You read the title correctly. One of the penny stocks on Robinhood isn’t really up by 4 figure percentage points. The penny stock in question: OncoSec Medical Incorporated (ONCS Stock Chart).
What’s funny about this is that there are plenty of penny stock chatrooms that I saw this morning that talked about ONCS stock. Many were actually pounding their chest about how they “called this penny stock pick”. Or how “see, told you about ONCS and now you 11x your money.”
Unfortunately this isn’t true. As I’ve said plenty of times, you need to make sure you do your own research. Don’t just take things for face value especially when it comes to trading penny stocks.
A Case Of Misinformation?
Always make sure to read penny stock news. A simple glance at the ONCS news and we see the following:
“[The ONCS] Board of Directors has approved a one-for-ten (1-for-10) reverse stock split of its common stock. The reverse stock split will become effective at 5:00 pm Eastern Time on May 20, 2019.”
This was from a May 20 Press Release. Now, why people would be short sighted enough to miss this big fact is above my pay grade. But the fact remains, today’s apparent “breakout” was nothing more than a move in price after a reverse stock split.
Can OncoSec Still Be A Penny Stock To Watch?
Just because people don’t read news and were caught by surprise, doesn’t mean ONCS won’t be a penny stock to watch. In addition to the reverse split, the company also announced that it has been given exclusive worldwide rights to Gaeta Therapeutics’ portfolio of patents and applications. These cover the combination use of IL-12 DNA and a number of checkpoint inhibitor therapies, including anti-CTLA-4 and anti-PD‑1 compounds, in certain global markets.
“This is an exciting opportunity for OncoSec to gain exclusive access to this very important intellectual property portfolio and gives us the freedom to operate using IL-12 in combination with a checkpoint blockade for the treatment of a variety of cancer indications.”Daniel J. O’Connor, President and Chief Executive Officer of OncoSec
As we’ve seen with many biotech penny stocks, news can be a big catalyst (in both directions of price movement). Of course, we don’t know the future but what we can see is that shares of ONCS didn’t immediately drop after opening at $4.35 on May 21. What will the future hold after this latest release? Let us know what you think