Penny Stocks To Watch Before The End Of The Month
There are now 5 trading sessions left before the end of May 2020. Penny stocks have been on fire once again. This trend continues a near 2-quarter long emphasis on micro-cap stocks under $5. As happy as we all are, let’s not get too overzealous. The name of the game is making money with penny stocks.
The only score you need to pay attention to is that fun coupon total in your bank account. Even if you have 3 small losses in a row, one big win can totally wipe out those losses with a nice gain. This has been the story of penny stocks this year. Ok, so why am I discussing this right now?
The main reason is that we’ve seen the stock market go through many changes. We saw some of the worst months in history and some of the best months in history. However, the biggest focus has been on avoiding losses and capitalizing on gains; not necessarily reaching new all-time highs as it was at the start of this year.
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Let’s face it, volatility is what keeps day traders coming back for more. One of the top asset classes with the most volatility is usually penny stocks. Where else can you see shares of a company trade millions of dollars while producing returns of 100% or more within a single day? So with this in mind, let’s take a look at a few penny stocks to watch before the end of May 2020. Will they be on your list soon?
Penny Stocks To Watch: Organovo Holdings Inc.
Organovo Holdings Inc. (ONVO Stock Report) was one of the penny stocks we watched during Q4 of 2019. At the time, ONVO stock was trading around $0.30. The company was going through the “strategic alternatives process”. Fast-forward a few months and ONVO stock broke out to highs of $0.65 in mid-December.
This big move came as the company was entering a merger process that would have seen a new name and trading symbol. How did that merger go? If the “no name change” didn’t give it away, headlines from the company do. Relatively soon after the news came out, ONVO stock went through months of pullback. The drop was mainly a response by the market against the proposed merger. Even ONVO’s founder explained that the deal was a “value-destructive combination with a weak, poorly-positioned company.”
But, what has happened since, could mark a turn around as of right now. In April the company scrapped the merger. It also saw that among other items voted upon, its stockholders have approved the proposal to effect a reverse stock split. The proposed split is 1 share for every 20 to 40 shares of existing common stock.
So far, no new updates have emerged regarding this but volume and price have picked up once again. Will ONVO stock remain on the list of penny stocks to watch in May considering the latest from the company?
Penny Stocks To Watch: Intec Pharma Ltd.
Intec Pharma Ltd. (NTEC Stock Report) was a big winner last year among penny stocks. But like many, NTEC stock fell hard after a number of missteps made between here and there. Nevertheless, its latest trend has become more bullish. After hitting new 52-week lows of $0.1324 in March, NTEC stock began slowly creeping up. This past month, things started coming to a head.
First, the company reported earnings in May for Q1 2020. The name of the game was cost reduction for the company. Intec managed to decrease its EPS loss from ($0.32) in Q1 2019 to an EPS loss of ($0.08) this past quarter. On top of that Intec’s net loss dropped roughly 64% year over year for the first quarter. That equated to a reduction of about $6.8M in losses to $3.9 million for the quarter.
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“In collaboration with our partner, LTS, we demonstrated our ability to manufacture at commercial scale. This proficiency, coupled with our recent successes in developing unique APs to meet the technical specifications set forth by Novartis and Merck, enhances our ability to engage in partnership discussions with other large biopharma companies as we actively seek to add more collaborative agreements in 2020,” Jeffrey A. Meckler, Vice Chairman and Chief Executive Officer of Intec Pharma in its earnings release.
Steven Boyd’s Armistice Capital, LLC reported a 4.99% stake in the company this month. Furthermore, this week saw a surge in trading activity as well. Will NTEC manage to continue this type of momentum into the end of the month?
Penny Stocks To Watch: On Deck Capital Inc.
If On Deck Capital Inc. (ONDK Stock Report) isn’t immediately familiar, that’s ok. Even before its monstrous selloff earlier this year, there wasn’t much volatility that attracted overly aggressive attention on ONDK stock. But given the fact it got pummeled from over $4 to under $0.55 in about a month, there’s probably a few people paying attention right now. But before we dive into anything else, let’s look at what the company itself does. Maybe this can help clear up why it might be one of the penny stocks to watch right now.
On Deck a platform for online small business lending. The company “transforms small business lending by making it efficient and convenient for small businesses to access capital”. Given the fact that there are likely still plenty of businesses thirsting for capital, companies like On Deck could be “on deck” for some momentum.
The CARES act only did so much and with it running out of money so quickly, the next best thing is small-business loans. Without any new updates from the company or new filings, this could be a speculative move for now. Needless to say, it might also mean ONDK stock could be one to watch.
Referring to the Paycheck Protection Program, people like Curt Long are explaining exactly why businesses may need to look elsewhere for money. “It was cut in half or more in every single state between rounds one and two.” The chief economist at the National Association of Federally-Insured Credit Unions said, “So that allowed a lot of credit unions and other small lenders to get those applications that had been stacking up processed.”
Penny Stocks To Watch: Navidea Biopharmaceuticals Inc.
If you’ve been a reader of ours for at least a year, Navidea Biopharmaceuticals Inc. (NAVB Stock Report) may be familiar. If it does, that’s because it was one of the penny stocks to watch since last August. At the time NAVB stock was trading around $0.50 and working on immune-targeted products. Over the weeks and months to follow, we watched as this penny stock rallied to initial highs of $1.39, pulled back to $0.64, then rallied again to 52-week highs of $1.81 by January. Overall, a strong 4-month move.
But as with most stocks this year, NAVB pulled back. While it didn’t go all the way back to the $0.50s, shares certainly came down to low $0.60s in April. But the recent trend in May is what I’m paying attention to right now. Since the start of the month, NAVB stock has been on the move again. It all began with Navidea regaining the commercialization and distribution rights in Europe for LYMPHOSEEK® injection from Norgine B.V. It followed this up with strong earnings results.
But what was announced this week could be the true spark. The company announced positive preliminary results from its second interim analysis of an ongoing NAV3-31 Phase 2B study. The analysis demonstrated that interim data further corroborate Navidea’s hypotheses. The company estimates that Tc99m tilmanocept imaging can provide “robust, quantitative imaging in healthy controls and in patients with active rheumatoid arthritis”. Furthermore, it explains that this imaging can provide an early indicator of treatment efficacy in patients with active rheumatoid arthritis.
“These data support our belief that Tc99m tilmanocept imaging has the potential to provide an early and accurate indication of treatment effectiveness to rheumatologists, allowing them to tailor effective treatment regimens for RA patients. We are looking forward to continuing our progress into a Phase 3 study.”
Jed Latkin, Chief Executive Officer, Navidea
