Does Your List Of Penny Stocks Include These Names Right Now?
Well, here we are again. At the end of the week and still looking for penny stocks to buy. If this week has taught us one thing, it’s that patience is key to trading penny stocks. I say this because there have been countless times where we see a big premarket breakout happening, everyone gets excited and then they buy right at the open. These are considered “gap up stocks“.
But wait…that penny stock went down. Now, there’s a good chance that a bounce comes after, but not before the early sell-off sees a 30% drop in the stock. If you’re scratching your head at this wondering why I bring this up, keep reading.
- 5 Key Lessons Guaranteed to Make You a More Profitable Trader
- Top Penny Stocks On Robinhood & WeBull To Watch This Week
Penny stocks are highlight volatile, thinly traded, small- and micro-cap companies. But it’s important to remember, emotion has no place in your trading strategy. If there’s a penny stock that closed at $0.50 and then pre-market has it trading above $2, that could be a time to sit back and watch at the open; versus jumping right in like the example above.
Can You Make Money With Penny Stocks?
People have one goal in mind and that’s to make money with penny stocks. So logically speaking, those who had $0.50 shares and are up 300% are likely going to take profit in that scenario. Profit-taking results in a pullback that we see in so many “gap-up” scenarios. This is when a stock opens noticeably higher than where it previously closed. What’s the point? Be patient with trading.
There are penny stocks this week that we saw drop aggressively lower, but have since made brand new 2020 highs. Those who “jumped right in” most likely missed the real opportunity. So, make sure that when you’re looking for penny stocks to buy, you’re also monitoring the key market trends. With this in mind, let’s take a look at a few names that have started trending late this week. Will they be the best penny stocks to buy now?
Top Penny Stocks To Watch: Onconova Therapeutics
Shares of Onconova Therapeutics (ONTX Stock Report) took off running on May 15th. Last time we discussed ONTX stock was back in late-March. At the time, the penny stock traded around $0.33 and the company was gaining attention ahead of its last earnings report. Over the last few months, ONTX stock hasn’t seen much volatility in the market. Sideways trading kept the penny stock below $0.37. But this month things started to pick up a little bit more. It began when Onconova announced the date for its next earnings report, ironically.
This week those results came out and so far investors appear to be bullish on the news. As a clinical-stage biotechnology penny stock, there’s not much by way of revenue. This is normal for early-stage companies. So it’s important to pay attention to guidance and milestones from the quarter. Aside from that, also pay attention to near-term potential catalysts.
“With enrollment completed in March, Onconova’s pivotal Phase 3 INSPIRE trial is advancing to the next catalyst. We are fortunate to have achieved full enrollment of INSPIRE prior to the pandemic-driven disruptions to research studies at hospitals and cancer centers across the globe,” said Steven M. Fruchtmand, M.D., President and Chief Executive Officer.
“Based on survival trends in the INSPIRE trial, we continue to anticipate reporting topline survival data in the second half of 2020. We expect to present the results of this trial at a major medical meeting later this year.”
Top Penny Stocks To Watch: Seneca Biopharma
Shares of Seneca Biopharma (SNCA Stock Report) gapped up big on Friday morning. While you should keep this in mind if it’s on your list of penny stocks, also understand why it’s up like this. Seneca Biopharma reported its Q1 results for 2020 on Friday. Consistent with early-stage biotech penny stocks, SNCA also kept a focus on milestones and outlined the road ahead for the year.
Referring to the new team appointments, Dr. Kenneth Carter , Seneca’s Executive Chairman explained, “With Matt and Dane joining the management team we are focused on executing on the strategy of acquiring new therapeutic products for development while seeking partners for our promising neural stem cell therapeutic NSI-566.”
Furthermore, the company affirmed guidance that the data readout from the Company’s non-GCP Phase II trial is expected during the second half of 2020. The trials is evaluating its NSI-566 for the treatment of chronic ischemic stroke. As a result of feedback received from the FDA, Seneca believes that its existing Phase 1 and 2 trial results support moving
into a Phase 3 clinical study for ALS. Will SNCA stock continue trading higher? Will it pull back and bounce? Or will it sink back to its previous levels? Leave a comment below.
Top Penny Stocks To Watch: AgEagle Aerial Systems
AgEagle Aerial Systems (UAVS Stock Report) was one of the penny stocks we’ve discussed in fine detail over the last few months. When you talk about volatile swings, UAVS stock is likely at the top of the list. The penny stock has rallied to highs of over $5, back to $1, back up to over $1.70, and now might have found a home around $1.20. That, of course, was before its latest update. What’s important to note is that we might have been ahead of the curve on this one. That’s especially true if you look at filings over news headlines.
On May 15, the company formally announced its Q1 2020 earnings results in a press release. But that’s old news. If you had read the UAVS filings on Thursday, you would have already seen this publicly available information. While the market was much quieter when the formal disclosure came out, headlines appear to have helped push the overall awareness of these important details.
So for those who are just reading headlines, here’s what you’re looking at with UAVS stock. Revenue climbed 751% to approximately $391,000 from $46,000. Gross profit margin on sales also increased to 55% from 26% and net loss improved to $403k compared to $565k previous.
Nicole Fernandez-McGovern, Interim Chief Executive Officer and Chief Financial Officer, stated, “Early last year, AgEagle began executing a long-term growth strategy to leverage our proprietary technology platform and commercial drone expertise to penetrate new high-growth industries outside of traditional farming, including the emerging hemp cultivation and drone-enabled package delivery markets. As reflected in our comparable year-over-year first quarter performance, it is becoming apparent that our strategy is gaining traction.”
Top Penny Stocks to Watch: Sorrento Therapeutics
Sometimes you can’t plan ahead for potential catalysts. What I mean by this is that you can’t see a news release come out or a filing come out and then prepare for the market’s reaction. Sometimes this happens in real-time. For Sorrento Therapeutics (SRNE Stock Report) that’s what it encountered on Friday. In a breaking exclusive on Fox.
The California-based biopharmaceutical company claimed to have discovered an antibody that could shield the human body from the coronavirus. It also said it could potentially flush it out of a person’s system within four days according to Fox News. “We want to emphasize there is a cure. There is a solution that works 100 percent,” Dr. Henry Ji, founder and CEO of Sorrento Therapeutics, told Fox News. “If we have the neutralizing antibody in your body, you don’t need the social distancing. You can open up a society without fear.”
According to the report, “Later Friday, Sorrento Therapeutics will announce their discovery of the STI-1499 antibody, which the San Diego company said can provide ‘100% inhibition’ of COVID-19, adding that a treatment could be available months before a vaccine hits the market.” We have been discussing Sorrento ever since “coronavirus penny stocks” became a buzzword. In late March and through April, SRNE stock was on the watch list for many. Could this latest development deliver some validation or is this premature hype?