Penny Stocks To Watch In The Middle Of The Month
Are you looking for some penny stocks to buy? If you said yes, you’re not alone. This year we’ve seen so much attention on trading penny stocks and for good reason. If you look back at years-past, these small-cap stocks have gotten attention, sure. But it almost seems as if the coronavirus pandemic has pushed things to a fever pitch.
Maybe it’s the fact that people are at home looking for ways of making extra money. Trading obviously is an attraction since you don’t need anything more than a computer screen and some cash to get started. So it makes more sense that penny stocks have received more attention in 2020. But there’s more to it than that.
When you traditionally think about the idea of “penny stocks,” most will think of a start-up company looking to raise expensive money and likely fail. “But the ride was fun for investors”. In many cases, this can be true and day traders will focus on 3, 4, or 5 letters and a press release, trade penny stocks then move on. The mechanics of the market, however, worth in favor of companies too.
One of the main reasons of going public in the first place is to gain access to capital. Trade small pieces of your business in exchange for capital; this is how shares are born. For public companies, the higher the share price, the higher the liquidity, the better the chances are of raising money at more of a premium on the value of the stock than a discount. Why mention this?
Are Penny Stocks Worth It?
The coronavirus has essentially opened up a huge opportunity for companies to take advantage of all of this hype and use it to build real businesses. Not that they were fake before but things have obviously accelerated from January to May and we’ve watched it all unfold in real-time. We talked about NVAX stock yesterday.
That was a penny stock earlier this year. Look at Capricor Therapeutics (CAPR Stock Report). It was another penny stock we discussed earlier this year. Now it trades over $9 during Wednesday’s premarket session.
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The point is this, more people are becoming familiar with the top penny stocks in the game seeing that more than just a handful are reaching a higher potential. Last year, maybe a few achieved this. In 2020, there’s a growing list of penny stocks that are hitting it big and I think investors are beginning to notice that just because stocks are under $5, they aren’t worth taking a serious look at. This being said, are any of these names on your list of penny stocks this month?
Penny stocks To Buy [or avoid]: Aerpio Pharmaceuticals Inc.
Aerpio Pharmaceuticals (ARPO Stock Report) has been a relatively quiet penny stock. While the price of ARPO stock climbed significantly from mid-March to late-April, it did so on much lighter volume than I’m sure many of you would be used to seeing. After pulling back to its 50-day and 200-day moving averages, ARPO stock saw it’s second-highest share volume day on Tuesday. Assumingly it could have been speculation leading up to earnings. But aftermarket news may suggest that there were other things to take note of.
First, Aerpio announced a restructuring of its licensing deal with a wholly-owned subsidiary of Gossamer Bio Inc., GB004, Inc. (GOSS Stock Report). This was for its HIF-1 alpha stabilizer, GB004. The terms of the amended agreement include a $15 million immediate payment to Aerpio. There’s also a total of $90 million in milestone payments related to regulatory approvals and commercial sales. In addition, Aerpio is eligible to receive tiered royalties on sales of licensed products. Percentages range from the low to mid-single digits. The deal continues the collaboration between Gossamer Bio’s strong gastrointestinal development team and Aerpio’s management team.
In its earnings release, the company reported that it is on track for several milestones. This includes a Phase 2 trial of its razuprotafib in Q3. “We continue to be excited about our glaucoma program,” said Joseph Gardner , President and Founder. “The statistically significant reductions in intraocular pressure together with the favorable tolerability profile observed in the Phase 1b study in combination with standard of care prostaglandin therapy were very encouraging. We look forward to continuing to evaluate razuprotafib in the planned 28-day Phase 2 open angle glaucoma study which we currently expect to initiate in the third quarter.”
Penny Stocks To Buy [or avoid]: Vislink Technologies
Another one of the stocks under $1, Vislink Technologies (VISL Stock Report) has started what looks like a small recovery. After reaching highs of $0.54 at the end of April, VISL stock retreated back to $0.25. If you remember VISL stock from back in March, that’s right around the time it started to trend. At the time, it appointed a new CFO. It also closed a contract with a Government Agency in the Middle East & North Africa.
Over the last few days, however, VISL stock has appeared to firm up some kind of potential support level. If you’re wondering what was behind the activity on Tuesday, you won’t find it on the newsfeed. Something we preach is do more than read headlines. As in many times previously, a lot can be revealed in things like filings and even Twitter feeds. In the case of VISL stock, Twitter was the place to look.
In a company tweet, Vislink said “IT’S OFFICIAL! The Vislink AIRPRO 75KA IS EUTELSAT Broadband Services Approved. The AirPro 75Ka is a small, low-cost, single-button deployment IP satellite data terminal.”
In addition, there’s a webinar for people to learn more. This latest tweet follows a late April update from the company. Vislink announced that it was chosen chosen by Italian Integrator NVP SpA to provide High Definition ‘Live’ On-Board Video Systems for the prestigious European Ferrari Challenge Race Series. Can this progress continue to propel the VISL stock rebound in May?
Penny Stocks To Buy [or ignore]: Cyclacel Pharmaceuticals
Cyclacel Pharmaceuticals (CYCC Stock Report) has been hard to watch. As a “pre reverse” penny stock, CYCC stock was something that day traders continued to go back to as it offered volatile swings. But after the stock effected a 1 for 20 reverse split, things got interesting. The company announced a collaboration deal with the University of Edinburgh to study its CDK inhibitors as a possible COVID treatment.
That sent the stock flying. But it was more of a vacuum than a circus cannon. The day of the announcement saw shares jump to nearly $20 and by the end of the day CYCC stock settles below $9. What’s more is that the day immediately after, Cyclacel announced a $20 million offering. The timeline: CYCC effects a reverse on April 14th, April 20th does a deal that excited the market, April 21 it announced an offering at $5! A tough pill to swallow and likely a reason why shares are back trading in penny stock range. So is this one of the penny stocks to buy or avoid after the recent news?
Cyclacel reported earnings after the close on Tuesday. It beat analysts estimates on EPS coming in with a loss of $2.77 compared to estimates of $2.90 loss. Furthermore, other net income totaled $0.9 million compared to $0.1 million in the same quarter in 2019. This was thanks to an asset purchase agreement with Thermo Fisher. Seemingly good news but will it be enough to kick CYCC stock back into the good-graces of traders?