Penny Stocks To Watch Right Now
Unlike popular opinion may suggest, you can definitely make money with penny stocks. The key to doing so is finding the best penny stocks to buy. When it comes to trading, you should also consider the timing of the trade and how long you plan to hold the stock; the keyword is a plan. More often than not, those who are inexperienced investing in penny stocks make the mistake of holding too long. While “selling too early” has a downside of leaving money on the table, holding onto a trade after it peaks can be a death sentence for your trade.
Also, consider the fact that while these cheap stocks are mostly start-up phase companies, the potential is likely there but the market may have other plans. These companies aren’t usually getting loans from big banks at a low-interest rate. They’ll typically work with funds and family offices that offer money in exchange for discounted shares. It’s doesn’t matter how much “promise” a company has, in my opinion. You need to know how the company was funded and if/when the funding party has discounted shares that could hit the market.
This month we’ve seen plenty of promising penny stocks to buy. But as the price rises, so does the negotiating odds of coming to an agreement with funds. If a stock is trading around $0.50 one day and then over $2 days later, companies can leverage this to get a better price to raise money. One of the main reasons for going public in the first place is to raise money. So don’t let this come as a shock. The important thing as traders is to understand how to use the information to your benefit.
Penny Stocks & Knowing The Market
Just as an example. Earlier this month we saw Biocept (BIOC) rally from around $0.28 to highs of nearly $0.70. That move and above-average volume was great for those who took advantage of the spike. But the company also took advantage of this move and priced a $10.3 million offering at $0.46. So it’s valuable to understand that when stocks go up quickly, it never hurts taking profit along the way. In our book on penny stocks we went over this type of scenario in detail. (download it for free by simply subscribing).
There are countless examples like this as well. It all goes back to my original point on having a plan. When looking for penny stocks to buy, understand the risks and also understand what’s going on with the company. If a stock starts running out of nowhere, there’s no news, no rumors, no filings, etc. it may simply be a momentum-fueled move. That isn’t an unlikely scenario when it comes to penny stocks; especially low float penny stocks at that.
Furthermore, just because you have a name on your list of penny stocks, it doesn’t mean you absolutely need to “buy now”. Sometimes it pays to wait a bit, monitor the market and then time your trade instead of jumping in right away. No matter the case, there’s no shortage of penny stocks to watch and with that, some new names to track this month.
Best Penny Stocks To Watch: Algernon Pharmaceuticals Inc.
First, Algernon Pharmaceuticals Inc. (AGNPF) (CSE:AGN) has seen a surge of interest this week. What quietly began late last week has turned into a very bullish surge following the holiday weekend. Algernon is a clinical-stage pharmaceutical development company. Its lead compound is a repurposed drug called NP-120 (Ifenprodil). The orally delivered small molecule was originally developed by Sanofi to treat peripheral circulatory disorders. But Algernon has other plans.
In one of Algernon’s research programs, Ifenprodil showed promise as a possible treatment for idiopathic pulmonary fibrosis (IPF) and chronic cough. But things completely changed when it was discovered that the drug was effective against the world’s most lethal flu virus H5N1. When tested in an animal study, it reduced mortality by 40%, reduced acute lung injury (ALI) and reduced inflammation in the lungs.
The company made major headlines this week as well. The company formally received positive feedback from the U.S. FDA for Ifenprodil. “Based on the feedback, the Company plans to submit, as soon as possible, an Investigational New Drug (IND) application to the FDA, to conduct a Phase 2 clinical trial with Ifenprodil, as a therapy for patients who experience respiratory complications as a result of contracting COVID-19,” the company said. Shares have climbed from around $0.18USD on April 8 to highs of $0.371USD this week ($0.245CAD to $0.51CAD).
Best Penny Stocks To Watch: BioCryst Pharmaceuticals
Another popular name among coronavirus penny stocks has been BioCryst Pharmaceuticals (BCRX Free Report). Shares have been on the rise since late last week as well. On April 8, BCRX stock traded around $2 and by April 14th the stock reached highs of $2.95. What has been a driving force? The company has been making progress with its treatment called galidesivir.
The company announced last week that it had opened enrollment in a new trial being funded by National Institute of Allergy and Infectious Diseases. It’s part of the National Institutes of Health. According to the company, the drug has already shown promise on a smaller, controlled scale. Galidesivir has “demonstrated broad-spectrum activity in vitro against more than 20 RNA viruses in nine different families, including the coronaviruses that cause MERS and SARS”.
Since that news was announced after the market closed on April 9th, the first time it could be traded on was Monday. While the “buy the rumor, sell the news” trend seemed to be at play, the general uptrend in this penny stock continued on Tuesday. Shares reached new April highs as well.
Best Penny Stocks To Watch: InVivo Therapeutics
Another one of the popular penny stocks to watch this month has been InVivo Therapeutics (NVIV Free Report). With fewer than 3 million shares Outstanding, shown on its profile page, NVIV stock could be one of the low float penny stocks to watch right now. There hasn’t been any new updates from the company this month nor have there been new disclosure statements filed. However, trading volume has dramatically picked up on April 14.
Does it have some COVID-19 treatment people are clamoring over? Not that I’ve seen. The company focuses on treatments for spinal cord injury. The company has raised money at much higher prices that it currently sits. The last raise was closed for $7 million at an average price of $2.75. Considering the trading momentum and the above market-priced raise, it may have caught some attention from momentum day traders.
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Given the current trend and the fact that there hasn’t been much news, some may err on the side of caution. In cases like this, it’s good to be as informed as possible. But the fact that there isn’t anything new from the company, an industry report, article feature, filing, nothing, doesn’t give much in terms of identifying a catalyst. Just keep this in mind if NVIV is on your penny stocks watch list right now.