Best Penny Stocks To Buy Before The Second Quarter? 3 Names To Know
3 Penny Stocks To Watch Right Now
The stock market saw something it hasn’t in quite some time: a full halt. At the open today, the S&P opened roughly 7% lower than its previous closing price on Friday. This triggered a circuit breaker halt for 15 minutes. This is a safeguard against big sell-offs in the market. While it isn’t a frequently seen event, today saw a perfect storm of bearish response to events over the weekend. Not only were there more jitters from additional coronavirus cases, but the tension between OPEC and Russia reached a tipping point.
The latter was the straw that broke the camel’s back. On Sunday night, stock market futures started pointing to a red open on Monday but I don’t think anyone thought it would get as bad as it did. By midnight, the futures market pointed to a slide of over 1,200 points.
And by the time the markets were open, we saw the Dow slide more than 1,800 points. But this doesn’t mean there aren’t opportunities in the market right now. In fact, if you look at penny stocks today, you’ll see that there are many more trading in the green than there are blue-chips.
The fact is, right now, the markets are seeing volatility in general. The S&P ETF (SPY-Free Report) dropped nearly 20% since February 20th. That’s not the norm but it has been the case for the last few weeks. My point is that traders/investors could be getting used to short-term trading compared to longer-term investing right now.
Penny stocks tend to be the perfect place to accomplish this task. So, it’s no wonder why we are starting to see more people jump into the mix. Well, that and the fact that most coronavirus stocks are or started out as penny stocks. Now, are all penny stocks good to buy? The short answer is no. But since coronavirus is a big “thing” right now, it might not hurt to take a closer look at a few penny stocks this week.
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Best Penny Stocks To Buy [or avoid]: Cocrystal Pharma, Inc.
Cocrystal Pharma Inc. (COCP-Free Report) first hit our radar as a penny stock to watch in February. At the time, the company had just reported that it would be raising capital to the tune of $2.2 million. Fast-forward a few weeks and Cocrystal announced it has initiated its Coronavirus program.
“Following our acquisition of patent rights and know-how from KSURF and our recently completed financing, we are aggressively pursuing the development of novel antiviral compounds for the treatment of Coronavirus infections using our established proprietary drug discovery platform. Given the global threat of COVID1-9, our primary goal is to advance our Coronavirus program into preclinical development. We will seek opportunities for collaborations as we advance our programs,” stated Dr. Gary Wilcox, Chairman and Chief Executive Officer of Cocrystal.
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Thanks to events from over the weekend, COCP stock continued its trend on March 9. The penny stock reached highs of $2.27 before the market opened and then managed to climb as high as $2.24 during regular market hours. Since the beginning of February, Cocrystal stock has managed to jump as high as $2.50. Will this latest move signal that COCP is one of the top penny stocks to buy right now or has it “topped out”? Considering the fact that the company announced a $6.8 million financing at a steep discount, the latter could be the case. But obviously time will dictate the outcome.
Best Penny Stocks To Buy [or avoid]: Novan Inc.
Next, amid a sea of red today, Novan Inc. (NOVN-Free Report) has surged higher. Shares of NOVN stock managed to reach new March highs of $0.53 on March 9. This comes on the heels of new coronavirus cases over the weekend. The company recently closed a $5.95 million public offering to fund more R&D at the company.
The company has been focusing on diseases that affect the immune system. While its pipeline includes treatments for things like STDs and Dermatological treatments, immune treatment-related companies have been getting a lot of attention by those looking at coronavirus stocks. In addition, it’s important to note that the company does have experience dealing with treatments for viral infections.
Last month the company updated shareholders on progress being made with the FDA in regards to its Phase 3 B-SIMPLE program for its molluscum contagiosum treatment. Will the company actually target COVID-19? That’s yet to be seen but it makes sense NOVN stock is getting attention as most companies with any treatment for viral infections is seeing speculative action this quarter.
Best Penny Stocks To Buy [or avoid]: Athersys, Inc.
Athersys, Inc. (ATHX-Free Report) saw its first big day of trading all year. Shares of the penny stock soared to highs of $1.93 on some of its highest volume days ever. While there was no news to speak of, March will likely be a month of note for those watching ATHX stock. On March 16 the company reports its financial results for the fourth quarter and full-year 2019.
Again, this may be another example of speculation from the coronavirus. While there hasn’t been any formal announcement, the company’s pipeline could have signaled a reason for investors to take a closer look ATHX. The company currently has a Phase 2 treatment in its pipeline to treat Acute Respiratory Distress Syndrome. This can be triggered by pneumonia, sepsis, or trauma. Since COVID-19 is an upper respiratory virus, it makes sense as to why Athersys has gotten more attention this week.
[Read More] Coronavirus: 4 Penny Stocks To Watch
The company explains on its site that “there are limited interventions and no effective drug treatments for ARDS, making it an area of high unmet clinical need with high treatment costs. Given ARDS high treatment costs, a successful cell therapy could be expected to generate significant savings for the healthcare system by reducing days on a ventilator, days in the ICU and total days in the hospital, and importantly, could reduce mortality and improve quality of life for those suffering from the condition.”
