How Much Does Penny Stock News Matter?
Over the years, penny stocks have managed to create a lot of wealth for thousands of investors. Therefore, it’s not a surprise that investors always look for the next big opportunity among penny stocks. Considering the fact that there are hundreds of penny stocks in the market, it is imperative for any investor to first conduct research.
The best way to do so is by tracking the market closely and watching out for things like penny stock news pertaining to certain companies. But also keep in mind that it may not just be penny stock news per se but industry/sector news as well.
We’ve discussed in the past about how industry leaders can make big announcements that push an entire market. Many times we’ll see this from technology, marijuana stocks, and biotech/healthcare. Keeping this in mind, here is a look at three biotechnology penny stocks to watch after the latest announcements.
Penny Stocks To Watch #1 Vistagen Therapeutics (VTGN)
The first penny stock to consider is clinical-stage biopharmaceutical company Vistagen Therapeutics Inc (VTGN Stock Report). VTGN stock has been on a roll since the middle of August. It’s definitely one of the penny stocks to watch at this point in time.
Back in August, the company announced it was going to conduct an ELEVATE study of its AV-101 as an adjunctive treatment antidepressant. It’s an important development and the market thought so as well. VistaGen stock has rallied by as much as 247% since then and has shown great momentum.
Tuesday morning the company came out with even more news. Vistagen released new that the last patient has completed dosing in the ELEVATE Phase 2 clinical study of AV-101. The Company said that it remains on track to report top-line results of the ELEVATE study before the end of 2019. As with many “forward-looking” statements like this, “before the end of the year” will likely keep this on penny stock watch lists.
Penny Stocks To Watch #2 Ovid Therapeutics
The other penny stock that has been in sharp focus recently was Ovid Therapeutics Inc (OVID Stock Report). The stock has been on a roll over the course of the past two weeks. That was after the company published positive data on an epilepsy treatment product. Ovid shares plunged at the end of last year but the latest news has lit a fire on the stock.
Since June, shares of this biotechnology penny stock rallied from lows of $1.53 to highs of $3.97 late last month. However, on Friday, the stock tanked 27% after announcing a public offering to raise money for the company.
Even so, the proceeds of the gross $32.5 million will be put to immediate use. Proceeds from the Offerings will be used “primarily to advance the clinical development of its OV101 and OV935 programs.” The remainder will be for working capital and general corporate purposes.
Penny Stocks To Watch #3 Cancer Genetics, Inc. (CGIX)
Last but certainly not least; Cancer Genetics, Inc. (CGIX Stock Report). This company is another penny stock that has generated significant gains in recent days. We first reported on CGIX stock earlier this month in the article, “3 Best Penny Stocks To Buy This Month? 1 Up 50% This Week.“
The company offers preclinical test systems. Over the last few months, however, Cancer Genetics has been dramatically streamlining its operations. It has finished up divesting 2 operating units and consolidated its focus on drug discovery and its vivoPharm.
In a press release, John A. Roberts, Chief Executive Officer of Cancer Genetics, said, “We are very pleased with the progress we have made in improving the Company’s financial condition through the divestiture of certain corporate assets, giving the Company time to explore a variety of new strategic alternatives. Also, during the second quarter, we delivered an increase in revenue growth of 19.1% from our remaining Discovery Services business unit, while reducing the combined quarterly cost of revenue from continuing operations by $0.4 million.”