3 Penny Stocks to Add to Your Year End Watchlist
With Omicron fears resulting in a major drop for penny stocks and blue chips, many investors are looking for the best companies to watch. During the trading day, the Dow Jones Industrial Average dropped by around 650 points alongside a 2.8% drop for the Russell 2000 index. As mentioned, the main reason for this is the rise in cases stemming from the Omicron variant. On Friday, December 17th, U.S. cases for Covid in the U.S. shot up to around 156,000. The largest losers of the day so far are understandably, reopening penny stocks.
Additionally, many investors fear that the variant could spark shutdowns, although there is no validity to that yet. Despite this, Moderna put out a statement, showing that its booster is still effective against Omicron-related cases. If we put all of this together, we see that there is a sizable amount of uncertainty regarding the future. And this uncertainty is causing major spikes and drops in value. With that in mind, let’s take a look at three penny stocks to add to your year-end watchlist.
3 Penny Stocks to Watch as 2021 Comes to an End
Galera Therapeutics Inc. (NASDAQ: GRTX)
One of the biggest gainers of the day so far is GRTX stock, shooting up by over 42% at midday. This brings its one-month gain to a staggering 190%, which is not unheard of, albeit, it is impressive. So, why exactly are shares of GRTX stock up so much right now? Well, one of the main reasons for today’s bullish momentum comes as Citigroup maintained its buy rating for the company. In addition, it raised its price target from $11 to $20, which is quite a substantial gain. While it is difficult to only go by analyst ratings, they are important for both price action and speculative moves.
Aside from these, the company recently announced corrected study results which initially sent GRTX stock dropping by more than 70% a few months ago. A few weeks ago, the company announced positive topline efficacy for the Phase 3 Trial of Avasopasem. Moving forward, the company plans to discuss the data with the FDA next year.
“Given the high unmet medical need for patients with head and neck cancer who develop radiotherapy-induced severe oral mucositis, we are gratified that the Phase 3 ROMAN trial achieved statistical significance on the primary endpoint after the correction of the statistical programming error.”
Mel Sorensen M.D., the CEO of Galera
This is exciting news for the company and shows that it is making progress despite a statistical error. Considering all of that, does it deserve a space on your penny stocks watchlist right now?
Vinco Ventures Inc. (NASDAQ: BBIG)
In the past five days, shares of BBIG stock shot up by over 3% with a YTD gain of over 140%. These are substantial gains and despite recent bearish momentum, shares of BBIG are in focus for many investors. There are several reasons for this including the sheer number of press releases that the company puts out. The most recent of these came on December 7th, when the company announced less than stellar third-quarter results.
For some context, the company focuses on acquisitions in the tech space. This includes everything from NFTs and blockchain to pure-play tech and more. In its Q3 results, the company posted a net loss of around $540 million versus $2.8 million in the same period of the previous year. This is a major drop and reflects the difficulties of the pandemic as well as the decrease in revenue from its medical products market. But, moving forward, the company plans to improve its acquisition holdings and other business propositions.
Additionally, the company had a cash balance of almost $150 million at the end of the third quarter. As we see, it is difficult to find a large value point for BBIG stock. However, its placement in the tech market and its continuous announcements means that it will likely be in the spotlight moving forward. Whether this makes BBIG stock worth adding to your list of penny stocks remains up to you.
Fortuna Silver Mines Inc. (NYSE: FSM)
As far as other big gainers go for the day thus far, FSM stock pulled in almost 20% in gains by midday. This brings its five day gain to over 23%, which is no small feat, especially for a mining stock. If you’re wondering why shares of FSM stock are up today, there are a few reasons to explain it. Despite the price of silver itself dropping right now, the company announced that it had received a permit from the Mexican government for its silver-gold mine, known as the San Jose mine.
This is a big deal and could bring production for the company up substantially. This mine is comprised of over 1,200 employees and is one of its five mines area around the world. Right now, precious metals are in focus for many investors. This is the result of traders turning to the industry as a way to hedge bets against inflation and other market uncertainty. So, the addition of the new permits for the San Jose mine is one that could help to push the company further into the industry.
Additionally, the VanEck Gold Miners ETF recently purchased more FSM stock according to filings. So, if we consider the current state of the precious metals and mining industry, we see that FSM stock could be worth keeping a close eye on. Considering all of this, will FSM stock be on your watchlist moving forward?
Can Penny Stocks Continue to Make Positive Moves?
While the Omicron variant has cast a dark shadow on the potential of the market to grow in the short term. However, with any sizable losses, we usually see a bounce back or at last a positive correction.
So, with the major uncertainty that we’re witnessing in the stock market right now, it’s important to keep your strategy as concrete as possible. With all of that in mind, do you think that penny stocks can continue to make positive moves?
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