Kalkine Media lists 5 penny stocks to explore in December

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Highlights:

  • Revenue of Paysign, Inc. jumped over 36 per cent YoY in Q3 FY22.
  • Revenue of Upexi, Inc. rose 199 per cent YoY in Q1 FY23.
  • Puma Biotechnology Inc expects its fiscal 2022 net income to be as much as US$ 9 million.

Penny stocks are the stocks of companies with prices generally below US$ 5, and their market cap ranges from US$ 60 million to US$ 300 million. These stocks are explored by several investors, whether they are new or experienced in the equity market.

It does not require a huge sum of money to start trading stocks, which many individuals think. The penny stocks could be from any sector. Hence, it also provides opportunities for investors in diversifying their portfolios.

Even many experienced investors invest in penny stocks. The lower prices of penny stocks make them appear more viable to new investors or those with lower capital.

However, the stocks are often considered as more risk-bet assets, compared to their mid-cap or large-cap siblings. Due to the lower prices of these stocks, the volatility aspect is also higher for these stocks.

Any small event or speculation could impact the prices of penny stocks. But the bearish sentiment in the market this year seems to have created a unique opportunity for penny stocks.

Many early-stage companies have fallen to the penny-stock category this year, due to the highly volatile trading in the broader market. The higher inflation, increasing borrowing costs, and other uncertainties have also forced investors to keep a distance from the mega-cap growth stocks.

The higher interest rates have weighed on traders' sentiment so far this year, while the increasing costs have forced them to slash their budget.

Now, let's explore some penny stocks, which include Paysign, Inc. (NASDAQ: PAYS), Upexi, Inc. (NASDAQ: UPXI), Yatra Online, Inc. (NASDAQ: YTRA), Puma Biotechnology Inc (NASDAQ: PBYI), and Genprex, Inc. (NASDAQ: GNPX), and see how they have performed in recent days:

Paysign, Inc. (NASDAQ: PAYS)

Paysign Inc. is a technology firm that offers IT service management solutions and other related services to its clients. The US$ 143.15 million market cap company primarily offers prepaid debit card payment and integrated payment processor solutions.

The stock of the company closed at US$ 2.74 on November 15, and at that price, it returned gains of around 71 per cent YTD and about 24 per cent YoY.

In Q3 FY22, Paysign Inc's revenue increased by US$ 2.8 million or 36.4 per cent year-over-year (YoY) to US$ 10.6 million. The company's revenue from the Plasma segment rose 40 per cent YoY to US$ 2.8 million in the quarter, due to an increase in plasma donations number and dollars loaded onto the card, it said.

The Henderson, Nevada-based technology company's net income was US$ 852 thousand in Q3 FY22, an increase of US$ 1.1 million from US$ 271 thousand in the year-ago period.

Upexi, Inc. (NASDAQ: UPXI)

The multi-faceted brand owner and innovator in aggregation, Upexi Inc. holds a market cap of US$ 74.70 million. The company accelerates e-commerce businesses by utilizing consumer data and vertical integration. It claims to scale brands in different industries while cutting costs with a still-growing distribution network.

The UPXI stock closed the session on November 15 at US$ 4.47, while returning gains of 11 per cent YTD and 15 per cent in the running quarter. However, on an annual basis, the UPXI stock plummeted over 12 per cent through Tuesday, November 15.

The stock of the consumer discretionary firm fell to its 52-week low of US$ 3.59 on October 11, 2022.

Upexi, Inc's revenue jumped 199 per cent YoY to US$ 11.6 million in the starting quarter of fiscal 2023, while its gross profit jumped 132 per cent YoY to US$ 6 million.

The Clearwater, Florida-based company's gross margin was 52 per cent in Q1 FY23, and its net loss from continued operations totaled US$ 2.7 million, against an income of US$ 512,000 in Q1 FY22.

Yatra Online, Inc. (NASDAQ: YTRA)

The Indian travel agency company, Yatra Online Inc has a market cap of US$ 147.32 million. The company's 52-week highest and lowest prices were US$ 3 and US$ 1.32, respectively. It was at its 52-week high on August 18, 2022 and touched the lower end on May 12, 2022.

The company, based in Haryana, India, provides travel booking services through its online travel agency and travel search engine. The YTRA stock jumped about five per cent in the ongoing quarter.

Yatra Online Inc's revenue soared 192.9 per cent YoY to INR 899 million or US$ 11.4 million for the three months that ended on June 30, 2022.

The travel agency's loss for the quarter that ended on June 30, 2022, was INR 6.96 million or US$ 0.1 million, against a loss of INR 80.40 million in the year-ago period.

Puma Biotechnology Inc (NASDAQ: PBYI)

As the name suggests, Puma Biotechnology is a biopharmaceutical firm that focuses on developing novel therapeutics for treating cancer. The biotechnology company's market cap was US$ 155.17 million.

In Q3 FY22, the company's total revenue was US$ 57.1 million, as compared to net revenue of US$ 46.2 million in Q3 FY21.

Meanwhile, the company’s net product revenue was US$ 54.3 million, and its royalty revenue was US$ 2.8 million in Q3 FY22.

The company now expects its net annual product sales to be between US$ 194 million and US$ 196 million, up from its prior guidance of US$ 180 million to US$ 190 million.

For its net annual income, Puma Biotechnology raised its guidance range between US$ 7 million and US$ 9 million, from its prior guidance of US$ 6 million to US$ 10 million.

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Genprex, Inc. (NASDAQ: GNPX)

The US$ 64.82 million market cap biotech and gene therapy company, Genprex engages in the development of life-changing technologies to treat cancer and diabetes.

Genprex Inc's net loss totaled US$ 6.08 million for the three months that ended on September 30, 2022, against a loss of US$ 3.43 million in the year-ago period. Meanwhile, no revenue was reported by the company for the quarter.

Bottom line:

Investors typically explore opportunities in penny stocks, despite their risks, due to their potential for rewards. In other words, the investors who are willing to take more risks, generally explore opportunities in penny stocks, with hopes of significant returns.

Considering all the risks associated with these stocks, some new investors keep close track of these assets as they tend to require less liquid than the more established stocks.

However, investors should also consider the higher swings in the penny stocks' prices, which could both increase and decrease, that are often witnessed in the segment. These stocks allow the investors to gain exposure to a company at its early stage.

But investors should carefully evaluate all the assets and the associated risks before spending on any asset amid a highly volatile market condition.



 


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