These 3 Penny Stocks Are Trading Under $4 Right Now; Are They On Your List?
The standard definition of penny stocks are shares of public companies trading below $5 a share. With this in mind, there are plenty of companies to choose from. There are also plenty of trends, indicators, and catalysts to follow. At the end of the day, it’s your choice whether or not you should buy certain penny stocks.
So why not take your time, do some research, and find top penny stocks to buy with catalysts that momentum can build from. Just because a stock is trading under $5 doesn’t mean it’s worth your time.
For example, a $3 biotech penny stock may do better than a $0.30 communications penny stock. At the same time, a $0.25 tech penny stock might see a bigger move than a $4 health care penny stock. It can be very situational as far as timing of when to trade penny stocks. So it’s important to not simply focus on price alone.
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With this in mind, here are some companies trading below $4 right now. Just because they might be “cheap” are they the best penny stocks to buy right now?
Penny Stocks To Buy Under $4: BELLUS Health Inc. (NASDAQ: BLU)
BELLUS Health Inc. (BLU Stock Report) is a newcomer to our lists of penny stocks. The main reason behind that is it was newly minted as one of the stocks under $5 this month. Prior to that, BLU stock was actually trading well above $10. Needless to say, now we are looking at it following a massive pullback. Can the penny stock recover? Well, that’s what we’re here to follow along with.
On July 6, Bellus reported that it did not meet its primary endpoint in its Phase 2 RELIEF trial of BLU-5937. The drug was meant to treat chronic cough. In the trial, the drug was well tolerated, with no serious adverse events reported. However, it didn’t meet its primary endpoint of reducing placebo-adjusted cough frequency. It’s important especially when we’re looking at biotech companies, to see how management responds after bad results. Is it a total loss and the company abandons the treatment altogether? Or is there hope?
Roberto Bellini, President and Chief Executive Officer of BELLUS Health said, “We believe the Phase 2 data support moving BLU-5937 forward into an adaptive Phase 2b trial enriched for higher cough count patients. We expect to begin this trial in the fourth quarter of 2020.” Since then, BLU stock slid a little further but over the last few days has come back about 24% from its 2020 low.
Penny Stocks To Buy Under $4: Heat Biologics (NASDAQ: HTBX)
By now, Heat Biologics (HTBX Stock Report) is likely a company you’ve become familiar with. That is if you’ve been a reader of PennyStocks.com since March. HTBX stock was on the radar as March was just beginning. Shares exploded to highs of $1.25 after entering a research collaboration with UM leveraging Heat’s gp96 platform to address SARS-CoV-2 coronavirus. Fast-forward to June and Heat shares continue to climb higher.
There hasn’t been any new updates recently. But obviously the market has taken a keen liking to HTBX stock. Something we highlighted in a previous article was a statement from its CEO in an old PR from June. Jeff Wolf, CEO of Heat, said, “We remain on track to complete design and development of our COVID-19 vaccine in July.” He also said the company expects its gp96/nCoV-2 expressing cell line “will be available for clinical-grade manufacturing with our partner, Waisman Biomanufacturing, in early August.”
Is this what’s driving momentum right now? That’s yet to be seen but this has certainly been an incredible run since March and, even since the start of July. The penny stock is up big this month moving over 220% since July 1st. Due to the parabolic nature of this recent July surge, however, it’s important to keep your strategy in mind. Nothing goes up in a straight line forever. Could HTBX go higher still or is profit taking in the cards, near term?
Penny Stocks To Buy Under $4: Polar Power Inc. (NASDAQ: POLA)
Another one of the penny stocks we’ve discussed this month was Polar Power Inc. (POLA Stock Report). We actually started following on the last day of June after Polar Power reported quarterly results. Specifically, Polar Power reported the company increased first-quarter revenues by 226% as compared to the fourth quarter of 2019. It also reduced its workforce to levels that match corresponding labor hour requirements. During the same period, Polar Power also reduced inventory.
Last weekend we continued discussing POLA stock highlighting the fact that trading momentum had been picking up. As we came to see, that momentum continued this week. On Friday, alone, POLA stock jumped over 15% with late afternoon momentum helping to carry shares back above $3.50. Something to consider here is that this is a low float penny stocks, which explains why it ran up so big, so quickly at the end of June. After another big move on July 17th, is another move coming or is this just a short term move?
A filing came out earlier this month showing that the company raised $2.8 million through a private placement. While companies having cash is important, so is the price per share of the raise. That’s important to investors looking out for potential dilution risk. On July 7 the company closed on the financing, which was done at $2.25 per share. There’s also a “lock-up” period that lasts from July 2, 2020, until “30 days after the earliest date” of certain events listed on the July 8th 8K. You can view that here. Based on this, will POLA be on your list of penny stocks to buy or ignore this month?