These Penny Stocks Can Be Bought For Under $2.75 Right Now; Will That Be The Case Next Month?
Penny stocks tend to fly high and drop hard. It’s the nature of the market. High risk/high reward isn’t for those not capable of managing risk. And if this is you, that’s ok. But for others who seek the thrill of high volatility, these cheap stocks offer up what most blue chips can’t. This isn’t to say that some larger market capitalization stocks can’t break out big. Just look at shares of ChemoCentryx (CCXI Stock Report) aftermarket on Monday.
The biotech stock was trading around $8 a share. Then news dropped of the company meeting a trial endpoint in a Phase 3 study and all hell broke loose. CCXI stock hit highs of over $36 per share in aftermarket trading and solidified a move of more than 350% in a matter of minutes.
But, that isn’t the norm with most higher-priced stocks. Then again, as the market continues to extend further and hits new all-time highs, investors searching for low priced options seem to have started finding penny stocks to buy. Just look at a simple ETF like the iShares Micro-Cap ETF (IWR Stock Report). It’s up over 26% this year after inking fresh highs this week.
What Are Penny Stocks?
But maybe you saw this title and are wondering why there would be a list of penny stocks that trade below $2.75. Are you thinking, “Aren’t penny stocks trading for pennies?” The loose definition of penny stocks according to some retail investors would stay along the lines of that dialogue.
However, according to the Securities and Exchange Commission’s definition of penny stocks, they see any stock trading below $5 a share as technically a penny stock. No matter your definition, the stocks on this list have realized stronger momentum this month and some throughout the year.
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The common thread among these penny stocks is that they all can be bought for under $2.75 right now; some below $1. Now, as to whether they should or shouldn’t be bought; that choice is up to you.
Penny Stocks To Buy For Under $2.75: BioCryst Pharmaceuticals Inc. (BCRX)
This was one of the companies on our list of penny stocks to buy for under $2 earlier this month. This week BioCryst Pharmaceuticals (BCRX Stock Report) made new November highs of $2.69 after a multi-week bull run.
After pricing a $55 million public offering at $1.45 and suffering the bearish market reaction, BCRX stock actually reversed its course. After presenting at the Jefferies London Healthcare Conference on the 21st, the company attracted a lot more attention from the institutional community.
What I mean by this is that both large firms and banks began following the stock. Bank of America upgraded its rating on BCRX to a Buy. In addition, 13G filings show that Steve Cohens Point72 has a 6.1% stake in the biotech company holding over 9.3 million shares.
Also, keep in mind that the company has other things coming up. This includes another presentation on December 3 at the Piper Jaffray Annual Healthcare Conference. Assuming such a welcoming reception from its previous presentation in November, could we expect a similar reaction in the market or will this start to fizzle after hitting November highs? The company has raised a lot of money between $1.45 and $1.69 in recent weeks but it looks like that money has a home.
The company stated, “The net proceeds we expect to receive from the sale of any securities offered hereunder will be added to our general funds and used for general corporate purposes, which may include, but are not limited to:
- worldwide development, manufacturing, regulatory and commercial activities for the prophylactic BCX7353 program, primarily focusing on the U.S., EU and Japan;
- development of the BCX9930 program;
- development of the BCX9250 program;
- post-approval commitments for RAPIVABTM/ALPIVABTM;
- funding clinical development of pipeline assets; and
- capital expenditures and other general corporate expenses
Penny Stocks To Buy For Under $2.75: Taronis Technologies Inc. (TRNX)
This was another one of the penny stocks to watch from back in October. Taronis Technologies (VSTM Stock Report) has realized a nice bull market this month in particular. Shares of the company saw the highest share volume day on the 11th. This came after receiving a letter on November 8th that the company had regained compliance with Nasdaq’s minimum bid price rule. Obviously seen as a positive to remain listed on NASDAQ, TRNX shares reached highs of $2.78 before pulling back later in the month.
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However, its more recent quarterly results have breathed fresh air into TRNX stock. The company saw sales increase year-over-year by more than 100% to $5.3 million. The company’s gross margins also came in at 46% and the company expects further improvement this quarter as well. What’s also interesting is that today there was a slew of FORM 4s filed that show a cumulative purchase of over 3 million shares of TRNX stock by insiders at an average price of $1.74.
Scott Mahoney, CEO of Taronis said in a press release, “We had spent almost 18 months working toward a landmark contract with Turkey, which we executed in July. This $165 million contract is projected to be highly profitable, and we anticipate the entire contract could be expedited, pulling revenues and EBITDA into 2020 for our benefit. We also made significant progress in launching our first Europe location, located in Amsterdam, which we announced at the end of the quarter. We also made significant progress in multiple markets in the Middle East, and we began to unlock a compelling opportunity with partners in Latin America.”
Penny Stocks To Buy For Under $2.75: Verastem Inc. (VSTM)
It’s been a rough year for Verastem Inc. (VSTM Stock Report). The biotech stock hasn’t been able to get out of its own way and finally hit 52-week lows a few days ago. But even this as the case, VSTM stock has turned around for the time being. After setting a new low at $0.83, shares rebounded back to highs of $1.22 this week.
The company announced the submission of a marketing authorization application with the European Medicines Agency or its COPIKTRA therapy. The drug is an oral inhibitor for treatment of patients with relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma. IT also targets refractory follicular lymphoma.
“We have seen the significant benefit of COPIKTRA as a treatment option for patients throughout our clinical trials and experience globally,” said Brian Stuglik, Chief Executive Officer of Verastem Oncology. “The MAA submission for COPIKTRA in Europe is an important milestone in our mission to offer new therapies to patients in need and we are committed to working effectively with the EMA through the regulatory process to bring COPIKTRA to patients in Europe.”
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However, at the end of the day, there’s no guarantee that Verastem wins the marketing authorization. Speculation helped fuel the market over the last few sessions. The biggest outlier in the short term will likely be the outcome of this decision by the European Medicines Agency.
Penny Stocks To Buy For Under $2.75: Alpine 4 Technologies (ALPP)
It’s almost funny to think that a little over a month ago, Alpine 4 Technologies (ALPP Stock Report) traded under $0.03. This week, ALPP stock hit highs of $0.27. Over the course of the past month or so, shares reached highs of $0.44. The initial move came after the company reported earnings expectations last month.
In a statement, Alpine 4 said it expected to report sales of $6.9 million. Additionally, it anticipated 43% revenue growth over its previous year’s Q3 figures. This appeared to be enough to excite the market as shares soared from $0.0205 to highs of over $0.44. During the course of those few weeks, Alpine 4 also managed to ink a new deal with Deluxe Sheet Metal Inc. This added to the company’s growing list of acquisitions over the last 4 years.
Furthermore, when Alpine finally reported its quarterly results, revenue increased by 63%. What’s helped give ALPP stock a boost this week actually stems from events on Friday. The company completed a series of debt settlements as well as refinancings and payoffs with convertible debt holders.
In its own words in an 8-K filing, Alpine reported that “As of November 22, 2019, all of the Company’s variable rate convertible debt has been paid off or has been refinanced into fixed price convertible debt.” So this could be the likely cause for such a bullish move to start the week. Will it continue?
Penny Stocks To Buy For Under $2.75: Diffusion Pharmaceuticals Inc. (DFFN)
Last on this list of penny stocks comes a familiar face from November. Diffusion Pharmaceuticals Inc. (DFFN Stock Report) had a rough 2019. That came to a point last week when DFFN stock hit fresh 52-week lows. The biotech penny stock saw one of its most active trading days all year on November 20th after reporting Phase 3 results of its Trans Sodium Crocetinate. It showed increased survival in inoperable glioblastoma patients.
“Although final conclusions will depend on the completion of the randomized portion of the trial, we believe that TSC helps to eradicate the low oxygen status of cancerous tumors, and it appears this may also result in a survival benefit compared with the current standard therapy,” explained Dr. John Gainer, Diffusion’s Chief Scientific Officer.
Shares were up sharply on Monday with DFFN stock reaching highs of $0.49 just after the market closed. However, without any recent news, it’s hard to determine if there is a sustainable catalyst helping push this biotech stock. In a filing from Friday, a 13G shows Intracoastal Capital LLC owns a stake in the company. That is the most recent development of note at this time.