4 Penny Stocks To Watch This Week
Let’s call it what it is everyone, coronavirus scared the market into buying anything remotely related to vaccines or respiratory protection. We saw facemask companies skyrocket, cancer stocks turn into coronavirus plays and everything in between. Needless to say, it appears that the hype has subsided just a bit and now it’s back to the volatility that we’ve come to know so well with penny stocks.
So what should investors look for right now? Well, both the biotech and energy sectors are starting to grab some attention. With that, a sector move is always a possibility and if that happens, you can likely bank on a few penny stocks riding the wave.
We’ve also got a few big industry conferences coming up over the next few weeks. Though these may seem a bit mundane, there’s usually something to take away from these conferences that can act as a nice catalyst for a few breakouts.
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Finally, the technicals have started to show up more bullish on a few charts. Over the last 8 months, we’ve covered a few penny stocks here and there. Many of them had made epic moves and I’m sure readers were able to watch. On the same note, many have also done what penny stocks do, which is pulled back just as quickly as they raced up.
If the saying “Buy low, sell high,” has any truth to it, there might not be a bad idea in looking at some penny stocks to watch at recent lows. But will they still be the best penny stocks to buy right now?
Abeona Therapeutics Inc.
Kicking off this list of penny stocks, Abeona Therapeutics Inc. (ABEO – Free Report) was a company we first introduced on August 26 of last year. At the time shares traded around $1.89. Over the next week, we saw it jump to highs of over $3.30. Even since then this biotech penny stock has been a strong runner and moved higher to over $5 before the end of 2019. But after pricing a public offering at less than tasteful terms according to the retail market, ABEO stock slid as low as $2.15 last week.
Why could Abeona Therapeutics be one of the penny stocks to watch right now? Take a look at the chart, recent trading volume, and price movement. First, ABEO is trading around a level that it has previously bounced off of. Some would consider this to be a potential level of support for the stock right around $2.15/$2.20. Next, Tuesday’s trading session was the first one that saw bullish trading volume, while price also jumped.
Something to keep in mind that could warrant closer observation is that Abeona recently initiated a pivotal Phase 3 study. It is for evaluating its EB-101 in patients with recessive dystrophic epidermolysis bullosa. According to management, EB-101 has the “potential to be the first approved therapy for RDEB and the only durable treatment to address large chronic wounds”. So the question now is will ABEO stock manage to hold this support? Also, can it recover in the same manner as it has the last few times it traded at this level?
Next Advaxis Inc. (ADXS – Free Report) has several things going on that could make it one of the penny stocks to watch. First, from a technical perspective, we saw a bullish doji star candle yesterday. This is a technical formation on a candlestick chart that is often considered a bullish reversal signal when in the context of another bullish chart pattern.
Furthermore, it’s a pattern that appears in a downtrend as ADXS has seen. It “warns that the trend could change.” So far, following the doji (candlestick with a tight trading range on Monday), Advaxis stock has continued to inch higher. Assuming this wedge formation could be bullish, the technical trend right now could be a reason to watch more closely.
Furthermore, speculation has continued to surface. The key focus is on the company’s upcoming presentations. Over the next 3 weeks, Advaxis will be busy at a number of conferences. These include ASCO – Genitourinary Cancers Symposium, IASLC 2020 Targeted Therapies of Lung Cancer Meeting, and Immuno-oncology 360°. It also doesn’t hurt that recent SEC filings from last Friday show increased stakes by Wall Street funds. You can view the updated 13G here.
Another one of the penny stocks to watch right now is YRC Worldwide (YRCW – Free Report). Shares have hovered around the $2.15 mark for a few weeks now. This came after YRCW stock dropped from highs of $3.25 just a few weeks ago.
That drop seems to have been triggered after CFO Jamie Pierson sold shares of the company. This was revealed in a late-afternoon FORM 4 filing on the 16th. It also didn’t help that weak results from industry leaders like UPS reported weaker than expected results this month.
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However, the recent price movement and boost in the trading volume are something to note. Ahead of its latest earnings results, shares of YRCW jumped from $2.27 to $2.70 on Tuesday. After the market closed, the company reported a better than expected loss per share. It also reported a beat on revenue with $1.16 billion compared to estimates of $1.14 billion.
Furthermore, when asked about recapitalization about the company on its earnings call, it was interesting to hear what CFO James Pierson actually had to say. Pierson explained, “At $2 a share, whatever it is now, I have no interest in issuing equity at that level.” Therefore, assuming the favorable results that came aftermarket and the fact that the company apparently has no interest in raising funds at the current level, could this be a key standout for investors to account for?
Finally, Verastem Inc. (VSTM – Free Report) comes onto the list after seeing an epic rally since late last quarter. From November 19th until this week, shares of VSTM have rallied as much as 471%. We’ve covered this penny stock a number of times over the last 10 months or so and it has continued to inch higher. This year has already become explosive. Shares of Varistem already jumped from around $1.30 to this week’s $2.22 high.
Aside from the obvious chart pattern, there are several fundamental events at play that could spark further interest right now. First, keep in mind that the company recently announced that it dosed its first patient in a pivotal Chinese bridging study evaluating its COPIKTRA® treatment in patients with relapsed or refractory follicular lymphoma. Next, whether it was trading momentum, corporate progress, or both, Verastem has also attracted the institutional community to the stock.
Hedge fund Point72 Asset Management, managed by Steven Cohen, has a 7.4% stake in the company. This is according to a filing disclosed on Monday. As of Jan. 31, the hedge fund, along with related investment vehicles, beneficially owned 5,500,000 shares of Verastem. With this story continuing to unfold and the results of patient dosing still in toe, there are numerous things to keep in mind if this is one of the penny stocks on your watch list right now.
Also, consider the fact that this penny stock hasn’t traded near these levels since April of last year. You’ll want to pay particular attention to volume and make sure it remains “in play.” If volume starts to dry up, it may be difficult for the stock to maintain these higher levels.
VSTM 471% Nov 19 0.38