Penny Stocks Have Seen Huge Moves Lately; The Biotech Sector Has Been A Focus
Penny stocks are always a popular topic among day traders. Some of the hottest stocks right now are found in the biotech sector; but why? While this isn’t the only industry you’ll find top penny stocks in, it has consistently provided a mix of speculation and big headlines. Like all cheap stocks, biotech penny stocks represent shares of companies usually in the very early, pre-clinical, and clinical stages of development.
When you talk about volatility, these are some of the most volatile for exactly the reason I just listed. Rumors can fuel that bullish speculation many traders have come to know and love. It has also been the source of confusion that can trigger a big fall-out in certain names. Biotech penny stocks have always been a big focus for investors but this year has been one of the most active years for the sector. One of the biggest reasons has to do with COVID-19.
If you’ve read our articles throughout the year, you’re probably familiar with a slew of coronavirus penny stocks to watch. Many of these are trading much higher than they were just 6 months ago. Not much has changed besides some of these companies simply choosing to focus more on COVID-19 than their main pipeline. With the government and regulators supporting innovation, why wouldn’t they?
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That’s brought about a lot of speculation, a lot of hype, and a lot of opportunities. With this, however, you also have companies hitting big milestones for other health indications too. So this could be one of the best times to look at biotech penny stocks, in general. The important thing is deciding which will become the best penny stocks to buy right now.
Penny Stocks To Watch: Revive Therapeutics
Revive Therapeutics (RVVTF Stock Report)(RVV) has become one of the coronavirus penny stocks to watch this year. Since late March, the biotech penny stock has climbed from around $0.04 to highs of $0.274. Of course, this 580%+ move didn’t come without the company making progress.
Revive is in a unique position because its pipeline includes options addressing multiple indications. Not only is it working on a treatment that could have an application for coronavirus, but it has also focused on emerging niches of health care.
Specifically, there’s growing interest in the use of psychedelics in health care right now. The use of things like ketamine and psilocybin are growing in popularity. Earlier this year, Revive acquired Psilocin Pharma Corp. Through this acquisition, Revive aims to further develop psilocybin-based therapeutics in various diseases and disorders. The company even expanded on its research partnership agreement with the University of Wisconsin-Madison. It will evaluate formulations and drug delivery technology focused on psilocybin-based pharmaceuticals.
Revive said it also plans to finalize a sponsorship program around a Phase 1 clinical study. It will examine psilocybin to treat certain addiction use disorders. While shares have pulled back from initial May highs, its stock chart has shown Revive stock holding a level using its 50 Day Moving Average as a lower level of support. Will that remain the case as interest in psychedelic stocks grows this year?
Penny Stocks To Watch: Biocept Inc.
Biocept Inc. (BIOC Stock Report) has been one of the top penny stocks to watch this quarter. Despite its volatility, the general trend over the last three months has been bullish. On “opening day” of Q2, BIOC stock began trading at $0.272 and has since climbed as high as $0.978 on June 18. Similar to RVVTF, this 259% move didn’t come without its own series of catalysts. April saw the company obtain a grant of a patent in Australia. This provided IP protection for Biocepts “Primer-Switch” technology.
On top of this, as a diagnostic company, many had expected some application for COVID-19. Sure enough in May the company announced it would begin COVID testing. Staying on brand, also the company presented data showing its Target Selector platform can identify potentially actionable mutations in spinal fluid of cancer patients. The presence of such cells could indicate brain metastases, for example. That further suggests cancer may have started spreading to someone’s nervous system.
Of course, these weren’t the only big developments in the second quarter. This week, as we reported yesterday, the company was granted a Canadian patent titled “Methods and Reagents for Signal Amplification”. While this news didn’t hit major newsfeeds, traders managed to find out and BIOC stock continued its second-quarter trend.
What’s more is that from a technical perspective, the volume has definitely picked up and BIOC crossed above its 200 Day moving average for the first time in years in June. This could be significant to technical traders as the 200 DMA has historically been a long-term level of resistance.
Penny Stocks To Watch: Geron Corp.
Another one of the biotech penny stocks discussed earlier this year and this week was Geron Corp. (GERN Stock Report). The company just hosted a webcast event discussing its recent presentation from the EHA Annual Congress. Geron showed that its IMerge Phase 2 clinical trial resulted in “meaningful and durable transfusion independence”. What does that mean? Essentially it showed the potential exists for disease-modifying activity of its imetelstat treatment.
Its IMbark Phase 2 trial also demonstrated potential for improvement in overall survival. This all boiled down to the support of moving ahead with an ongoing and planned Phase 3 clinical trial of imetelstat. Aleksandra Rizo , M.D., Ph.D., Geron’s Chief Medical Officer. “These analyses also provide further support for our planned Phase 3 clinical trial in refractory MF, which is expected to open for enrollment in the first quarter of 2021.”
Thanks to key developments like this, GERN stock was able to continue its uptrend this week. It further extended gains from June as the penny stock reached highs of $2.10 in early trading. Meanwhile, it’s 2020 high is still about $0.30 away from this level. Regardless, GERN stock has climbed over 80% quarter-to-date and is still up over 50% since the start of 2020. If you’re a chartist, you might also notice that there’s a golden cross forming on the chart.
This is when the 50 Day Moving Average crosses above the 200 Day Moving Average. It’s typically thought of as a bullish sign where longer-term traders look for above average volume to come in and confirm the bullish trend. Will this be the case for GERN stock?
Penny Stocks To Watch: Aethlon Medical Inc
Shares of Aethlon Medical Inc. (AEMD Stock Report) gapped up big on Thursday. If you remember AEMD stock from earlier this year, it was a force to be reckoned with. In January, the penny stock ran from around $1.30 to highs of $4.34 on COVID-19 momentum. But then it came crashing down over the course of February. Since then shares of AEMD stock really haven’t been much to watch. That is, until this week.
Aethlon announced that the U.S. FDA approved a supplement to the company’s existing Investigational Device Exemption. This is for Aethlon’s Hemopurifier which is used in viral diseases and previously used for Ebola. This time around, Hemopurifier is being allowed the IDE in patients with SARS-CoV-2/COVID-19 in a new feasibility study. It’s also important to note that Hemopurifier is an FDA designated “Breakthrough Device” for the treatment of “life-threatening viruses that are not addressed with approved therapies.”
After the news broke, AEMD stock gapped up to highs of $4.33. During the course of the June 18th session, however, shares declined back to under $2.75. Considering more than 100 million shares traded during the session, it will be interesting to see what happens next in the stock market. I say this because AEMD has been relatively thinly traded since February. How much selling pressure from previous holders will be a factor? That’s the question many are likely asking especially in light of its slim share structure.