Will These Penny Stocks Be On Your Friday Watch List?
With the short week coming to an end, some traders will take an inventory of the last few days and assess a few things. First and foremost, taking into account any losses incurred from penny stocks, for instance. If you are doing this right now, you need to make sure you ask yourself a few questions before you start kicking your self or quitting penny stocks altogether.
- Did you lose money because the penny stock you traded didn’t go up after you bought it?
- Did you lose money because you held the penny stock too long?
- Did you lose money because you bought the penny stock too high based on FOMO?
These are just a few questions to help you hone your skill when it comes to trading penny stocks. The fact of the matter is that if you fell victim to #’s 2 and 3, then the “fix” has more to do with setting and/or sticking to your rules more tightly. If you never had a shot at making money, maybe you jumped in too early. On the other hand, maybe there was some bad news. In any of these cases, it’s okay to take the loss. But understanding why and how to remedy that is a very important next step.
How About If You Made Money With Penny Stocks This Week?
If you made money with penny stocks this week (which I hope you did) then congrats. But just because you’re winning doesn’t mean you can throw everything you learned or set as your strategy, out the window. Now it’s time to hone your craft even more. Take the above questions into account and flip them.
- Did you make money with penny stocks because you bought at a low point and sold when it went high enough to capture your target profit?
- Did you make money with penny stocks because you didn’t let greed tell you to hold longer?
- Did you make money with penny stocks because you stuck to a perfect chart pattern as part of your strategy? You bought when it signaled “Buy” and sold for a modest profit. Even if it continued to go a little higher you stuck to your plan.
These questions may seem a bit basic or even simple at best. But it’s important to take an inventory of your Profit and Loss statement (P&L). This helps you grow as a trader and investor. This is especially true when it comes to finding the best penny stocks to buy. Now, with this, you also should have a strategy of finding penny stocks to research from the start.
Look for things like heavier volume, irregular volume, news, corporate filings, presentations, upcoming earnings, etc. These can act as potential catalysts. Also, follow trends in the market. Right now the coronavirus is a big topic. Of course, that trend can end quickly. But it wouldn’t hurt to have an understanding of why certain stocks are moving. That’s also considering if they haven’t got any news. This will at least be the first line of defense in determining a stock is a good buy or not.
Penny Stocks To Watch
Though there’s no crystal ball to the end of the week its good to keep a finger on the pulse of aftermarket movers. You can’t guarantee that they continue higher (or lower) but it shows where attention was focused after the market closed.
In today’s case, there were several that saw big momentum. Will that be the best penny stocks to buy on Friday? Well, that is up to the stocks, the market, and you as a trade. But what I can say is that these stocks were trending well after the 4 PM EST bell on January 23.
Ampio Pharmaceuticals Inc.
This was one of the penny stocks to watch back in June. Ampio Pharmaceuticals (AMPE – Free Report) was trading around $0.50 at the time. Even though there was a jump here and there, the general trend was sideways for most of the 4th quarter.
However, toward the end of December, this penny stock began to climb. It ended up reaching highs of $0.91 earlier this month. After pulling back last week, shares of AMPE began to climb once again this week. In addition to that, the biotech penny stock was climbing higher during after-market trading on Thursday. There hasn’t been much news from the company besides an amended 10Q from the 3rd quarter.
But something was filed on Thursday that could have raised some eyebrows. Under Ampio’s filings, a 13G showed “EMPERY TAX EFFICIENT II, LP” owns a stake in the company. Could this have been the trigger that sent shares higher after the market on Thursday and will the trend continue tomorrow?
Bellicum Pharmaceuticals Inc.
Next on this list of penny stocks, Bellicum Pharmaceuticals Inc. (BLCM – Free Report) has been a penny stock to watch since December. We’ve watched this run as much as 144%, first hand. Similar to Ampio, Bellicum had also pulled back earlier this month. However, it was able to maintain a general level of trading around $2.14.
Needless to say, this week was an important one for the company. First, it inked asset purchase and master service agreements with MD Anderson. On top of that Bellicum will also present at the ASCO 2020 Gastrointestinal Cancers Symposium on Friday.
The company will go over new Phase 1 results for its BPX-601, the lead GoCAR-T product candidate. Its presentation will be later in the day. So this could be a “watch and wait” scenario to observe the outcome of the presentation. However, it is worth noting if BLCM is on your penny stocks watch list.
AIM ImmunoTech Inc.
When it comes to AIM ImmunoTech Inc. (AIM – Free Report), this falls in line with a previous statement I made. Be aware of current market trends. Case in point, most companies that have some antiviral treatment are in someways impacted by this coronavirus.
Specifically, the company works to develop treatments for viral and immune-based disorders. Obviously the new virus is something that would go into that category. The company caught our attention at the start of the week. In our article, “Penny Stocks To Watch Right Now,” we talked about this point. But there may be a bit more to this story than meets the eye.
In a previous corporate update in December the company discussed plans for 2020. Among those plans were a few related to the Department of Defense and certain trials AIM would conduct this year. “Most notably, two grants by the U.S. Department of Defense (DOD) were issued for Ampligen immuno-oncology research,” said company CEO Thomas K. Equels, CEO. “These DOD “Breakthrough Awards” total approximately $15 million to Roswell Park Comprehensive Cancer Center and Moffitt Cancer Center to study Ampligen in combination with other immunotherapies – including pembrolizumab (KEYTRUDA®) and Intron A – in the treatment of brain metastatic breast cancer. We expect both these DOD-funded trials to commence in 2020.”
A love/hate penny stock that continues to find itself as one of the most active is Nio Inc. (NIO – Free Report). The company fell from grace earlier last year dropping from more than $10 a share. After finally hitting lows of under $2, the penny stock started to make a steady climb. Fast-forward a few months and it seems as though the company was able to turn things around. Whether it’s permanent or for the time being, sentiment has grown in favor of the company.
After a choppy open on Thursday, shares closed higher and continued to move that direction into the close. What has initially triggered the big move stemmed from a disclosure statement. In it, the 13G revealed that Baillie Gifford & Co holds a significant stake in the company. There were also reports in Sina Finance that said Guangzhou-based automaker Guangzhou Automobile Group Co Ltd is preparing to invest $1 billion into Nio.
However, it’s important to note that Nio came out with a statement to address this. It said, “The Company responded that it has explored financing and strategic opportunities with Guangzhou Automobile Group, and all commercial discussion remains preliminary and no definitive agreement has been entered into.”
Regardless of this case, shares continue to surge. This is likely due, in part, to the other events buzzing around the company. But will these be enough to see this momentum continue in the market?
Trillium Therapeutics Inc. (TRIL)
Finally, Trillium Therapeutics Inc. (TRIL – Free Report) continues to hold a spot on the penny stocks to watch list. When we first began watching this company, TRIL stock traded around $0.55. Since that first article was published, this small-cap stock has seen highs of over $4. In fact, aftermarket trading on Thursday saw the stock reach $4.49. A strong mix of key updates, important milestones, and strategic capital have all contributed to this move.
This week, the latter may have sparked more interest. Trillium priced a major offering at $2.75 a share. Gross proceeds come in at just over $101 million which will be used for the clinical development of its CD47 programs. In addition, funds will be directed to other things like research, manufacturing and regulatory activities. There will also be some allocated to working capital and “general corporate purposes.” Typically, large raises like this can be seen as a negative. But today showed exactly the opposite. Will this trend continue on Friday?