These Penny Stocks Moved Big But Can They Continue Higher Before Next Year?
Over the course of the year, plenty of penny stocks have generated significant gains for investors. Even as the year comes to a close, there are some penny stocks that are gaining momentum. It is often said that investors should follow the momentum in stocks and more often than not it could lead to favorable results. But that doesn’t mean you should simply follow blindly.
So, it is important to take a look at certain penny stocks that have gained momentum and figure out the reasons behind it. Here is a look at s list of penny stocks that have managed to gain significant momentum in recent times. Does this mean they head higher before 2020?
Penny Stocks To Buy Or Sell: Idera Pharmaceuticals
The first such stock to consider is Idera Pharmaceuticals Inc (IDRA Stock Report). It gained significantly on Monday after the company completed a significant private placement. Idera announced that it has managed to sell warrants to buy common stock and Series B1 convertible preferred stock to an institutional investor.
Idera announced that it has managed to raise as much as $3.9 million from the private placement. In addition to that, Idera will also get an upfront payment of around $6.2 million. It is a significant development for the company and it was hardly a surprise when IDRA stock rallied by as much as 17% on Monday.
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This is a stock that could be tracked closely by investors over the coming weeks. It is also important to note that even though share prices consolidated on Tuesday, IDRA stock continued to maintain a level of support above $1.85, a recent level of resistance during the past few weeks.
Penny Stocks To Buy Or Sell DURECT Corporation
The other penny stock that has gained significant momentum recently is the DURECT Corporation (DRRX Stock Report). However, in this regard, it is important to point out that the stock has been on a roll since the middle of July and, overall, has gained as much as 525% since the start of the year.
On November 12, the company made a positive announcement that brought more momentum to the DURECT stock. The company presented positive data from the Phase 2A clinical trial of its product DUR-928 at ‘The Liver Meeting’.
The therapy is a treatment for alcoholic hepatitis. DRRX stock climbed another 23.34% on Monday and extended gains further during the short session on Tuesday with highs of $3.19. Can this trend continue based on current market activity?
Penny Stocks To Buy Or Sell Zafgen
The other penny stock that has shown excellent momentum in recent times is that of Zafgen Inc (ZZFGN Stock Report. On December 18, it emerged that Zafgen has reached a definitive agreement with Chondrial with regards to a merger.
According to the terms of the agreement, Chondrial will become a subsidiary and the merged entity will become a separately traded company.
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They anticipate closing of the deal by next year and will then go under the name of Larimar Therapeutics. The announcement resulted in a rally in ZFGN stock. It has gained as much as 108% since last Wednesday’s 52-week lows of $0.62.