Throughout 2020, there have been several shining examples of stellar penny stocks to watch. Now, obviously, we have to take into account the impact of the COVID pandemic on the stock market as a whole. Since vaccines are in distribution around the world, 2021 could be the year things get back on track. Starting with the economy, the election of Joe Biden and a new round of stimulus checks means that the economy could begin to shape up. While the issue of inflation is always present, it may take a long time to see the full effects of this. In the meantime, several industries have seen increased popularity in the past few months.
Looking ahead, the same industries could see bullish sentiment this year. These include things like renewable energy, 5G tech, leisure & hospitality, and a likely continuation of the interest in biotech stocks. While this list is not fully conclusive, it does illustrate a few examples of industries that could benefit this year. But, investors need to take the research into their own hands. This means learning as much as you can about a given company before diving in. If you’re not day trading penny stocks, just looking for daily gainers may not be enough. Investors and even swing traders need to be a step or two ahead of the game and understand what could drive momentum after the initial “pop”.
Investors should always ensure that they know at least a few things when heading into a new position. These include a company’s latest financial report, sifting through the last few months of headlines, in addition to what the company is doing, in general, to stay competitive. With these factors in mind, it can be easier to feel confident with a given penny stock. So, as we move into 2021, here are four penny stocks to watch heading into the first week of 2021.Penny Stocks to Watch This Week
- Nokia (NOK Stock Report)
- Aethlon Medical Inc. (AEMD Stock Report)
- AzurRx Biopharma Inc. (AZRX Stock Report)
- Hall Of Fame Resort & Entertainment Company (HOFV Stock Report)
Nokia operates across many sectors within tech including, radio solutions, communications, and fiber access among other things. Because it is so broad, Nokia remains a well-known brand around the world as I’m sure you already know. In addition to offering physical communications products, the company is also a provider of network solutions. This includes recent updates for its 5G network as well. In the past year, 5G has become extremely popular around the world. In addition, 5G penny stocks are seeing a newfound sense of attention as well.
This past week, Nokia announced that it partnered with dtac, a member of the Telenor Group which is a leading telecommunications company based in Thailand. Nokia has had a longstanding presence in the Thai market for the past few decades. However, now that 5G is on the table, it seems as though there is a new market opportunity. In the past few months, Nokia has spent quite a lot of money developing its 5G infrastructure around the world. This includes developing its hardware across many emerging 5G networks internationally.
On the flip side, this large development project has sacrificed the company’s financial wellbeing in the short term. Whether or not this poses challenges for its stock price remains to be seen. However, since 5G and potentially 6G tech is likely set to remain a big focus for telecom, NOK could be one of the lower-priced 5G stocks to watch in 2021.Penny Stocks to Watch #2: Aethlon Medical Inc.
Aethlon Medical Inc. was one of the biggest gainers of the day on December 31st. During trading and into after-hours, shares of AEMD stock rocketed up by around 20% to end the day. This follows a gain of around 43% over the past thirty days and over 90% since September. For some context, Aethlon Medical works as a medical technology or biotech company. It states that its focus is on treating life-threatening and organ threatening illnesses in the U.S. Interestingly enough, Aethlon is currently developing a device known as the Aethlon Hemopurifier. This device can be used in immunotherapeutic settings to remove viruses from the circulatory system. In addition, it is also developing a product known as the TauSome, which can help to diagnose encephalopathy in humans.
Earlier in December, the company announced that it had treated its first patient with the Hemopurifier. The goal is to see whether or not this device can have an effect on treating viral diseases, oncological issues, and inflammation in the body. Charles Fisher, CEO of Aethlon stated that “by reducing the presence of immune-suppressive exosomes from the circulatory system of head and neck cancer patients prior to treatment with Keytruda, we believe the Hemopurifier could have the potential to improve patient outcomes in this disease.”
The initiation of this first-in-human study addressing cancer-associated exosomes is a significant step. Considering the recent surge of interest in things like cancer stocks, in addition to the bump in momentum, in general, for AEMD, it could be one of the penny stocks to watch heading into the first week of January.Penny Stocks to Watch #3: AzurRx Biopharma Inc.
During after-hours trading on December 31st, AxurRx Biopharma shot up by around 14% to end the day. Since November however, shares are up by almost 40%. At the end of November, the biopharmaceutical company announced that it dosed its first two patients in Turkey for a Phase II trial. The trial, concerning the drug MS1819, will work to see its efficacy in treating rare pancreatic diseases.
James Sapirstein, CEO of the company, states that “in the midst of a global pandemic and unpredictable obstacles, we are very encouraged to see our Combination therapy trial moving forward at one of the clinical testing sites in Turkey. We expect to release toppling results in the second quarter of next year.”
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MS1819 has already shown significant efficacy in early studies. And, if this study continues to show positive results, AxurRx could see heightened popularity moving forward. Of course, it remains up in the air right now as there is still a large focus on COVID. Needless to say, the late afternoon trading on New Year’s Eve has certain caught some attention and could be important to keep in mind next week if AZRX is on your list of penny stocks right now.Penny Stocks To Watch #4: Hall Of Fame Resort & Entertainment Company
Hall Of Fame Resort & Entertainment Company is in an interesting position. The stock itself got beaten down hard at the end of 2020. However, on the final day of trading for the year, it saw one of its biggest aftermarket jumps of the last few months. In fact, shares of HOFV stock rallied from $1.23 at the official closing bell to as high as $1.77 during after hours. By the final market close, HOFV sat at $1.73.
For some context, Hall of Fame Resort & Entertainment merged with Gordon Pointe Acquisition Corp via a SPAC deal. It’s focus is on football-themed entertainment. It also owns the Hall of Fame Village powered by Johnson Controls. This is a multi-use sports, entertainment and media destination centered around the Pro Football Hall of Fame’s campus. The company has also been inking new deals this year. In November, Hall Of Fame signed a deal with Sports Illustrated Studios & this month closed a deal with StakeKings to launch a national fantasy league.
One of the things that have put pressure on the stock was the constant money-raising spree that the company has been on. If you look at the last few months of headlines, you’ll see tens of millions of dollars being raised as well as large loans being taken out. So why the big jump at the end of 2020? Check out Hall of Fame’s filings specifically from the last few days.
The company completed a private placement with the sale of 10,813,774 shares of Common Stock and warrants to purchase 10,036,925 shares of Common Stock for an aggregate purchase price of $15,239,653.08. The purchase price was paid in the form of the cancellation in full of certain financial obligations owed by Hall Of Fame and its affiliates to IRG and its affiliates in the amount of the Purchase Price. Obviously, this could pose a dilution risk with so many shares. However, based on the reaction in the market on Thursday, it could at least be something to watch on Monday to see if this trend continues.