3 Penny Stocks to Watch in May 2021
As we move into the second full week of May, penny stocks are on fire. While there have been days of large corrections across the market, there are always opportunities to be found with penny stocks. The best way to start identifying penny stocks to buy is by first; knowing what the current market trends are and which penny stocks could benefit. Right now, this includes Covid, cryptocurrency, biotech, and a few others.
As always, investors need to identify a clear cause and effect. For example, when the race to find a Covid vaccine began last year, many corresponding biotech stocks rose in value. The second thing that investors need to do is to identify which penny stocks may have both current and future potential. This is not an easy step in the process, however, it is crucial for all investors to consider.
And, with these steps, an investor should also understand what kind of trader they are. Are you looking for short-term gains? Or are you making a making a penny stock watchlist with the goal of long-term potential?
These are important aspects to consider, as they can help to narrow down your list of penny stocks. So, once you’ve completed all these steps, you should have a solid watchlist to work from. With all of this in mind, let’s take a look at three of the top penny stocks to watch this week.
3 Penny Stocks to Watch This Week
- Cerecor Inc. (NASDAQ: CERC)
- China Xiangtai Food Co. Ltd. (NASDAQ: PLIN)
- Phunware Inc. (NASDAQ: PHUN)
Cerecor Inc. (NASDAQ: CERC)
In early trading on Tuesday, May 11th, shares of CERC stock shot up by more than 17%. This is due to the company announcing that its experimental Covid-19 drug had gained Fast Track Designation from the FDA. Its compound, which is a monoclonal antibody, can be used in those who have Covid-19 and are hospitalized as a result. Known as CERC-002, Cerecor aims to use this compound to target tumor necrosis factor superfamily member 14.
CERC-002 could have potential in treating Covid-19 induced ARDS, as well as the cytokine storm often associated with the illness. The drug was developed to treat pediatric-onset Crohn’s disease, however, it could have a high efficacy in treating SARS-CoV-2.
Outside of this, Cerecor works as a biopharmaceutical company, developing and commercializing products for rare and orphan diseases. It has a large pipeline of drugs including CERC-801, CERC-802, and CERC-803, which are all in development for treating certain congenital disorders.
In addition to these, its CERC-006 compound has also received Orphan Drug Designation as well as Rare Pediatric Disease Designation from the FDA. This is a big deal and shows that the company could be close to commercializing one or more of these drugs. Because of its sizable pipeline, and now its contribution to Covid, CERC looks like it could be worth watching. Whether it’ll be on your watchlist, however, is up to you.
China Xiangtai Food Co. Ltd. (NASDAQ: PLIN)
Another large pre-market gainer is China Xiangtai Food Co. Before we get into it, let’s take about what PLIN does. China Xiangtai Food is as its name suggests, a producer of food products. This specifically includes pork, beef, lamb, and poultry. It works in all major aspects of meat production including packing, distribution, and wholesale.
In addition, the company has moved into the animal feed market, through its acquisition of Chongqing Ji Mao Cang Feed Co. Ltd. A few months ago, the company announced that it had signed into a sales agreement with Chongqing Yongyaoge Technology Co., Ltd. The goal with this is to supply CYT products worth around $3.5 million.
“We are pleased to sign the agreement with CYT and start our partnership after over half a year’s negotiation and due diligence, which demonstrates our capability, stability, and reliability as an industry-recognized company. We expect to continue expanding our business scale through maintaining existing partnerships. And proactively seeking to establish new partnerships.”
Ms. Zeshu Dai, Chairwoman, and CEO of PLIN
In its most recent revenue report, the company announced that for the fiscal year 2020, it posted revenue of $110.6 million. This is a major increase is 11.6% over the fiscal year 2019.
So, with all of this in mind, it’s not easy to see why PLIN gained so heavily in premarket. But, sometimes bullish moves like this occur with little to no news. However, it’s worth noting that PLIN does not release news often. And as a meat producer, there isn’t a reason why it would.
So to consider PLIN stock a buy, investors should think about the state of the agricultural market in China. This is the only way to truly understand where PLIN stock could go. With all of this in mind, will you add PLIN to your watchlist?
Phunware Inc. (NASDAQ: PHUN)
Phunware Inc. is a tech penny stock that we’ve been talking about for quite some time. Up by around 9% in premarket, PHUN made a big announcement early in the trading day. The announcement came that Phunware, which provides enterprise cloud platform services for mobile, has launched the PhunToken Purchase Portal.
This will effectively allow the company to begin selling PhunToken to its customers, developers, and brands. This cryptocurrency adds PHUN stock to the list of blockchain penny stocks, which is a fast-paced sector right now. The PhunToken is an innovative cryptocurrency that allows for loyalty-based rewards on Phunware’s MapS platform.
“For cryptocurrency to truly realize mainstream adoption, it’s imperative that real companies with real teams build real solutions to real problems in the real world. We’ve designed PhunToken to reimagine engagement in a mobile-first world by selling utility tokens that offer brands the ability to encourage, measure, and track consumer interest and loyalty.”
COO of Phunware Randall Crowder
With the PhunToken MasS Loyalty Software Development Kit, consumers will be able to earn PhunToken’s from participating brands. Considering this big move, PHUN stock could be worth considering moving forward.
Are These Penny Stocks Worth It?
Finding early morning gainers is a great way to see which penny stocks could show momentum during the trading day. Of course, investors should still utilize their research to find the best penny stocks for their portfolios.
But, creating a penny stock watchlist is all about thinking outside of the box, and considering all of the options that could have value. So, with all of this in mind, are these penny stocks worth it?