COVID-19 Penny Stocks Trading Higher Right Now
When it comes to penny stocks, the global pandemic has actually become a key catalyst to some of the biggest price moves we’ve seen this year. One of the main reasons is that the government has gotten behind “emergency use” opportunities. It has also set aside billions of dollars to help “essential businesses” progress. Two of the more notable penny stocks that have been in the spotlight recently were Eastman Kodak and YRC Worldwide Inc.
We’ve written about both of these companies following those updates, which made waves in the stock market. Both companies were the target of multi-hundred-million-dollar deals with government agencies. Not only did it bring scrutiny, but it also brought big attention to penny stocks in general. Instead of granting such funds to the blue-chips of the market, funds seem to have begun flowing to lesser-known companies.
Strategic initiatives have also brought about innovation in healthcare. Hundreds of coronavirus vaccine stocks are now joining an ever-growing list. Meanwhile, stay at home orders seem to have made people more aware of what’s going on. A constant tap into social media and news has brought about more attention to social issues.
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Riots and demonstrations have become a driver as well, believe it or not. All of this has culminated in one of the biggest market catalysts right now in my opinion. With this in mind, are these pandemic penny stocks on your watch list this week? If they are, do you have them on a list to buy or avoid right now?
Pandemic Penny Stocks To Buy [or avoid]: Broadway Financial
A magnifying glass has been focused on social issues this year and one of the biggest topics has been minority-owned businesses. In light of the protests for equality, the market has seen a sub-set of stocks rise. These are centered around minority-owned public companies. Obviously, if you’ve been trading penny stocks for some time now, you’re familiar with the entertainment company called Urban One (UONE) (UONEK), which saw shares explode from under $1 to over $50 within a matter of days. Today it still trades above $10 after the dust had settled.
According to Urban One its mission is “to be the most trusted source in the African-American community that informs, entertains and inspires” an audience by providing “culturally relevant integrated content through our radio, television, and digital platforms.“
This trend didn’t stop there; not at all. A recent focus has been placed on banks and minority-owned firms. A Bloomberg article* sheds light on rapper Michael Render, better known as Killer Mike. He’s urging fans to #BankBlack. In light of this many of the associated banking stocks are catching some momentum.
Included in this move has been Broadway Financial (BYFC Stock Report). It’s a United States-based savings and loan holding company. The Bloomberg article listed Broadway Federal Bank as one of the largest Black-Owned Banks in the U.S. Following this piece, a number of penny stocks are trending this week, including Broadway.
Pandemic Penny Stocks To Buy [or avoid]: SINTX Technologies
One of the penny stocks we’ve discussed throughout the pandemic has been SINTX Technologies (SINT Stock Report). On August 4th, the company filed an 8-K that seems to have sparked some interest. The company entered into a joint development agreement with O2TODAY with respect to the development of a face mask that incorporates the Company’s silicon nitride technology.
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SINTX explained that the goal of this agreement is to develop a safe and effective consumer facemask with broad-spectrum antibacterial and antiviral activity. It’s based on incorporating SINTX’s unique silicon nitride powder into the mask filter and fabric. “The successful development of such a product may help prevent the spread of respiratory diseases by catching and inactivating SARS-CoV-2 and other viruses and bacteria in the mask itself before they can enter into the human body,” stated SINTX.
Recent data observed by the company showed that SINTX’s silicon nitride powder was able to inactivate the SARS-CoV-2 virus. This sparked strong momentum on Tuesday, which continues SINT’s latest activity. We started following along in late March leading up to a corporate conference call in April. Jumping to this week and this latest development continues shedding light on the potential of SINTX’s technology. Will the latest news spark new highs for the year?
Pandemic Penny Stocks To Buy [or avoid]:
Sonnet BioTherapeutics (SONN Stock Report) isn’t the typical “pandemic stock” in the COVID-only sense; though there is a potential angle on coronavirus that I’ll discuss later. However, due to a broader focus on biotech, I think SONN stock has benefited in 2020 a bit. This morning the company announced a letter of intent to negotiate an agreement to license its SON-081 and SON-080 assets to New Life Therapeutics Pte. Ltd. of Singapore.
These therapies were designed to treat diabetic peripheral neuropathy and chemotherapy-induced peripheral neuropathy. What’s more, is that the transaction sees Sonnet receiving a $500,000 non-refundable payment upon execution of the letter. It also outlines an agreement that could total to Sonnet up to $40 million in milestone payments and a royalty of 30% on commercial sales.
If you remember back in April, SONN stock exploded to highs of over $16. This was after Altru Institute highlighted a research report mentioning Sonnet. After a slow drip lower, SONN caught another breath of life after comment from President Trump in July regarding convalescent plasma. Traders have apparently classified SONN as a “plasma stock”. After the commentary from the US President, it looks like sentiment has picked up. SONN is also among the “low float penny stocks” to watch. Heading into this week and following the recent news, is SONN on the list of penny stocks to buy or avoid this week?
End Notes:
*https://www.bloomberg. com/news/articles/2020-08-04/rapper-killer-mike-wants-to-save-disappearing-black-owned-banks?sref=XIUS5d6L
