These Penny Stocks Are On A Roll Right Now
When it comes to finding the best penny stocks to buy, you really have to consider your personal approach to the stock market. Are you a day-trader, do you prefer swing trading, do you scalp trades, or are you a true investor? All of these have definitions and strategies that can be very different from each other. This is especially true when it comes to “investing” versus “trading” at the very basic 30,000 ft view.
What is a trader? No matter if you day trade, swing trade, or scalp, you’re not holding a stock for a long period of time. Day trading usually involves buying and selling a stock within a day or two. Swing traders will buy and hold stocks for a period of time and scalpers will buy and sell stocks within minutes; even seconds.
Then there’s the “investor” who buys and holds for a longer period of time. Each of these types of individuals has a strategy in mind and a certain set of research criteria they use to investigate certain stocks.
What Do Penny Stock Traders & Investors Look For?
When it comes to penny stocks, we see the same types of people. Though there are typically more traders than investors when it comes to the retail market, there are certain strategies everyone takes to put together their “perfect” list of penny stocks to buy or watch. It’s important to keep in mind that no matter your approach, there are some basics things to consider.
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These are market momentum, volatility, industry news, sector news, and corporate filings. Now, if you can find some good penny stocks to buy, once you become a shareholder, you need to determine your holding period. For these penny stocks, we’ve seen more consistent uptrends than we’ve seen one-time breakouts. But does that make them the best penny stocks to buy before January?
Best Penny Stocks To Buy [or ignore] #1: CytoDyne
This was one of the penny stocks to watch earlier this week. Shares of CytoDyne (CYDY Stock Report) began this week around $0.30 and have since skyrocketed to highs of $0.57 so far. TThis 90% move didn’t “come out of nowhere,” nor has it come without heavy trading volume either. This week the company announced the signing of definitive agreements with another pharma company, Vyera Pharmaceuticals. This was related to the commercialization of its leronlimab or PRO 140 in the U.S. to treat HIV.
Obviously HIV is a huge disease that plagues the world and can lead to countless side-effects. The US FDA granted CytoDyne “Fast Track” designation for 2 potential indications for leronlimab for HIV and breast cancer. In this case, Vyera will be granted exclusivity to license the treatment and distribute it in the U.S. CytoDyne receives upfront, regulatory, and sales-based milestone payment of up to $87.5 million.
Following the announcement, H.C. Wainwright reiterated its Buy rating on the stock and raised its price target to $1.50 from $1. Shares continue to break new highs this week. Something to also keep in mind for the OTC skeptics out there is that CYDY stock is an OTC listed penny stock that just secured a deal valued up to $87.5 million. My point saying that is it doesn’t necessarily matter the exchange but the company to dictate success or corporate strength.
Best Penny Stocks To Buy [or ignore] #2: Selecta Biosciences
This penny stock has managed to make a move of more than 65% since hitting 52-week lows in late October. This week Selecta Biosciences (SELB Stock Report) dramatically extended these gains after announcing a few big milestones. First, Selecta reported that it has a $70 million private placement on the table offering 45.977 million shares at $1.5225. Since the stock traded around $1.50 at the time of the news, it didn’t appear to be a massively dilutive event.
Furthermore, Selecta also announced the completion of enrollment in a head-to-head COMPARE Trial of its SEL-212 versus another treatment, pegloticase. “There is a demonstrated need for a next-generation treatment for chronic refractory gout, and this trial may reveal important clinical insights that could help physicians best treat patients suffering from this painful, debilitating disease,” said Robert T. Keenan, MD, MBA, MPH, board-certified rheumatologist at Duke University School of Medicine and Principal Investigator of the COMPARE trial.
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If this wasn’t enough, the company further reported that AskBio had licensed the rights to Selecta’s ImmTOR Immune Tolerance platform. AskBio will utilize it to treat Pompe disease. The two companies previously announced a strategic partnership in August to develop, manufacture, and commercialize targeted therapies. This new agreement could give Selecta an accumulation of upfront and milestone payments of more than $240 million as well as royalties.
Best Penny Stocks To Buy [or ignore] #3: Clearside Biomedical
Another one of the top biotech penny stocks to have watched this quarter, Clearside Biomedical (CLSD Stock Report) has run up by more than 330% this quarter. After the company’s drug application for its XIPERE was accepted by the FDA, things got much more exciting. Why? After that, a Bausch Health affiliate company licensed this treatment to commercialize and develop it in the US and Canada.
But keep in mind that Clearside also has dealt with other companies in the space as well. Namely, REGENXBIO had a deal in place with the company for optioning and licensing Clearside’s SCS Microinjector. Could this deal yield strong outcomes for the company’s financials?
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According to its agreement with REGENXBIO, on top of the initial $2 million option payment, “Clearside is also eligible to receive up to $34 million in total development milestones across multiple indications, up to $102 million in sales milestones and mid-single-digit royalties on net sales of products using the SCS Microinjector.”
Best Penny Stocks To Buy [or ignore] #4: Denbury Resources
Denbury Resources (DNR Stock Report) has also had a great month of December so far. It marked new 1-month highs on Tuesday of $1.53 to solidify a 53% move for the month. The company has worked to cut costs and streamline its operations over the last few months. Denbury, itself, is involved in hydrocarbon exploration.
The company has slashed its workforce and will incur a 1-time cash outlay of roughly $17 million in connection with it. This move could also save the company $21 million according to Denbury so fiscally-speaking it’s a sound move based on the figures. If you look at its latest corporate filing, the company further decreased costs. The debt was reduced by $87 million since June and nearly $140 million since January.
“We continue to execute on our key priorities for 2019 and we remain on track to reach the midpoint of our previously raised 2019 production guidance, despite third-quarter production curtailments relating mainly to a planned maintenance shut-down of the Rockies CO2 source plant impacting our Bell Creek production and Tropical Storm Imelda impacting our Gulf Coast production. Our spending discipline is evident across the board, with capital spend, lease operating expense, and G&A spend each on target to be at or below full-year guidance,” said CEO Chris Kendall. Will these moves be enough to take DNR stock higher before January?