Penny Stocks To Buy Right Now Or Avoid At All Costs?

Do These Make The Cut Of Penny Stocks To Buy Right Now?

Penny stocks usually trade below $5, but there are other penny stocks that might be trading at even lower levels. It is possible for investors to find value from among those stocks as well but you need a good eye for quality penny stocks. For instance, there are penny stocks that trade below $2 and some trade even less than $0.50. However, it should also be kept in mind that many of the stocks at those prices might present extreme risks.

This is one of the main things you should understand before deciding on penny stocks to buy. Not every trade is a winning trade. But that doesn’t mean if you are in a losing trade, you lose your whole investment. Understanding how to manage risk is just as important as understanding when to take a profit. There are a number of strategies you can adapt to your personal trading plan. Some will employ the “tiered trading strategy” where a trader will scale into a trade.

Essentially, you take a small starting position, wait for a stock to start confirming its move and then progressively buy more and sell on the way up. Not only does this allow traders to stay in a trade longer but it also allows you to cut losses quickly and make them smaller losses at that. For example, the trader who scales into a $1,000 trade may take $250 and buy a starting position.

If the trade deteriorates, the cash outlay is $250 and you would take a loss on that amount. This is compared to other traders who go “all-in” and start & end with the full $1,000 trade. If the stock drops 25%, the first trader would only lose about $62.50. The “all-in” trader would lose $250. So it’s important to understand your own risk tolerance and make smart decisions. On that note, we’re taking a look at 5 penny stocks that could be on the buy or avoid list this week.

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Penny Stocks To Buy [Or Avoid] #5 Oragenics

One of the penny stocks that could be tracked by investors at this point is that of biotech company Oragenics (OGEN – Free Report). Last week it gained as much as 40%. The company announced that its Chief Executive Officer Alan Joslyn is going to make a presentation at the 22nd Annual BIO CEO & Investor Conference.

The event in question is going to be held on February 10 and 11 in New York City. It has triggered a steady rally in OGEN stock into this week as well. Monday saw shares reach highs of $0.77 during the morning session.

With the company’s presentation begging mid-morning, it will be interesting to watch the market’s reaction. Will it be enough to make OGEN one of the penny stocks to buy this week or should it be avoided at all costs?

Penny Stocks To Buy [Or Avoid] #4 Onconova Therapeutics

Another penny stock that made an interesting move on Friday was Onconova Therapeutics (ONTX – Free Report). It rallied by as much as 68% last week owing to an announcement from the company earlier on in the week. Onconova reported that it’s Chief Executive Officer and President, Dr. Steven M. Fruchtman, is also going to make a presentation at the BIO CEO & Investor Conference in New York City.

In addition to that, it has also been revealed that the company’s CEO and other executives will also be available for one on one meetings. Unlike Oragenics, Onconova presents Tuesday afternoon (February 11). Next week, the company extends its presentation schedule with an appearance at NobleCon16.

On February 17th CEO Dr. Steven Fruchtman will give a company update at the conference. Investors could keep an eye on ONTX stock not only this week considering the BIO CEO conference but also into next week ahead of NobleCon16.

Penny Stocks To Buy [Or Avoid] #3 Plug Power

One of the penny stocks to have shown highly impressive momentum in recent times is that of Plug Power (PLUG – Stock Report). In January, the stock enjoyed a highly impressive rally and jumped by as much as 41%.

Now, Plug Power is no stranger to a list of penny stocks to buy (or avoid). We’ve followed the progress of this company since the early part of 2019. In fact, we’ve watched shares of this company move from below $2 to where it’s at in 2020.

In early January, the fuel cell company announced that it had bagged a contract worth as much as $172 million. That proved to be a major trigger behind the rally. The company did not reveal the name of the client but stated that it is a Fortune 100 company. Investors have since continued to send PLUG stock higher after its corporate update at the end of January.

Penny Stocks To Buy [Or Avoid] #2 Agile Therapeutics

Another one of the penny stocks that has been followed closely on PennyStocks.com is Agile Therapeutics (AGRX – Stock Report). The primary focus of the company is related to its hormonal contraceptive Twirla. It received a non-binding approval from the FDA some time ago.

AGRX stock has soared by as much as 40% over the past three weeks in anticipation of Twirla data that is going to be released on February 16. Investors could keep an eye on the development in this regard. The FDA previously denied the originally submitted New Drug Application in 2013. Agile resubmitted that in 2017. But it was again denied. The main reason according to the FDA was with regard to certain quality measurements in test methods. So this could be a pivotal time for Agile.

Since late last year, AGRX stock has been on the move. When we first started to follow the company closely, shares traded around $1. Obviously, since then the penny stock has gone on a monstrous run. But another bad report could be a huge hit for Agile. So I would think caution would be the prudent route for the time being. Regardless, a good result could be a huge win for the company as well. I wouldn’t be surprised to see volatility between here and there.

Penny Stocks To Buy [Or Avoid] #1 Conatus Pharmaceuticals

Last but not least, it is Conatus Pharmaceuticals (CNAT – Free Report) that could generate some attention from investors. Towards the end of January, the company announced that it reached a definitive agreement with regards to a merger with the privately held company Histogen Inc. It is going to be merged with a Conatus subsidiary, and the entire deal is going to be conducted in stock.

Furthermore, according to the company, the combined entity will operate under the name ” Histogen Inc. “. After closing, the combined company is expected to change its trading symbol to “HSTO”.

This week the company presents at the BIO CEO & Investor Conference. If CNAT stock is one you’re watching, mark February 11 in your calendar. Richard Pascoe, Charman, and CEO of Histogen will give an overview of the company’s technology and development pipeline.