3 Penny Stocks To Watch
Penny stocks are back in focus this week. After one of the most wilds weeks last week, it will be interesting to see what happens next. The sheer amount of new traders looking for penny stocks to buy is a sign of the times.
There’s volatility in the stock market and even a small “taste” has triggered a mad dash to find more opportunities. Luckily, there are small-cap and micro-cap stocks breaking out every day. Even if the broader markets are a bit slow (which hasn’t been the case lately) you’ll likely find a few stocks under $5 that see big momentum swings.
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So what could be some hot topics to consider in the stock market this week? Over the weekend we’re seeing more protests and continued and growing concern over a resurgence of the coronavirus. Companies with products/services/technology might be some to watch. Something to keep in mind with volatility is how aggressive or conservative you “should be” when it comes to trading. While that might have more to do with your own risk profile, other factors are important to consider, too:
Will Penny Stocks Benefit From Market Headlines This Week?
In addition to economic headlines, there are several government reforms set to or are already being written into law. Specifically, they focus on police reform. This is another subset of the two topics I just mentioned but it might zero in on specific types of companies. Furthermore, we’ve got another week of economic data to pay attention to.
This week, Fed chair Jerome Powell testifies on the central bank’s semiannual monetary policy report before Congress. That will be a mid-week focus as his testimony will come Tuesday and Wednesday of this week. Furthermore, we’ll also see retail sales figures and a new round of jobless claims on Tuesday and Thursday, respectively.
That typically makes for an exciting time in the market, for lack of a better phrase. Needless to say, there’s no crystal ball to say what the overall market will do, but when it comes to trading, having a preliminary list isn’t a bad idea. After some big momentum late last week, are these on your list of penny stocks to start the week?
Penny Stocks To Watch: Nabriva Therapeutics plc
We discussed Nabriva Therapeutics plc (NBRV Stock Report) earlier this year. The company got caught up in the grouping of coronavirus penny stocks to watch. At the time, NBRV stock was gaining attention on its Twitter page with posts related to COVID-19. Nabriva tweeted that it’s “pursuing opportunities with the US gov & our partner in China to provide potential treatment options for #coronavirus patients w/suspected/confirmed community-acquired #BacterialPneumonia.”
At the end of May, NBRV stock was followed up on once again. Nabriva’s XENLETA (lefamulin) was in focus. The Committee for Medicinal Products for Human Use of the European Medicines Agency adopted a positive opinion recommending approval of the therapy to treat community-acquired pneumonia. Considering coronavirus has been compared to other upper respiratory diseases, could this be something to also keep in mind for additional applications? Good question, but what’s more is that Nabriva has something else that may be a target of interest this week.
In December 2019, Nabriva resubmitted an NDA for CONTEPO, its urinary tract infection drug. The FDA accepted its application and scheduled the Prescription Drug User Fee Act (“PDUFA”) date for June 19, 2020. So that date may be one to keep in mind. However, in connection with its review of the NDA for CONTEPO, the FDA said it needed to inspect the facilities of third-party manufacturers in Europe.
Obviously, as a result of the spread of COVID-19 there are travel restrictions so there could be another delay. Needless to say, if, by chance, the company was able to get a review, June 19th is something to keep in the back of your head going into this week.
Penny Stocks To Watch: Cocrystal Pharma
Cocrystal Pharma (COCP Stock Report) had one of its biggest days in a long time, on Friday. Shares jumped from an open of $1.08 to a high of $1.52 and closed at $1.43. This 40% move came with over 25 million shares traded by the closing bell. What might be more interesting is that there wasn’t any apparent catalyst for the move. No news or filings came out at the end of the week. What we do know is that Cocrystal looks to develop certain proprietary broad-spectrum antiviral compounds to treat coronavirus infections.
On June 8th, the company provided written notice to A.G.P./Alliance Global Partners of its election to terminate the Amended and Restated Equity Distribution Agreement between the Company and AGP. You can find the details of this in the 8K filed on the 8th. With a new round of coronavirus cases coming to light, is it time to refocus on COVID-19 stocks this month?
In our update on COCP stock this past Friday, we discussed the upbeat sentiment around coronavirus stocks like COCP. Furthermore, it’s important to keep in mind that Cocrystal initiated its preclinical studies of COVID-19 inhibitors during Q2 2020. It further intends to identify more COVID-19 inhibitors utilizing its proprietary platform technology over the course of the second and third quarters of this year.
“The Company plans to identify additional inhibitors using its proprietary platform technology in Q3 2020 and anticipates the selection of its lead preclinical molecule in Q4 2020.”
Penny Stocks To Watch: Digital Ally
The coronavirus has been a huge course of innovation. In fact, we’ve seen some of the “most interesting” ways companies started to think outside of the box. Not only were biotech stocks rallying on novel treatment options for COVID-19, but other companies like tech and retail also found creative ways to get involved. Heck, we even saw a spa company, XpresSpa (XSPA Stock Report) turn into a COVID-19 testing business seemingly overnight. But the “crazy” part is that what appeared to have been some “high-level discussions” may have turned into a potential opportunity for the company.
On the flip side, we also saw companies like Digital Ally (DGLY Stock Report) go way off-script. The company’s main business model centers on video recording products for law enforcement, emergency management, and the like. It’s not a disinfectant company or one with a publicly discussed model director at healthcare products. Like other companies aiming for exposure to COVID-19 momentum, Digital Ally did its best. It announced partnering with a distributor of disinfectant. A cringe headline, in my opinion, and obviously not the best reaction from the market at the time. However, the real shining moment could be this month.
With so many riots, protests, and growing concern over police actions, Digital Ally has become a centerpiece for some. Speculative trading helped DGLY stock catch some momentum early on. But a report citing Kansas City securing over $2 million for bodycams for its police caused a bigger stir. The report even showed Digital Ally’s logo on the bodycams in the report.
While shares have dipped from their $7.10 high, events over the weekend might be a reason to watch bodycam stocks. We’re talking things like new, related events in Atlanta and NY State Governor signing new reform bills. Since the initial April update, DGLY stock has climbed over 630% & is still up over 330% as of Friday’s close.