Investing in penny stocks is often regarded as an effective way for new investors to make money in the market. It’s also a way to leverage small amounts of capital to make large windfalls. I won’t bore you with the details of how to make money with penny stocks. Honestly, it’s as simple as buying low and selling high. However, new investors often avoid those stocks due to the high risks.
At the end of the day, no matter which penny stocks you watch, you’ll need to determine if you can make money with them or not. The facts are simple, penny stocks can move quicker than your trading platform at times. So, understand the type of commitment you’ll need depending on the trading strategy you want to take on.
Essentially, if you’re looking to capture quick gains, be prepared to focus 100% of your attention during the day on quick-moving penny stocks. On the other hand, if you work a day job, for example, you may want to find certain stocks with sustainable movement; ones that hold a trend for more than a few hours. In this case, you’ll want to take the approach of looking at fundamentals as well as trading activity.
It is true that penny stocks can be far riskier than midcap or large-cap stocks. But at the same time, certain gems can always be discovered by the diligent investor. In other words, penny stocks can often prove to be a high risk but high reward proposition for investors. Here is a look at 5 penny stocks that investors could track right now.
Best Penny Stocks To Watch #1 Agile Therapeutics
One of the penny stocks that has been frequently mentioned on PennyStocks.com for months now is Agile Therapeutics (AGRX – Stock Report). In fact, our article yesterday, “Penny Stocks To Buy Right Now Or Avoid At All Costs?” talked about some of the specifics. The main focus of the company is getting its Twirla female contraceptive patch approved by the FDA.
The process has been going on for years now. Each time Agile adjusts based on feedback from the Administration. But this week will be important as the company could get a response from the FDA on the patch. Shares of AGRX have been on an explosive run since late last year when we first began following this story.
This week, the company finalized a $35 million term loan facility. Some $15 million will be immediately available if Twirla receives FDA approval. Al Altomari, Chairman and Chief Executive Officer of Agile. Mr. Altomari explained, “We expect that our existing estimated cash on hand as of December 31, 2019, and the $20 million in loan proceeds which we would be eligible to receive upon the FDA’s approval of Twirla will allow us to fund our operations through the end of 2020. We are pleased to have the support from Perceptive, which is a recognized leader in growth capital financing.”
The actual date for the PDUFA was set for mid-February. In a previous announcement, the company extended the Prescription Drug User Fee Act goal date from November 16, 2019, to February 16, 2020. So there are still a few days left before the actual event takes place. However, keep in mind that this FDA decision could be a big catalyst for the penny stock. That goes for both bullish and bearish cases and volatility could pick up as well.
Best Penny Stocks To Watch #2 Lineage Cell Therapeutics
Another penny stock that has rallied recently is that of the biotech company Lineage Cell Therapeutics (LCTX Stock Report). On Monday, the company made a major announcement that saw its stock gaining considerably.
Lineage announced that it’s Chief Executive Officer Brian M. Culley is set to deliver a presentation at NobleCon. The presentation is going to be made on February 18 and has created certain optimism about Lineage in the markets. LCTX stock rallied by as much as 17.60% on the back of the announcement.
[More On LCTX] These Penny Stocks Continue To Gain Momentum, What’s Next?
This move continues a much larger jump for the penny stock this year. Just 1 month ago, shares were trading around $0.75. Since then LCTX stock has jumped to highs of $1.63 this week. The ongoing Phase I/IIa clinical study of OpRegen® has become a focal point for investors. In an update last week, the company’s treatment for dry age-related macular degeneration or dry AMD. Data demonstrated positive results and now the company will be opening 2 new clinical sites.
“The sooner we treat the next four patients, the more mature and informative our clinical update will be at the Association for Research in Vision and Ophthalmology medical conference, which we plan to attend in Baltimore this May.”Brian M. Culley , CEO of Lineage
Best Penny Stocks To Watch Abeona Therapeutics
On the other hand, Abeona Therapeutics (ABEO – Stock Report) has emerged as another interesting penny stock to watch recently. Though the company hasn’t received the best reaction in the market during the first month of the year, Abeona stock has begun to take off in February.
On Monday, it emerged that analysts at SVB Leerink initiated coverage on the stock. The firm rated ABEO stock as Outperform. In addition to that, they set the target price at $6.
The stock gained as much as 16.75% on the back of this developed and extended its gains in the month so far to 52%. When we picked back up on Abeona earlier this month (article here) we talked a lot about its Phase 3 study. The company has said that its EB-101 therapy has the “potential to be the first approved therapy for RDEB and the only durable treatment to address large chronic wounds”.
If you’re not up to speed on Abeona’s pipeline, EB101 is being studied to treat a rare connective tissue disorder, recessive dystrophic epidermolysis bullosa. There’s currently no approved therapy so that could present an opportunity for the company. What’s also interesting is that recently filed 13G’s show that institutional investors are building positions in the stock. Take a look at the filings from the month so far, here.
Best Penny Stocks To Watch #4 CYDY
Another one of the penny stocks to watch over the last few months has been CytoDyn (CYDY – Stock Report). In fact, the first article published on this penny stock was back in December (see: Penny Stocks To Trade After Breaking News; 1 Gained 339% This Week).
Since then we’ve watched the story unfold and shares of CYDY stock race to highs of $1.65. This month has been a bit difficult for the stock, having pulled back from those highs to lows of $0.79. However, this week could mark a turning point.
The company is presenting at the Wall Street Reporter’s “Next Super Stock Live” Conference. Its President and Chief Executive Officer, Nader Pourhassan, Ph.D. will discuss a corporate overview and upcoming milestones for 2020. Earlier this month the company announced that it filed a Phase 2 protocol for a basket trial with the FDA under its current cancer IND.
The interesting part of this trial is that the company can initiate enrollment in this Phase 2 clinical trial for the treatment of approximately 22 different solid tumor cancers. Additionally, CytoDyn expects to receive preliminary results on each patient within 3 to 4 weeks after the initial treatment with its leronlimab treatment.
Best Penny Stocks To Watch #5 Ocugen
Lastly, Ocugen Inc (OCGN – Stock Report) has made a significant move this week. For the most part, Ocugen hasn’t had such a terrible last few months. But in the short term, the stock has slipped a bit during the latter part of January. This week, however, this was another one of the penny stocks that began to recover from its pullback.
Ocugen announced that it is going to highlight its pipeline of ophthalmology products at NobleCon on February 18. So far this week, shares have climbed from $0.52 to highs of $0.6256 on Tuesday. Keep in mind that the company has ongoing trials right now. Ocugen is conducting a Phase 3 trial for its “ocular graft versus host disease”. With topline results still farther out (second half of 2020), it’s likely that key progress updates will be the things to drive or stall OCGN’s momentum.
“There is no approved therapy for this debilitating condition, and it is our belief that OCU300 will provide needed relief for patients suffering from this disease,” Daniel Jorgensen, M.D., M.P.H., M.B.A., Chief Medical Officer of Ocugen said in a press release. The upcoming conference will hopefully shed a bit more light on things in the pipeline. As of early December, Ocugen had completed 50% of enrollment in the Phase 3 trial.