Will These Penny Stocks Under $1.50 Stay There Before The End Of July?
When you talk about the definition of penny stocks, it’s a pretty broad definition. According to the Securities & Exchange Committee, the definition of penny stocks are equities trading below $5 per share.
They’re known for high-risk, high-volatility, and potential for high-reward when traded correctly. Additionally, the lower in price, the higher the risk and volatility become. A $5 penny stock that drops $0.50 loses 10% of its value. But a penny stock trading at $1 and drops $0.50 just lost 50% of its value. The same holds true for breakouts as well.
It isn’t always about price for some traders. Those looking to invest in penny stock will pay closer attention to things like fundamental and long-term catalysts. In this case, the “potential” of the company matters more than the near-term “breakout potential” of the stock itself. No matter what you focus on, it’s a good idea to understand the risks involved with penny stocks.
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That can help you set up a strategy for capitalizing and reaping that reward. In many cases, however, the average trader is looking at price first. So let’s take a look at a few stocks that can be bought for under $1.50 right now. Whether or not they’re the best penny stocks to buy is up to you and your personal approach to trading.
Penny Stocks To Buy For Under $1.50: Kitov Pharmaceuticals
Kitov Pharmaceuticals (KTOV Stock Report) has been on our list of penny stocks to watch for a while now. Earlier in May, we talked about Kitov as it had just announced the closing of a $10 million offering. At the time KTOV stock was trading around $0.40. We started digging into the finer details at the beginning of June. There were some rumblings here and there in May as volume was picking up. But the end of Q2 saw some of the biggest moves for KTOV stock. At the time, Kitov was trending after announcing that the U.S. FDA accepted its Investigational New Drug application to conduct a Phase 1/2 clinical trial. This was for its NT219, an agent addressing treatment resistance in advanced cancer.
Earlier this month, KTOV stock started trending again after a few more key updates. First, Kitov announced receipt of a notification from the European Patent Office to grant a patent for application. Titled “Humanized antibodies against CEACAM1,” the patent covers protein and DNA sequences pertaining to humanized antibodies capable of specific binding to human CEACAM1 molecules.
Then the company announced that it began Phase 1/2 clinical trials of its NT219. “In preclinical studies, NT219 demonstrated impressive tumor growth inhibition, both as monotherapy as well as in combination with multiple anti-cancer drugs, and we are excited to further evaluate its potential in the clinic,” said Chief Medical Officer Bertrand Liang.
Kitov also has a clinical collaboration agreement with Bristol Myers Squibb Company for the planned phase 1/2 clinical trials to evaluate the combination of CM-24 with the PD-1 inhibitor nivolumab (Opdivo®). These are expected to begin in the second half of 2020. Something to keep in mind if KTOV is on your list of penny stocks right now.
Penny Stocks To Buy For Under $1.50: Tellurian Inc.
Tellurian Inc. (TELL Stock Report) once traded much higher than where it’s at today. In fact, back in January, TELL stock was well-above $7 a share. But like many other stocks during that time, Tellurian plummeted to as low as $0.67. Since then, TELL stock has attempted to recover. After breaking about $1, it’s been in a generally sideways trend ever since.
The company is an independent oil and gas exploration and production company focused on building a natural gas business. This week, TELL stock is on the watch list after a financial report highlighted the company. Tellurian jumped higher after Reuters reported Petronet LNG, India’s top gas importer, renewed its initial deal to consider investing $2.5B in the Driftwood liquefied natural gas project in Louisiana. Petronet and Tellurian now have until the end of December to finalize the deal, according to the report.
The two inked a non-binding deal last September. Petronet agreed to negotiate the annual purchase of as much as 5 million metric tons of liquefied natural gas over the lifespan of the project. However, the deadline for completion was extended to support Petronet’s review process. Though the deal lapsed on May 31 it was renewed last week ahead of a virtual meeting between Indian oil minister Dharmendra Pradhan and U.S. Energy Secretary Dan Brouillette.
“The long-term LNG fundamentals have not changed, just slowed by COVID-19. India continues to need a large amount of LNG and the U.S. continues to produce the lowest cost LNG, so it stands to reason Tellurian would continue to work with all LNG buyers in India,” Tellurian said. Will this even continue sparking renewed momentum for TELL stock this month?
Penny Stocks To Buy For under $1.50: Check-Cap Ltd.
We talked about Check-Cap Ltd. (CHEK Stock Report) over the weekend after CHEK stock saw a strong finish last week. It’s also been one of the longer-term penny stocks to watch this year. April was when we first started taking a closer look and at the time CHEK stock traded around $0.50. It was also around the time that shares hit 52-week lows just days prior.
While there’s been no major news events to speak of, CHEK stock is gaining in popularity. Check-Cap’s main focus is on colorectal cancer through the use of its screening test. According to the company, C-Scan®, is the first and only patient-friendly preparation-free screening test to detect polyps before they transform into colorectal cancer.
One of the concerns last month was related to NASDAQ. The company announced receipt of a Nasdaq minimum bid price notification. Essentially, Nasdaq requires listed companies to maintain a base bid price of $1. Obviously, CHEK stock hasn’t met that level for months. Whether or not this is a sympathy move in tandem with other cancer & immune treatment stocks is yet to be seen. Needless to say, the average daily volume has picked up significantly over the last few days and CHEK stock is up 31% since Friday.