Making a penny stock watchlist? There are a few things that you should consider. The first and arguably the most important is what’s going on in the world. Geopolitical and economic factors can greatly affect all industries as well as the most popular penny stocks right now.
For this reason, we have to consider the trajectory of the coronavirus, U.S. economic inflation, and other economic factors like job reports and retail spending. While this may not seem to have a major role, all of these aspects can contribute to industry-wide gains or losses. And when looking for penny stocks to buy, it’s important to consider everything wholly.
Next, investors need to understand what factors are affecting a given market. For example, a few months ago when the massive tanker ship was lodged in the Suez Canal, oil prices shot up dramatically. This was due to a low supply as a result of no ships being able to pass through. As you can see, there is always a cause and effect that can have an impact on your list of penny stocks to buy.[Read More] Top Tech Penny Stocks to Buy This Year? One Up 102% YTD
Lastly, we need to understand the company-specific aspects that will shift a penny stock’s price in the short term. This includes news, press releases, business updates, and everything in between. While these gains or losses are usually company-specific, often if one penny stock goes up, similar ones could see a correlative gain and vise versa.
Because buying penny stocks on Robinhood or other accessible brokerages is so easy, many new investors are coming into the market. This has helped to bring volume to new highs. Considering all of this, let’s take a look at three penny stocks to watch right now.3 Penny Stocks to Watch for Your Wednesday Watchlist 1. Boxlight Corp. (NASDAQ: BOXL)
Boxlight Corp. is a penny stock that we’ve discussed frequently over the past few months. For those unfamiliar, BOXL is a tech penny stock working to provide solutions to the global education market. Because of this, it is also considered a reopening penny stock, as it could benefit from the economy opening back up.
Boxlight offers a large range of high-tech classroom solutions including software, professional development, support services, and lesson plans. It also has several proprietary learning products such as the Mimio and Clevertouch brands. While it does work primarily in the education industry, Boxlight is working to move into the corporate environment as well.
In a letter to shareholders, posted yesterday, CEO Michael Pope offered a lot of information on what the company is doing right now. In the report, Pope stated that “we recently provided our fourth quarter 2020 results, exceeding our guidance, and reported record orders of $33 million, revenues of $32 million, the largest sales pipeline in our history, positive adjusted EBITDA, and a strong balance sheet.”
While right now, Boxlight earns 70% of its revenue through the sale of interactive flat panel displays (IFPDs), it aims to move into other markets such as SaaS and training/development programs. Additionally, the company is working on expanding its global reach into Latin America. To date, it has formed partnerships in Puerto Rico, Columbia, Peru, and Costa Rica among others.
Also of note is that Boxlight has become the #1 IFPD brand in all of Australia. So, because of its market position and solid balance sheet, BOXL is showing a lot of momentum right now. Whether this earns it a spot on your penny stock watchlist is up to you.2. ADMA Biologics Inc. (NASDAQ: ADMA)
If you’re looking for a pure-play biotech penny stock, ADMA Biologics could be worth watching. ADMA is a commercial biopharmaceutical company working on plasma-derived biologics for the treatment of immunodeficiency disorders. It has a large pipeline of prospective therapeutics, that are all in the various stages of approval. This includes the manufacturing and marketing of three FDA-approved plasma-derived biologics; BVIGAM, ASCENIV , and NABI-HB.[Read More] Biotech Penny Stocks To Buy? 3 to Watch Under $5
It’s not often that we see a biotech company with this many approved compounds. And for this reason, investors are paying attention to ADMA stock right now. Early on April 28th, ADMA Biologics announced that it received FDA approval for an increased IVIG Production Scale. This is a manufacturing process that allows for the purification of plasma in a 4,400-liter pool. The plasma is used in the production of intravenous immune globulin or IVIG.
“The FDA approval of the 4,400 liter IVIG plasma pool production scale process is a transformative milestone for the ADMA organization and will allow the Company to produce significantly more IVIG for the U.S. market and for patients living with immune deficiencies. The expanded plasma pool production scale allows us to confidently commit to generating peak revenues in excess of $300 million.”CEO of ADMA Biologics Inc. Adam Grossman
This is a major announcement for the company and shows just how much potential it could have once production gets up to speed. Of course, it will likely take some time before this project is completed. However, things usually move quickly once an FDA approval is granted. With this in mind, is ADMA stock worth watching?3. Verastem Inc. (NASDAQ: VSTM)
Verastem Inc. Is another pure-play biotech penny stock that could be worth watching. However, different from ADMA, Verastem works in the oncology field. It is a clinical-stage biopharmaceutical company that is developing and commercializing novel medicines for the treatment of cancer. It focuses on small molecule drugs that can inhibit tumor growth. This includes RAF/MEK inhibition and focal adhesion kinase (FAK) inhibition.[Read More] 4 Penny Stocks On Robinhood To Buy Under $1; 50%-270% Price Targets
Back in March, Verastem announced its fourth quarter and full-year 2020 financial results alongside several clinical updates and milestones. One of the highlights of its balance sheet is that it ended the year with more than $147 million in cash on hand. This should give it a long enough cash runway to continue operations until at least 2024. During the fourth quarter, the company managed to push its VS-6766 compound into two Phase 2 clinical studies. These studies will look into the effect of VS-6766 on both lung cancer and ovarian cancer.
“We are encouraged as we continue to gain a greater understanding of the profile of our RAF/MEK inhibitor VS-6766 and its role in blocking multiple nodes in the RAS pathway without the resistance and tolerability issues that have historically been challenges.
We have a strong balance sheet to execute on our corporate objectives and report across multiple key catalysts. Our annual spend is projected to be approximately $50 million for 2021, and we still anticipate being comfortably funded until at least 2024.”Brian Stuglik, CEO of Verastem Inc.
Penny stock investors love to see a biotech company that is well funded. Because of its advantageous capital position, VSTM looks like it has a solid framework to grow in the coming months and years. So considering this, is VSTM a penny stock to watch? The choice is yours.