Are Any Of These Penny Stocks On Your Watch List Right Now?
When it comes to penny stocks to watch, timing can play a role in your strategy. Certain corporate events, disclosure filings, and even industry news can act as significant catalysts for stocks to break out. But then again, some companies on your list of penny stocks may simply jump due to general market momentum or small share structure/low float situations. In the case of the latter, short squeezes are what traders pay attention to.
What is a short squeeze? In trading, some people will sell shares that they’ve borrowed in the hopes that a stock’s price decreases. Once the stock reaches a certain low, the trader buys back the shares to return the borrow and capture the difference in price.
Penny Stocks & Short Squeezes
But what happens when a stock doesn’t go down and actually goes up? The trader still needs to return those shares after a certain time. In the event of a short squeeze, the trader needs to buy shares back before the price gets too high, which helps fuel a larger bull run.
When you have other factors at work such as a low float, that can compound the move. We’ve seen this scenario happen several times throughout the year and likely won’t be the last. At the start of 2019, marijuana stocks were among the big winners after getting beat down during Q4 of 2018. So it’s good to look at more than just what a specific company announced.
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Due diligence has other things to monitor like filings and even what market chatter is out there. Sometimes rumors can be the main factor to fuel a run. Whether they’re true or not, understanding what moves a stock will help you better understand how to and how long to trade it. In any case, here’s a look at 5 penny stocks to watch before the end of the week this week.
Penny Stocks To Watch #1: Onconova Therapeutics (ONTX)
This was one of the most beaten-down penny stocks of the year. Shares of Onconova Therapeutics (ONTX Stock Report) once traded as high as $4.826. A few days ago, ONTX stock hit 52-week lows of $0.1027. If you owned the stock before that day, you’re probably pretty upset. But if you looked at it from that point on, you’re witnessing a pretty strong move in the penny stock right now.
After it was revealed that hedge fund Point72 Asset Management held a 10% stake in the biotech stock, shares began to reverse. What happened so far? Well, no news has come from the company since announcing an $11 million raise. But the place to be has been the SEC filing feed.
Aside from the big ownership stake from the hedge fund, there’s a slew of insider purchases indicated from several FORM 4s filed at the end of November. The company also has upcoming presentations at the 61st American Society of Hematology (ASH) Annual Meeting & Exposition. This will be held from December 7 through December 10.
Penny Stocks To Watch #2: Advaxis Inc. (ADXS)
A familiar face on Pennystocks.com over the last few months as been Advaxis Inc. (ADXS Stock Report). We’ve written about this penny stock in multiple articles this quarter. Needless to say, since late September, ADXS stock was a force to reckon with. In fact, since October 1, shares have climbed from $0.28 to highs of $0.65 this week. What’s more, is that aftermarket trading on December 2 saw the stock test those $0.65 highs once again.
So what’s going on with ADXS? The company has entered into a collaboration with UCLA for glioblastoma immunotherapy discovery research, for one. The collaboration with Dr. Vaithi Arumugaswami’s group at UCLA’s Department of Molecular and Medical Pharmacology focuses on anti-tumor immunity and anti-tumor responses generated by certain vaccines. These express diverse glioblastoma neoantigens. Furthermore, in the company’s latest update, several milestones to keep in mind.
Kenneth A. Berlin, President and Chief Executive Officer of Advaxis explained, “The NEO trial has provided us with valuable proof-of-mechanism data for our HOT program, with clinical signals of generation of CD8+ T cells against hotspot mutations, antigen spreading and stable disease in two patients. While discontinuing the NEO program was a difficult decision, we ultimately believe that the off-the-shelf approach of our HOT program will allow us to more effectively evaluate our platform in a broad patient population with a more economical, commercial-ready manufacturing process while also extending our cash runway until early 2021.”
Penny Stocks To Watch #3: Sorrento Therapeutics (SRNE)
This biotech penny stock was one to watch since October. Sorrento Therapeutics (SRNE Stock Report) saw a big week last week, which carried through into the first trading day of December. Over the last two weeks, SRNE stock has jumped from $1.52 to highs of $3.68 this week.
There were a few pieces of news that didn’t hurt the stock. Though they weren’t massive catalysts either. But what was revealed late last month kick-started bullish momentum in the stock.
In November, Sorrento reported that it received unsolicited offers to buy the company. These came from “two biopharmaceutical companies” and for a price between $3 and $5 a share. To the market’s excitement, Sorrento declined these offers and the stock shot up. Adding fuel to this fire were analysts.
There were strong bullish cases made for the penny stock but none as strong as JMP analyst Donald Ellis. He’s reiterated an Outperform rating on the stock and gave it a $21 price target. Yep, you read that correctly. After declining an offer of as much as $5 per share, could Sorrento truly be set for such a rally or is this wishful thinking by an overly bullish analyst?
Penny Stocks To Watch #4: Sierra Oncology (SRRA)
One of the biggest movers of the last 2 weeks was Sierra Oncology (SRRA Stock Report). This week marks a potentially pivotal week for the company. On December 7 Sierra presents at the 61st American Society of Hematologists Annual Meeting. That’s the same one as Onconova and Sierra will focus on its double-blind Phase 3 trial of its investigational drug momelotinib vs ruxolitinib in “JAK inhibitor naïve” patients.
In addition, the company just announced an analyst and investor event hosted on December 8 for interested parties. It aims to discuss its momelotinib data presented during that Annual Meeting.
What’s more, Sierra’s filings also show that OrbiMed Advisors has a 19.99% stake in the company as well. With much going on with this company, it could be an interesting penny stock to watch heading into the week especially based on what’s going on this coming weekend.
Penny Stocks To Watch #5: ViewRay (VRAY)
Finally, ViewRay (VRAY Stock Report) comes onto this list after dropping big news aftermarket on Monday. The company reported entry into a collaboration with Elekta & Medtronic (MDT Stock Report). The investments from the two companies hinge on ViewRay’s ability to raise at least $75 million.
Furthermore, the company’s largest shareholder, Fosun International committed to a capital amount that allows it to keep its beneficial ownership level in ViewRay. Thanks to this announcement, shares of VRAY stock rocketed from a close of $3.40 to aftermarket highs of $4.83.
“Two companies actively promoting the implementation of the MR-linac technology in the market and collaborating on clinical applications will benefit clinicians and their patients with better and wider treatment options, improved outcomes, and lower costs,” said Richard Hausmann, Elekta’s President, and CEO. Will this be on your list of penny stocks to watch on Tuesday?