Penny Stocks To Buy Under $3 Right Now, Are They Worth The Risk?

Why Are These 4 Penny Stocks Gaining Momentum Right Now?

December 11th was an interesting day for penny stocks and the stock market as a whole. When the trading day began, investors believed that there would be a lot of positive momentum from Pfizer's announcement from the previous day. The announcement stating that an independent panel approved Pfizer's vaccine candidate was big news and struck during after hours.

Now, the FDA cleared the vaccine and we could see doses shipped this week. In the meantime, we’re also seeing the government pass a short-term spending bill that would prevent a shutdown for the next week.

While this is good news, the majority of the stock market tended to trade down on Friday, December 11th. Although this may seem disheartening, there were also a number of gaining penny stocks during the trading day. Everything from vaccine shipment companies to biotech stocks and more, jumped by EOD.

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Now, as we head into the weekend, there are a couple of penny stocks that are working to succeed in the short and long term. These companies may not be the first that come to mind, but they have been showing heightened bullish interest from traders. All things considered, here are four penny stocks to watch for the third week of December.

Penny Stocks to Buy Under $3

Socket Mobile Inc. (SCKT Stock Report)
Drive Shack Inc. (DS Stock Report)
Abraxas Petroleum Corp. (AXAS Stock Report)
Phunware Inc. (PHUN Stock Report)

Penny Stocks to Buy Under $3 #1: Socket Mobile Inc.

Socket Mobile Inc. is considered to be one for the leading providers of data capture and productivity solutions for the workforce. The company states that it has several third-party mobile apps that allow for the use of its front end hardware. This includes everything from bar code scanners to payment readers. Recently, the company announced that its product known as the SocketScan S550, received a certification from Google Wallet.

Vince Coli, Staff Director at the company, stated that "the S550 delivers an engaging, contactless, and frictionless experience for your customers and guests using mobile passes. The Capture SDK provides our developers with the tools to use the magic of the Google Wallet eco-system. We're excited to be at the forefront of these new mobile pass capabilities and their ability to improve customer experiences."

Because of the company's placement in the tech industry, it looks like it could have an advantageous position moving forward. A lot depends on what type of rollout it has with these products, and whether or not it can scale to a high degree. In the short term, this announcement helps to show that there is a lot of traction for its product. One thing to keep in mind is that with the pandemic in full swing, consumers may not be out shopping for some time. But, if the company is able to integrate its platform for online services, it could benefit from the current state of e-commerce. With this in mind, investors can decide if Socket Mobile is a penny stock to watch or not.

Penny Stocks to Buy Under $3 #2: Drive Shack Inc.

Drive Shack Inc. is considered to be one of the epicenter penny stocks to watch due to its role in the entertainment industry. The company owns a large line of golf-related venues around the East Coast. At the end of last year, the company stated that it had as many as 59 properties. These properties span 9 states in the U.S. As the pandemic went into full swing, Drive Shack Inc. saw a large reduction in revenue. But, since that time, the company has managed to work to get back on track. Last month, Drive Shack reported a very solid earnings report for the third quarter ending on September 30th. In the report, the company stated that it was able to bring in revenues north of $66 million.

Although losses came in at around $0.16 per share, this is well below what expectations stated prior. Currently, analysts are stating that the company could pull in full-year revenues of around $283 million next year. This would represent a 20% or so gain over the previous year. CEO of the company, Hana Khouri, stated that "we are pleased with our third-quarter results as we see our venues and courses continue to build momentum over the year. Both of these businesses delivered positive financial results in the quarter, even with the challenges we continue to face with local restrictions and mandates with large group gatherings."

Penny Stocks to Buy Under $3 #3: Abraxas Petroleum Corp.

Abraxas Petroleum Corp. is one of the larger gainers on December 11th, pulling in around 5.5% by EOD. One of the main reasons for this is an overall positive sentiment regarding energy penny stocks. Investors should be watching these companies due to their relationship with the covid vaccine. If a vaccine comes out in a timely manner, it could mean more people out and about.

This would mean that energy consumption could go up, leading to greater demand for resources. The company states that it operates as an energy company working on the exploration and development of oil and gas. It does this in the Permian Basin as well as the Rocky Mountains and South Texas. All of these areas are known to have high concentrations of oil and natural gas.

At the end of last year, the company stated that not had a reserve of around 56.4 million barrels of oil. When covid hit, demand for oil and gas quickly dropped down. Although this makes sense given the nature of the pandemic, it was no benefit to Abraxas or other energy penny stocks. Since then however, shares of AXAS stock have been able to rebound. In the past month, shares of AXAS stock have shot up by around 66% to its December 11th price of $2.83. Since November 1st, shares of AXAS stock are up by around 92%. With this positive momentum in mind, investors can choose whether or not to view it as a penny stock to watch.

Penny Stocks to Buy Under $3 #4: Phunware Inc.

Phunware Inc. is a U.S. based provider of multiscreen-as-a-service devices. These devices utilize cloud software to connect brands around the world. The company states that its platform allows companies to utilize a wide range of programs. This includes content management, marketing automation, business analytics, and more, all from one application. At the end of November, the company announced that it entered into a contract with Stout Capital, to help monetize the company's portfolio. This monetization includes both intellectual property as well as patents and data.

The EVP of Corporate Development for Phunware, Tushar Patel, stated that "we are extremely excited by the opportunity to generate more value for our shareholders from the vast portfolio of patents and data that we've built over the past eleven years. We engaged Stout to leverage their deep industry relationships and to specifically explore creative, non-diluting licensing, commercialization and financing solutions that are backed by the financial value of our intellectual property, but allow us to maintain ownership."

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This seems like it could be a smart move for the company as monetization would definitely help its balance sheet. One thing to keep in mind is that it will take some time to see the fruits of this labor. In the meantime, however, Phunware still operates a robust platform for business enterprises to utilize. In the past year, the world has become more digital than ever. With this, it seems as though investors could consider Phunware to be one of the penny stocks to watch this week.

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