Are Analysts Right About These Penny Stocks?
Analysts love to speculate on blue chip stocks and penny stocks alike. One thing we can say for certain is that analyst reports can give some insight into what Wall Street firms are looking at, pertaining to specific companies. If anything you’ll be able to have some extra and possibly deeper levels of information to base your own research on. This is the base idea but as we all know, there’s more that goes into penny stocks than what analysts have to say.
For instance, one analyst may initiate coverage on a certain company “today”. But that same analyst might not follow up or revise ratings for months. So even if you’re looking at that same penny stock “next month,” you’re still going to see the same rating no matter if the stock is higher or lower than the price when the rating was given. Nevertheless, if you have a basic understanding of how to trade penny stocks, you assume that volatility is already a factor to deal with.
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That volatility has become increasingly evident this week especially. The broader markets are all over the place. On Monday, the S&P and Dow both extended losses for the month. Furthermore, major moving averages are beginning to get tested as well for support. Whether or not the major markets move lower, it doesn’t necessarily impact all penny stocks the same way. In fact, this list of companies includes several that are making fresh highs for September.
Penny Stocks To Buy [according to analysts]: Northern Dynasty Minerals Ltd.
Northern Dynasty Minerals Ltd. (NAK Stock Report) has been one of the cheap stocks to watch this month. This comes after consolidating from a huge pullback in late August. What initially triggered the sell-off was confusion and some bad PR surrounding its Pebble Project in Alaska. During the first half of the year, NAK stock was on fire, climbing more than 470% from January to late-July.
The company’s 100%-owned Pebble copper-gold-molybdenum-silver-rhenium project has gained national interest. Even the U.S. President made mention of the property. The Trump administration in July proposed approving a permit for the mine. If permitted, Pebble would become North America’s largest mine. The estimated measured and indicated resource include 6.5 billion tonnes containing 57 billion lbs copper, 71 million oz gold, 3.4 billion lbs molybdenum and 345 million oz silver.
In July 2020, the US Army Corps of Engineers issued a final Environmental Impact Statement for Alaska’s Pebble Project. The Corps described a “modern hard rock mine that would co-exist with clean water, healthy fish and wildlife populations,” while making a profound socioeconomic contribution to the Bristol Bay region. Furthermore, the company expects to receive a final Record of Decision for its flagship project this fall. Today, CEO Tom Collier presented at the Gold Forum Americas Conference, which could also be a key point of focus for investors right now.
NAK Stock Forecast
What do analysts think about Northern Dynasty? The average rating for NAK stock is a Buy. The most recent rating comes from H.C. Wainwright in August. The firm boosted its price target from $2.75 to $3. It also maintained its Buy rating. Taking into account all of the analyst ratings on NAK, the only one to have a lesser rating is TD Securities who, in June, changed its rating to Hold. However, it did boost its price target from $1.30 to $2.25
Penny Stocks To Buy [according to analysts]: Organigram Holdings Inc.
Organigram Holdings Inc. (OGI Stock Report) could be one of the more risky penny stocks to watch right now. This week Aurora Cannabis is set to release earnings. Depending on the outcome of those earnings, there could be a ripple across marijuana stocks. Of course, this could be either positive or negative. However, based on the outlook for ACB stock by some of the popular marijuana stock traders, sentiment appears very mixed.
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Needless to say, OGI stock is having a strong start to the week this week. The pot penny stock extended gains from Friday’s late afternoon session. On a somewhat larger scale, OGI shares have jumped about 15% over the last week. Small wins are what many marijuana stock traders are taking lately. As you can see, the bigger picture with OGI isn’t the shining example of bullishness. However, recent developments from the company seem to have helped in the short-term.
Last week, the company announced a new product launch. Its SHRED product is a high potency “affordable” dried flower that pre-shredded. Furthermore, the company has received additional interest from the analyst community this month.
OGI Stock Forecast
Cantor Fitzgerald’s Pablo Zuanic raised his price target for OGI stock. Previously, Zuanic had it set to C$5 however, he’s now increased that to C$5.35 in light of recent events. Specifically, he said that “If we compare Aug sales with May, we see total OGI sales were up nearly 40%, with flower +70% and pre-rolls +100%, but in that same period sales for both vapes and edibles fell 33% and oil sales fell 15%. So, by Aug the sales mix was 56% flower, 25% pre-roll, 13% vape, 3% edibles, and 3% oil.”
Other bullish analyst updates this month came from Jefferies. This month the firm reiterated its Buy rating on Organigram and currently holds a target of $3.79.
Penny Stocks To Buy [according to analysts]: Sesen Bio Inc.
Sesen Bio Inc. (SESN Stock Report) continued surging on Monday. This comes just one day after SESN stock experienced one of its highest share volume days of the quarter on Friday. Just a few days prior, we followed up on recent developments and momentum we noticed in SESN stock. Aside from the bullish sentiment stemming from recent investor conferences, the company has gained attention for something it announced earlier this quarter.
Sesen announced an exclusive licensing deal with Qilu Pharmaceutical. The will see the manufacture, development, and commercialization of its Vicineum treatment for certain types of bladder cancer. Sesen also focuses on other types of cancer and targets markets in China, Hong Kong, Macau, and Taiwan.
In the upcoming quarter, there could be some things to keep in mind. It initially stemmed from what was discussed in the second quarter, actually. In a business update, the company highlighted the completion of manufacturing of its process performance qualification – PPQ – campaign drug substance batches were on schedule. Once complete, Sesen said the drug substance will be shipped off to be finished. In its August business update, the company said it expects this to come to completion this month. Sesen further said, “Comparability data from the PPQ campaign for drug substance and drug product are the last material deliverables before submitting the BLA in the fourth quarter of 2020.”
As we approach the 4th quarter, this could become a larger focus. Furthermore, SESN stock has been on the radar since July. We’ve seen, first-hand the aggressive move that has be made during that time. The company also just gave a business update at the H.C. Wainwright Investor conference last week helping to continue to bullishness in the market.
SESN Stock Forecast
Where do analysts stand on SESN? The most recent rating comes from Canaccord Genuity in August. The firm reiterated its Buy rating on the stock. Canaccord also holds a $5 price target on the penny stock. Even in spite of reporting worse than expected Q2 results in August, the overall trend has remained increasingly bullish. Considering the expected completion of its PPQ campaign, will SESN stock be on your watch list before Q4?