Penny stocks appeal to investors, especially ones looking for the next Amazon or Facebook. Both were penny stocks to watch before making early investors instant millionaires. Penny stocks do offer the possibility of hitting it big without digging deep in one’s pockets.
But don’t take this investment lightly. Simply because a stock’s not worth thousands (most penny stocks cost less than $5 per share) doesn’t mean you shouldn’t know what you’re getting into. Perform your due diligence.
To get you started, here are five respectable penny stocks to watch.in the last quarter of 2020.
Silvercorp Metals (SVM)
Silver doesn’t get the press surrounding gold but poor ol’ silver’s managed to gain over 15% in 2020. Silvercorp is a precious metals miner with an exceptional balance sheet. Focused on China, the company boasts a 25% profit margin and a 38% operating margin. The stock rose from $2.89 in March and is currently leaning toward $5 a share.
ElectraMeccanica Vehicles (SOLO)
Looking at Tesla and Nikola Motors, it’s understandable to imagine what the future of the automotive industry could look like. SOLO recently recovered from early year lows, going from $0.92 to $2.50. It’s a Canadian company with plans to build a technical center and assembly plant in the States. SOLO intends to bring its first all-electric microcar to dealerships to Oregon and Arizona markets. The share’s below $2.50 right now, but odds are it won’t stay there.
Beauty company COTY has had a tough time of it. They’re at $3.00, down from a 52-week $13.82 high. But many expect a rebound for a company popular for fragrances, cosmetics and hair care products. The company has gone into the hydro-alcoholic gel business in response to the pandemic. They have an investment deal with KKR and plan to work with Kylie Jenner, one of the biggest social media influencers in the world. A smart and optimistic investor might look beyond the company’s current financial status and look to its potential future gains.
Education’s taking a hit right now. But as curriculums move online, Zovio takes the lead. Primarily a video conference supplier, the company has proprietary software schools are using to teach remotely. Zovio has curriculum management software and provides data management. They have tools for walking through enrollment, financial aid and tuition. The future includes reaching into corporate platforms to offer training and certification. Considering all this, the general consensus is the company will see rising prices.
Revive Therapeutics (RVVTF)
Companies like Johnson & Johnson and Moderna saw stock price jumps. Many biotech companies are seeing the same as everyone races to reach the end-of-COVID finish line with a vaccine. Revive is working on drugs for treating addiction disorders. They’re also going into partnership with the University of Wisconsin to develop pre-clinical and clinical studies in various disorders and diseases. Currently, the company’s stock is hovering at less than $0.20. That smacks of opportunity.
Husky Energy (HUSKF)
The Calgary-based Husky Energy looks to be struggling. Its shares were $30 a decade ago and today trade at $3.42. But analysts see Husky Energy as well-positioned for a turnaround. Husky Energy plans to divest its 500+ retail gas stations. It has liquidity worth $5 billion. At its current bargain pricing and management’s impressive efforts to correct the company’s direction, analysts see a bright future.
Harte Hanks (HHS)
Harte Hanks is enjoying a good year. It deals in social, digital, print and direct mail marketing. GoBox is a product that delivers market experiences directly to audiences with a multichannel, data-driven campaign that links the physical to the digital. Insiders have been snatching up its stock, including Executive Chairman and CEO Andrew Benett. The company’s looking at restructuring its board and announced new contracts.
Potbelly Corporation (PBPB)
A well-received chain of fast food restaurants, Potbelly is looking at nothing but growth. In the last quarter, they saw profitability at a shop level through the end of October. They remained on point with target per week averages while digital and drive-thru channels saw volume growth. Membership in the company’s loyalty program continued acceleration in 3Q 2020.
Money Morning greatly advises tapping “into inexpensive stocks that have high profit potential,” especially “due to coronavirus and ride them out until the breakout ends.”