3 Penny Stocks to Watch in the Second Half of November
As we dive further into the second half of November, penny stocks continue to be a popular choice among investors of all types. And, there are several reasons why that is the case. For one, penny stocks provide a high level of money-making potential in a time frame that blue chips often cannot match. For example, if we see a penny stock double from $1 to $2, that would be a major portfolio win. And, we do see jumps like this occur with penny stocks from time to time.
However, it is unlikely to see a $50 stock go to $100 in the same time frame. On the other hand, it’s worth noting that the risk profile with penny stocks tends to be much higher than with any other stocks. This is due to the massive speculation that occurs alongside their low prices. So, the best way to stay ahead when it comes to trading penny stocks is to have a consistent and well thought-out trading strategy.
This should align with both your tolerance for risk and your investing goals. Once this is completed, investors can begin the process of making a penny stocks watchlist. This involves looking at what is going on in the world and understanding how certain events could impact certain stocks. With all of this in mind, let’s take a look at three penny stocks to watch right now.
3 Penny Stocks to Add to Your Watchlist Right Now
- New Oriental Education & Technology Group Inc. (NYSE: EDU)
- Stran & Company Inc. (NASDAQ: STRN)
- ADMA Biologics Inc. (NASDAQ: ADMA)
New Oriental Education & Technology Group Inc. (NYSE: EDU)
New Oriental Education & Technology Group Inc. is a penny stock that has seen its fair share of volatility in the past few weeks. If you’re not familiar, New Oriental offers education services in China. It offers these services under the New Oriental brand and offers K-12 AST and test preparation. Its services help train students taking language and entrance exams used by U.S. and Chinese institutions, as well as the Commonwealth countries.
New Oriental released a new business update on November 14th. The company stated that due to new regulations and measures, it plans to stop all tutoring services related to K-9 AST at all of its learning centers by the end of 2021. It said that this will have a large impact on its revenues for the fiscal year ended May 31st, 2022.
In the fiscal years ended May 31, 2020, and 2021, K-9 academic AST services made up 50% to 60% of its revenue. While it’s difficult to see the longer term impact of this on EDU stock, there’s no doubt that it will need to adjust. And in the past few months, it looks like the company has been working on doing just that. So, while its hard to say where New Oriental will derive the bulk of its revenue from in the future, it could be worth keeping an eye on.
Stran & Company Inc. (NASDAQ: STRN)
Stran & Company Inc. is a penny stock that has increased by over 40% in the past five days. This company offers marketing solutions such as e-commerce products for promotional purposes, management of promotional loyalty and incentives, print collateral, and much more. The company also offers creative and merchandising services as well as warehousing, fulfillment and distribution services.
STRN stock recently went public on Nasdaq markets. On November 8th, it announced the pricing of its upsized initial public offering of 4,337,349 units. Each unit consists of one share of common stock and a warrant to purchase one share of common stock at a public offering price of $4.15. This was for total proceeds of about $18 million before deductions.
On November 9th, STRN stock went live on the stock market, with its warrants trading under the “STRNW” symbol. During STRN stock’s short time in the market so far, it has gone substantially in price. It will be interesting to see how this company performs in the future after this very recent IPO. For now, will STRN stock be on your penny stocks watchlist moving forward?
ADMA Biologics Inc. (NASDAQ: ADMA)
ADMA Biologics Inc. is a biotech penny stock that has climbed by almost 40% in the past month. This company creates specialty plasma-derived biologics. These biologics are used to treat infectious diseases and immune deficiencies. ADMA is involved in the development, manufacturing, and marketing of these products. One of its products is VIBIFAM which is for treating primary humoral immunodeficiency.
On November 10th, the company reported its third-quarter financial results for 2021. The company generated total revenues of $20.7 million during this quarter. This was a total 101% increase year over year compared to 2020. For the first time, ADMA achieved positive gross profit. It also lowered its net losses quarter over quarter for this period.
“During the third quarter, our inventory and property and equipment balances continued to grow, which will support the significant revenue growth we anticipate over the coming quarters.
We believe our organization, through its operational execution, has clearly demonstrated strength and resilience, and is well-positioned to meet or exceed all previously disclosed financial targets and unlock significant value for stockholders in the periods ahead.”
The President and CEO of ADMA, Adam Grossman
Over the last month, ADMA stock has been climbing upwards. For now, will ADMA be on your list of penny stocks to watch?
Which Penny Stocks Are You Buying Right Now?
Finding the best penny stocks to buy can be tricky with so many different ones to choose from. However, because of the sheer number of penny stocks out there, the opportunity to make money is palpable.
As always investors should have a well-thought out trading strategy that aligns with both their tolerance for risk, and their own investing goals. At the end of the day, buying and selling penny stocks is an individual task, and one that should be done as such. So, considering everything mentioned above, which penny stocks are on your watchlist right now?