Are Biotech Penny Stocks Part Of Your Trading Strategy This Month?
There’s no doubt that biotech penny stocks are some of the most popular right now. Coronavirus isn’t the only reason for this either. Sure, we’ve seen a lot of companies evolve their treatment pipeline to include some type of potential COVID-19 vaccine. But the market for other immunotherapies doesn’t seem like it’s going to slow down anytime soon. Novel cancer treatments, new drugs to treat diseases without a proven therapy, and even unique medical devices are things attracting investors to biotech penny stocks.
Something to keep in mind, however, is that biotech stocks, in general, can be higher risk. This is something that you could clearly see with stocks like Moderna (MRNA Stock Report) and AstraZeneca (AZN Stock Report) recently. Both reported what appeared to be favorable results from early-stage trials of a proposed COVID treatment. But look at a chart of either biotech stock and you’ll see a big sell-off around the dates of that “big news”.
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The main reason in my opinion is that hype became a big factor leading up to the “news day”. When hype becomes a factor, that can distract from the overall fundamentals of what investors are actually looking at. This is why we constantly talk about having a plan, taking profit when it’s there, and managing your risk. When you throw penny stocks and biotech stocks together, that risk and volatility are magnified. So keep that in mind if this is where you’re placing your focus in July.
Biotech Penny Stocks To Watch: Bionano Genomics Inc.
Bionano Genomics Inc. (BNGO Stock Report) has been on the general list of penny stocks to watch for a few months now. Since the end of April, BNGO stock has seen its daily average volume picking up. It initially stemmed from the company’s launch of its largest study at the time. It targeted identifying certain substances related to resistance or sensitivity to COVID-19.
This week, Bionano announced that a European consortium published the first paper on Bionano’s Saphyr genome imaging instrument. This was to investigate the performance of Bionano’s data in comparison to cytogenetic standard of care in constitutional or inherited genetic disorders. The consortium is led by Laila El Khattabi from the Cochin Hospital in Paris, France and Alexander Hoischen from the Radboud University Medical Center in the Netherlands.
Bionano’s Saphyr system is a platform for ultra-sensitive and ultra-specific structural variation detection. It allows researchers and clinicians to speed up the search for new diagnostics and therapeutic targets. Alex Hoischen, PhD, Associate Professor, Radboud University said in closing, “For the first time, by combining NGS and Saphyr we get close to an almost perfect genome analysis.”
BNGO stock is back on the move again on July 21. Shares have continued their uptrend. Something to be aware of is that BNGO has now begun testing its 200-Day moving average. The last time it did so, the 200DMA acted as a strong level of resistance and the stock ended up sliding back. Will that be the case again or can BNGO finally break above this level?
Biotech Penny Stocks To Watch: Midatech Pharma PLC
Midatech Pharma PLC (MTP Stock Report) has been a relatively quiet penny stock for most of the month. That is, until the last few days. MTP stock normally trades around 100,000 to 150,000 shares a day. However, starting last Friday, its market has seen between 650,000 and 1.4 million. That surge grew on Tuesday as well. Despite not having much news in July, it hasn’t stop institutional attention from focusing on the stock.
BlackRock, Inc., for instance, reported a passive stake in MTP stock a few weeks ago. But this week, there’s more than just institutions looking at Midatech and for good reason. On July 21 the company announced a research collaboration for its Q-Sphera platform with a European affiliate of a global pharmaceutical company. Midatech will deploy its in-house expertise and proprietary drug delivery platforms towards assets nominated by the pharmaceutical company.
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The affiliate as well as the “global pharmaceutical company” weren’t mentioned by name. Right now, we just know according to statements in the PR that it’s a “highly reputable” company. It will be interesting to see if these details emerge further. For now, MTP stock is pushing higher on Tuesday. Premarket highs saw the penny stock hit $4.02.
Biotech Penny Stocks To Watch: Tonix Pharmaceuticals Holding
We talked about Tonix Pharmaceuticals Holding (TNXP Stock Report) over the weekend. This month Tonix announced that it met its target enrollment of approximately 470 participants in a Phase 3 RELIEF trial of TNX-102 SL 5.6 mg. The treatment is in development as a non-opioid, centrally acting analgesic, taken daily at bedtime for the management of fibromyalgia. Tonix also announced a collaboration with Columbia University to study immune responses against COVID-19.
The research collaboration will focus on T cell and antibody responses to SARS-CoV-2 (CoV-2), the virus that causes COVID-19 at the cellular level. Give the widespread focus on coronavirus vaccine stocks, TNXP shares have responded in line with the rest of the niche.
“We expect that more than one COVID-19 vaccine will ultimately be approved by the Food and Drug Administration (FDA), and a challenge for future research will be to determine which vaccine is appropriate for each individual. Data from this collaboration will provide a roadmap and tools to potentially guide these recommendations,” explained Seth Lederman, M.D., President and Chief Executive Officer of Tonix Pharmaceuticals.
Another thing to keep in mind aside from sector momentum is TNXP technicals as a whole. The latest move has been big, no doubt so don’t forget your trading strategy. This is the first time that shares have traded above the 200 day moving average for more than a day. In fact, the last time TNXP stock sustained levels above that technical line was back in 2018. Where do you think Tonix stock will be by the end of July?