As markets bounce up and bitcoin hits a $1 trillion market cap, February could end on a high note for penny stocks. This week, several factors are impacting penny stocks of all types. On the one hand, the feds are still working to push through the $1.9 trillion stimulus package.
This would undoubtedly serve a big purpose to the public and the economy. And with access to trading at an all-time high, we could see some of this funding come into the market. Next, we have bitcoin hitting a $1 trillion market cap as of February 9th. While this may not seem like a big deal, bitcoin has developed a correlation to the market in the past few months.
This is especially true considering companies are putting millions into cryptocurrency. Also, the massive snowstorm affecting Texas has highlighted the need for better power systems and alternative forms of energy. So while February has not been the best at times for investors, we see some bullish sentiment begin to return in doses.
Obviously, economic recovery is the most important factor in everyone’s minds right now. Because this may take many months or even years to occur, in the meantime, investors can pounce on current opportunities. With this in mind, here are 3 penny stocks to watch that you might not be familiar with.Penny Stocks to Watch Before March
- Vistagen Therapeutics Inc. (NASDAQ: VTGN)
- Senmiao Technology Ltd. (NASDAQ: AIHS)
- Grupo Supervielle SA-ADR (NYSE: SUPV)
Vistagen Therapeutics is a company that we’ve been covering for quite some time. In the past few weeks, VTGN stock has had multiple days of double-digit gains. One of the reasons for its most recent gains comes as Jefferies gave VTGN a buy recommendation. Also, the firm gave VTGN a price target of $6.
At levels below $3 per share as of February 19th, this forecast is a big jump over its current pricing. While Vistagen has a lot going on, investors are focused on the company’s positive data from its PH94B product. This is a nasal spray currently in a Phase 2 study to see its efficacy in treating neurological disorders. In one of the studies, the company stated that PH94B already showed positive signs of treating anxiety. Also, the company has several other leading product candidates.
In its third-quarter results, Vistagen reported a loss of $0.07 per share. While this may not seem that good, it is much better than the $0.15 loss it took during the same period the year prior. Now, this makes sense given the large capital-raising efforts that biotech companies like Vistagen often utilize.
With multiple clinical studies anticipated to launch in Calendar 2021, this could be a company to keep tabs on. Most notably, these trials include its pivotal Phase 3 clinical studies of PH94B as a potential acute treatment of anxiety in adults with social anxiety disorder.Senmiao Technology Ltd.
Senmiao Technology is a provider of automobile services based in China. The company offers a large range of products, including auto sales, financing, lease guarantees, ride-sharing, and more. Because of its diversity, some investors believe that Senmiao could see more popularity in the foreseeable future. Also, the ride-sharing business in China has only just begun to take off in the past few years. While this is not a major part of Senmiao’s business right now, it could become a primary component moving forward. Earlier in the week, Senmiao announced its fiscal 2021 financial results for the period ended on December 31st, 2020. In the results, the CEO of the company Xi Wen stated that “during our fiscal third quarter, we were excited to launch Senmiao’s own online ride-hailing platform, first in Chengdu in October and in Changsha in December 2020.”
He went on to state that “Our platform has helped facilitate over 2.2 million rides since launch, and we are very optimistic about the growth opportunities we see in this business, particularly given the new strategic cooperation we have with various reputable technology and consumer brands in China.”
In the results, the company saw solid revenue growth, pulling in roughly $1.63 million. This is a few hundred thousand more than its previous year’s same quarter revenue of $1.39 million. Due to the impact of Covid, ride-sharing apps definitely saw a decline over the past year. The company believes that as the pandemic lessens in severity, these services may rise again in popularity. With all of this in mind, AIHS could be a penny stock to watch right now.Grupo Supervielle SA-ADR
While you may not have heard of Grupo Supervielle, the company has become popular in the past few months due to its sizable daily gains. For some context, the company is an Argentinian banking holdings company. While other Argentinian stocks have not climbed similarly, we see that Grupo Supervielle may be about to release some information. In the past, SUPV reported quarterly earnings almost exactly every three months. This means that any day, we may see a new balance sheet coming from the company. Analysts have estimated that EPS could come in at around $0.27 per share, which is around 72% less year over year.
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But, if we consider the economic impacts of covid on the Argentinian economy, this makes sense. In its last quarterly report, CEO Patricio Supervielle stated that “we delivered double-digit ROAE in real terms and continued to strengthen coverage this quarter while increasing our capital base and maintaining strong liquidity. This was achieved in an environment that continues to be difficult with stay-in-place restrictions to contain the pandemic, a recessionary macro environment, and a changing regulatory framework.”
While analysts expect an economic recovery at some point, the timeline remains up in the air. But thanks to momentum in financial stocks recently, SUPV could be on the list of penny stocks to watch next week.