With November behind us at this point, December is a new month ripe with potential for penny stocks. While not all penny stocks hold high value, with careful research, we can find the ones that are. One of the best pieces of advice that pro-investors give is to make sure that one has all the information they can about a given penny stock.
While this may not seem too important, it is the best way to avoid surprises in one’s portfolio. With information at hand, investors can often make educated guesses as to what could happen with price action regarding a given penny stock. This is not to say that we can completely avoid volatility, but rather that information can often protect our investments.
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The second thing for penny stock investors to consider is what area of the stock market they wish to invest in. Right now, covid is the biggest factor for the entire stock market, providing both positive and negative momentum. Within the stock market, several industries with correlations to covid, have seen positive momentum in the past month or so.
This includes biotech stocks, EV penny stocks, digital communication stocks, and others. With these categories in mind, investors can begin to create a list of penny stocks to watch. All things considered, here are four companies that could be worth watching right now. But are they the best penny stocks to buy right now?Penny Stocks to Watch On Friday
- Foresight Autonomous Holdings ADR (FRSX Stock Report)
- OrganiGram Holdings Inc. (OGI Stock Report)
- Advaxis Inc. (ADXS Stock Report)
- Sigma Labs Inc. (SGLB Stock Report)
- Cinedigm (CIDM Stock Report)
Foresight Autonomous Holdings ADR is another one of the leaders in terms of gains on December 3rd. During the trading day and into after hours, shares of FRSX stock shot up by around 24%. On December 3rd, the company announced that it will be exhibiting a mass covid-19 symptom detection solution at the GITEX Future star 2020 conference.
This is a big deal as it could put FRSX stock in the covid penny stocks to watch category. The company primarily works as a technology company that designs, develops, and commercializes sensors for the automotive industry. This includes the autonomous vehicle market as well as software for connecting vehicles to the IoT world.
Additionally, on November 12th, the company reported its Q3 2020 financial results for the period ending on September 30th. In the results, the company ended the quarter with around $14.5 million in cash. Haim Siboni, CEO of the company, stated that “Foresight continued to demonstrate steady progress in the third quarter, as we established new partnerships with influential players in Europe, Japan, and China. We are confident that our new relationships with leading companies…will lead to stable sales growth.”Penny Stocks to Buy [or avoid]: OrganiGram Holdings Inc.
OrganiGram Holdings Inc. is one of the largest producers of cannabis in the industry. On December 3rd, shares of OGI stock shot up by around 7% during intraday trading. In the past five days, shares of the company are up by as much as 23%. One of the main issues that we have seen in the past with Canadian cannabis producers was the oversupply of marijuana to the industry.
While these companies were dealing with this issue, U.S. cannabis companies were able to gain the top spot. In the past few months, however, many Canadian marijuana stocks have been able to climb in value as oversupply is no longer an issue. Recently, OrganiGram reported its Q4 2020 financial results.
In the results, net revenue shot up by a solid 25% to $20.4 million. In terms of gross revenue, OrganiGram brought in around $25 million which is a 32% increase over Q4 2019. Greg Engel, CEO of OrganiGram stated that “we are excited about OrganiGram’s prospects as we continue to reinvigorate and diversify our product portfolio with new offerings aimed at delivering the attributes that matter most to consumers. Overall, we are very encouraged by the initial responses to our new products and the increased awareness and ration they are receiving against a backdrop of national retail store growth and a growing legal market.”
With all of this in mind, investors can decide if OGI stock is a marijuana penny stock to watch or not.Penny Stocks to Buy [or avoid]: Advaxis Inc.
Advaxis Inc. is another big gainer for December 3rd, pulling in around 8% in gains by EOD. Since last Friday, shares of ADXS stock have shot up by almost 23%. For some context, Advaxis is a clinical-stage biotech company working on the development and commercialization of several immunotherapy products.
The company utilizes what is known as live attenuated Listeria monocytogenes, which can secrete antigen-proteins. While this may sound complicated, this simply means that it is utilizing organic compounds to produce an immune response from the body. Recently, the company announced that it has closed on an underwritten public offering of around 26.6 million shares of common stock.
The company states that it should bring in around $9.2 million in gross proceeds for the company. With these funds, Advaxis should be able to move forward with R&D regarding its ADXS-HOT program as well as for general corporate funding. As a biotech company, Advaxis has received a great amount of popularity during the Covid pandemic.
While it isn’t truly a covid penny stock by most definition, it still has a high correlation to other stocks that are more involved in the covid industry. While it is a volatile biotech penny stock, the company does have a lot going for it moving into the end of the year.Penny Stocks to Buy [or avoid]: Sigma Labs Inc.
Sigma Labs Inc. is a provider of software to the 3D metal printing industry. The company works with its program known as PrintRite3D to aid in the production of advanced manufacturing techniques. The company states that its product can detect defects in a 3D print in real-time. This is a game-changer for the 3D printing industry as it allows for less waste and better time management.
The company states that its products can help bring to fruition a widespread use of metal 3D printing. On December 3rd, shares of SGLB stock shot up by around 4% during the trading day. This occurred before shooting up another 24% during after hours. In addition, the company recently reported its Q3 financial and operating results for the period ending on September 30th.
In the results, Mark Ruport, CEO of the company stated that “the third quarter of 2020 was about execution and laying the foundation for a successful 2021 and we are very pleased to have made significant progress in each of the strategic initiatives that we established at the beginning of the year. On the financial front, our balance sheet expanded during the third quarter by $3.5 million…During the third quarter of 2020, we announced a contract with a major oil and gas services company, following a successful Rapid Test and Evaluation program.”
Because it is a cutting edge company, Sigma Labs has only a small amount of competitors to worry about. With this in mind, investors could consider it to be a penny stock to watch moving forward.Penny Stocks To Buy [or avoid]: Cinedigm
If there’s one hot corner of the market gaining steam it’s streaming technology. We’ve seen companies like Fubo (FUBO Stock Report) rally explosively on new advancements with their platform. In-kind, Cinedigm has also gained ground after its own key update on Friday. The company announced more linear streaming channels on its platform. These were launched on the Rad streaming service. The launch puts numerous entertainment channels on platforms like Playstation 5, Android TVs, and Android mobile devices.
This essentially puts the content in front of millions of users. Considering that this comes amid the holiday season, it could be well-timed for CIDM. During the premarket session on Friday, shares traded much higher following this news. The biggest point of focus right now should be on the technical side of things.
For months, CIDM stock had a tough time breaking above major moving averages. The most recent has been its 50-day moving average sitting around 55 cents. While the stock managed to break above this level during the premarket hours, traders will likely be watching closely to see if this can hold.