If you’re searching for the top penny stocks right now, it may be as simple as reading some broader market headlines. While most of these cheap stocks tend to march to the sound of their own drum, in some cases certain sectors will see a strong trend.
Right now, thanks to COVID 19, not only are biotech penny stocks a focus but so are oil and gas penny stocks and even some gold penny stocks. Could there be other penny stocks making big moves outside of these sectors? Of course, but if it’s the path of least resistance that’s important to you, then big market trends could be something to keep in mind.
But what does coronavirus have to do with gold or oil? If that’s a question you’re asking right now, I’d say to start thinking economically. Understanding supply and demand as a base can help you focus on possible trends before they emerge. Here’s an example: if most people are required to stay home, they aren’t likely to be driving cars or operating machinery/facility that requires oil or gas. Meanwhile, the supply of oil isn’t slowing down fast enough to steady with lower demand.
Penny Stocks & Market Trends
As we know, high supply and low demand creates problems for pricing. That’s not for consumers as low oil typically equals low gas prices. But for the oil and gas companies themselves, the impact could be detrimental to say the least. But then again, the lower prices for oil and gas penny stocks has become a target for “bottom feeders” – people looking for “oversold” stocks. We saw it earlier in the year with some real estate stocks as well.
But will a rebound be in store or are investors just hopeful ahead of another pending slide? Time will tell in that case but it doesn’t negate the fact that COVID-19 has created many market opportunities. With this in mind, are some of these names on your list of penny stocks to watch right now?
Penny Stocks To Watch: Algernon Pharmaceuticals
All month long, Algernon Pharmaceuticals (AGNPF Stock Report) (AGN) has been reporting big updates on COVID-19 treatment progress. At the start of the month, the biotech penny stock traded around $0.16USD. Since then, Algernon stock has rallied as high as $0.371 and after consolidating slightly last week, it managed to jump back above $0.34 on April 23. To date, Algernon has made the most of April considering it’s up 105% as of Thursday’s high. But there’s much more to this week’s move than just simple COVID-19 speculation.
Earlier this week the company submitted a Clinical Trial Application to Health Canada for an NP-120 (Ifenprodil) COVID-19 Phase 2b/3 multinational clinical trial. NP-120 (Ifenprodil) is the company’s repurposed treatment for respiratory diseases. In addition to the submission to Health Canada, the company has taken a big step on Thursday.
Algernon announced that it received approval from the Ministry of Food and Drug Safety in South Korea, as well as ethics approval, for an investigator-led, Phase 2 COVID-19 clinical study of its re-purposed drug NP-120 (Ifenprodil). Why is this a potentially “big step”? Here’s what Christopher J. Moreau CEO of Algernon had to say:
“This first human trial of Ifenprodil in COVID-19 patients is a major step forward with our new acute lung injury clinical research program. Positive Phase 2 data would be an important milestone as we continue to investigate Ifenprodil’s therapeutic potential as a treatment for COVID-19…”
This comes about a week after the company received positive feedback from the U.S. FDA. It was regarding its plans to reformulate its repurposed drug NP-120 (Ifenprodil) into a new intravenous product.
Penny Stocks To Watch: ImmunoGen Inc.
ImmunoGen Inc. (IMGN Stock Report) has been another one of the biotech penny stocks to watch in April. At the start of the month, IMGN stock traded around $3.10. As of Thursday morning, it has jumped as high as $4.44. The company focuses on cancer treatment and specifically has an antibody-drug conjugate or ADC technology.
This utilizes an antibody that “fixes” on a target (its antigen) found on tumor cells to deliver a specific cancer-killing agent. In previous reports, the company said that it received guidance from the U.S. FDA that its SORAYA could support accelerated approval for mirvetuximab. SORAYA is a new single-arm study in platinum-resistant ovarian cancer.
Something to also note is that ImmunoGen aims to file an IND for its IMGC936 during the first half of this year. Of course, as Q2 progresses, these H1 goals start to gain a bigger focus. In the case of IMGC936, its the company’s ADAM9-targeting antibody-drug conjugate and has demonstrated promising anti-tumor activity in early data. The company also looks to present initial data from the Phase 1b FORWARD II platinum-agnostic doublet cohort evaluating mirvetuximab in combination with Avastin® (bevacizumab) in mid-2020.
While no further updates have been cited by the company regarding these, investors look to what’s next. Earlier this month ImmunoGen announced it will hold a conference call on May 1. The company will discuss its first-quarter results and provide an update on the business.
Penny Stocks To Watch: Whiting Petroleum
No coronavirus stock list would be complete this week without at least one oil and gas penny stock. Whiting Petroleum (WLL Stock Report) has been on fire since April 21. The penny stock ended up dipping to lows of $0.33 but has since rebounded more than 600% this week. While I would still be cautious of energy stock speculation, the momentum can’t be ignored at this point.
When it comes to energy stocks, new reports and updates can come at the drop of a hat. Right now I believe we are seeing this rally in oil based on speculation that the U.S. could cut production and/or implement some sort of stimulus package. While neither have been formalized thus far, the market has “taken the ball and run with it”.
The facts remain that supply is outpacing demand but optimism surrounding global economies moving to address this could be a key focus right now. Earlier this month the company received a non-compliance notice from the New York Stock Exchange. Whiting shares weren’t maintaining the required average closing price of $1. While this doesn’t seem to be the case anymore, it’s another testament to the battles that oil stocks have faced this year. Even amid this evident optimism, some industry figureheads aren’t convinced just yet.
“I’m just living a nightmare,” said Ben Sheppard, president of the Permian Basin Petroleum Association. In addition, as the New York Times noted, production companies have $86 billion in debt coming due between 2020 and 2024, and pipeline companies have an additional $123 billion they have to repay or refinance over the same period, according to Moody’s Investors Service. So keep all of these factors in mind especially if you started to look at oil and gas stocks following the latest pullback. In any case, WLL stock remains a hot penny stock to watch this week.
Penny Stocks To Watch: Enservco Corporation
Another oil and gas penny stock making waves on Thursday is Enservco Corporation (ENSV Stock Report). Shares of ENSV stock have been flip-flopping since the 17th. While the oil and gas penny stock hit highs of $0.24 at the time, it pulled back to as low as $0.11. But over the last few days, the energy stock trend has helped give ENSV stock another boost. Enservco provides well enhancement and fluid logistics and management services to exploration and production companies in the U.S.
In its most recent earnings update, Enservco came out with commendable figures considering the current situation. While earnings per share were inline with estimates, the company beat on sales. for the fourth quarter, Enservco realized $8.077 million in sales. This was up from analyst estimates of $8.01 million.
While there haven’t been many new updates to note, it’s likely ENSV has benefited from the recent trend in oil and gas for now. Will that last? That’s a good question and one that might be answered in the coming days if new updates come regarding a stimulus or output cut. What are your thoughts on this latest trend for oil and gas penny stocks? Feel free to comment below.