Can These Penny Stocks Keep Heading Higher?
Unless you’ve lived under a rock for the last few months, coronavirus is one of the top headline topics of the year. In fact, some of the highest traffic we’ve seen has come over the last month with a major focus on coronavirus penny stocks. It was later in January when we saw interest begin to build and along the way, that interest has grown into an all-out cult-like following. But who would blame anyone for wanting more info? You got stocks like Allied Healthcare (AHPI-Free Report) and Alpha Pro Tech (APT-Free Report) going from mere penny stocks to trading over $40 a share.
If you haven’t been trading penny stocks for a few years, we’ve seen surges like this in the past. There are some very important things to understand in light of this. First, penny stocks with even a hint of relatability to coronavirus or upper respiratory illnesses could be flying. This could come without any rhyme or reason other than the fact that “they’ve got something”. Additionally, some of these “related penny stocks” may not actually have functioning operations still relevant to the virus.
What I mean by this is that we’ve seen plenty of companies that no longer operate an anti-viral/treatment portfolio but since their website still shows that info, buyers flood in. Also, we’ve got companies that might put out news discussing the “potential to get involved” or that they’re “looking into a treatment” or “looking into a testing option”. But at the end of the day, the news might simply be a form of lip service to capitalize on the rampant craze and FOMO that’s been created in the market.
Are Coronavirus Penny Stocks Good Buys Right Now?
So, while you might be looking for coronavirus penny stocks and while there may be certain cheap shares running, it’s very important to understand why. or example, if a company actually has a viable treatment or a real drug in actual phase trials, then there may be more to go on besides speculation. On the flip side, if it does appear as a speculative move, understand that momentum and trading volumes can dry up quickly if that speculation is proven to be false. Is it bad to trade on speculation?
That’s really based on your trading style. You can definitely make money with penny stocks moving on speculation. However, those moves typically go up and down very quickly and to the tune of big percent-changes. At the end of the day, the name of the game is to make money. So if you can handle high-risk trades, then speculation could be a big asset to you.
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No matter where you sit on the spectrum or speculation, always remember to research why a stock might be moving. That could help you secure serious gains and/or avoid blowing up your entire account. With this in mind, here’s a look at a few penny stocks to watch during the upcoming week after finishing strong last Friday.
Penny Stocks To Buy [or ignore]: BioCryst Pharmaceuticals Inc.
Last week we picked back up on BioCryst Pharmaceuticals Inc. (BCRX-Free Report) and the progress it has made over the past few months. Originally, BCRX was a stock that started getting some mentions on PennyStocks.com after the company announced a big fundraising round.
This month the company presents data at the American Academy of Allergy, Asthma & Immunology Annual Meeting. “There is tremendous enthusiasm from both patients and physicians for the potential of oral, once-daily berotralstat, and we look forward to sharing the latest new analyses that highlight the excellent outcomes patients had in our APeX-2 trial,” said Dr. William Sheridan, chief medical officer of BioCryst. Last week the company blew away the market on its earnings while also coming out with another big update.
BioCryst announced the first patients have been dosed with BCX9930 in a proof of concept trial in paroxysmal nocturnal hemoglobinuria. Furthermore, because of the company’s pipeline and its close relationship to treating respiratory illnesses, BCRX stock has also benefited from the latest surge of interest in these niche names.
Penny Stocks To Buy [or ignore]: Vaxart Inc.
Next Vaxart Inc. (VXRT-Free Report) was one of the top coronavirus penny stocks on Robinhood earlier last week. VXRT is a coronavirus penny stock that we’ve monitored closely for a while now. Needless to say, it’s another company that could be more than just a FOMO or speculation penny stock to watch. It focuses on treatments for H1 influenza.
Due to the similarities between COVID-19 and the flu, it makes sense why attention has built around this penny stock. We’ve also seen how companies in similar situations have attempted to tweak treatments and apply them to COVID-19.
[Read More] Top Coronavirus Penny Stocks To Watch Right Now
As we’ve cited in the past, if coronavirus goes away “tomorrow” the company still has viable pipeline treatments to address other indications. On top of that, in a January update, Sean Tucker, Ph.D., chief scientific officer of Vaxart, said, “The results of our recently published influenza challenge study demonstrated that our oral tablet vaccine primarily protects through mucosal immunity, a potential key factor when targeting mucosal pathogens such as this new coronavirus.”
Penny Stocks To Buy [or ignore]: ZIOPHARM Oncology Inc
ZIOPHARM Oncology Inc (ZIOP-Free Report) is a bit different from the other two companies mentioned. Share of the penny stock have been trending much lower for the last few weeks. But Friday’s (March 6) action seems to have signaled attention might be coming back to the penny stock. ZIOPHARM focuses, particularly on its immuno-oncology platform.
As we’ve seen, companies working to advance different T-cell treatments have a unique position in this coronavirus craze. While ZIOPHARM hasn’t directly come out to discuss coronavirus itself, speculation could be a driver right now. T cell-mediated adaptive immune response in respiratory coronavirus pathogenesis is something being explored by a few companies right now. Will this eventually be something that ZIOPHARM even looks at or will it simply end with a speculative trend?
“In the 16 months since forging our corporate independence, we have advanced all our clinical programs, licensed critical intellectual property, recruited key personnel to the Company and Board, and fortified our financial position. In 2020, we will use this foundation to accelerate our commercial pathway, through enrollment at NCI to TCR-T trial, preparing TCR-T trials with MD Anderson Cancer Center, data readouts on Controlled IL-12 in recurrent GBM and enrollment to trial of CAR-T infused day after gene transfer.”
Laurence Cooper, M.D., Ph.D., Chief Executive Officer
Penny Stocks To Buy [or avoid] Menlo Therapeutics Inc.
Finally, Menlo Therapeutics Inc. (MNLO-Free Report) caught a big boost last week. On March 6 the company’s stock jumped over 40% to highs of $4.49. There wasn’t much of any news on the actual day of the breakout. But it did follow a few days after Menlo’s financial results.
“In February, our shareholders approved our upcoming merger with Foamix. We look forward to the prospects and outlook for the combined organization, which will have a compelling pipeline of dermatology products and product candidates,” said Steve Basta, chief executive officer of Menlo Therapeutics.
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Since the deal’s expected to close by March 9, this could be much more to do with timing than coronavirus. Its main treatment candidates deal with dermatological applications. Needless to say, this latest development has triggered more attention to focus on the company this month. Can that continue?
