A Quick List Of Penny Stocks To Watch This Month
Markets are looking to extend gains from last week and penny stocks are part of the mix. There were plenty of sectors heading toward new highs last week including technology and healthcare. However, coronavirus cases remain a sticking point for some investors.
This has seen the government spend trillions of dollars just to keep the economy afloat. Over the weekend, we also saw President Trump signing an executive order and three memoranda. These extended the economic aid to those struggling during the pandemic.
Regardless of what happens next, investors and traders have begun searching for reasons to buy penny stocks and blue-chips. They’ve got one thing in mind. That one thing is the “next bull market” trend. Following the historic sell-off in March, the search for “a bottom” has seen gun-shy investors throw caution to the wind. Many have jumped head-first into stocks. It would seem that no matter what happened with COVID, tech, and healthcare along with precious metals were the shining sectors of the stock market.
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Whether or not that remains the case in August likely has a lot to do with coronavirus. Upbeat jobs figures from last week have higher hopes in store for the stock market this week. On top of that, we’ve got another round of quarterly reports coming our way as well. What will the picture look like by this time next week? Let’s start with a quick list of penny stocks to watch at the start of this week, first.
Penny Stocks To Watch: AcelRx Pharmaceuticals Inc.
AcelRx Pharmaceuticals Inc. (ACRX Stock Report) closed out last week at its highest price in over a month. ACRX stock reached $1.32 by the closing bell, a level not traded at since June. Furthermore, the surge in buying continued the 6-day uptrend the penny stock has enjoyed since the end of July. During the last 5 and a half weeks or so, ACRX shares have been relatively range-bound trading between $1 and $1.30. Friday saw the price spike just slightly above this upper limit and it came a few days after AcelRx’s most recent update.
The company reported that it would release second quarter financial results after market close on Monday, August 10. Considering that earnings results can act as significant catalysts, this could be a higher-risk scenario if ACRX is on your watch list. An earnings beat could trigger bullish momentum in the stock. However, a miss or negative outlook from management could do the opposite. It is, however, one of the more active penny stocks to watch right now as volume was trending much higher at the end of last week.
The company recently signed an agreement to market DSUVIA®, a sublingual opioid tablet in a single-dose applicator. The marketing focuses on the dental and oral surgery markets in the United States exclusively through Zimmer Biomet’s Dental division. The agreement expands the U.S. availability of the non-invasive, sublingual analgesic for use by dental healthcare professionals in medically supervised settings who currently use injectable opioids for surgical analgesia.
Additionally, last month AcelRx was chosen by the US Army Medical Research Acquisition Activity to supply Dsuvia for the management of acute pain in a proposed $3.5 million deal. Considering the next company event this week, will ACRX be on your list of penny stocks to buy or avoid heading into Monday?
Penny Stocks To Watch: Aeterna Zentaris Inc.
Another one of the penny stocks to watch after an active week last week was Aeterna Zentaris Inc. (AEZS Stock Report). Despite an aggressive sell-off toward the end of Q2, AEZS stock has made attempts to recover this quarter. However, up until recently, things were easier said than done. After falling from over $1 to under $0.40, the AEZS stock price has steadily but slowly climbed back to around $0.50. On Friday, the penny stock ended up testing that levels again. Something to note is that when shares have reached this $0.50-$0.55 range, AEZS stock has pulled back. This was actually a level of support/resistance from March as well.
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Last week the company reported earnings results for the second quarter. The company also provided an update on its clinical program. As an early-stage biotech company, there weren’t many financial highlights discussed. However, developmental highlights were more of a focus. During the quarter, the company reported positive results from its AEZS-130-P01.
This confirmed a dosing regimen of macimorelin as a potential diagnostic for childhood-onset growth hormone deficiency. The company also entered into an exclusive distribution and related quality agreement with Megapharm Ltd. for the commercialization of macimorelin in Israel and the Palestinian Authority. Megapharm is a leading Israel-based biopharmaceutical company.
Though there were no important dates reveals for August, there is an upcoming event early next month. Aeterna was been selected for presentation at the 22nd European Congress of Endocrinology (e-ECE 2020) being held September 5-9, 2020. So with earnings out of the way and upcoming presentations will this be enough to keep the momentum going in August?
Penny Stocks To Watch: AMC Entertainment
Something we’ve discussed in the past was epicenter penny stocks. This was a term coined by investor and FundStrat Head of Research, Tom Lee. He defines epicenter stocks as things like consumer discretionary stocks, industrials, technology stocks, health care stocks, and energy stocks. Recently, Lee has come out to discuss a slightly different twist on this idea in “reopening stocks”. These reopening stocks are those which could benefit greatly from the economy, of course, reopening. “I think the economy’s healthy, [so] these cyclical stocks could rally big,” Lee said in a CNBC interview last week.
One of the penny stocks that’s continued to hold a spotlight is AMC Entertainment (AMC Stock Report). Last week’s headlines both from the company and analysts could put AMC on a list of reopening stocks to watch right now. The company has managed to bob and weave amid the entertainment industry turmoil created by the pandemic.
This month AMC reported earnings and I’m sure many braced for the worst. However, that wasn’t the case. In fact, AMC actually beat analyst estimates on sales figures of $18.9 million compared to the Street’s $13.54 million. Though AMC missed on EPS, the company managed to attract attention after saying it would resume operations of essentially “all international theatres in the next 2-3 weeks”.
Finishing out last week, after a slight pull-back, AMC stock finished on a high note. This came not only after the statement on reopening theaters but also after a court ruling that scrapped a 1948 deal banning movie studios from owning theaters. “Theatrical exhibition has always been resilient, and we are confident that at AMC we are taking the right steps to emerge from this crisis and to thrive once again as the leader in our industry,” CEO Adam Aron said. Considering last week’s strong bull trend, can we expect that to remain the case Monday morning?
