Are penny stocks on your list heading into December? If not, you might want to consider a few things right now. First, small-cap stocks have been on fire in November. The Russell 2000 ETF – IWM, has far outpaced the broader S&P (SPY ETF), for instance. While this is just one facet of the theory, the other has to do with sector trends.
Do you remember or have you seen the recent surge in electric vehicle stocks? No matter how far along or how early-stage a company was in development, as long as there was some relation to electric vehicles, traders were paying attention. This has continued a bit more, early on in the week this week. However, there could be a sector rotation going on that’s taking some of the momentum out of EV stock (for now).
The tie-in with penny stocks is that many of these high-flyers were trading below $5 at the beginning of the month. With millions of new traders looking for stocks to buy, many are finding that penny stocks might not be as bad as certain people say they are. Will there be volatility? Of course, and there’s also a lot more risk involved.
But when you break it down to basics, anyone able to manage this risk has likely done very well over the last 30 days. Stocks like SOLO, AYRO, KNDI, and DPW all had some relation to EV. This is just a handful of electric vehicle stocks that began the month under $5 and ended up surpassing that level recently. Considering the attention that penny stocks are receiving thanks to momentum in small-caps and sector trends, it’s no wonder why analysts are also beginning to weigh in.Penny Stocks To Buy [according to HC Wainwright]: Marathon Patent Group
Marathon Patent Group (MARA Stock Report) recently caught the attention of H.C. Wainwright analysts. Last week the firm initiated coverage on MARA stock. HC gave it a Buy rating as well as a $7.50 price target. Considering the penny stock closed Friday at $4.28, that MARA stock forecast is 75% higher than those levels.
Over the weekend, the price of bitcoin began rebounding. The cryptocurrency dipped in price in a big way last week. This sent shares of bitcoin and blockchain stocks lower in sympathy with the broader move. Considering Marathon focuses on cryptocurrency mining, it made sense that shares dipped along with bitcoin.
The company recently unveiled a new investor presentation highlighting several key initiatives for the road ahead. Specifically, the company highlighted its potential to produce 15 to 20 Bitcoins per day at an average production cost of $3,863 per Bitcoin. It furthers sees the potential of generating $8.8 million in revenue per month and $6.7 million in gross profit per month.Penny Stocks To Buy [according to HC Wainwright]: Selecta Biosciences Inc.
Selecta Biosciences Inc.(SELB Stock Report) is a company we’ve discussed for most of the 4th quarter so far. SELB stock gapped down after some bad news in September. Since then, however, shares have been moving higher. The price even filled the gap from that prior drop.
The company’s flagship drug, SEL-212 utilizes Selecta’s ImmTOR immune tolerance platform for treating chronic refractory gout. In the last earnings update, Carsten Brunn, Ph.D., President and CEO of Selecta explained that the company “reported topline data from the Phase 2 COMPARE trial of SEL-212 which demonstrated the potential” of the ImmTOR platform.
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Most recently, the focus has been on advancements made between Selecta and other biotechs. These include receipt of an Orphan Drug Designation for AskBio and Selecta’s MMA-101 targeting methylmalonic acidemia. Phase 1 clinical trials of MMA-101 and ImmTOR are expected in the first half of 2021. Additionally, Selecta recently made a $4 million milestone payment to its partner, 3SBio after beginning Phase 3 trials of a combination therapy involving SEL-212 targeting chronic refractory gout.
In light of this, not only is SELB stock up 119% quarter-to-date, analysts at HC Wainwright have a price target set 85% higher than Friday’s closing price. The firm has a Buy on the stock with an SELB stock forecast of $6.Penny Stocks To Buy [according to HC Wainwright]: Akebia Therapeutics Inc.
Similar to Selecta, Akebia Therapeutics Inc. (AKBA Stock Report) also fell earlier this year after bad news. In early September, the company reported topline results from a Phase 3 program of its vadadustat. Let’s just say results missed the mark, which ended up sending AKBA stock from $10 to below $3 overnight. Since then, Akebia has been working toward a viable path forward. However, unlike SELB, Akebia shares haven’t filled that gap by any meaningful level. Friday, shares closed at $3.49 and while this is higher than in September, there’s still over $6 to make up.
According to HC Wainwright, however, that might not be out of the question. The firm currently has a Buy rating on the stock and issued a $9 price target. The company’s also attracted institutional interest recently. Wellington Management Group LLP reported a 12.35% stake in Akebia earlier this month.
This week, the company participates in the Piper Sandler 32nd Annual Virtual Healthcare Conference, Thursday. So if AKBA stock is on the watch list, this could be something to keep in mind.Penny Stocks To Hold [according to HC Wainwright]: Sunesis Pharmaceuticals
Shares of Sunesis Pharmaceuticals (SNSS Stock Report) haven’t gotten the big bump that MARA stock did this month. However, eyes have been on the company following its reverse stock split effected in September. The 1 for 10 split brought shares back above $1 as SNSS stock had been trading around 20 cents weeks prior. Needless to say, the company has focused on growth as well.
After beating earnings estimates on EPS in its third quarter, eyes turned to the path forward. “Our number one priority is our review of strategic alternatives while continuing to build value in our internal and partnered programs” said Dayton Misfeldt, Interim Chief Executive Officer of Sunesis. “We have engaged MTS Health Partners, L.P., as our financial advisor, as we are committed to ensuring we find a value-creating path for the company.”
In line with this, news came out this week highlighting exactly that path. Sunesis and Viracta Therapeutics announced a merger agreement. The focus of this combined company will be on developing Viracta’s precision oncology pipeline targeting virus-associated malignancies.
Earlier this year, HC Wainwright gave a Neutral rating to Sunesis. However, it also set a $5 price target. Considering the current closing price of $1.50 on Friday, that SNSS stock forecast is 233% higher than those levels.Penny Stocks And Analyst Ratings
While all of this is interesting, I’m sure, keep in mind that analysts aren’t the end-all to due diligence. Research is very important especially when it comes to trading penny stocks. Many analysts can be wrong in their approach to certain companies. Meanwhile, the ratings, while “recent” may not be 100% current to the latest sector or market trends. Keep all of this in mind when it comes time for looking for penny stocks to buy.