Penny Stocks To Watch During Q2 2020
Penny Stocks are some of the most sought after equities by day traders. Aside from options, these cheap stocks are some of the only ones that can generate massive returns within a matter of hours. Given that volatility, they’re not for everyone. But for those thrill seekers willing to take on the added risk, a big reward could be waiting at the end of the trade.
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This week we’ve seen the broader markets tumble in the wake of the coronavirus. It’s not unlikely that we see some traders simply move to the sidelines. But where Amazon and Facebook can be unpredictable right now, there are hundreds of penny stocks ramping up for a big move. These aren’t sought after by traders because they’re cheap. They’re sought after because of the winning potential.
Just yesterday we saw a $4 stock rally to nearly $13. Prior to that, we saw a $0.50 skyrocket to highs of over $5. These are just a few of the countless examples to consider. It takes planning, skill, and research to find the best penny stocks to buy, however. So before you think this is like playing the lottery, think again.
Consistently profitable traders have one thing in common: a plan to trade with. It doesn’t matter if it a $100 stock or a $1 stock, they’ve always got a plan. Heading into the new month, here’s a list of penny stocks that have started to make some noise in the market. Will these make new highs in 2020?
Penny Stocks To Watch: Diffusion Pharmaceuticals
Shares of Diffusion Pharmaceuticals (DFFN) were off and running on Wednesday. This came as the company announced the initiation of a co-research effort with the University of Virginia Health and the Integrated Translational Research Institute of Virginia. The effort will evaluate Diffusion’s small molecule Trans Sodium Concetinate in patients with Acute Respiratory Distress Syndrome or ARDS. Specifically, ARDS in the patients will be associated with COVID-19 infections.
Obviously there is a huge push to find a treatment for coronavirus right now. Companies with any type of relationship with immune drugs or even respiratory treatments are putting in work to test novel therapies quickly. This kick-starts the new quarter much better than DFFN stock traded in March. For most of the month, this penny stock was slowly but steadily fading lower. This latest round of news seems to have brought some upbeat sentiment in the market.
This biggest question is whether or not DFFN can maintain this level. The penny stock hasn’t traded this high since last November. But as long as momentum continues, it may be worth watching a bit more closely at the start of the month.
Penny Stocks To Watch: Safe-T Group Ltd.
Last month Safe-T Group (SFET) saw a great rally to highs of $3.59. But similar to DFFN, shares faded for the remained of March. But during the last 2 trading sessions, the market began to wake up a bit. More trading volume came in and the price started to climb a bit. That all came to a head-on April 1st with some fresh earnings results.
On March 31st after the close, the company reported its Q4 and full-year 2019 results. The company posted a higher better loss per share from a year ago. It also recorded a 124% increase in full-year revenue. In addition to that, fourth-quarter revenues also grew by triple digits (141%) with Safe-T revs reaching $1.1 million compared to $463,000 in the same period of 2018.
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These stronger results have helped boost momentum in the stock. As far as the company is concerned, it said it’s “cautious” about its financial guidance because of the COVID-19 pandemic. But that its products can support remote work stemming from the virus outbreak. Never the less, it’s important to note that shares reached early highs of $3.69, which is just 10 cents higher than the March high of $3.59. While this sets a new high for the year, it will be interesting to see if SFET stock can manage these higher price levels following earnings.
Penny Stocks To Watch: Amarin Corp
When was the last time you heard Amarin Corp (AMRN) and “penny stocks” in the same sentence? Well, mark this down for the record books because Amarin has found itself in this exact situation. Shares of the company were in freefall on Tuesday. The stock dropped from nearly $13 to lows of $3.95. But just like we discussed last month with some of the beaten-down REIT stocks, AMRN is something we’re looking at right now; not at $13.
Amarin’s troubles stemmed from a recent patent ruling. The Nevada court ruled that Amarin’s patents for heart treatment drug Vascepa were invalid. What that means is generic drug companies can now create generic versions of the drug for the same purposes without having to work around such patents.
Now, this wasn’t only a problem for its drug but for Amarin itself as Vascepa accounts or a major portion of the company’s revenue. CEO John Thero said, “We believe we are favorably situated to obtain an injunction against generic launch pending appeal, subject to our posting a bond to secure generics’ lost profits in the event that generics prevail on appeal.”
So, in the meantime, we’ve got a drug company like Amarin trading as a penny stock. Something to keep in mind, however, is that we’re not talking about a “start-up” biotech, Amarin’s been established for quite some time and if it can win an appeal, it could be a big deal for the company. For now, AMRN could be one of the penny stocks to watch for a potential dead-cat bounce following the massive drop in price this week.
Penny Stocks To Watch: Citius Pharmaceuticals Inc.
Citius Pharmaceuticals Inc. (CTXR) was on the move early on April 1. Shares even broke above $1 during its premarket session. After it cooled off a bit closer to the opening bell, CTXR stock began to see heavy volume carry it to $0.80. Unlike the other penny stocks mentioned, this didn’t mark a new high for the year. But it did see CTXR strike a new high for the last month. Shares haven’t traded this high since the end of February.
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Why did Citius Pharma jump? Before the opening bell, the company announced an exclusive option with Novellus Inc. It’s a preclinical biotech company. Through the option deal, Citius will license stem-cell therapy to treat ARDS associated with coronavirus. Yes, this is the same ARDS that Diffusion is looking to address.
“No effective pharmacotherapy for ARDS exists, and ARDS-related morbidity and mortality are high. MSCs have been studied in the treatment of lung injury, and we aim to build upon this work with Novellus’s iPSC-derived MSCs to improve the immunomodulatory response in humans. We have assembled a team of experts who are dedicated to advancing this project to an Investigational New Drug (IND) application as quickly as possible.”
Citius Chief Executive Officer Myron Holubiak
