Are These On Your List Of Penny Stocks To Watch?
What can be considered a catalyst? For most penny stocks, any big company event tends to bring a reaction from the market. Whether that reaction is positive or negative is secondary. The main thing you should understand as a trader is that penny stocks with news tend to “attract a crowd”.
We’ve seen it time and time again this year. A biotechnology company comes out with positive phase data, a tech company reports a failed product, or maybe an entertainment company signs a deal with a blockbuster producer. All of these events acted as a catalyst.
But I think some traders get the term “catalyst” confused. Just because something is considered as such doesn’t always mean a penny stock will breakout. Consider the second example I gave: news of a failed product. Now, a few things came come from this. I’ll also make a few assumptions in this example. First, I assume this is initially bad news and the market responds negatively.
But what comes next? Well, I would look to see what, exactly, the company responds with. Are they completely folding on the product or did they achieve a few highlights that they can expand on? Here’s my point: it’s not just the headline you should look at but the context within the press release that’s important.
The fact of the matter is that the saying is true. The devil is in the details, and that even goes for initially positive headlines too. So if you’re on the hunt for penny stocks to buy and are considering news as part of your criteria, read everything and not just the headline. With this in mind, are these penny stocks with news a buy or sell before next week?
Penny Stocks To Watch: Cassava Sciences
The last time we talked about this company was in May. At the time, Cassava Sciences (SAVA Stock Report) had plummeted to a new, Q2 low of $1.63. This came after the company announced its Alzheimer’s drug failed to reach one of the endpoints of the study. But like I said above, it’s all about what management says as far as the outlook is concerned.
“Today’s top-line results disappoint and are not consistent with previous clinical experience for reasons that are unclear at the moment,” said Remi Barbier, President & CEO. “We plan to thoroughly analyze these top-line data, and to re-analyze CSF biomarkers from study participants, to better understand the outcome of this study.”
Let’s fast-forward to the 3rd quarter. SAVA stock has rallied from those $1.63 lows to highs of $3.06 on July 9. On top of that, post market news may be something to note as of Thursday’s closing bell.
Is SAVA One Of The Penny Stocks To Buy or Avoid In July?
The company announced that its lead neuroscientist, Lindsay H. Burns, PhD, will give a keynote presentation at the Biomarkers for Alzheimer’s Disease Summit. This is a virtual conference, on July 15, 2020.
Cassava said Dr. Burns’ talk will focus on SavaDx. That’s the company’s investigational diagnostic to detect Alzheimer’s disease with a simple blood test. Will this act as a positive or negative catalyst later this month?
Penny Stocks To Watch: Bionano Genomics
Shares of Bionano Genomics Inc. (BNGO Stock Report) has recently come under the spotlight following a few bullish sessions in the stock market. But before we get into that, let’s catch you up to speed on BNGO stock. On March 31 the company released notable news that has caught big attention.
Bionano announced the launch of the largest study to date that targets identifying certain substances related to resistance or sensitivity to COVID-19. But a few days later, Bionano announced a financing deal that saw share getting issued at $0.33. So, naturally, the market opened where the company valued its shares; around the offering price. After dropping to lows of $0.25, BNGO stock has been on the rise once again.
Since that time, shares have jumped as much as 159.2%. Heading toward next week, Bionano has come out with two big updates this week. First, two top cytogeneticists from leading institutions in The Netherlands and France presented their research data. This was part of a multicentric, international effort to compare data generated with Bionano’s Saphyr system against cytogenetic methods.
Is BNGO One Of The Penny Stocks To Buy or Avoid In July?
In a presentation, Dr. Laila El Khattabi from the Cochin Hospital in France discussed how Saphyr improved structural variant detection for constitutional chromosomal aberrations in her research.
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After the closing bell on Thursday, Bionano followed up with more. The company announced that it has launched the new Bionano PrepTM SP Tissue and Tumor Kit. This is a DNA isolation kit developed expressly for analysis of tumors and tissue with Bionano’s Saphyr system.
Bionano said its kit has been designed to simplify isolation of Ultra High Molecular Weight DNA from a variety of solid tumors and tissue types. Given this latest development, will BNGO stock be on the list of penny stocks to buy or ignore this month? Let us know in the comments section.
Penny Stocks To Watch: Ziopharm Oncology Inc.
Ziopharm Oncology Inc. (ZIOP Stock Report) is another one of the penny stocks news movers this month. ZIOP stock reached a post-market high of $3.70. This not only comes after a quarter-long bull run but also after bit news this week.
First, on Wednesday, the company announced that the first patient with diffuse intrinsic pontine glioma has been dosed in its phase 1/2 study of Ad-RTS-hIL-12 with veledimex (Controlled IL-12). This is for the treatment of pediatric brain tumors.
Is ZIOP One Of The Penny Stocks To Buy or Avoid In July?
Following close behind this headline was another update after the close on July 9th. Ziopharma announced phase 1 clinical trials began. These are to evaluate CD19-specific CAR-T, using its Rapid Personalized Manufacturing technology, as an investigational treatment for patients with relapsed CD19+ leukemias and lymphomas. The trial is now open for enrollment at The University of Texas MD Anderson Cancer Center.
All-in-all it seems like updates have thrown fuel on the fire. Shares of ZIOP stock remain in rally mode. Even after pulling back to a low of $3.06, ZIOP stock bounced back. After releasing the update, ZIOP stock reached after-hours highs of $3.70. Will this trend continue heading into the weekend?