What Are The Best Penny Stocks To Buy Right Now? 5 To Watch

Are These On Your List Of Penny Stocks To Watch For December 2020?

The month of November has already shown itself to be quite good for penny stocks. During the past few weeks, many popular stocks under $5 have shot up in value. This, of course, is not across the board, but there are some sectors that have seen more growth than others. While investing in penny stocks may seem scary at first, with the right information at hand, anyone can become a more profitable trader.

The first step in picking penny stocks to buy is to identify where there may be value in the market. This involves picking a few industries that could present either short or long-term bullish interest. Investors should think out of the box for this one, and find industries that may not have been capitalized upon yet.

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The next step and arguably the most important one is the research stage. This is a careful process that involves finding out several things about a given penny stock to watch. The first thing we want to know is what financial situation a company is in. This can be done by researching balance sheets and any statements that have come from the company.

Penny Stocks to Watch For December 2020

1. India Globalization Capital Inc. (IGC Stock Report)
2. Yatra Online Inc. (YTRA Stock Report)
3. Seelos Therapeutics Inc. (SEEL Stock Report)
4. Matinas BioPharma Holdings Inc. (MTNB Stock Report)
5. Marimed Inc. (MRMD Stock Report)

Furthermore, look at what a company is doing to stay competitive in the future. This can be done by utilizing press releases and company announcements. Lastly, investors should look at the penny stock's chart to see what type of momentum it holds & study certain patterns. With all of this in mind, let's take a look at five penny stocks to watch heading into December 2020.

Penny Stocks to Watch #1: India Globalization Capital Inc.

India Globalization Capital Inc. was one of the big gainers on Black Friday, shooting up by over 30% during intraday trading. The company is in the biotech industry through the production of cannabinoid-based treatments. These treatments include Hyalolex, which is in use for patients suffering from anxiety, dementia, depression, sleep disorders and more. Recently, the company announced that it has begun enrolling patients who suffer from dementia into its Phase 1 clinical trial of IGC-AD1.

Earlier in the year, the company received approval from the FDA to begin a 12 person clinical trial of this substance. While the results of this could be months away, trials like this are promising signs for any biotech company. Additionally, the company reported its Q3 financial results toward the latter half of November.

In the results, the company states that around 53% of its revenue comes from infrastructure while the other 47% came from its life sciences segment. In the past quarter, the company has worked to restructure its business to stay competitive in the covid dominated market. With all of this in mind, IGC stock remains a broad-based penny stock to watch.

Penny Stocks to Watch #2: Yatra Online Inc.

Yatra Online Inc. is a company that works as India's largest travel service provider. One thing that gives Yatra a niche market is that it works only with corporate customers. The company states that it currently has over 700 customers that it is working with to provide corporate travel services. On its website, yatra.com, the company offers pricing and booking for all types of travel including domestic and international hotels, air travel, and more. Yatra states that it provides real-time bookings for over 1.5 million hotels around the world. Recently, the company announced its financial and operating results for the three month period ending on September 30th.

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In the results, Dhruv Shringi, CEO of the company stated that "the domestic aviation market in India continued on its path to recovery with October 2020 passenger traffic up 33% from September 2020 levels having recovered to 42% of October 2019 levels. This recovery in domestic travel led to a sequential quarterly growth of 60% in our adjusted revenue to $5.1 million."

The company showed that it was able to lower its EBITDA loss from $4.1 million in the previous quarter to $1.7 million in this quarter. With a covid vaccine hopefully on the way, companies like Yatra Online Inc. are of interest as penny stocks to watch moving forward.

Penny Stocks to Watch #3: Seelos Therapeutics Inc.

Seelos Therapeutics Inc. was another one of the big gainers on November 27th, pushing up 14.7% during intraday trading. In the past month, shares of SEEL stock have shot up over 30%  which is quite substantial. The company is a biopharmaceutical company that is focused on the development of treatments for rare central nervous system disorders.

The company recently announced that it will be participating in the 3rd International Conference on Sanfilippo Syndrome. Its drug known as Trehalose, is a disaccharide that works by stabilizing proteins and activating autophagy. While this is a lot of technical jargon, in laymen's terms, the drug restructures genes in the body to produce a therapeutic result.

While it does have a heavy focus on Sanfilippo syndrome, the company also is working on the treatment of PTSD, Depressive Disorder, Parkinson's and more. As a biotech company, Seelos Therapeutics has seen a correlative effect to the larger biotech industry. With investments into biotech increasing in the past year, companies like Seelos Therapeutics have benefitted greatly. Because of this, many investors believe that Seelos Therapeutics could continue on its bullish path. But of course, this depends on a lot of factors such as FDA approval and whether or not it can continue to innovate. But, as a biotech penny stock, it continues to be of great interest to investors recently. 

Penny Stocks to Watch #4: Matinas BioPharma Holdings Inc.

Matinas BioPharma Holdings Inc. is a clinical-stage biopharmaceutical company that is creating a new generation of therapeutics. The company states that its drugs are in use for unmet needs in the treatment industry. Its lead product candidate known as MAT9001, is used in the treatment of various cardiovascular and metabolic conditions. The majority of its drugs are produced utilizing a proprietary method known as lipid nano-crystal or LNC. This is a drug delivery method that allows for the potency of medicines to remain high once ingested. In addition, it can help to reduce the toxicity of certain medicines while increasing the bioavailability of the drug. Recently, the company announced its Q3 2020 financial results.

In the results, Jerome Jabbour, CEO of the company, stated that "the third quarter was very production for the company, as we continued to execute on our strategic priorities. We achieved a significant milestone in the EnACT study of MAT2203 with cohort progression, completed enrollment in the ENHANCE-IT study of MAT 9001, and aligned with the FDA on key elements of our Phase 3 program for MAT 9001."

In terms of its financials, the company brought in a net loss of around $0.03 per share. In addition, the company stated that it held as much as $62 million in free cash at the end of the quarter. This is more than double what it had at the end of 2019. Lastly, the company was able to raise $46 million in proceeds from a sale of common stock earlier in the year. With these funds, it should be able to continue researching and developing the drugs in its pipeline. With all of this in mind, investors could consider MTNB stock to be a penny stock to watch.

Penny Stocks to Watch #5: Marimed Inc.

Marimed Inc. is a wellness company that works in the cannabis industry. The company recently reported some solid sales numbers that investors should be aware of. In its most recent Q3, the company stated that core cannabis revenues came in at around $13.5 million. This represents a staggering 220% jump over the same quarter of the previous year. Secondly, profit for the quarter shot up by an equally exciting 221% to around $8.7 million. Lastly, Marimed Inc. reported an adjusted EBITDA of $4.4 million for the quarter. While this may not seem like much, we have to compare it to a $733,000 loss for the same quarter of the previous year.

Bob Fireman, CEO of the company stated that "these strong quarterly results reflect the tremendous growth of our cannabis business units coupled with the consolidation of our Massachusetts and Illinois business units into our company. Our reported financial results now include the revenue from these two states where we generate revenue from both adult-use and medical cannabis programs."

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The company has also been working on the production and sale of various edible products. In the past year, the popularity of edible cannabis has increased substantially. And, with a new pro-cannabis president, we may see increased bullish interest in the cannabis industry moving forward. As new initiatives are posed in the coming weeks, marijuana stocks, including MRMD stock could be considered penny stocks to watch for the near term.