Penny Stocks To Watch As Coronavirus Cases Rise
How bad is the spread coronavirus? It’s so bad that a conference held to discuss it was canceled because of it. The Council on Foreign Relations has canceled a roundtable called “Doing Business Under Coronavirus” scheduled for Friday in New York due to the spread of the virus. While some thought we were out of the woods from headline risk due to coronavirus, it doesn’t appear to be the case this week. Wednesday is no exception. In fact, a slew of penny stocks have news discussing progress or entry into the coronavirus micro-sector.
This is where fundamentals matter. Unless you’re a high volume scalper, you’ve got to understand why stocks are moving fundamentally. Proper trader education is one of the most important things to have. This is especially true right now. During times like these, companies will take full advantage of the hype just to capture some of the market momentum (and money) going into such an event. We saw it with pot stocks during the early days. We definitely saw it during the bitcoin/blockchain bubbled a few years back.
For some of the readers, we saw it during the Y2K bubble and the boom & bust of internet stocks during the days before smartphones. This isn’t to say that opportunity can’t present itself in a company just biting on headline momentum. But understand that the companies participating in that practice might not have a long shelf life when it comes to their stock. So pay attention to a company’s storyline right now.
If they were a tech company last week and are getting into coronavirus “anything” this week, it might be wise to do a bit more research. On the flip side, there are also some companies ignoring the hype and focusing on their main business models. Will these be the best penny stocks to buy right now?
Penny Stocks To Buy [or avoid]: Heat Biologics
Heat Biologics (HTBX-Free Report) has been a force to be reckoned with this month. After dropping to lows of $0.195 at the end of February, HTBX stock has pulled a major about-face. Not only did the stock rebound but it also reached highs of $1.25 (see: Penny Stocks To Watch This Week; Coronavirus Still A Concern). What goes up must come down as they say and Heat did see some profit-taking after that.
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But this week, shares are back on the move. During premarket trading on March 11, the penny stock moved back toward that $1 mark. The company’s CEO Jeff Wolf was on TD earlier this week to discuss the company’s coronavirus vaccine platform. Heat also presents at the Spring Investor Summit in 2 weeks. But that’s not why things are off to a running start this week.
Heat announced that it engaged a government relations firm, PACE LLP, to help it advance collaboration efforts and to secure government funding for its program. Will this mark the next phase for Heat Biologics? We’ll see how things pan out later this month but for now, HTBX could be a top coronavirus penny stock to watch this month.
Penny Stocks To Buy [or avoid]: BIO-key International
Shares of BIO-key (BKYI-Free Report) are also taking off on Wednesday. This comes as the company just announced that it secured a $30 million contract for biometric security solutions. BIO-key will facilitate the enrollment of users and the positive identification of individuals for a telecommunications company in Nigeria, working in conjunction with its Nigerian identity supply partner, Chams PLC.
Mike DePasquale, Chairman & CEO of BIO-key, explained, “Today’s announcement represents a major step in addressing the extensive and growing opportunity for large-scale identification, enterprise and consumer security in one of the largest and fastest-growing economic regions of the world. Nigeria’s population is estimated at over 206 million, making it the seventh most populous country globally.”
However, the news spiked the stock so much on March 11 that BKYI stock opened 173% higher than it previously closed on the 10th. Is there enough “meat on the bone” for traders to benefit from this news? Something good to consider if this is one of the names on your list penny stocks right now.
Penny Stocks to Buy [or avoid]: Phio Pharma
Next, Phio Pharmaceuticals (PHIO-Free Report) took off running higher on March 11. This came just a day after the company announced an agreement with Medigene AG. Phio will collaborate with Medigene, who will offer its expertise on clinical development and research material with regard to cell therapy treatments.
Medigene will also have an option to an exclusive license for clinical and/or commercial exploitation of potential immune cell enhancers against certain fees. Dr. Gerrit Dispersyn, President and CEO of Phio explained, “The breadth of the INTASYL™ platform and the compound’s capability to augment the anti-tumor effectiveness of various cell-based approaches are key differentiators of the platform, and Medigene’s clinical development experience with personalized T cell therapies will be helpful in our efforts to identify potential new targets and therapies that INTASYL™ can enhance.”
Penny Stocks To Buy [or avoid]: T2 Biosystems
T2 Biosystems (TTOO-Free Report) has been trading like water lately. Unfortunately, the trend hasn’t been in the direction that most would like. On March 10, TTOO stock hit fresh 52-week lows of $0.46. But like we’ve said in the past, the 52-week ranges can be a “heads-up” to start paying attention to stocks. In this case, it would have been good to watch TTOO after hitting its low of $0.46 yesterday.
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The reason why has everything to do with what happened on March 11. T2 shares jumped to highs of $0.62 just before the market opened. It also traded above $0.50 for most of the early session. It was revealed that on March 9 the company entered into an amendment to an equity distribution agreement with Canaccord Genuity LLC.
This seems to have boosted sentiment in the market on Wednesday. This follows up on the company’s tweet earlier this month regarding COVID-19.