Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
Let us not forget that many of today’s S&P 500 stocks were once in the penny range. If you are willing to take an educated risk, biotech stocks in particular show space for growth in the post-corona world. Here is a brief overview of such penny stock candidates for 2021.
Penny Stocks to Consider in January 2021
Imagine if you had the foresight of investing in Bitcoin at its cheapest price point in March, at $4.6k. Given today’s BTC price of $32k, this would yield over 6x return on your investment. Not a bad way to start the new year!
This is the allure of penny stocks—cheaply buying an asset with great growth potential. Unfortunately, stocks are nothing like Bitcoin. They represent companies that rely on human management, specific products, and market competition. Penny stocks are especially prone to downplaying headwinds (tailwinds = positive, headwinds = negative) due to weak market fundamentals.
Hence, why penny stocks trade under $10 per share. At the same time, it cannot be ignored that many successful blue-chip companies started as penny stocks, such as Apple, Microsoft and Amazon. Just five years ago, AMD was trading under $2. Now, it trades over $90 per share as it keeps trouncing Intel with Ryzen CPUs.
While there are some successes, there’s also a lot of risk. That’s why it’s important to leverage the top penny stock brokers to put every possible benefit on your side.
With today’s official launch of its Color Word app, the company combines both entertainment and education for online and offline music training. Its platform provides a way to connect tutors with students, all without physical contact. Needless to say, this is a highly advantageous way of doing business these days.
Recently, CSCW announced a strategic partnership with two UAE companies, Multiple Events UAE and Hunter International UAE, in the entertainment, tourism, branding, and education sector. This is more good news for the firm, as UAE aims to cover the entire nation with a 5G network, providing the fastest internet for free.
Year on year, autoimmune disorders are increasing by an average rate of 6%. Founded three years ago in San Diego, EQ has oriented its business model to develop novel therapies for a wide range of inflammatory and autoimmune conditions. Specifically, its basis for growth will rely much on its anti-CD6 monoclonal antibody itolizumab.
The trial data for its Phase 1b yielded positive results, with an 80% overall response rate (ORR). Meaning that 8 out of 10 patients reached complete response (CR). Corresponding to good trial news for the promising drug, Smith rated EQ for a Buy with an $18 target during the next year.
With an increased focus on women’s health, this biotech company is developing substances to treat STIs and issues related to reproductive health. Its first product, contraceptive gel Phexxi, prevents unwanted pregnancy, while its second product, Evoguard, is aimed at preventing certain STIs afflicting women. The latter is currently in the Phase 3 trial.
A week ago, the company announced its participation in the Medicaid National Drug Rebate Program. Thanks to this, women will have access to the FDA-approved Phexxi, without having to worry about it disrupting hormonal balance. If applied properly and timely before the intercourse, the vaginal gel is reported to have 86% effectiveness.
In the biotech sector, the last decade has been marked by the rise of smart drug delivery systems. mRNA vaccines are the most visible products of this trend, but other companies are on track to successfully treat a host of disorders. MTNB development pipeline relies on its lipid nano-crystal platform (LNC) tech, which produced MAT2203.
This compound earned a Fast Track status to be used against invasive fungal infections. With Phase 2 EnACT trial on the way, it left Phase 1 with positive results in terms of drug tolerance and effectiveness. In a more prominent move, MTNB is set to use its LNC biotech to create an oral version of Gilead’s remdesivir, a much-used treatment for Covid-19.
Appropriately named for the post-covid era, this marijuana company is poised to take advantage of an expanded pool of people suffering from stress. Initially, its business model relied on CBD-infused beverages, but it has since shifted to distribution and social marketing. The firm secured a $30 million two-year debt facility ahead of its merger with ARIIX and to pay off the previous loan balance.
In a newly consolidated state, NBEV is set to “capture approximately $20 million in additional annualized EBITDA in the first 18 months following closing in cost and revenue synergies”. Accordingly, the next year should signify the company’s organic growth with a global reach.
What portion of your portfolio do you dedicate to penny stocks? Let us know in the comments below.
Disclosure:Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions.