5 Hot Penny Stocks to Watch This Week As New Industry Trends Emerge

These Hot Penny Stocks Are Attracting A Lot of Attention 

Penny stocks have been attracting a great deal of attention in the past six months. During this time, traders who utilize the swing trading method, have found a home among penny stocks. This is because these options are usually quite volatile, leading to big swings in prices on a regular basis. Additionally, penny stocks can offer quite a few things to all types of investors. For one, since penny stocks are under the $5 mark, they are more affordable than any traditional stock out there. 

Two, penny stocks tend to have a lot of growth potential since they are at a low price threshold. This is not to say that there is any guarantee of growth, but rather the chances are higher than more valuable stocks to watch. One thing to keep in mind is that because penny stocks are so volatile, the chances of big gains and big losses are both equally high. This means that investors can either make a great deal of capital or lose large sums of money.

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It all comes down to how much time one is willing to put in to research a given penny stock. With information on hand, investors can avoid surprises with rampant price action. In addition, research means that investors can feel confident in the future of a given penny stock. So, with so much attention being paid to penny stocks, here are five trending companies to watch this week. 

Hot Penny Stocks to Watch Right Now 

1. Alterity Therapeutics Inc. (ATHE Stock Report) 
2. Maiden Holdings Ltd. (MHLD Stock Report) 
3. Sunworks Inc. (SUNW Stock Report) 
4. Canaan Inc. (CAN Stock Report) 
5. Marathon Patent Group Inc. (MARA Stock Report) 

Hot Penny Stocks to Watch #1: Alterity Therapeutics Inc. 

Alterity Therapeutics Inc. is one of the largest gainers on November 16th, 2020. Shares of ATHE stock shot up over 150% during the trading day with solid volume to match. The main reason behind this big gain was the company announcing a new patent for its neurodegenerative disease treatment. On an average day, around 81,000 shares of ATHE stock trade hands. On November 16th however, around 61 million shares were traded during the beginning of the day. The company stated that this patent will cover more than 150 brand new pharmaceutical compounds. 

These compounds are designed to redistribute labile iron which is present in many neurodegenerative disorders such as Parkinson's and Alzheimer's diseases. CEO of the company, Geoffrey Kempler stated that "this broad patent establishes an excellent foundation for the company to pursue multiple therapeutics across a spectrum of neurodegenerative disease." In the past six months, shares of the biotech penny stock are up by over 370%. This is quite a substantial gain and is one that should not be ignored. With this information in mind, investors can decide if ATHE stock is right for them. 

Hot Penny Stocks to Watch #2: Maiden Holdings Ltd. 

Maiden Holdings Ltd. is another big November 16th gainer, pulling in 36% in gains during the trading day. One of the reasons behind this bullish move is the announcement of the company starting a $100 million tender offer. The company states that it is commencing on a tender offer to buy around $100 million worth of shares at a price of $10.50 per share. The goal with this is to completely restructure the company's finances as well as offering new capital for future growth prospects.

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In addition, on November 13th, the company announced its Q3 2020 results. Within the results, Maiden Holdings stated that it brought in around $2.2 million in net income for the quarter. In the same quarter of the previous year, the company took in a loss of over $58 million.

Additionally, the company reported that its non-GAAP operating earnings came in at almost $40 million or $0.47 per share. Lawrence Metz, Co-CEO of the company stated that "our return to profitability continued in the third quarter, with increasing stability in our loss experience driving the result. On a net basis, we reported net favorable loss development for the quarter, and these ongoing improvements have enabled us to continue to extend our strategic vision in both the asset and capital management pillars."

With such positive results, it looks like Maiden Holdings could see more upward momentum in the future. But of course, this is up to investors to decide. 

Hot Penny Stocks to Watch #3: Sunworks Inc. 

Sunworks Inc. is a provider of solar power systems in various areas around the U.S. The company states that it is working on building out a robust portfolio of assets around the nation with both regional and local offices. In addition, it states that it works with many industries including agricultural, commercial, industrial and federal power infrastructure needs.

On November 16th, shares of SUNW stock shot up by as much as 20% during intraday trading. What's more exciting is that in the past six months, shares have shot up by over 800%. As with any solar company, we have to account for the fact that the world is moving toward renewable energy. With President-Elect Joe Biden speaking in favor of renewable energy, solar companies have received a big boost in the past few months. 

With a company like Sunworks, it seems as though a lot of the potential could be in the long term. Because infrastructure for solar power is still not yet meeting the needs of the public, it will take a long time to see widespread success. In the meantime, however, Sunworks has made some big strides in the right direction.

By the year 2050, almost every country in the world has stated that they plan to be 100% clean energy. In addition, the price of producing solar energy has dropped by more than 70% over the past decade. While batteries that can hold this energy are improving every day, the trajectory of the solar power industry looks to be quite good. With this in mind, SUNW stock could be considered a penny stock to watch in the near term. 

Hot Penny Stocks to Watch #4: Canaan Inc. 

Canaan Inc. is a company that offers high performance computer solutions. Based out of China, Canaan Inc. has been working on artificial intelligence, bitcoin mining and smart home products. With the increase in popularity of these devices, Canaan Inc. has seen an uptick in popularity in the past few months. Recently, the company announced a new $10 million share buy back program. Upon the announcement of this program, shares of CAN stock shot up by 23% during intraday trading on November 16th. In the past month alone, shares have increased in value by over 70%. 

One of the main areas of growth for the company has been in its bitcoin mining sector. As geopolitical tensions continue to rise, many investors have once again turned toward bitcoin. And with more people mining bitcoin than ever before, more are turning to companies like Canaan Inc. for its microprocessor solutions. If we look at its Q2 of 2020, we see that net income grew year over year by 93%.

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In addition, operating income shot up by 92% during that same period. What we see here is a company that is growing very quickly due to its positionally in the market. While any company that is involved in bitcoin can be quite volatile, investors can weigh their options out. With this in mind, Canaan Inc. could be considered a penny stock to watch for the future. 

Hot Penny Stocks to Watch #5: Marathon Patent Group Inc.

Marathon Patent Group Inc. is another company that has a heavy involvement in the cryptocurrency industry. It states that it is a digital asset tech company that works in the mining of cryptocurrencies. In addition, the company has a heavyset focus on the entire blockchain ecosystem and the future of the technology.

On November 12th, Marathon Patent Group announced its Q3 fiscal results for 2020. In the results, the company announced revenue of $835,000. In addition, the company announced that it brought in a loss of around $0.06 compared to $0.28 for the whole year thus far. With over $17 million in cash on hand and only $1.4 million used in operations in the quarter, it looks like Marathon is in a decent cash position. 

CFO of the company, Sim Salzman stated that "we are pleased to announce sizable year over year revenue growth of 160% and 89% respectively in the three and nine month periods. During the quarter, the company was able to enter into favorable purchase agreements with Bitmain that allowed for the material improvement in its current and future financial position. We look forward to continuing our aggressive growth trajectory, while taking advantage of recently executed long term agreements."

In the past six months, shares of MARA stock are up by around 210%. With cryptocurrency popularity increasing once again, investors could consider MARA stock a penny stock to watch.