Are Any Of These Penny Stocks On Your Watch List?
It’s always interesting to watch certain penny stocks after the market closes or during the final hours of the trading day. More times than not, a late afternoon move without any news or filing could foreshadow what’s to come. Other times it may simply be a head fake. But given the climate for the market, it wouldn’t surprise me that the base case would be the latter. In any event, the signs for momentum present themselves in numerous ways.
This afternoon we saw several penny stocks make erratic moves in the market. Some of these penny stocks to watch offered company updates that could justify such activity. Others, however, were moving on market momentum.
Since this is the final week before the big holiday season goes into effect, many are looking for some last-minute gifts to give themselves. Those gifts are hopefully in the form of gains in the stock market. Here are some things to take into account with 3 penny stocks that have been trending recently.
Penny Stocks To Watch #1: Clearside Biomedical (CLSD)
Another highly volatile penny stock, Clearside Biomedical (CLSD Stock Report) has become explosive during the second half of the year. In fact, even after plummeting to 52-week lows in August, shares have swiftly recovered to make new 2019 highs this week at $2.28. With this company, Clearside hasn’t put out much by way of press releases lately.
But something that can be noted is in the December filings. A 13D filed earlier this month shows several venture funds and individuals have taken up a large stake in company shares. In addition, a Form D shows a notice of exempt offering of securities to the tune of roughly $3.35 million. All of this can be viewed on the Clearside profile page on PennyStocks.com.
One thing to note regarding Clearside is its deal with REGENXBIO (RGNX Stock Report). The two companies have an option and license agreement for exclusive worldwide rights to Clearside’s proprietary, in-office SCS Microinjector™ for the delivery of Regenxbio’s RGX-314. Under the agreement, Clearside will receive a fee upon REGENXBIO’s exercise of its option.
More Milestones To Note
It will also get up to $34 million in total development milestones up to $102 million in sales milestones. Furthermore, it will see mid-single-digit royalties on net sales of products using the SCS Microinjector. REGENXBIO already exercised its option where Clearside received $2.0 million as a result. The rest of the figures mentioned are still on the table too.
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Furthermore, from its quarterly update, the company currently expects to resubmit its New Drug Application for XIPERE in the first quarter of 2020. Based on progress, it believes the FDA will review the NDA within six months of receipt of the resubmission. Regardless, CLSD stock saw a swift move higher on Monday that began around 3 PM EST and carried into the close with aftermarket highs of $2.30. Will this become one of the top penny stocks to watch on Tuesday?
Penny Stocks To Watch #2: Optec International (OPTI)
Shares of Optec International (OPTI Stock Report) have been wildly active since hitting fresh 52-week lows in November. Those lows were some of the lowest prices we’ve written about for most penny stocks; $0.0011. Yes, those are two zeroes before that “1”. What’s more, is that OPTI is not one of the penny stocks you can buy on apps like Robinhood. However, some of the more mainstream brokers like TD and ETrade do have access to this stock.
Before I even discuss anything about this company there is something very important to take note of. This company hasn’t filed any corporate disclosure statements in quite some time. It’s been so long, in fact, that OTC Markets Group has designated the company as “Dark or Defunct.”
If this is a company that you’re watching simply because of the market’s trading volume you need to understand something. In its current state, many times we’ll see the Securities and Exchange Commission actually halt trading in companies that fail to file in a timely and consistent fashion. What that means is if you were to buy shares and the stock gets halted or worse, de-listed, you would then own worthless shares of stock you wouldn’t be able to sell in the market.
More Questions About OPTI
Ok, that’s the extreme risk here but very plausible. What else should you know about OPTI? If you search for press releases from the company on mainstream financial sites, you likely won’t find much. But a quick search on the corporate site shows the company reporting that it, “is moving forward towards meeting the requirements for being reinstated to OTC QB fully reporting status.”
Previous to this, the company announced that it “plans to update the corporate filings and return to OTC Markets “Pink Current” status in early January 2020 along with updated business models.” However, to date, nothing has been updated on OTC Markets since May.
The biggest question here is this: Is the company actively communicating with OTC Markets and if not, how might they be able to avoid getting hit with a halt? All things to truly consider no matter what a company’s press releases state.
It’s also important to note that this may be more of a penny stock to avoid than watch. But that’s up to you and your risk profile. In any case, OPTI stock has traded hundreds of millions of shares over the last few weeks so if this is on your penny stocks watch list, just know that it’s one of the highest risk penny stocks on there because of these current circumstances.
Penny Stocks To Watch #3: Acer Therapeutics Inc. (ACER)
The last one of the list of penny stocks to watch, Acer Therapeutics, Inc. (ACER Stock Report) was the only company here with an actual post-market catalyst. Five minutes after the closing bell, Acer announced that it had achieved full enrollment of its Part B ACER-001 trial. This Part B trial came after a successful Part A wherein the company found an optimal formulation for its ACER-001.
“Successful completion of Part A and full enrollment of Part B mark important progress in the ongoing development of ACER-001,” said William Andrews, M.D., FACP, Chief Medical Officer of Acer. “Over the next year, we aim to complete Part B of the bioequivalence trial in the first quarter of 2020, enroll and complete Part B of the Taste Assessment study, and per FDA feedback, conduct some additional nonclinical work while monitoring the long-term stability data of the product. Assuming successful outcomes with these activities, we should be on track to proceed with submission of a New Drug Application (NDA) in early 2021.”
Will The Past Repeat Itself?
Something to keep in mind, however, is Acer’s past. Earlier this year the stock steadily traded above $20 a share. But in June some very bad news broke that also broke down the stock. Acer announced that it received what’s called a “Complete Response Letter” from the FDA regarding its marketing application for EDSIVO (celiprolol). This was for the treatment of vascular Ehlers-Danlos syndrome, an inherited collagen disorder.
Essentially the FDA rejected Acer’s application and the result was a huge hit to ACER stock. But since then, shares have quietly climbed back a bit – nowhere near its June levels – but after this latest news broke, the positive sentiment came back into the market. Can this help the penny stock recover back to its previous $20+ range in 2020?