3 Penny Stocks to Watch in May 2021
As May gets off to a bright start for penny stocks, which ones are investors watching? This is a tough question to answer simply. However, there are a few things that all penny stocks investors should consider. The first is speculation. Speculation is arguably the most impacting factor that stocks under $5 have to deal with. This is the result of news or any announcement, and the effect of such on the price of a given stock.
Because penny stocks are relatively cheap, they are more affected by speculation than almost any other asset. The next thing to consider is what is the company’s financial situation? After speculation, fundamentals usually follow as the next most impacting factor on a stock’s price.
This includes everything from a balance sheet to corporate updates and any fundraising measures. A well-funded company can have a higher chance of success. However, investors need to consider whether the funding will lead to share dilution or not.
Additionally, what does this funding look like in relation to the company’s capital needs? How long will it sustain a cash runway for both current and future expansion projects? All of these are important factors to consider with any penny stock to watch.
Now, there are more indicators to use when making a list of penny stocks to buy. However, these two should help to get you in the right mindset to create a penny stock watchlist. With all of this in mind, let’s take a look at three penny stocks for your Thursday morning watchlist.
3 Penny Stocks to Watch Right Now
- Precipio Inc. (NASDAQ: PRPO)
- Stealth BioTherapeutics Corp. (NASDAQ: MITO)
- Luokung Technology Corp. (NASDAQ: LKCO)
Precipio Inc. (NASDAQ: PRPO)
While Precipio Inc. is no longer a penny stock as of today, technically until the market closes it is. For this reason, let’s take a closer look at it. Shares of the biotech company have risen sharply in the past few days on one new product. After pushing up by around 170% throughout the week, shares of PRPO are once again on the rise. This is due to the announcement of its new Covid test that will be available on Amazon.
The 20-minute test, which was recently given emergency use authorization or EUA can be purchased by “physicians and other medical facilities…and receive them within 2 business days,” according to the company. Additionally, the company stated that “antibodies are the body’s natural biological response to an infection or vaccination, and their development begins the body’s process of building immunity to protect against future infections.”
Additionally, the company recently announced that its current customers will generate roughly $1 million in annualized revenue from its HemeScreen product by the fourth quarter of this year. This is a major benefit to the company as it almost guarantees a solid revenue stream moving forward. While these are only a few of the things going on in its large pipeline, they do present some interesting opportunities. Considering this, will PRPO be on your penny stock watchlist?
Stealth BioTherapeutics Corp. (NASDAQ: MITO)
MITO stock is a major pre-market gainer, pushing up by more than 55% in early morning trading on Thursday. For some context, Stealth BioTherapeutics is a clinical-stage biotech penny stock working on discovering and developing novel therapeutics for diseases that involve mitochondrial dysfunction.
During pre-market, the company announced highly positive data from its post hoc analysis of the Phase 1 ReCLAIM study off its compound elamipretide in those with non-central geographic atrophy or GA. The data presented at the 2021 Association for Research in Vision and Ophthalmology ARVO Virtual Annual Meeting, showed major improvements in patients using this compound.
“It is exciting to confirm the relationship between elamipretide-mediated improvements Ian visual function and mitochondrial health in patients suffering from progressive vision loss due to GA. These data support our confidence in our ReCLAIM-2 trial design which focuses on the earlier stages of GA before irreversible mitochondrial and RPE damage is thought to have occurred.
We are encouraged to learn that intervening at this stage of the disease may not only slow disease progression but also restore visual function and visual quality of life to patients suffering from this life-limiting disease.”
CEO of Stealth BioTherapeutics, Reenie McCarthy
Considering that MITO stock almost doubled on this news, we see the high volatility of biotech stocks, front, and center. However, this volatility can be in use as an advantage if traders have the right tools at their disposal. Considering this, will MITO be on your penny stock watchlist?
Luokung Technology Corp. (NASDAQ: LKCO)
Up by around 16% in pre-market trading is LKCO stock. We’ve covered Luokung many times in the past few weeks alone for both its large intraday movements and its underlying technology. If you’re unfamiliar, Luokung is one of the largest spatial-temporal big data processing companies in the world. As a tech penny stock, LKCOs momentum is driven by innovation.
The company provides DaaS, SaaS, and PasS products for IoT devices. It also uses geographic and spatial data to establish holographic data models for city-level and industry-level needs. This can be in use to create smart cities and smart industries across a variety of markets.
Big news struck at the end of March when Luokung announced the acquisition of eMapGo Technologies. This is a company that provides navigation and map services in China. The deal, which will use Luokung’s recent $120 million in proceeds from financings, will be supported by EMG having more than 24% of the in-dash navigation market in China.
Combined with Luokung’s spatial-temporal big data processing, there is a clear synergistic partnership that could emerge. Mr. Xuesong Song, CEO of Luokung, stated that “we are very pleased to announce the closing of this transaction, which is the result of hard-won efforts for the teams at both EMG and Luokung.” Considering this big move, is LKCO a penny stock to watch? The choice is yours.
What Does Your Thursday Penny Stock List Look Like?
Making an early-morning penny stock watchlist is a great way to stay ahead. And, the best trader will always be the one that is the most informed. Considering this, it’s easy to see why these three penny stocks are showing high volume right now.
But, we always have to consider the other factors outside of speculative news. So with all of this in mind, what does your Thursday morning penny stock watchlist look like?