Top Penny Stocks to Watch in December 2018
The holiday season is upon us and December has arrived with a bang. In the spirit of the holidays, we’ve brought to you an all-new December 2018 edition of our popular Top Penny Stocks to Watch. (For last month’s, see: Top Penny Stocks to Watch in November 2018.)
As we’ve said before, we don’t frequently trade or analyze penny stocks (usually defined as small-to-micro-cap stocks trading for under $5 per share). We generally stick to much larger, more liquid stocks and ETFs. But some of these high-flying penny stocks are truly hard to resist. 178.24% gain year-to-date, 55.59% gain within the past quarter. These numbers are stuff that dreams are made of. And they’re exactly the numbers posted by our first pick – IMMY – this year.
Like last month, our top penny stocks were chosen based on three main criteria. They are: 1) Currently under $5 per share, 2) Relatively high volume (for a penny stock), and 3) Solid stock performance across a number of time frames.
Here are December’s top picks (in descending order of year-to-date stock performance):
- IMMY: Imprimis Pharmaceuticals
- DDE: Dover Downs Gaming & Entertainment
- SSKN: STRATA Skin Sciences
- CFRX: ContraFect Corporation
- INSG: Inseego Corporation
The chart above (on the y-axis) shows both their current stock prices (as of December 3rd, 2018) as well as their YTD performance percentages.
What Companies are Behind These Penny Stocks?
Imprimis Pharmaceuticals, as its name suggests, is a pharmaceutical company. It is primarily involved in making low-cost alternatives for popular brand-name drugs. Imprimis is a relatively small company at only $105 million in market capitalization.
Dover Downs Gaming & Entertainment is an even smaller company at only around $89 million in market cap. It operates Dover Downs Casino, a 165,000-square foot casino complex. The casino runs table games, slot machines, multi-player electronic games, and a race and sports book operation. The company also operates bars, restaurants, and six retail outlets.
STRATA Skin Sciences is a medical technology company that focuses on the therapeutic and aesthetic dermatology market. Its market cap is around $85 million.
ContraFect Corporation is a clinical-stage biotech company. It focuses on discovering and developing therapeutic protein and antibody products for the treatment of life-threatening infectious diseases. Its market cap is around $188 million.
Finally, Inseego Corporation sells software-as-a-service (SaaS), Internet of Things (IoT), and mobile solutions worldwide. With a market cap around $283 million, it’s the largest company on our list.
Overall, this month’s top penny stocks are a bit heavy on the healthcare/pharma/biotech side, with three picks falling within this general area. And then, of course, we have a casino and an IT solutions company.
What binds all of these five companies together? As always, it’s spectacular recent performance, attractively low stock prices, and the potential promise of more gains to come.
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Past performance is not indicative of future results. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Senior Technical Analyst at The Technicals
As a momentum stock trader, Luke focuses mostly on strong market moves. Luke has been trading the markets since the early 2000s, but still gets excited by big movers. Whether a surging large-cap tech company or meteoric penny stock, Luke tracks and trades winners. A technical analysis purist, Luke authors many of our Top Stocks & ETFs reports. Contact Luke