These Biotech Penny Stocks Have Caught Attention This Week
Trading penny stocks can be very lucrative if done effectively. Though mitigating losses is vital. These cheap stocks have much higher levels of volatility compared to large-cap stocks. However, if penny stocks have high volume and thins like news, it can act as strong catalysts.
As a result and as many have seen, the result can be a big move in price. This goes for both bullish and bearish moves. Those looking for penny stocks to buy should be aware that volatility can result in heavy losses as well.
In order to avoid these losses, a trader should come up with a gameplan before investing money. This might include things like entry and exit points, as well as stop losses in case a trade turns sour. A trader should also do research on the companies they want to invest in. Here is a quick synopsis of some penny stocks to watch:
Penny Stocks To Watch Under $1: GT Biopharma (GTBP)
One of the most popular areas in the biotechnology sector is oncology. This has evolved treatment platforms from broad-based to targeted and it has also overflowed into treatment options for other immune diseases as well. GT Biopharma (GTBP Stock Report) is a company focusing on this area, specifically. Right now the company has a loaded pipeline of treatments that range from certain cancers to HIV and inflammation.
This week GTBP stock took off but it wasn’t out of the blue. The company revealed significant results from a presentation done by Drs. Jeffrey Miller, Martin Felices and Pippa Kennedy from the University of Minnesota. The presentation was on the company’s solid tumor targeting TriKE. Specifically, the TriKE platform showed the ability to kill non-small cell lung cancer tumor cells.
This news came on the heels of a previous announcement this month regarding another TriKE treatment for HIV. Tim Schacker, M.D., Jeffrey S. Miller, M.D., and their colleagues at the University of Minnesota also presented data which showed that GT Biopharma’s HIV-TriKE was able to actually kill HIV-infected T-cells. Following these two pieces of news, GTBP stock has managed to climb from $0.125 to as high as $0.268 this week.
Penny Stocks To Watch Under $1: Titan Pharmaceuticals Inc. (TTNP)
I know that you have probably seen us talking a lot about Titan Pharmaceuticals Inc. (TTNP Stock Report) recently. This company has been on notice ever since we wrote our article “3 Penny Stocks To Buy Or Watch For October.”
Titan Pharmaceuticals is a company that develops treatments for chronic diseases using its ProNeura platform. Titan announced a $9 million public offering a week ago. While the company’s stock took a price hit due to the per-share pricing of the offering it is okay.
It is okay because ever since the company did this, a surge of volume has entered the stock. In addition to this, analysts are taking notice of the company too. Maxim Group upgraded TTNP stock from “HOLD” to “BUY” this week and gave a $1 price target.
Penny Stocks To Watch Under $1: Clearside Biomedical Inc. (CLSD)
The next company on this list is Clearside Biomedical Inc. (CLSD Stock Report). Clearside Biomedical is a biotechnology company that creates treatments to restore and preserve vision for those with serious eye diseases. The company currently has 4 treatment plans undergoing clinical trials. Its lead product candidate, Uveitis, is in its phase 3 trial.
The company’s stock on October 21st increased by 5% which primed Clearside for a strong week. On October 23rd, the company announced that Bausch Health acquired the exclusive license to develop and sell XIPERE. As a result, the company’s stock is gapping up 10% during premarket hours. This previous momentum and news might bring the penny stock even higher.
“We believe that partnering with Bausch + Lomb will allow us to maximize XIPERE’s commercial potential and provide broad accessibility for patients. With an established and experienced ophthalmic sales force, we believe Bausch + Lomb can quickly and efficiently integrate XIPERE into their commercial operations. We look forward to coordinating with the Bausch + Lomb team to gain regulatory approval and to share key learnings from our physician training program to help ensure a successful launch of XIPERE in the United States and Canada .”George Lasezkay, Pharm.D., J.D., CEO of Clearside
Penny Stocks To Watch Under $1: Guardion Health Sciences Inc. (GHSI)
The healthcare industry is continuously evolving thanks to technological advancements. Guardion Health Sciences Inc. (GHSI Stock Report) is very similar to Clearside Biomedical in that both companies are focused on eye diseases.
The company offers a variety of products in order to take on eye diseases. This includes MapcatSF, a device that measures macular pigment optical density and Lumega-Z, a medical food that restores macular pigment. In October 23rd, the company received approval from the USPTO for additional claims for its MapcatSF medical device.
It will be officially issued on October 29th and it contains improvements related to the device’s measurement accuracy. “The approval of these claims to our existing patent strengthens our patent for both domestic and international protection,” said Michael Favish, Guardion’s Chief Executive Officer. This news has helped propel the penny stock to highs of $0.5989, a 22% gain for the week so far.
Are Biotech Penny Stocks The Best To Buy?
When it comes to penny stocks to buy, sectors can play a key role. The point is that tight-knit sectors like biotech, cannabis, and even mining tend to see stocks move together with the broader trend. Unlike industries in tech or banking, biotechnology has become well-known for its volatility even when the market itself isn’t. Furthermore, biotech has also been known to beat to the sound of its own drum. Earlier this month when the market saw selling pressure, biotech stocks didn’t follow suit.
However, it’s important to note this volatility. While there is no one sector that is technically better than the next, there are those that are more active. What I’m referring to is the active shift in prices. Healthcare and biotechnology are what many traders look at to satisfy their itch. Keep in mind that there are risks involved. Just like penny stocks in general, biotech stocks can shift direction at the drop of a hat. One bad trial result or less than favorable presentation data can be a signal for a sell-off.
When factoring in the cheap prices of penny stocks, those potential losses can compound. On the other hand, so can the gains. A good Phase Trial report, a grand from the FDA for things like INDs, or a positive report from a news agency highlighting a company’s treatment can all be possible catalysts to consider for bullish momentum. Are biotech penny stocks to best to buy? That choice is up to you but there are usually many that raise eyebrows on a daily or weekly basis.
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