Penny Stocks To Watch Before Next Week
As March quickly approaches, plenty of industries continue to present investors with opportunities. Within the penny stock category, there is a myriad of options to choose from. Because “penny stocks” are defined as any security trading under $5, there are plenty of names to choose from. Now you might be thinking, well, how do I pick the right penny stocks to buy? And the answer is relatively simple. The first step is to pick an industry that you think may see bullish attention in the foreseeable future. The other option is to find a penny stock that could be bullish in the short term.
Once this is done, investors can use the various online tools to deduce several factors about a given company. This includes debt amount, revenue, plans, and any other information you can find. With this, investors should use the tools they have to try and compile a watchlist of one’s favorite penny stocks. With this list, we can then narrow down which companies may be worth investing in and which may not.
Additionally, investors should understand whether they are looking for long or short-term trades. Given that penny stocks tend to be quite volatile, most investors tend to go with the short-term plays. For some inspiration with your watchlist, here are five penny stocks that are riding a bullish wave.
- MICT Inc. (NASDAQ: MICT)
- Sphere 3D Corp. (NASDAQ: ANY)
- Tellurian Inc. (NASDAQ: TELL)
- Protalix Biotherapeutics Inc. (NYSEAMERICAN: PLX)
- JMP Group LLC (NYSE: JMP)
MICT Inc. is a tech company working out of the global fintech industry. The company produces a large range of products for use in trading, online brokerage, and wealth management services, among others. In the past year, MICT has received more attention due to most financial services becoming completely digital. With covid still around, tech companies have continued to benefit from the increased attention they receive. In addition to this, the company’s subsidiary, Micronet, has received a lot of attention for its role in computing solutions. As you can see, MICT is quite a broad company in the industries it operates within.
A few days ago, the company announced the closing of a $60 million registered direct offering. This offering, which will sell shares at an average of $2.80, should help bring in a substantial amount of capital for the company. With this, the company will have access to the funds needed for several of its growing projects that are in the works. This includes a deal made recently with the Shanghai Petroleum and Natural Gas Trading Center, where it will offer a new platform to existing customers. The company continues to see many opportunities throughout Asia, specifically with the Chinese financial market.
Sphere 3D Corp.
Another tech penny stock of interest is ANY. Sphere 3D Corp. works with its large portfolio of brands to offer a wide breadth of IT solutions. The company recently announced that it had terminated an earlier agreement to acquire Rainmaker Worldwide Inc. While this may not seem like positive news initially, the deal was scrapped after realizing the appropriate timeline could not be met.
This also seems like an appropriate move, given the need to conserve capital that most companies are feeling. If we look back at ANY’s balance sheet from Q3 2020, we see that revenue only came in at $0.9 million. Additionally, operating expenses came in at around $2.2 million.
Rather, the company should continue working on the deals it has on the table. This includes products such as virtual storage, cloud strategies, various server technologies, and more. The company also mentioned that despite the termination of the Agreement, the company will continue to work with Rainmaker as a partner on certain opportunities for water-as-a-service offering, and in particular its projects in Turks & Caicos. Shares surged during aftermarket hours on Thursday, which could put it on the list of penny stocks to watch on Friday.
Tellurian Inc. is a company that we’ve covered a handful of times in the past few months. For some context, Tellurian is a provider of natural gas services, including production, trading, and infrastructure. In the past few months, investors have focused heavily on the energy sector for a few reasons. First, as the pandemic hit last year, many energy penny stocks dropped steeply in value. This means that some were trading well below book values.
Second, many investors believe that as covid settles down, transport will resume in big numbers. This could lead to an energy boom over the course of the long run. On Thursday, February 18th, TELL announced that it had reduced its debt by around $57 million. This includes a voluntary $43 million payment on a loan from 2018 and $13.6 million in debt paid over the course of the year. After all this, Tellurian still holds roughly $80 million in cash and $25 million in loans.
CEO of the company, Octavio Simoes, stated that “Tellurian is delivering on our debt reduction plan and strengthening our balance sheet, which comfortable liquidity for operations and a market capitalization value of over $1 billion. We are producing natural gas from our Haynesville position as we watch the global natural gas market restructure with liquefied natural gas supply tightening and prices rising.”
Protalix Biotherapeutics Corp.
Protalix Biotherapeutics is a biopharmaceutical company working on producing several therapeutic compounds. The company has a strong focus on its plant cell-based expression system known as ProCellEx. Protalix claims to be the first to receive FDA approval for a protein produced through this type of expression system.
With this, the company successfully developed taliglucerase alfa, which was approved back in 2012. Since then, Protalix has been working on a slew of other compounds throughout its wide pipeline. This includes OPRX-106, PRX110, and others. It is also working on the commercialization of pegunigalsidase alfa, which can be used to treat respiratory disorders.
On February 18th, the company completed a fundraising round, which raised roughly $40 million in gross proceeds. Dror Bashan, CEO of Protalix, stated that “I am very proud of our team for all our accomplishments this past year, especially having executed on our strategic plans during the global pandemic. We are on a new trajectory as a company with the potential upcoming commercial launch in a significant market with a new, exciting treatment option for patients, if approved; a pipeline of proprietary assets designed to enhance shareholder value supported by a strong balance sheet allowing us to execute on our strategic goals.”
JMP Group LLC
JMP Group LLC has recently come onto investors’ radars. At $4.97 per share as of February 18th, JMP stock is heading toward the higher end of the price range for penny stocks. But in the meantime, let’s discuss the company in greater depth. On Thursday, JMP announced its Q4 fiscal results for the 2020 year.
In the results, the investment firm announced an EPS of $0.42. Additionally, the company posted net revenue of over $53.6 million. This represents a sizable jump over the previous quarters, $26.6 million in revenue. Additionally, it posted a net income amount of over $9 million, which is again a substantial jump over the previous quarter’s $3 million loss.
Joe Jolson, CEO of JMP Group, stated that “we are very pleased to report record operating earnings for both the fourth quarter and the full year…We also took affirmative steps toward our stated objectives of monetizing corporate investments and retiring long-term debt.”
Something else to note is that JMP Securities earned $0.68 per share on an operating basis, driven by record advisory revenues and strong capital market revenues. Starting with the backdrop of a strong 2020 and Q4, JMP could be one to keep track of as financial stocks have helped give markets a hedge recently.