3 Penny Stocks To Watch In August 2020
When you talk about finding penny stocks to buy, where do you usually start looking? I’m sure you’ve got some type of basic scanning strategy. You may also have your “go-to” websites to get some info – hopefully PennyStocks.com is one of them. In any event, after you find some companies, I’m guessing the next thing you do is make a list of penny stocks. Your watchlist is one of the best things to have in order to stay focused.
If you’ve just started trading, you might have not been in the market over the last few months. What I will say in this regard is that there has been a lot of penny stocks breaking out daily. It can become overwhelming to focus, with so many “bullets” flying around. Not to mention all of the noise that comes along with it. FOMO is a very big thing to avoid. Since there are so many opportunities, you should “fear missing out” on anything. When one penny stock jumps and pulls back, another is likely just getting started on its run.
The bottom line here is with so many people talking about investing in penny stocks or trading them, having a list is helpful. Whether you have a group of names that are about to release earnings, have just reported major developments, have experienced unusual trading activity, or other criteria, that’s up to you. With this in mind, are any of these on your list of penny stocks right now?
Penny Stocks To Buy [or sell] #1: Ocugen Inc.
Ocugen Inc. (OCGN Stock Report) hasn’t been a stranger to big moves in the stock market. Today the penny stock continued this trend on sheer market momentum. There wasn’t any news or filings indicating a catalyst but above average trading activity has brought interest back to OCGN stock after about a week’s worth of downward pressure. What investors may be looking toward is Ocugen’s upcoming earnings announcement next week. On August 14th, the company will report Q2 results and give a business update.
At the end of July, Ocugen announced that the U.S. FDA granted Orphan Drug Designation for its OCU400 in the treatment of rhodopsin mutation-associated retinal degeneration. Typically, the FDA Office of Orphan Products Development grants orphan designation for novel drugs or biologics that treat a rare disease or condition affecting fewer than 200,000 patients in the U.S. OCU400 was designed for restoring retinal integrity and function across a range of genetically diverse inherited retinal diseases.
According to Dr. Shankar Musunuri, “There are currently no approved treatments which slow or stop the progression of multiple forms of RP, which is why we’re excited to have a platform that can potentially address multiple mutations, including mutations in the Rhodopsin gene, with one therapy.”
The biggest question is what happens when earnings get released? As you may or may not know, sometimes it ends up as a coin flip whether the earnings catalyst triggers a move up or down. If OCGN is on your list of penny stocks, it’s important to note in my opinion.
Penny Stocks To Buy [or sell] #2: Agenus Inc.
Unlike Ocugen, Agenus Inc. (AGEN Stock Report) already released earnings this month. The company reported on August 6th and from the look of things, investors are bullish at the end of the week. Friday saw AGEN stock jump significantly and was up 15% before the lunch hour. Even though Agenus missed estimates on EPS, it beat on sales by a large margin. Estimates put Q2 sales around $9.33 million whereas Agenus reported over $26 million for the quarter. The company also reported a considerable cash position for the quarter:
“We ended the second quarter of 2020 with a cash balance of $79 million as compared to $62 million at December 31, 2019 . Subsequent to the quarter end we received $35 million related to our Betta partnership. With this and other anticipated cash inflows, based on our current plans and projections our cash position will be sufficient to support our operations into the third quarter of 2021.”
What’s more is that earlier this week, Agenus also presented at the William Blair Biotech Focus Conference. This seems to have built a bit more momentum heading into the earnings report. Looking ahead, the company’s CEO, Garo Armen gave a bit of a pipeline outlook for the company on the earnings call.
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Specifically, he said an IND is expected to be filed “within the next six months” for its TIGIT monospecific antibody, AGEN1327. Also, the Fc enhanced bispecific TIGIT antibody, AGEN1777 is expected to have an IND filed “in the next six months”. If AGEN is on your list of penny stock, keep that in mind.
Penny Stocks To Buy [or sell] #3: VistaGen Therapeutics
VistaGen Therapeutics (VTGN Stock Report) continued its month-long climb on Friday. Shares have been on fire since the start of July. We discussed VTGN stock yesterday as it surged during the Thursday session. It appears that the latest move comes after the company closed its recent financing. VistaGen raised $12.5 million intending to use the proceeds for the continued development of its CNS pipeline programs among other things.
Aside from that, the news wires haven’t been too active. Last month VistaGen and the FDA reached consensus on key aspects of a unique initial pivotal Phase 3 clinical trial of PH94B to treat anxiety disorders. The rapid-onset neurosteroid nasal spray is “fundamentally differentiated” from all FDA-approved treatments for anxiety disorders according to the company.
Also keep in mind the deal that the company entered into in June. VistaGen and EverInsight Therapeutics Inc. entered into a strategic licensing agreement. The collaboration will see the companies develop and commercialize PH94B. Through this deal, VistaGen is eligible to receive development and commercial milestone payments of up to $172 million in addition to the $5 million upfront payment in June.
Most recently, Maxim put a Buy rating on the penny stock. It also put a $1 price target on VistaGen. Considering the latest string of updates form the company and recent funding round, is VTGN on your list of penny stocks to buy or avoid this month?