Is This List Of Penny Stocks Highly Rated By Analysts?
Every week we look for penny stocks that show potential. One of the easiest ways to identify a ‘trigger’ for momentum and trade opportunities are event-catalysts. In many cases, these will come in the form of news, filings, speculation, and even rumors. Certain sectors, however, are very good at alluding to future events; let me explain.
If you look at sectors like biotechnology, most companies go through phase trials. These involve a lot of moving parts. But one of the great things about biotech penny stocks is that there are timelines that companies adhere to. With timelines come important dates for results.
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While it isn’t something to set a clock to, most biotechs are relatively consistent at releasing information around a target date. It’s also important to keep these dates in mind for other reasons. One of them is the idea of “buy the rumor, sell the news”. While there may not be any “rumors” per se, there’s typically speculation leading up to data-release date(s).
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Hopes are high if companies have a history of reporting strong information. But what’s more, is that investors and traders begin to speculate on the “what ifs” of the results. What if Company X comes out with strong data or what if Company Y reveals some big finding? In many cases, the data is, well, the data. Good data can bring more upward momentum while bad data can cripple a penny stock for a span of time.
Whichever side of the speculation you’re on, the closer it gets to the time data is set to be released, the higher the likelihood that volatility will play a bigger role. Heading into the new week, we’re going to take a look at some companies that are supposed to reveal new data soon. Will they be the best penny stocks to buy? The choice is ultimately up to you.
Penny Stocks To Buy [or sell]: Aurora Cannabis – Analysts Rate It “Hold”
There’s probably going to be some wisecracks about mentioning Aurora Cannabis (ACB Stock Report) right now in the same breath as the word “analyst”. But truth be told, the company is likely going to jump onto a few penny stocks watch lists this week. If you’re new to Aurora Cannabis stock, then you should know that the company is set to effect a reverse stock split this week.
Last week the company confirmed that May 11 would be the effective day that it would become one of the ‘reverse split stocks” to watch. Aurora’s shareholders had approved a 12 to 1 consolidation of its outstanding shares.
So something to consider on May 11 is ACB stock and the trading price. For any newbies out there, ACB stock won’t magically be up hundreds of percentage points in the morning. If you’re asking “what is a reverse split in stocks?” let’s quickly go over the basic definition.
What is a reverse split in stocks?
When companies conduct a reverse split in stocks, they’re essentially rolling up their current outstanding shares. This action consolidates the number of existing shares into fewer that theoretically would be “more valuable” shares. It’s a way for the company to reduce the total number of outstanding shares in the open market. But something to also consider is the current authorized share count.
Marijuana stocks have been infamous for raising capital. Just because a company does a reverse stock split, doesn’t mean things are “fine”. In many cases, companies will need to reverse split their stock because they need to meet the minimum price requirements of the NYSE and NASDAQ exchanges. It also allows the company to have a higher, potentially “more attractive” share price to raise more money.
On top of this, the Company will report its financial results for the third quarter after the close of markets on Thursday, May 14, 2020. So if ACB stock is on your list of penny stocks this week, keep both of these items in mind and maybe have a plan in place to handle a potentially volatile week. What do analysts think about Aurora Cannabis stock? The majority of ACB analyst ratings show:
Penny Stocks To Buy [or sell]: Abeona Therapeutics Inc. – Analysts Rate It “Moderate Buy”
Abeona Therapeutics Inc. (ABEO Stock Report) could be in store for its own volatile week this week. The company will be attending a virtual event this week. It will be at the American Society of Gene & Cell Therapy 23rd Annual Meeting. Why is this important for ABEO stock? The company is set to give updated interim results from the Transpher A and Transpher B studies.
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This comes after it presented positive interim data from the Transpher A study of ABO-102 at WORLDSymposium™. It demonstrated improved neurocognitive skills 18 months to two years post-treatment in Mucopolysaccharidosis type IIIA patients younger than 30 month. It also showed sustained, dose-related biomarker improvements, and a favorable safety profile. This is a rare disease where the body is missing or lacks certain enzymes needed to break down long chains of sugar molecules, also known as Sanfilippo syndrome.
Commenting on Abeona’s Q1 performance, João Siffert, M.D., Chief Executive Officer of Abeona said, “We have made considerable progress in our clinical programs in the first quarter of 2020, and are working with our investigators to minimize the impact of the COVID-19 pandemic. It is our intention to restore full patient access to our clinical programs as soon as possible. Our gene and cell therapies in development aim at addressing urgent unmet needs, and have the potential to provide durable benefit to patients who have no approved treatments.” What do analysts think about ABEO stock? The majority of analyst ratings show:
Penny Stocks To Buy [or sell]: Caladrius Biosciences Inc. – Analysts Rate It “Strong Buy”
Caladrius Biosciences Inc. (CLBS Stock Report) is another one of the biotech penny stocks to keep track of this week. The company is also set to attend a virtual conference this week. On May 14th it will present full data results from the ESCaPE-CMD trial of Caladrius’s autologous CD34+ cell therapy, CLBS16. This will be at the Society for Cardiovascular Angiography and Interventions 2020 Scientific Sessions Virtual Conference.
The company’s CLBS16 is designed for the treatment of coronary microvascular dysfunction. But if you’re racking your brain because CLBS seems familiar for other reasons, you’re likely someone who’s been following the trend in coronavirus penny stocks. Earlier this year the company began assessing its CLBS119 therapy as a potential remedy to repair COVID-19 induced lung damage.
In fact, in late April, Caladarius announced that the U.S. FDA authorized its investigational new drug application for the study of CLBS119 specifically for the repair of COVID-19 induced lung damage. The study will target patients with severe SARS-CoV-2 infection that required ventilatory support due to respiratory failure.
While the initial focus will likely be on results from its CLBS16 ESCaPE-CMD trial, keep in mind that there’s a “COVID-angle” to this company, too. What do analysts think about CLBS stock? The majority of analyst ratings show:
Should I Listen To Analysts?
I want to be clear that the analysts’ ratings are opinions based on an analyst’s or a group of analysts’ findings. Whether or not they are correct is a totally different topic. Things like penny stock news or even a reverse split is stock can shift sentiment differently for different analysts and for traders alike. So when it comes to penny stocks with analyst ratings, you can use the information as part of your overall diligence strategy, sure.
But most would agree that using analyst ratings only may not be best for you personal approach to trading penny stocks. Keep in mind that many analysts issue ratings periodically. So while a “current rating” may say “buy” or give a price target, that information could have been published months ago.
Do your research using every piece of information you can find. Analyst ratings are helpful to gauge institutional sentiment but it’s also very important to continue looking beyond that to put a more full picture together. Why? At the end of the day, you are the person that hits the “buy” and “sell” buttons.