Analysts Consider These Penny Stocks To Buy; Do You?
The stock market today is a bit slower but for penny stocks, it’s just another day at the office. We’ve already seen many cheap stocks experience unusual volume trends that were triggered by catalysts. Some even had their highest share volume days in recent history. You might also think that because of the way the broader markets are trading, gold would be a focus for traders.
If you haven’t heard yet, record high gold prices were reached earlier in the Tuesday session. However, that momentum seems to have faded during the second half of the session. So where are investors looking right now? Coronavirus vaccine stocks remain a dominant factor. One of the epicenter states, Florida reported 8,892 new COVID-19 cases. This was actually the fewest since July 7th.
The state is now up to 432,747 cases and 5,931 resident deaths associated with the coronavirus since the start of the outbreak, according to the Florida Department of Health. Across the country, cases have surpassed 4.1 million with more than 140,000 deaths. But there’s something else coronavirus has done for investors.
That “something” is give them more exposure to different ways companies and industries are evolving to deal with coronavirus. It’s not just biotechnology and healthcare but other industries that include technology and consumer cyclicals that have found favor among investors. Additionally, analysts have grown bullish on a few stocks too. Will these be on your list of penny stocks to buy?
Penny Stocks To Buy [According To Analysts] #1: vTv Therapeutics Inc.
vTv Therapeutics Inc. (VTVT Stock Report) has a pipeline of clinical drug candidates led by programs for the treatment of type 1 diabetes, Alzheimer’s disease, and inflammatory disorders. This week started off strong for VTVT stock and came after the company’s latest update. vTv will present at the upcoming 2020 Alzheimer’s Association International Conference. The virtual conference will be held between today and July 31st.
vTv presents Wednesday, July 29, 2020, (released Tuesday, July 28, 2020 at 5:00 pm CT, 6:00 pm ET). It will discuss the ffects of is azeliragon treatment in patients with mild Alzheimer’s disease and type 2 diabetes. In addition to this, the trading action for VTVT stock has been steady for most of July. At the start of the month, shares were trading around $2.21. Following Monday’s news, VTVT reached a high of $2.99.
Something interesting to note if you’re into technical indicators is the 200 Day Moving Average. Since the start of the year, this has continued to act as a general level of support for VTVT stock. It pulled back to this level in March, then bounced. It did this several more times in April, then May, and now again in July. What’s more, is that the trend of the 200DMA has been bullish. Will this continue? According to analysts, it would appear they’re favorable on VTVT. Among those covering the stock, the average rating is a “Strong Buy” as of today.
Penny Stocks To Buy [According To Analysts] #2: AIM ImmunoTech Inc.
AIM ImmunoTech Inc. (AIM Stock Report) is another one of the penny stocks with bullish analysts. TD Bank is the most recent firm to weigh in on the company. The bank gave AIM stock a Buy rating and price target of $4. For us, we’ve been watching AIM since the early days of the coronavirus.
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We’ve reported on this company since late-January. At the time we also explained how the coronavirus was starting to become “a big topic” and how “following trends in the market” could help determine potential penny stocks to watch. Little did we know how big it would become. Fast-forward and AIM began testing Ampligen as a potential treatment for COVID-19.
This week, AIM raised eyebrows once again after a new update. The company announced that it will be presenting at the SNN Network Virtual Investor Conference next Monday. Thomas K. Equels, Chief Executive Officer of AIM Immunotech, will be hosting the presentation and answering questions from investors. This update seems to have gotten investors excited again. While AIM stock has enjoyed several breakouts, it has also followed its bullish 50-Day Moving Average for the better part of the last 7 months. Since January, AIM stock is up 484% to date as of Monday’s $3.33 high.
Penny Stocks To Buy [According To Analysts] #3: Novan Inc.
Another one of the penny stocks we’ve followed is Novan Inc. (NOVN Stock Report). Back in early March is when we first started following the progress of Novan. At the time, the company was in the middle of raising money for R&D. In July, things have picked up even more and NOVN stock has responded similarly.
What’s more, is that Novan received an Issue Notification from the USPTO on 7/22 indicating that US Patent No. 10,736,839 will issue on 8/11. A patent directed to “A method of treating and/or preventing a viral infection in a subject” using Novan’s nitric oxide-releasing compounds. NOVN picked up momentum at the start of the week and further extended its move from last Friday.
Additionally, NOVN stock tested its 200 Day Moving Average on Monday. That has acted as resistance for NOVN over the last week. The penny stock tested that levels 3 out of the last 5 sessions. Will that remain the case or can it break above it for good sooner than later? Currently, analysts carry an average rating of “Buy”. Do you agree or disagree?
Something to also keep in mind is that a disclosure filing from earlier this month shows some interesting information as well. The company filed an information statement with a letter to shareholders. In it, Novan requested that shareholders support Proposal 2 of its previously filed proxy statement. This is specific to a reverse stock split of between 1:2 and 1:15. Will dilution risk play a factor down the road?
Penny Stocks To Buy [According To Analysts] #4: SuperConductor Technologies Inc.
Finally, SuperConductor Technologies Inc. (SCON Stock Report) is a bit of a different addition to the list. There haven’t been any changes to its analyst forecasts, per se. But there hasn’t been any new or updated ratings for SCON stock either. The last firm to cover SuperConductor Technologies was H.C. Wainwright. Analysts gave a Buy rating and a $9 price target. However, this was issued last summer. So while the current rating “technically” shows a “Strong Buy,” it might be a bit outdated and in need of some adjustments.
Needless to say, SCON stock has been one of the penny stocks we’ve followed for months now. This year we started to follow developments in late-February. At the time SCON stock traded around $0.20. The company wasn’t very active on the newswires but said it was “exploring strategic alternatives”.
Needless to say, this month has seen more trading momentum. What’s more is that on Friday, the company announced that it regained compliance with the Nasdaq equity rule. Now the company needs to meet the minimum bid price of $1. It has until September 28th to do so. Keep in mind, Superconductor and a wholly-owned subsidiary of Allied Integral United, Inc. entered into a Securities Purchase Agreement on June 30, 2020. It was consummated on July 6, 2020.
Superconductor issued four million shares of its Common Stock (without any warrants). The deal would effectively give SCON 50% ownership in a company that owns 100% of an LLC that holds ownership of a commercial office building serving as the corporate headquarters of Clearday. Given the latest developments, are analysts right or wrong about this penny stock? Comment below.