Are These 3 Biotech Penny Stocks To Buy Or Sell On Wednesday?
A large number of investors, especially those who are just starting out, often believe that investing in penny stocks can profitable. Some even think it to be the quickest way to make a hefty return on their capital.
While that may be theoretically true, considering the fact that penny stocks trade under $5, it’s important to note that they are volatile in nature. An investor needs to do diligent research in order to succeed.
It is necessary to look through the latest events from things like penny stock news. You can then make informed decisions. Here’s a look at 3 penny stocks to watch that have been performing well recently. But will these be the best penny stocks to buy or sell on Wednesday?
Penny Stock To Watch #1: Verastem (VSTM)
Positive publicity is usually a good thing for any company and particularly so for biopharmaceutical companies. Verastem Inc (VSTM Stock Report) is involved in developing products meant for improving the lives of those suffering from cancer. And the company announced an important breakthrough for its product COPIKTRA.
Verastem announced that clinical trial data from COPIKTRA – when treating individuals with relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma – has been presented in the form of a poster at the European Hematology Association.
The event took place from June 13th to 16th in Amsterdam. Shares of the Verastem stock soared by 25% following the announcement of this news earlier in the week and haven’t stopped since. Aftermarket trading saw this biotech penny stock reach $1.82 just after 5PM EST on June 18th. The big question mark will be if it gaps up on Wednesday or not. Typically, we’ll see health sector stocks catch significant momentum following news like this.
Unfortunately, attention is also brought by those holding cheap stock as well. This can be from firms that funded the company at cheaper prices and may end up taking profit. Regardless, this should be one of the penny stocks to watch on Wednesday.
Penny Stock #2 Sorrento Therapeutics (SRNE)
On June 12th, Sorrento Therapeutics (SRNE Stock Report) announced that it was considering an initial public offering for Scilex Holding Company. Scilex is a Sorrento subsidiary, which is majority owned by the company. However, at the time, Sorrento had no indicated the structure of the timing of the IPO.
On Monday, it emerged that Sorrento’s top management will be attending the JMP Life Sciences Conference on 20 June. In the event that is being held in New York City, the management team will make a presentation. The company’s shares soared by 16% after the news broke on Monday. It would be worthwhile to keep an eye out for the presentation that will take place on the 20th.
Penny Stock To Watch #3: ImmunoGen (IMGN)
The last one on the list is ImmunoGen (IMGN Stock Report). The company had a bad time in May when its lead product candidate mirvetuximab soravtansine was recommended for new studies by the FDA. Following that news, the shares in the company had fallen by as much as 30% on May 15th.
In other words, the agency checked the data on the endpoints and concluded that it could not be set aside for accelerated approval. However, the stock rebounded and soared by 10% on Monday. Will this biotech penny stock continue to head higher this week?