a day-to-day level. This morning, AHT stock, however, domonstrated some aggressive trading activity. While there wasn’t a news headline to accompany the move, there are a few things to keep in mind.
Ashford had battled with one of its larger shareholders over the last few months. This lead to potentially offering 126 million shares; a highly dilutive event. The move shook some of its larger investors, specifically Cygnus Capital. The investor eventually called upon Ashford to eliminate the offering since it wasn’t able to obtain enough votes in the eyes of Cygnus. This exchange offer will expire on November 20th unless earlier terminated or extended. As the date approaches, it will be interesting to see how these larger shareholders respond depending on the final outcome.