Are These On Your Penny Stocks Watch List Today?
Over the years, thousands of investors have managed to make money in the stock market. Many have done so through investments in promising penny stocks. So, it makes sense that the interest in these stocks is typically high. However, an investor needs to put in the necessary effort in order to discover the best penny stocks to buy.
One of the ways of going about it is by tracking certain penny stocks that may be gaining momentum. It has proven to be a highly effective tactic for many over the years. Here is a look at 5 penny stocks that are gaining momentum. After this, however, investors are likely wondering what will come next. As this is the last week of the month, I’m sure there will be plenty who are looking to capitalize on such market action.
Penny Stocks To Watch #1 Inovio Pharmaceuticals
The first on this list of penny stocks in this regard is Inovio Pharmaceuticals Inc (INO – Free Report). It showed excellent momentum on Friday and made significant gains. Last week, it emerged that the company had been awarded a grant worth $9 million. It was awarded by the Coalition for Epidemic Preparedness Innovations (CEPI). The grant is aimed towards the development of a vaccine meant for coronavirus that has spread in China this year.
It is a significant development for the company, and it was welcomed with great optimism by investors. The outbreak of the coronavirus has led to rally in other similar stocks as well. In light of the hype surrounding these stocks, it may be prudent to at least track these types of companies.
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But also keep in mind that hype can overinflate certain sectors. We clearly saw this with the bitcoin boom and bust a few years ago. In any case, INO stock rallied by 10.50% on Friday. Moreover, the stock is up another 23% in the pre-market session on Monday.
Penny Stocks To Watch #2 Lineage Cell
The other penny stock that has been gaining momentum in recent days is Lineage Cell (LCTX – Free Report). Over the course of the past month alone, it has gained as much as 58%. The company recently released the data from the Phase 1/2A study of its product OpRegen. This is its retinal pigment epithelium cell transplant.
It is meant for advanced dry, age-related macular degeneration (dry AMD). The encouraging data has resulted in a lot of optimism around LCTX stock in recent days. On top of this, the company reported that it had sold 2.4 million shares in its OncoCyte stake. Proceeds from the sale were around $5 million. According to Lineage, it won’t sell any more shares until March unless the price per share closes above $3.40.
“To support our mission, we have deployed a financial strategy featuring intelligent cost-cutting alongside selectively selling our investments in OncoCyte and AgeX, companies which originated at Lineage prior to becoming independent public entities. Notably, we believe this most recent transaction involving OncoCyte will enable Lineage to have sufficient capital to support our core programs and will bridge us to the $21.6 million promissory note due to us in August 2020 from Juvenescence Ltd.”Brian M, Culley, CEO
Penny Stocks To Watch #3 Town Sports International
Another penny stock that has been showing excellent momentum recently is Town Sports International Holdings, Inc. (CLUB – Free Report). At the start of the month, Town stock got off to a running start. But over the last week or so, the penny stock saw a bit of consolidation. That changed toward the end o the week last week. The stock gained momentum primarily due to the announcement of an important deal earlier on in January.
Town Sports announced that it has agreed to acquire Flywheel Sports’ studio business for an undisclosed amount. Kennedy Lewis is going to provide Town Sports with $25 million in seller financing and has committed to a follow on second lien debt of $25 million. CLUB stock rallied by another 11.8% on Friday.
Penny Stocks To Watch #4: China SXT Pharmaceuticals
China SXT Pharmaceuticals (SXTC – Free Report) is another penny stock that gained momentum recently. The company specializes in traditional Chinese medicine. Over the last week or so, trading volumes have increased in this penny stock. It began after the company received regulatory approval of its DNA exam lab. The Jiangsu province Drug Administration approved the lab that China SXT will use to develop new products and enhance its R&D activities.
On the heels of this news, the company further expanded on this initiative with its announcement on Friday. China SXT reported plans to increase its production of the company’s entire product line. This was in response to the recent government updates that signaled a large expansion of the role that traditional Chinese medicine holds in the Chinese healthcare system. That momentum has carried over into Monday’s pre-market session as well as shares reached $1.18 before 9AM EST.
“These new guidelines have provided us with both the impetus and the reassurance we needed to embark on our next phase of expansion, as we move forward to our stated goal of becoming one of the world’s leading specialty pharmaceutical company in TCMPs.”Mr. Feng Zhou , Chief Executive Officer and Director of China SXT
Penny Stocks To Watch #5: Lianluo Smart Ltd
Finally, Lianluo Smart Ltd (LLIT – Free Report) has extended Friday’s gains at the start of the week. Since the start of the new year, shares of LLIT have been recovering from hitting 52-week lows on the last day of December 2019. During this time, Lianluo stock has climbed as much as 566% after hitting highs on Monday morning of $2.33 so far.
The company provides smart services and products for the medical industry in China. Late last week the penny stock took off on its highest trading volume day in years. Surely the coronavirus has brought attention to companies involved in the medical industry.
Whether it be treatments or devices, the buzz has grown into an all-out frenzy in the market to find the next stock to watch. In the case of Lianluo, it has a wearable respiratory solution initially designed for sleep. Due to the side-effects of the coronavirus, could there be an application for this virus as well?