Investing in penny stocks can be highly rewarding, but it also comes with significant risks. The high-risk, high-reward nature of penny stocks means potential for significant returns. But they can also lose their entire investment if the stock’s price drops. Other risks of penny stock investing include a lack of regulation and transparency. This can lead to fraudulent schemes and scams, including pump-and-dump schemes. Stock promoters artificially inflate the stock price before selling their shares at a profit.
Thorough research on any stock being considered is essential. So make sure to analyze the company’s financials, management team, and industry trends. Depending on your strategy, however, fundamental analysis isn’t always necessary. Those who look to capitalize on short-term volatility will tend to look at technical trends & sentiment.
There are several penny stock trading strategies that investors can use to manage risk and increase their chances of success. Other than fundamental and technical analysis, trading on news and rumors and short selling are other strategies. It’s also important to understand market volatility. It can have a significant impact on investments. Understanding the causes of market volatility and analyzing market trends is essential for managing risk during periods of volatility.
In this article, we look at a handful of penny stocks heading higher in the stock market today. The common thread they all have is news. We dive into these breaking updates, pull out some of the main details and look for any clues to future updates or reports. Then you can decide if they deserve a place on your penny stocks watch list.
Penny Stocks To Watch
BlackBerry Ltd (BB)
The focus on “household stocks,” has grown over the last few years thanks to the stock market sell-off. These are companies that are traditionally well-known by most based on their brands. The unique part about these types of companies now is that many are trading below the $5 threshold. BlackBerry has long been a communications brand companies, and individuals have used. Despite the troubles that the penny stock has seen, the brand-recognition of the company keeps it somewhat relevant and news this week seems to have upped the ante regarding attention from retail traders.
BB Stock News
Shares of BB stock surged on Tuesday morning. BlackBerry announced a new patent sale transaction with Malikie Innovations Limited. The transaction, including cash and future royalties, is worth up to $900 million. BlackBerry receives $170 million in cash at closing. There’s also an additional $30 million no later than the third anniversary of closing. CEO John Chen further explained, “This transaction, once complete, will further strengthen our balance sheet while simplifying our business and enabling increased focus on our core IoT and Cybersecurity opportunities.”
Selecta Biosciences Inc. (SELB)
Selecta Biosciences is one of the more volatile penny stocks on this list. As far as 2023 is concerned, shares have both rallied and crashed within a matter of just a few months. While the trend leading up to today was bearish, headlines related to Selecta’s DISSOLVE program. It’s a Phase 3 study of its chronic refractory gout candidate, SEL-212.
The treatment uses the company’s ImmTOR platform, designed to mitigate any formation of anti-drug antibodies. This platform is also the backbone of other pipeline treatments, designed as a means of amplifying the effectiveness of therapies.
SELB Stock News
Regarding the DISSOLVE Phase 3 program, Selecta reported that SEL-212 met its primary endpoint. In response to the favorable data, CEO Carsten Brunn said, “We believe the strong efficacy and favorable safety data observed across both doses of ImmTOR in this program positions ImmTOR as the only immune tolerance platform with positive Phase 3 data. We have dosed over 400 patients to date, and plan to continue to leverage our growing safety database to drive forward our clinical pipeline powered by our ImmTOR technology.”
Now expectations are being set that SEL-212 move forward toward commercialization. Selecta and Sobi, a specialist biopharmaceutical company, intend to file marketing authorization applications in the U.S. in 2024.
Mereo Biopharma Group (MREO)
Another one of the biotechnology penny stocks with news this week is Mereo Biopharma. Even with a recent sell-off, MREO stock has maintained levels around where it started the year at. The company has focused on developing treatments for rare diseases including lung disease.
MREO Stock News
Mereo announced regulatory feedback after recent end-of-Phase2 meetings with the FDA and European Medicines Agency. These meetings were related to its alvelestat program for treating certain lung disease. Mereo explained, that “In line with previous guidance by the Company, Mereo is exploring potential partnerships to fund the Phase 3 study, and believes that this clear path forward will support these efforts.”
Furthermore, the proposed Phase 3 study is expected to support full regulatory approvals in the U.S. and EU if successful. It wouldn’t require additional confirmatory trials either, according to the company.
Terran Orbital (LLAP)
Terran Orbital has gained attention throughout the year thanks to growing interest in aerospace and defense stocks. That is in addition to several milestones of its own over the last few months. The company develops satellite products serving the US as well as solutions for launch planning, mission operations, and on-orbit support for military, commercial, and civil customers.
Late last month, Terran scored a $2.4 billion contract for 288 low-earth orbit satellites. The contractor, Rivada Space Networks, is a wireless technology company and expects to begin deploying its constellation as early as 2025. Fast-forward to this week and more news is prompting bullish sentiment in the market.
LLAP Stock News
This week the company reported its latest round of financial results for 2022. Not only did Terran see record revenues of $94.2 million (up 130%), it announced additional expansionary plans, including additional Irvine expansion in 2024.
List Of Penny Stocks with News
BlackBerry Ltd (NYSE: BB)
Selecta Biosciences Inc. (NASDAQ: SELB)
Mereo Biopharma Group (NASDAQ: MREO)
Terran Orbital (NYSE: LLAP)
