3 Penny Stocks To Watch After Key Developments
Looking for penny stocks to buy can take a trader to the task. Since they’re inherently volatile, things can shift at a moment’s notice. Given that as the case, your starting watch list can completely change when the market opens for the next session.
Whether you’re looking for trending pre-market penny stocks or you put your watch list together after the market closes, everything is in its place…until it isn’t. Take, for instance, one of the penny stocks that we said would be very high-risk if it was on your list this week: Acasti Pharma Inc. (ACST Stock Forecast).
Now, why was that a potential risk? While the market for ACST stock was very active, it had upcoming trial results coming on Monday. With biotech penny stocks, any trial details can act as a very aggressive catalyst. That goes in both directions of the market. Sometimes it’s better to wait for the results than try to catch lightning in a bottle.
While the upside of positive results can equate to significant gains, the opposite can crush a position. Here’s where you weigh risk/reward. In the case of Acasti, the results completely missed the mark. That $0.75 stock on Friday was now worth $0.24 on Monday after the news. If you had ACST on your list of penny stocks to watch for Monday thinking it was a bullish play, that news completed changed your strategy.
Heading into the first week of September, keep this in mind. The market is likely going to start to see some shifts as “summer trading” comes to an end. Given the situation with coronavirus and the Presidential elections, we’ve also got a few other unique headwinds to consider. Will these be on your list of penny stocks to buy or avoid this week?
Penny Stocks To Buy [or avoid]: Plus Therapeutics Inc.
Plus Therapeutics Inc. (PSTV Stock Report) has held a steady uptrend for the last few months. In fact, since June 1st, shares climbed from $1.61 to recent highs of $3.56 in August. Heading into September, PSTV stock is starting things off around $2.45. It’s also kicking the month off with a big update.
On Tuesday morning, the company announced receipt of FDA Orphan Drug Designation for its lead investigational drug, Rhenium NanoLiposomes (RNL™). It’s for the treatment of patients with recurrent glioblastoma, the most common and aggressive of primary malignant brain tumors in adults.
The FDA’s orphan-drug program gives special status to drugs and biologics for diseases and disorders that affect fewer than 200,000 people in the U.S. and provides for an extended marketing exclusivity period against competition.
Shares jumped during premarket trading on September 1st. PSTV stock hit a high of $4.20 early on. However, closer to the opening bell, the penny stock was trading more closely to $3. Will this news spark the next leg of the uptrend in PSTV stock.
Penny Stocks To Buy [or avoid]: Genworth Holdings Inc.
This week, Genworth Holdings, Inc. (GNW Stock Report) hit the watch list after some rumors emerged about the company. Specifically, these rumors centered around the potential merger deal that Genworth had previously announced this year. Back in June, the company and China Oceanwide Holdings Group Co., Ltd. extended their merger deadline to no later than September 30, 2020.
The extension gave Oceanwide additional time to finalize financing for the transaction. It was proposed at a purchase price of $5.43 per share, which may include debt funding of up to $1.8 billion through Hony Capital and/or other third parties. Oceanwide said that the financing was delayed due to COVID-19 and uncertain macroeconomic conditions.
One outlet reported on the company closing a deal but nothing was formally confirmed. That is, until late Monday night. Genworth confirmed that its Board of Directors and management team determined that Oceanwide has provided satisfactory information regarding its funding plan. Genworth further said that it doesn’t intend to exercise its right to terminate the merger agreement as of August 31, 2020.
“Based on these discussions and the information provided by Oceanwide, we believe the funding is progressing well and that Oceanwide is working to close the transaction by September 30, 2020. Therefore, the Board determined not to exercise our right to terminate the merger agreement at this time,” said James Riepe, non-executive chairman of the Genworth Board.
Penny Stocks To Buy [or avoid]: J Jill Inc.
J Jill Inc. (JILL Stock Report) hasn’t been the most active this year and understandably so. The company is is a retailer and a women’s apparel brand company. Obviously, many retail companies got hit hard with the coronavirus bearing down on the economy this year. One of the biggest sticking points for investors recently has been on the outcome of refinancing efforts. How would the company handle its debt burden?
At the start of August, J. Jill reported that its forbearance deal with its lenders was extended to August 27th. As the clock wound down to the end of the month, the company was able to push the ball down the field again. Heading into September, the company reported one of its biggest developments of the quarter.
J. Jill Inc. announced that with the support of a majority of the company’s shareholders, it has entered into a Transaction Support Agreement with certain lenders. The agreement is on the principal terms of a financial restructuring that would result in a waiver of any past non-compliance with the terms of J.Jill’s credit facilities. This would also provide the company with additional liquidity. At the end of the day, if everything is consented to, the agreement would be agreed to out of court and extend the maturity of certain debt by 2 years.
This news sparked a strong interest in the penny stock early in the morning on Tuesday. Shares of JILL stock spiked to $1.13 during the first 30 minutes of the day. Considering that JILL stock price was at $0.375 just a day earlier, this was a significant move for the penny stock. Will the trend continue through September? Comment with your thoughts below.