MACK Stock Explodes 240%+ Overnight, Here Are 3 Penny Stocks To Watch Now
Thanks to the 2022 stock market crash, there are plenty of penny stocks to watch. The broad market sell-off has taken even some of the most popular names and sent them below the $5 mark. That might be bad for anyone invested before this year. But for those who look for cheap stocks to watch, it’s given a much larger pool of names to choose from. Today we look at some market trends, including sympathy sentiment.
What Is Sympathy Trading In Penny Stocks?
Sympathy trading involves similar stocks reacting to a big event or moves in the market. For example, when AMC Entertainment (NYSE: AMC) and GameStop (NYSE: GME) first rallied, the primary catalysts included beaten-down household names and high levels of short interest.
When those stocks experienced explosive moves, traders looked for similar situations, and we saw short-squeeze stocks become the trend. Similarly, when companies like Digital World Acquisition (NASDAQ: DWAC) jumped because of former President Trump’s involvement, traders hunted for stocks with any ties to the Trump name.
While this can sometimes be sporadic, certain industries can experience sympathy trading more frequently than others. Biotechnology is one of these industries, and in the stock market today, Merrimack Pharmaceuticals (NASDAQ: MACK) has lit a fuse for sympathy momentum.
Why MACK Stock Is Up Over 240%
Merrimack Pharma is a biopharmaceuticals company that is a bit unique in its business model. According to its website, Merrimack doesn’t have employees, utilizes external consultants, and has no ongoing R&D activities. Instead, it is entitled to receive payments related to the sale of ONIVYDE to Ipsen S.A. (OTC: IPSEY). That’s where today’s catalyst comes into play.
MACK stock is up after Ipsen announced its Phase 3 NAPOLI 3 trial of ONIVYDE met its primary endpoint. The treatment, in combination with a NALIRIFOX and oxaliplatin regimen, produced a “meaningful and statistically significant improvement” in overall survival in patients with metastatic pancreatic ductal adenocarcinoma.
One of the exciting things about biotech stocks is that the companies will announce when they plan on reporting specific data. It can result in speculative trading leading up to and potentially after the outcomes are announced.
Today we look at a handful of biotech penny stocks with upcoming data dates to watch. It’s important to remember, however, that a significant risk is presented depending on the outcomes of the reported data. In many cases, companies can fail to meet specific endpoints or have adverse events that trigger a massive sell-off in shares.
Penny Stocks To Watch
- Y-mAbs Therapeutics (NASDAQ: YMAB)
- Ardelyx Inc. (NASDAQ: ARDX)
- 23andMe Holding Co. (NASDAQ: ME)
Y-mAbs Therapeutics (NASDAQ: YMAB)
When I talked about how the 2022 stock market crash sent plenty of higher-priced stocks into the penny stock range, Y-mAbs Therapeutics can take a seat in that category. It wasn’t the broader market sell-off with this company, however. Y-mAbs imploded last month due to a bad outcome from an FDA Advisory Panel vote. The FDA committee said that the company didn’t provide sufficient evidence to agree that its cancer drug, omburtamab, improved overall survival in a 16-to-0 vote.
Fast-forward to this week, and YMAB stock has slowly started to rebound after its latest quarterly report. It showed a year-over-year increase in Q3 sales that hit home for some investors. Shares of YMAB have managed to climb back from lows of $2.94 to over $3.80 this week.
What To Watch With YMAB Stock Next
Earlier this year, Y-mAbs announced that the FDA accepted a Biologics License Application for priority review for omburtamab treating neuroblastoma. The Prescription Drug user Fee Act date set by the FDA is November 30th. Considering the FDA Advisory Panel’s response last month, it will be interesting to see what happens next. It’s good to also understand that the FDA isn’t bound by the Advisory Committee’s recommendations. However, it does consider the recommendation when making its decision.
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Shares of Ardelyx have steadily climbed over the last few months. After hitting fresh lows of $0.49, ARDX stock has bounced back more than 100% since June. The company itself focuses on developing and commercializing treatments targeting unmet medical needs, including kidney diseases.
It recently presented new data analysis at the Kidney Week 2022from its three Phase 3 trials. The presentations were conducted to support the clinical utility of its XPHOZAH (tenapanor). This is the company’s investigational treatment for patients with chronic kidney disease on dialysis.
What To Watch With ARDX Stock Next
Ardelyx has an FDA Advisory Committee meeting to review XPHOZAH and the New Drug Application that the company has. This is tentatively scheduled for November 16. Remember, Y-mAbs mentioned above had its own FDA Advisory Committee meeting, and results didn’t bode well at the time for YMAB stock. Whether or not that is the case for ARDX is to be seen but worth noting when weighing risk and reward.
23andMe Holding Co. (NASDAQ: ME)
Most people associate 23andMe with tests to find out your family heritage. However, there’s an entirely other side of the company that places it right in the middle of genetic testing. Thanks to stronger-than-expected earnings results, ME stock is back on the radar following a long stint of sideways trading over the last few months.
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The company’s 23ME-00610 platform will be in focus this week. 23andMe presents a trials-in-progress poster at the Society for Immunotherapy of Cancer’s 37th Annual Meeting On November 11th. Its candidate is being studied in patients with solid malignancies. The company plans on also discussing details on the part b expansion phase of the study in patients with certain types of advanced solid tumors.
Biotech Penny Stocks, Risk & Reward
When you’re talking about penny stocks, there’s always another layer of risk involved. Whether caused by higher speculation or simple social-sentiment-driven momentum, emotions can weigh heavily on directional moves for the stocks. With that comes greater volatility, and when you throw in headlines like trial data readouts, the volatility can get amplified.
The names on this list of penny stocks are just a few with upcoming events that could impact sentiment. As traders hunt for stocks like MACK, which have headlines anticipated in the near term, keep your risk/reward in mind when evaluating penny stocks to buy.
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