Penny Stocks Are Moving Up, Are These 3 On Your Watchlist?
Is it time to update your penny stock watchlist in May? This new month has brought a lot of high-performing penny stocks with it. The SEC defines a penny stock as a security trading below $5. Today we are going to focus on those priced under $3 per share. These assets are very speculative and risky so research is essential when investing in penny stocks.
A solid list of penny stocks will include have a strong financial backing, and be transparent in its reports. When investing, it can be useful to look at filings, news, reports, rumors, and volume.
These pieces of information can affect the price and direction of a penny stock. These are not the only things that affect these cheap stocks though. Does the company have the potential for a full buyout? Does it have a lot of debt that needs to be paid back? All of these questions can help to decide if a penny stock is right for you.
While they are inherently risky, there have been plenty of penny stock success stories. Certain sectors perform well in specific situations. For example, biotech penny stocks can perform well when a company completes a trial or reaches commercialization. An oil and gas company could perform well if the price of oil goes up. As we see, there is a clear cause and effect that plays into the pricing of any penny stocks to buy.
Furthermore, the world is dealing with the Covid pandemic right now. Sure, things are slowing down in the United States, but this cannot be said for other countries such as India. The severity of the rising case numbers abroad shows that we are not yet out of the woods. This is hurting some penny stocks, while the U.S. recovery is helping some other penny stocks. Keeping this all in mind, let’s look at three penny stocks showing momentum in May.
Penny Stocks To Watch Under $3
- Adamis Pharmaceuticals Corporation (NASDAQ: ADMP)
- TETRA Technologies Inc. (NYSE: TTI)
- VEON Ltd. (NASDAQ: VEON)
Adamis Pharmaceuticals Corporation (NASDAQ: ADMP)
Shares of Adamis Pharmaceuticals Corporation have gone up in value a lot in 2021 so far. Since the start of the year, ADMP stock has gone from under $0.50 per share to now being at over $0.90 per share as of Tuesday, May 4th. At one point this year, ADMP stock reached as high as $2.34 a share. You may be wondering, what is driving this momentum from Adamis Pharmaceuticals?
Let’s first understand what the company does. Adamis is a biotech company developing and commercializing products in use for allergies and respiratory diseases. The company’s main focus has been its COVID treatment candidate. Two months ago, Adamis announced that its novel antioxidant, Tempol, reduces inflammation in animals infected with COVID-19.
Only a month ago, the company was cleared by the U.S. Food and Drug Administration (FDA) to proceed with human studies of Tempol. In April, Adamis released a business update along with its financial results. This came as investors excitedly awaited any updates regarding its COVID-19 treatment.
Speaking on its Tempol progress, President and CEO Dennis J. Carlo said, “We intend to commence our Phase 2/3 clinical trial for Tempol in the second quarter of this year, to evaluate the use of Tempol for the prevention of hospitalization of patients with COVID-19.”
If Adamis pulls this off, it could be huge for the company. In addition to Tempol, the company has several other compounds in its pipeline. This includes its current work on two projects known as SYMJEPI and ZIMHI injections.
SYMJEPI was recently approved for use in the emergency treatment of acute allergic reactions. Because of these updates and its commitment to innovating, Adamis has continued to receive attention from the public and investors alike. With so much in its pipeline, will you add Adamis to your penny stock watchlist?
TETRA Technologies Inc. (NYSE: TTI)
TETRA Technologies is an energy penny stock that operates in the U.S., Latin America, Europe, and Asia among others. There are a few things that have helped to increase attention to TTI stock in the past few weeks. On May 4th the company released its first-quarter 2021 results.
TETRA’s revenue increased by 2% quarter over quarter but went down 42% year over year. Its net loss increased year over year as well. While this may seem disheartening, we have to consider the effects of the pandemic and its QoQ growth. YoY growth is a difficult metric to use right now as it is only indicative of the effects of Covid.
“The first quarter of 2021 represents a full year since the start of the global COVID-19 pandemic and despite the February winter storm impacting our quarterly financial results, I am pleased with the critical milestones we achieved during the quarter that are accelerating our opportunities in low carbon energy markets and positioning us very well for an improving oil and gas market.”
The CEO of TETRA, Brady Murphy
If these negative numbers are the case, then why are shares of TTI stock up more in the double-digit percentage points on May 4th? Murphy believes that the company is seeing stronger activity levels in the second quarter so far, and is very optimistic about the company delivering a much better quarter.
The company also just signed a memorandum of understanding with CarbonFree, a global capture company that uses technology to capture CO2 and mineralize emissions to make carbon negative chemicals. The idea behind the collaboration is to accelerate SkyCycle, a carbon mineralization technology, which will create lower-cost solutions. With all of these things to consider, is TTI making your list of penny stocks to watch?
VEON Ltd. (NASDAQ: VEON)
Tech penny stocks have seen a lot of trading volume recently, and VEON Ltd. is one of them. VEON focuses on telecommunications, offering voice and data services through wireless and internet providers. Its brands include Beeline, Kyivstar, Jazz, Djezzy, and Banglalink to name a few. VEON stock is performing higher after its first-quarter 2021 results were released.
Its group total revenues increased by 4.3% year over year. VEON’s group EBITDA went up by 4.4% year over year as well. Much of its growth is attributed to its 4G customer base growing strong, which now attributes to 41% of all of its base, a 10% increase in the last year. VEON has now increased its fiscal year 2021 guidance. As a telecom company, the increased demand for its products from widespread stay-at-home and work-from-home trends has helped to push up its bottom line.
“The momentum behind the good work done during 2020 has continued into this first quarter as the Group returned to year-over-year organic growth, continuing the positive monthly trend we saw in December 2020.”
Co-CEO of VEON, Kaan Terzioğlu
Since its guidance is now higher and the company is performing well, VEON stock has increased as a result. Will VEON make it onto your penny stock watch list?
Investing in Penny Stocks in May 2021
In summary, if you can manage the risk of these low-cost stocks, they might be something to consider for your portfolio. We are still in very strange and volatile times in the world at the moment due to the pandemic. The stock market is also drastically different than it was only one year ago, and it will likely change throughout 2021 as well.
Staying up to date on world, sector, and company-specific news will help when investing in penny stocks throughout the year. And, using trends such as Reddit penny stocks, the influence of cryptocurrency on the stock market, and others, can help to give you the best chance at seeing profitability in your portfolio.
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