With December well underway, there is a long list of penny stocks to watch. When investing in penny stocks, we have to consider the various factors that make companies go up or down in value. All investors should ask themselves a few questions before entering into a penny stock trade. First; what does the company do that is different or better than the rest?
With so much competition across most industries, companies have to either be the best in the category or a niche player. Second; what do its financials look like and what do its fundamentals show? When looking for any penny stock to watch, investors should always know what financial situation a company is in.
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This includes looking at balance sheets, debt amounts, free-flowing cash, and any fundraising efforts. These factors can help to determine whether a company has a solid fundamental footing to grow in the future. Lastly; what does a company have lined up for itself in the long term? By looking at a penny stock’s press releases, investors can gain valuable insight into what a company may do in the future. This is helpful for those who trade in both the long and the short term. Once we’ve identified answers to all these questions, it’s much easier to craft a list of penny stocks to watch. For some inspiration, here are five penny stocks to watch for the second week of December.Penny Stocks to Watch
- Transenterix Inc. (TRXC Stock Report)
- Aerpio Pharmaceuticals Inc. (ARPO Stock Report)
- Usio Inc. (USIO Stock Report)
- Cellect Biotechnology Ltd. (APOP Stock Report)
- Intec Pharma Ltd. (NTEC Stock Report)
Transenterix Inc. is one of the biggest gainers of the day on December 8th. During trading and into after hours, TRXC stock posted around 26% in gains. In the past month, shares of TRXC stock have shot up by a staggering 86%. For some context, Transenterix operates as a biotech company working in the medical devices field. The company states that it is working on utilizing AI and robotics in various types of surgery.
Its platform known as the Senhance Surgical System, works by offering digital laparoscopy to all areas where it is needed. Last month, the company reported its Q3 financials for the period ending on September 30th. In the report, the company stated that there are eight clinical programs currently utilizing its technology. In addition, the company was able to secure around $15 million in gross proceeds from an underwritten public offering.
CEO of the company, Anthony Fernando, stated that “the third quarter was immensely productive for the company despite the ongoing headwinds associated with Covid and the burden placed on hospitals globally. We achieved several key milestones, including the first surgical procedures using the Intelligent Surgical Unit.” While there was no news specifically that led to its gain on December 8th, investors are showing confidence in the future of the company. With this in mind, investors can decide whether or not TRXC stock is a penny stock to watch.Penny Stocks to Watch: Aerpio Pharmaceuticals Inc.
Aerpio Pharmaceuticals Inc. is another big gainer on December 8th, pulling in around 16% in gains by EOD. Aerpio works as a biopharmaceutical company with a heavy focus on the development of compounds for use in treating diabetes related conditions. This includes conditions that deal with the eyes as well as other vascular disorders. The company states that its lead product known as razuprotafib, is being studied for its potential in treating diabetic retinopathy. More recently, the company has been working to see if razuprotafib can be utilized in the treatment of covid-related ARDS. In a special trial known as the I-SPY Covid trial, the company is studying the use of this drug on covid-19 patients in critical stages of the illness.
Because of its place in the covid-biotech industry, the company has seen a lot of upward momentum in the past few months. In its latest third quarter, the company announced that it had around $47 million in cash and cash equivalents. Additionally, the company stated that it is “making progress in both ARDS clinical trials of COVID-19 patients, we have the potential to expand the usage of razuprotafib into other life-threatening diseases that produce a severe ARDS syndrome.” In the past month, shares of ARPO stock have shot up by almost 45% and around 61% in the past six months. With this performance and its role with Covid, investors could view ARPO stock as a penny stock to watch for the long term.Penny Stocks to Watch: Usio Inc.
Usio Inc. is a company that works in the integrated payment solutions industry. This means that it provides payment solutions for everything from banks to card issuers, merchants and more. The company has a few major competitors, but it has been able to carve out a niche for itself. On December 8th, the company announced that it has signed into a letter of intent to acquire the assets of Information Management Solutions. The latter is a company that provides electronic billing information and printing/mailing services. The two businesses are closely related in what they offer consumers, and for that reason, this acquisition makes quite a lot of sense.
The two have been working together for many years, and this deal seems to be the culmination of this synergy. When the announcement came after hours, USIO stock quickly shot up by around 59% during after hours trading. In addition to this announcement, the company stated a day prior that it will be offering $37 million in stock through a shelf offering. This means that it will have a greater amount of shares in the market, thus diluting current shares by a small margin. With these funds however, the company should be able to continue expanding toward its future goals. Whether or not this makes USIO stock a penny stock to watch is up to investors to decide.Penny Stocks to Watch: Cellect Biotechnology Ltd.
Cellect Biotechonlogy Ltd. is another one of the big performers on December 8th, with around 25% in gains during the trading day. Well no news specifically came out during the day, we can look at its business model to see why there is bullish interest in APOP stock. On November 20th, the company announced its Q3 2020 financial results.
In the results, the biotech company announced that it brought in a net loss of around $0.47 million. In addition, the company saw income come in at around $0.26 million. Yes, these numbers are quite small comparatively. But, with many biotech penny stocks, we usually see small financials until a product is commercially approved or available.
Shai Yarkoni, CEO of the company stated that “in spite of the Covid-19 challenges we expedited our clinical and business development activities as we successfully achieved several objectives. Specifically, we recently initiated our U.S. clinical trial and entered into a partnership with a clinical stage biotech company that will leverage our functional cell selection technology.” Of course, APOP stock does remain quite volatile due to its sheer size. But, it is correlated with covid due to it being a biotech company. With covid cases rising once again, it remains up in the air whether or not APOP stock is a penny stock to watch.Penny Stocks To Watch: Intec Pharma Ltd.
Intec Pharma Ltd. (NTEC Stock Report) is one of those marijuana stocks that isn’t part of the “mainstream” so to speak. When traders think about marijuana stocks to buy, they usually look at things like MSOS or LPs – the companies growing, processing, or selling cannabis. One of the things I think traders have forgotten about are the biotech penny stocks of the sector. These are companies that are making strong advances in biotech initiatives to help with myriad treatment indications.
Intec is one of these companies. it focuses on making drugs and based on its accordion pill platform. This week, the company reported one of the biggest developments to date in my opinion. It involves GW Research Ltd. exploring using the Accordion Pill platform for an undisclosed research program.
Jeffrey A. Meckler, Vice Chairman and Chief Executive Officer of Intec Pharma, said, “Through partnerships such as this, we continue to evaluate the utility of our Accordion Pill platform in the development of innovative therapeutics.”