Should These Penny Stocks Join Your “Buy” or “Sell” List?
Penny stocks have been on fire this year with breakouts going into the 1,000s of percentage points. This used to be somewhat infrequent and when we would see such a move, it typically came from a thinly traded, light volume penny stock.
That hasn’t been the case this year, in fact, some of the biggest breakouts have come with some of the heaviest trading volumes as well. Eyenovia Inc. (EYEN Stock Report) was the latest penny stock to see explosive momentum this week. Shares jumped from under $4 on Monday to over $8 during Tuesday’s premarket session.
Blame it on new traders or point to extra stimulus money going toward risky investments. Whatever the case, it’s hard arguing that penny stocks haven’t gotten their fair share of attention in 2020.
So what’s next? That’s simple; more. I don’t think there’s any reason to believe that the excitement we’ve seen in stocks is going anywhere anytime soon. What’s more is that we’ve seen a big push for innovation. Obviously, that comes in light of the novel coronavirus pushing for vaccines “ASAP”. On top of that, we’re seeing other businesses unrelated to health care pivot.
One of the clear examples of this has been the retail sector. There’s no denying that COVID resulted in major shutdowns and even bankruptcies of leading companies. So, it wouldn’t seem unusual to find the retail sector hurting; but it isn’t. In fact, online retail specifically has reached new levels in 2020. Yesterday we wrote about “brick and click penny stocks“. This trend has helped some of the most well-known traditional retailers weather the COVID storm. So when we talk about what comes next likely depends a lot on what happens with coronavirus. Will these join your list of penny stocks to buy this month?
Penny Stocks To Buy [or sell] #3: Protalix BioTherapeutics Inc.
Protalix BioTherapeutics (PLX Stock Report) was one of the premarket movers on Tuesday morning. Shares actually gapped up to more than $6 per share early in the morning. However, by the time the opening bell rang, PLX stock settled back around $4. Needless to say, this is still considerably higher than where it closed on August 10th.
Why did PLX stock jump on Tuesday? Protalix and its development partner Chiesi Global Rare Diseases announced that the U.S. FDA accepted a Biologics License Application. The Administration also granted Priority Review designation. This is for the company’s pegunigalsidase alfa for the proposed treatment of adult patients with Fabry disease. The FDA set an action date of January 27, 2021, under the Prescription Drug User Fee Act (PDUFA).
“The FDA’s acceptance of the BLA and grant of priority review for PRX-102 are significant achievements for Protalix and Chiesi, and represent a crucial step forward as we look to establish a new treatment option to the Fabry patient community,” said Dror Bashan , Protalix’s President and Chief Executive Officer. “Based on the encouraging results for PRX-102 we have seen to date, we are eager to continue discussions with the FDA and to continue our other development efforts for PRX-102, as marketing approval of PRX-102 is our top priority.”
Considering the PDUFA date is quite a ways away, it might be a carrot to continue referencing. In the meantime, the company said it’s continuing discussion with the FDA. Will PLX be one of the penny stocks to buy or sell in August?
Penny Stocks to Buy [or sell] #2: Infinity Pharmaceuticals Inc.
Shares of Infinity Pharmaceuticals Inc. (INFI Stock Report) also gapped up on Tuesday morning. This didn’t come with any formal press release. However, the company is coming off of a recent earnings per share and sales beat from July. Its second quarter results showed EPS coming in a ($0.16) compared to estimates of ($0.19). Sales also surged during the quarter compared to estimates. Infinity reported $360k compared to the Street’s $160K.
“We have made important clinical progress this quarter including the generation of early, but encouraging signals of clinical activity in the triple negative breast cancer cohort of MARIO-3,” said Adelene Perkins , Chief Executive Officer and Chair of Infinity Pharmaceuticals . “While these data are preliminary, we are excited by the potential to bring eganelisib to the front- line setting for the deadliest form of breast cancer and plan to present these data later this year.”
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This week appears to be benefiting from sector momentum. The attention that’s stemmed from the market this year on biotech, specifically, has helped give even non-COVID companies a boost. In its Q2 business update, Inifinity discussed that its progress with its ongoing Phase 2 study in collaboration with Roche/ Genentech also showed promise. The study is to evaluate its eganelisib in novel triple combination in the front-line setting with Tecentriq® and Abraxane® in triple-negative breast cancer and with Tecentriq and Avastin® in renal cell cancer.
Penny Stocks to Buy [or sell] #1: Aemetis Inc.
Shares of Aemetis Inc. (AMTX Stock Report) took off again on Tuesday. It’s been one of the penny stocks to watch since early May. At the time the penny stock traded around $0.75 and saw its first real surge of trading momentum. AMTX stock ended up rallying to a high of $1.72 then pulled back to around $0.85. Since then, shares have managed to not only steadily increase but also push above through $1.72 highs.
This week, AMTX stock made a new 2020 high of $2.94 during the first hour of trading on Tuesday. This came after the company’s latest update. Aemetis announced the launch of its new Aemetis Health Products subsidiary. It focuses on the production and marketing of blended liquid and gel sanitizers as bulk and packaged products. Obviously, COVID-19 is still quite a hot topic and related headlines have remained strong catalysts.
“Aemetis has become the largest producer of high grade sanitizer alcohol in the western United States and is launching Aemetis Health Products to expand its product line of sanitizer products,” said Eric McAfee, Chairman and CEO of Aemetis. “This expansion into blended liquid and gel sanitizer markets complements our existing offering of high grade alcohol in the United States and Canada.”
The biggest question is will the new remain a lasting catalyst? Sometimes coronavirus news can act as more of a short-term catalyst than anything. However, AMTX hasn’t been a stranger to big moves. So today’s action isn’t a move that “came out of nowhere like that of EYEN. So we’ll have to see how the market reacts later this month. Regardless, the penny stock has now climbed over 290% since May and nearly 270% this quarter alone.