Penny Stock News Can Act Like A Big Catalyst; 3 To Watch
When it comes to catalysts for penny stocks, news can play a big role. Just look at some of the biggest breakouts of the year and you’ll see what I mean. This catalyst can work in favor of or against these cheap stocks, however. So it’s important to understand the difference.
When companies announce news of raising money at a discount, this can be a bad sign. However, when companies in certain sectors report favorable results, that can be a big plus. Case in point, the biotechnology sector is well-known for seeing low priced stocks rally after reporting positive news. This month we’ve seen that from several companies. It also doesn’t hurt that the entire sector has rallied either.
Needless to say, there are a few penny stocks that just reported or are about to report results and the market has responded. You might want to take a closer look at the sector this month. Without further ado, here are 3 biotech penny stocks that have rallied amid recent developments.
Biotech Penny Stocks To Watch #1: GT Biopharma (GTBP)
This small-cap biotech stock has been in an uptrend for most of the month. Granted that it has been a quiet and steady move, all the same, this penny stock has turned heads in October. What has happened in October? First, GT Biopharma (GTBP Stock Report) reported some positive information presented at the 18th meeting of the Society for Natural Immunity in Luxembourg.
Specifically, Tim Schacker, M.D., Jeffrey S. Miller, M.D., and their colleagues at the University of Minnesota presented data on the company’s HIV-TriKE™. Why is this important? Based on research findings, the company found that the platform demonstrated that it could actually kill HIV in the reservoir.
In addition to this, GT Biopharma announced this week that at the same 18th meeting, the company’s TriKE™ platform was also used to target solid tumors. The results of this test showed that the platform shows non-small cell lung cancer tumor cells were actually killed. Over the course of the last few weeks, shares of GTBP stock have climbed from $0.125 to highs of $0.268 on October 22.
Biotech Penny Stocks To Watch #2: TrovaGene, Inc. (TROV)
Next on this list of penny stocks to watch, TrovaGene, Inc. (TROV Stock Report). Shares of this biotech penny stock shot up big this week. What happened? Similar to GT Biopharma mentioned above, TrovaGene has also reported positive developments with its treatment pipeline.
In the case of this company, TROV stock broke out after reporting that its onvansertib in combination with FOLFIRI and Avastin® was positively responded to during Phase 1b/2 trials. The major focus of this treatment is for KRAS-mutated metastatic colorectal cancer or “mCRC”.
“We believe the combination of onvansertib and FOLFIRI/bevacizumab has the potential to provide a much-needed safe and effective new treatment option for the approximately 50% of patients with KRAS-mutated mCRC.”Dr. Thomas Adams, Chief Executive Officer and Chairman of Trovagene
However, unlike GT Biopharma, TROV stock has realized this move within a short period of time. Can it sustain this big gap or will its shares retreat later in the week?
Biotech Penny Stocks To Watch #3: Bellerophon Therapeutics, Inc. (BLPH)
Last on this list is Bellerophon Therapeutics, Inc. (BLPH Stock Report). We mentioned this penny stock earlier in the week as it could have its own “event” to pay attention to. What event exactly? Well, the company is due to present phase 2b data for its INOpulse at CHEST’s 2019 annual meeting. This is set for October 23rd, which is less than 24 hours away.
As we’ve seen from these two other companies, favorable results can become a well-received catalyst. However, it’s important to note that bad results can become a negative catalyst. So, as speculation continues to make its way among circles this week, keep that in the back of your head. Shares are sharply up again on Tuesday with BLPH stock booking highs of $0.57. This marks a move of more than 30% since October 7.
The presentation will begin at 10:45 AM on October 23 and last for about an hour according to company press. Its previous presentation showing positive top-line data from “Cohort 1” of the ongoing iNO-PF trial. The results that will be discussed at the presentation will hinge on the safety and efficacy of the drug in a “pulsed, inhaled nitric oxide”.
Are Penny Stocks Risky?
Like all investments, there are risks involved. In today’s article, we talked about micro-cap biotechnology penny stocks. Now, low priced penny stocks are obviously risky and the biotech sector is famous for its volatility. Biotechnology and healthcare have their true potential intertwined in the success of pipeline treatments.
If you take a look at some of the big biotech winners, not all of them started out trading above $5 a share. Take a look at stocks like Tandem Diabetes Care (TNDM Stock Report). This was one of the biggest penny stocks of the year last year. It started at $2.35 and eventually reached highs of $74.81 earlier in 2019. The catalyst or catalysts behind the move came in the form of positive news and big pipeline milestones.
This isn’t to say that every biotech stock will attain the same status. However, it goes to show that penny stocks aren’t just overnight breakout stocks. Some actually go the distance. In fact, we’ve seen many become market-leading companies. In the articles, “2 Penny Stocks That Made Big Money In 2019,” and “8 Penny Stocks That Became Billion Dollar Companies,” we highlighted companies that left the reserve of penny stock territory.
But back to the original question, “Are penny stocks risky?” The answer is, YES. But if you can handle risk, there are obviously ways to identify more opportunities when it comes to finding penny stocks to buy. The main thing is to have a good strategy going into a trade and maybe (just maybe) the companies could become behemoths like the examples in this section.
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