3 Penny Stocks to Watch As We Turn the Corner in May
With May already halfway done, which penny stocks are climbing to the top? Well, because there are hundreds of penny stocks to choose from, this question is not that simple to answer. But, like anything, we can break it down step by step to see which on the list of penny stocks, are worth watching.
For starters, let’s consider what the industry looks like right now. In May 2021, we have the pandemic slowly coming to a close in the U.S., the rise of cryptocurrencies like DogeCoin and Bitcoin, and some of the highest inflation rates in the past decade.
And while some of what’s going on right now may not be positive, there is always an opportunity for those looking to buy penny stocks. It may take a little outside-of-the-box creativity, but locating valuable penny stocks to watch can be easier than imagined. And at the core of every great watchlist, will always be research and a dedication to information.
Many investors new to trading stocks under $5, will simply find the largest performers of the day, and hop on in an attempt to capitalize on their fear of missing out (FOMO). But, it is crucial when investing in penny stocks or any stocks for that matter, to leave emotion at the door. Considering all of this, let’s take a look at three penny stocks that should be on your May watchlist.
3 Penny Stocks to Add to Your May Watchlist
- Vertex Energy Inc. (NASDAQ: VTNR)
- Atossa Therapeutics Inc. (NASDAQ: ATOS)
- Color star Technology Co. Ltd. (NASDAQ: CSCW)
Vertex Energy Inc. (NASDAQ: VTNR)
We covered VTNR stock a few days ago in response to the Colonial Pipeline Shutdown’s effect on energy penny stocks. And, again on May 13th, shares of VTNR stock are up in the double-digit percentage points.
For some context, Vertex Energy is a refiner of oil products such as motor oil, petroleum, and those used in industrial lubrication. It owns a major nine million gallon storage facility based in Louisiana, as well as several other facilities around the country. The company states that it is one of the largest processors of used motor oil in the U.S., which is a large milestone.
While no new news came out on May 14th, today’s gain is likely the result of yesterday’s Q1 2021 balance sheet report. In the report, the company managed to increase its adjusted EBITDA by $4.9 million over Q1 2020. Much of this is due to the YoY increase of Group II+ base oil prices of 20%. Additionally, at the end of the quarter, Vertex reported having total cash in hand of around $16.4 million.
“Our strong first-quarter results, which include significant year over year growth in gross profit, operating income and adjusted EBITDA, were driven by a combination of increased product demand, improved margin realization, disciplined expense management, and full optimization of our Marrero and Heartland refineries.”
Benjamin Cowart, CEO of Vertex
Now, the company states that its business has risen above pre-covid levels. This is all exciting news and could make VTNR stock worth watching in the coming weeks.
Atossa Therapeutics Inc. (NASDAQ: ATOS)
Another penny stock that we’ve covered numerous times is Atossa Therapeutics. On May 14th, shares of ATOS shot up by around 23% by end of the day. Earlier in the day, ATOS reported its Q1 2021 financial results as well as some corporate updates.
Before we go into it, let’s talk about what Atossa does. Atossa Therapeutics is a clinical-stage biopharmaceutical company working on innovative oncology and infectious disease-related medicines. This includes a focus on both breast cancer, and more recently, Covid-19.
In its quarterly update, the company announced that it had concluded its open-label Phase 2 study of Endoxifen for the treatment of breast cancer. This means that the program can move forward very shortly.
Additionally, it received a Safe to Proceed letter from the FDA, only furthering the use of Endoxifen in upcoming trials. Lastly, the company reported that its nasal spray, AT-301 for Covid-19, was safe and well-tolerated by patients.
“During the first quarter of 2021, we continued our two key development programs, namely our Phase 2 study of oral Endoxifen for the ‘window of opportunity’ between diagnosis of breast cancer and surgery and our Phase 1 study of AT-301 nasal spray for at-home use for patients recently diagnosed with Covid-19.
In addition, we continued our ongoing expanded access program with Endoxifen in which the drug continues to be well tolerated and great cancer recurrence has not been seen clinically. We also received an important authorization from the FDA.”
Dr. Steven Quay, CEO and President of Atossa
With this exciting news in mind, will ATOS be on your penny stock watchlist?
Color Star Technology Co. Ltd. (NASDAQ: CSCW)
Color Star Technology Co. Ltd. is another penny stock that pushed up big today. By EOD, shares of CSCW had pushed up by as much as 22%. Right now, shares of CSCW sit at around $0.99 which is a tipping point for many penny stocks. If it can push past the $1 mark, it could be big news for CSCW.
Color Star works as an entertainment penny stock, focused on creating and utilizing new technologies to use in the entertainment industry. This includes blockchain technology, AI, AR, and more.
Because it is such a cutting-edge company, many believe that it could be the future of the tech-centered entertainment market. More recently, the company has become an NFT penny stock through its work in the production of new non-fungible tokens with various purposes.
The CEO of the company, Mr. Luke Lu, stated that “currently, NFT transactions in the market are very active, and we are optimistic about the application of NFT technology in the entertainment industry…Based on the data from this phase, we will accumulate more experience in launching similar products in the future.”
While no specific news came out today detailing the moves that CSCW made, it could be because many cryptocurrencies popped during the trading day. Whether or not this is the case, CSCW remains an interesting penny stock to watch.
Are These Penny Stocks Worth It?
At the end of the day, finding the best penny stocks to watch is dependent on your strategy. Using the biggest daily gainers can be a good strategy, but it should only be done in tandem with other research and information.
Right now is an interesting time to invest in penny stocks. And with so much going on in the world, the market could continue to get better. With this in mind, are these penny stocks worth it?