Are These Coronavirus Penny Stocks On Your List Right Now?
“Flattening of the curve.” This is all the U.S. President tweeted this morning and shares of the broader market shot up. As we’ve also seen with penny stocks, big headlines and breaking stories have also triggered big moves in price. None of these headlines have been bigger catalyst lately than ones involving coronavirus. This week a new round of coronavirus penny stocks have skyrocketed after making headlines.
Earlier this morning, we reported on a few companies that had nothing to do with biotech, release news related to the virus. Some, including marijuana penny stocks, soared on the simple inclusion of the words “COVID-19” or “coronavirus” in my opinion. While the market is excited to hear these words, it gives us a reason to continue looking for top coronavirus penny stocks right now.
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So, in light of this, it may still be worth tracking a few names. If you remember from earlier this year, companies that focus on anything from face masks to actual vaccines are getting attention. Then there was a whole surge in penny stocks involved with services that could benefit from stay at home orders. We watched food delivery companies skyrocket at that time and some continue to trade well-above the upper $5 range of the definition of a penny stock. Wondering what’s next? Let’s take a look at a few more coronavirus penny stocks you might have missed.
Coronavirus Penny Stocks #1: Biolase Inc.
Right before the lunch hour, shares of Biolase Inc. (BIOL-Free Report) started seeing erratic volume. Not only did the penny stock shoot up, it was also halted due to the volatility. Meanwhile, investors searching for a potential catalyst likely found one quickly in Biolase’s latest update.
The company announced a partnership with an ICU equipment maker, Mekics, to manufacture ventilators. Obviously, this was in response to the growing need caused by COVID-19. Biolase reported that it received FDA Authorization for emergency use during the pandemic. Again, this headline is based on a partnership deal with another company. Biolase’s official business model, however is still along the same lines of a company that would host a product like this.
The company focuses on developing and supplying medical devices. It also sell dental imaging equipment and laser systems mainly geared toward dentists. In its most recent quarterly report, the company reported an 18% increase in sequential net revenue. Furthermore, Biolase improved its operating loss by $3.5 million on a year-over-year basis. In regard to this latest development, there wasn’t much more as far as early details are concerned. So it will be interesting to see what happens or if there will be a follow-up to this latest event. After reaching highs of $0.90, the volatility has definitely picked up so if BIOL is on your list of penny stocks, you may be in for a wild ride.
Coronavirus Penny Stocks #2: Aurora Cannabis
Some penny stocks break out on coronavirus headlines that involve an entire sector. Aurora Cannabis (ACB-Free Report) for instance, saw its shares jump following big news out of Ontario. The Alcohol and Gaming Commission of Ontario released an update this week authorizing temporary delivery and curbside pick-up by authorized cannabis retail stores.
“To continue the fight against the illegal cannabis market and support cannabis retail store operators and legal recreational cannabis consumers, the Government of Ontario has issued an Emergency Order to temporarily allow authorized cannabis retail stores to offer delivery and curbside pick-up. These changes are effective immediately and will last for the duration of the period of declared provincial emergency, with the possibility of extension if the government’s Emergency Order on business closures is extended.”
While there are many stipulations of this order, cannabis companies with operations in Ontario are likely to benefit. Aurora products are sold in a number of Ontario, Canada dispensaries. So while the economy has been shut to non-essential businesses, this latest move in Ontario could be a warm welcome and bring even easier access to customers seeking cannabis products. Thanks to this update, ACB stock has managed to break back above $0.80 again on Wednesday.
Coronavirus Penny Stocks #3: Opko Health
Finally, Opko Health (OPK-Free Report) has been a company focusing on diagnostics as well as pharmaceuticals. So its latest update falls in line with its current business model. Earlier this week Opko announced that its BioReference Laboratories company will prioritize COVID-19 testing for hospital patients around the country.
“Multiple types of hospitals, for-profit, not-for-profit, large health systems, individual hospitals, academic medical centers, and community hospitals have all reached out to get their results in a timely fashion. We have now tested almost 200,000 patients and will continue to grow our capacity from 20,000 tests/day to 35,000 tests/day within the next week.”Jon R. Cohen , M.D., Executive Chairman of BioReference Laboratories
This move comes as the testing shortage in the U.S. continues to rise. Thanks to this interest and record coronavirus cases in thee U.S. companies handling testing have been a focus for investors. On Wednesday, shares of OPK stock reached highs of $1.39 during the early morning session. This momentum appears to have continued into the afternoon.
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What will be important to watch with OPK is this momentum and if there will be any further follow up to this last update. For now, OPK has become one of the penny stocks to watch amid the latest surge in COVID-19 cases.