Penny stocks are back in play this month in a big way. One of the biggest reasons why is that the entire market is experiencing massive volatility. In fact, if you look a little deeper, you’ll see that there have been many stocks that never before traded below $5 but are now considered penny stocks.
Rounding out the end of the month, cheap shares are very active. That’s especially true during pre-market trading. Some of the stocks gaining the most attention right now are dealing with the coronavirus in some way. This includes direct engagement with vaccine candidates. It also includes coronavirus stocks that are seeing benefits from the side-effects of the virus.
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This includes penny stocks related to economic conditions; things like gold, energy, and even other things like food delivery and 3D printing. The fact is, this pandemic is creating huge opportunities for traders right now and it comes down to positioning yourself to take full advantage. So first thing’s first: make sure you’ve got a proper list of penny stocks to watch.
Best Penny Stocks To Watch: IMC International Mining
Like I said above, gold stocks will likely be a key focus for investors. During times of market uncertainty, the yellow metal serves as a safe-haven against the unknown. Given the fact the rates are 0, government yields are extremely low, and new money is about to start flooding into the U.S. market, gold could be set to literally shine. I think we’ve already started to see that happening right now with gold futures. After dropping to lows of $1,450 last month, the price of gold has rebounded by 13.5% to date.
Something else to note is that if you agree with betting on gold prices climbing higher, then you’ll likely want to look at junior gold stocks; gold penny stocks. The reason being is that while they drop quickly during gold routs, the climb rapidly when there is a bull market for gold; much great than the large-cap gold stocks. IMC International Mining (IMIMF) (CSE: IMCX) is uniquely positioned as it is an exploration company right now. In light of this, however, the company has secured 2 100% owned assets with the latest coming this week with the finalization of a major acquisition.
Not only does IMC not have to worry about the major effects of COVID-19, but based on the location of its newly acquired property, the timing could be perfect for those looking for opportunities with junior gold stocks. On a recent conference call, incoming Chairman Greg Hawkins explained that he expects exploration to begin very soon and drilling to commence before the end of the year. Given all of the latest global events, this could be a “right place, right time” scenario for the company. Read More on IMC International Here.
Best Penny Stock To Watch: Capricor Therapeutics
Shares of Capricor Therapeutics (CAPR) were up big during pre-market trading on April 3. The biotech company’s stock reached highs of $1.62 during the early hours of the day. This came after Capricor’s latest coronavirus-related update.
On Friday, the company announced the initiation of compassionate use programs for severe COVID-19 patients using its CAP-1002. This is Capricor’s cell therapy initially intended to treat Duchenne muscular dystrophy. However, due to the fact that CAP-1002 has shown to positively influence immunomodulatory capabilities, the company is testing it for a treatment for COVID-19.
“Physicians leading the fight against COVID-19 patients approached Capricor to discuss the use of CAP-1002 due to its strong immunomodulatory capabilities. They believe that the use of CAP-1002 for the treatment or attenuation of ARDS pneumonia in COVID-19 patients is based on solid scientific rationale and pre-clinical data. We know from previously published pre-clinical data that CAP-1002 mitigates the release of anti-inflammatory cytokines as well as macrophage activation in a number of models of inflammation including sepsis and autoimmune diseases,” said Linda Marbán, Ph.D., Capricor’s president and chief executive officer.
Best Penny Stocks To Watch: electroCore Inc.
You may remember electroCore, Inc. (ECOR) from the last half of 2019. This was one of the big movers of September after running from around $1.80 to highs of $5.64 before cratering back down to earth. After hitting new 52-week lows of $0.32 last week, things started to heat up again at the start of this week. This came as the company announced receipt of 501(K) clearance from the FDA for its gammaCore therapy for migraines. After the news, ECOR stock jumped from $0.46 to highs of $2.40 but again, came back to earth very quickly.
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This month, the penny stock has once again started turning heads. As of Friday’s premarket trading, shares of ECOR have jumped 87% since the opening bell on April 1. however, the latest catalyst to move the market isn’t related to migraines at all.
Late in the afternoon on April 2, the company announced the submission of an Emergency Use Application to the FDA. The point of doing this is to allow electroCore to facilitate a study and clinical use of its gammaCore Sapphire nerve stimulation therapy for respiratory symptoms associated with COVID-19. Since then, shares have climbed as high as $1.78. Can this momentum continue into Friday’s open and even next week?
Best Penny Stocks To Watch: Aytu Bioscience
One of the other penny stocks discussed for quite some time now has been Aytu Bioscience (AYTU). When we first started to discuss Aytu, it was trading around $0.75. During the week’s to follow, AYTU stock pulled back a bit. But then the company announced a major development that saw shares jump to highs of $2.99. Ever since, Aytu has been one of the coronavirus penny stocks to watch for most of March and now, April.
Recently, the company ha gained a lot of media exposure for its coronavirus rapid test. This morning Aytu announced the first commercial shipment of its COVID-19IgG/IgM point-of-care rapid test. According to the company, it can deliver results in 2-10 minutes. Its first 2,750 tests were purchased by the Denver Police Department for screening Denver’s first-responders.
“The demand for the COVID-19 IgG/IgM Rapid Test has been substantial, so we have increased our order size to 500,000 tests (20,000 kits) to provide a larger supply to healthcare professionals and first responders in need,” said Josh Disbrow, Chief Executive Officer of Aytu BioScience. Will this latest update see this coronavirus penny stock continue its upward move that started in March? Feel free to leave a comment below.
Best Penny Stocks To Watch: Marathon Oil
Yes, Marathon Oil (MRO) is still a penny stock. Ever since early March, shares of MRO have traded below $5 a share. The biggest point of focus on its chart has been between $4.90 to $6.90. This is the gap that was created between March 6 and March 9 after the company got caught in the cross-fire of the Saudi oil war. Needless to say, this week has seen a bit of a turnaround during the second half.
An oil supply glut has been one of the top concerns for the industry at large. On Thursday, the U.S. President, Donald Trump made a very positive and possibly speculative statement about the state of the industry. Trump said:
Just spoke to my friend MBS (Crown Prince) of Saudi Arabia, who spoke with President Putin of Russia, & I expect & hope that they will be cutting back approximately 10 Million Barrels, and maybe substantially more which, if it happens, will be GREAT for the oil & gas industry!
This is obviously favorable for oil prices. But can it materialize? In the meantime, oil penny stocks and energy stocks, in general, have climbed on this speculative momentum.
Disclaimer: Pursuant to an agreement between Midam Ventures LLC and IMC International Mining Corp. (CSE: IMCX) (IMIMF), Midam has been paid $200,000 for a period from January 7, 2020, to February 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to March 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to July 9, 2020. We may buy or sell additional shares of IMC International Mining Corp.(CSE: IMCX) (IMIMF) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about IMC International Mining Corp. (CSE: IMCX) (IMIMF). Full disclaimer here.