Dec 08, 2020 (Penny Stocks via COMTEX) -- 4 Penny Stocks to Watch as December Comes to an End
This year has been a wild year for penny stocks to say the least. Now that millions of Robinhood traders have gotten their feet wet in the first 9 months of the year, we're seeing the evolution of what we know today as "the retail trader". While most areas of the stock market are speculative, penny stocks tend to be more so than most. For some context, speculation simply means that a security trades more so off of news and events than on fundamentals.
This is quite normal in the stock market and something that traders use daily to find penny stocks to watch. This year, everything from COVID to the presidential election has had a large effect on the trajectory of many penny stocks. The volatility that we have seen seems to be specific to a few areas of penny stocks. For one, biotech penny stocks and digital learning stocks have both seen a great deal of volatility in recent trading. This is due to their role in the COVID-stricken economy.
Additionally, electric vehicle stocks and mining stocks have also been affected by the pandemic. The real key here is to know what information to look for and how to use it. If we as investors have the right information in our hands, we can be the most informed traders out there. As this year comes to an end, 2021 could present new challenges and opportunities for investors.
With COVID hopefully winding down and a much calmer government going into place in the U.S., investing in penny stocks could be very different than it has been in the past year. With all of this in mind, let's take a look at four penny stocks Robinhood traders have begun to actively watch this month.
AMC Entertainment Holdings Inc. ( AMC Stock Report )
22nd Century Group Inc. ( XXII Stock Report )
QEP Resources Inc. ( QEP Stock Report )
Nokia Corp. ( NOK Stock Report )
Robinhood Penny Stocks to Watch: AMC Entertainment Holdings Inc.
AMC Entertainment Holdings Inc. is a tricky penny stock to watch for a few reasons. For starters, AMC Entertainment Holdings is the owner of the major chain of movie theaters. When the pandemic hit earlier in the year, it was obvious that AMC stock would be affected. In the six month period up until the present day, AMC stock has definitely had a great deal of volatility.
During the beginning of December, the company announced that it is working on selling around $700 million worth of stock. To help deal with the potential of bankruptcy, the company announced that it would see the majority of its real estate bought out by two companies. While this deal helped to secure investors for the near future, the long term could remain bleak.
Despite an almost 10% gain during midday on December 8th, the outlook on AMC stock doesn't seem to be too great unless it changes something in the near future. A recent announcement from Warner Brothers stated that it would move to make all its new releases available on streaming services as well as in theaters. This is a major hit for AMC Entertainment for obvious reasons. In the long term, it looks like AMC will have to contend with the public's preference of viewing movies online rather than in theaters. As the largest movie theatre chain in the world, it's clear that AMC has to do something to stay competitive. Whether or not it does so remains unknown. But with so much up in the air, AMC stock could be considered to be a penny stock to watch.
Robinhood Penny Stocks to Watch: 22nd Century Group Inc.
22nd Century Group Inc. is one of the big performers of the day on December 8th. During midday trading, shares of XXII Stock have shot up by around 20%. The company operates as a biotech business, working on producing cannabis/hemp and tobacco with different variations of compounds within them. This process is known as gene-editing and plant breeding. The company stated that it has been able to reduce nicotine in tobacco cigarettes by as much as 95%. This is a big deal as it presents a new opportunity in an age old industry that is ripe for change. On December 8th, the company announced that it received an order from the U.S. government for 3.6 million Spectrum Variable Nicotine Cigarettes. These cigarettes will be in use for research done by the FDA and the CTP.