Penny Stocks for Your 2021 Watchlist
While many penny stock investors choose to swing trade, others find themselves searching for long-term penny stocks to buy. This is not always the case, but with stocks under $5, the potential to see large, long-term gains is tangible. Over the years, we’ve seen a large group of penny stocks climb steeply out of the $5 range, making them no longer considered penny stocks. And while this is on the rarer side, it happens from time to time.
When making a list of penny stocks to hold for the long term (6 months and beyond), there are a few things to keep in mind. The first and most obvious is; what does it do? Is its business model competitive with others in its industry, and what are its long-term prospects?
While technical indicators are always important, they may not be as big of a factor when considering a long-term investment. The next most important aspect to consider is; what do its financials look like? While a company may have a solid business model, if its debt is too high or its revenue is too low, the chances of long-term growth could be lower.
Now when it comes to finding penny stocks to watch, it’s always important to consider speculation. And this is of course an important aspect of holding for longer periods. However, it more so comes down to what can a company offer in that time frame. With all of this in mind, let’s take a look at some trending penny stocks to watch this year.
Penny Stocks to Watch in the Long Term
Safe Bulkers Inc. (NYSE: SB)
Safe Bulkers Inc. is a penny stock that we’ve covered quite a few times in the past month or so. While SB stock has its reasons for posting double-digit percentage gains in the past few weeks, there are some larger, industry-wide trends to consider.
First, we have to understand that Safe Bulkers is a dry bulk shipping company. This means that it transports large quantities of bulk goods such as iron pellets, grain, and anything else relating to it. And while this market took a hit during the early days of Covid, it is back in a big way.
Since the beginning of 2021, the Baltic Exchange Dry Index (BDI), has more than doubled. It began the year at around 1,400, and as of the end of last week, hit a five-year high of 3,053. For some context, the BDI is the index that tracks the rates that shippers like Safe Bulkers receive for transporting these goods.
And unlike other companies where revenue can be diversified, Safe Bulkers makes all of its money from the cost of transport. So, an increase in the value of the BDI is a direct correlation to increased revenue for SB.
And, on Wednesday, May 5th, Safe Bulkers will be reporting its Q1 fiscal 2021 earnings. According to some estimates, Safe Bulkers could reverse its year-ago loss, and post a profit in this quarter. This would be a big deal for the company as it has undoubtedly struggled during the pandemic. So, with its upcoming results and the rise in the value of the BDI, SB stock could be worth watching.
Citius Pharmaceuticals Inc. (NASDAQ: CTXR)
Citius Pharmaceuticals Inc. is a biotech penny stock working with its large pipeline of specialty compounds. The company develops and commercializes critical care products focused on the anti-infective market.
Its lead product candidate right now is known as Mino-Lok, an antibiotic lock solution used in treating catheter-related infections. It is currently in a Phase 3 pivotal trial and was granted a Fast Track designation from the U.S. Food and Drug Administration (FDA) a few months ago.
With its subsidiary NoveCite Inc., Citius is working on the development of a novel stem cell treatment that is made from pluripotent stem cells (iPSCs). This compound can be used to treat acute respiratory syndromes. Additionally, it could have indications for use in Covid-19 as a way to treat ARDS of Acute Respiratory Syndrome. On May 4th, the company announced that it would be presenting at the Benzinga Global Small Cap Conference on May 13th.
The CEO of the company, Myron Holubiak, will present the company’s progress of its stem-cell program for the treatment of ARDS. In line with this, the company announced very strong clinical community engagement with its Phase 3 Mino-Lok trial.
Holubiak states that “we are encouraged to see strong and growing interest within the clinical community in Mino-Lok as a potential treatment option for patients with CRBSI/CLABSI. There are currently no FDA-approved therapies to salvage infected CVCs.” Considering all of this, it seems like CTXR stock could be worth watching in the long term.
Oragenics Inc. (NYSE: OGEN)
Oragenics Inc. is another biotech penny stock, but it is quite different from Citius. The company is focused right now on the creation of its Terra CoV-2 vaccine. This is a vaccine candidate that could be used in the fight against the pandemic, as well as other novel uses.
It utilizes research from the spike proteins attached to coronaviruses, to produce a wide range of vaccines that could be held for future needs. Only a few weeks ago, the company announced that it had entered into a material transfer agreement with Biodextris Inc. for the use of three intranasal musical adjuvants in its Terra CoV-2 vaccine for Covid-19.
“This material transfer agreement both expands and advances the development of our Terra CoV-2 vaccine with a novel delivery option. The Biodextris intranasal mucosal adjuvants in combination with the Oragenics antigen open up new possibilities for a vaccine that could potentially be a more effective and convenient option than those currently available.
Given the benefits of intranasal administration along with Terra CoV-2s other advantages, including the potential to be stored and distributed at refrigerated temperatures, we believe there is significant opportunity to help address the worldwide Covid-19 pandemic.”
Alan Joslyn, Ph.D., the CEO of Oragenics
While novel biotech companies are few and far between, Oragenics looks like it has a lot to offer investors. As a potential player in the Covid-industry, is OGEN a penny stock to watch?
Are These Penny Stocks Worth Watching in the Long Term?
Finding a long-term penny stocks to buy is not easy. However, with the right research and a dedication to creating a penny stock watchlist, it can be. It all comes down to how much time one is willing to put in.
[Read More] Are Penny Stocks A Good Investment In 2021?
At the end of the day, there are hundreds, if not thousands of penny stocks to choose from. But just because a stock looks interesting today, does not mean that it will be that tomorrow. So, considering all of this advice, are these penny stocks worth watching in the long term?