Are These Penny Stocks On Your Buy Or Sell List?
Penny stocks have been growing in popularity much more than usual in 2020. The market has welcomed many new investors. This is due to people needing another source of income during the harsh times in the world. So in general, the interest for penny stocks has gone up a lot. This is because these stocks are not as expensive as typical larger-cap stocks.
However, just because there’s a lower price doesn’t necessarily mean there are big gains in store. Just as quickly as these penny stocks can climb, so too they can fall. This is especially true when you’re talking about stocks under $1 or even penny stocks under 20 cents. Just a few pennies can equate to huge percentage changes in value.
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Penny stocks may have been overlooked by some investors if they are new to the market. According to the SEC, a penny stock is any equity trading lower than $5. Trading these stocks can be beneficial to those who do not want to invest a lot in the market but still want to turn a profit.
The only issue is that penny stocks can be high-risk, high-reward. This type of stock is rather volatile due to its nature. In this list, we’ll go over penny stocks that can be bought for under $0.99 right now. But it will be up to you to decide if the potential reward is worth the risk.
Penny Stocks To Buy Under $0.99: Zomedica Pharmaceuticals Corp.
The first on this list of penny stocks to watch is Zomedica Pharmaceuticals Corp. (ZOM Stock Report). Zomedica is a development stage veterinary diagnostic and pharmaceutical corporation. The company discovers, develops, and commercializes pharmaceutics for household pets. One of its main products is ZM-007, which is an oral suspension formulation of metronidazole for treating acute diarrhea in small dogs and puppies.
On August 10th the company released financial results and corporate highlights. In April, the Zomedica completed a $4 million offering of common shares and warrants. In May the same was done with $20 million common shares and warrants. But still, Zomedica’s financials were at a net loss. The interim CEO of the company, Robert Cohen said, “During the last several months, Zomedica successfully managed any effect caused by the novel coronavirus pandemic and significantly strengthened its balance sheet.
As we continued the development and testing of our TRUFORMA™ platform, we successfully completed the verification of three assays, and began validation studies with three university veterinary school partners.” Considering ZOM stock price is down 69% in 2020, does it still has the potential to bounce back?
Last week, its proxy solicitor, Alliance Advisors mailed a letter to shareholders in advance of a special meeting being held this week. The basis of that message was urging shareholders to vote in favor of a reverse stock split. The hope is that the 1 for 25 or 1 for 50 reverse will gain majority approval so that the company can get back in compliance with the NYSE American Exchange.
Penny Stocks To Buy Under $0.99: Guardion Health Sciences Inc.
Next on this list of penny stocks is Guardion Health Sciences Inc. (GHSI Stock Report). The company focuses on specialty health sciences. Guardion creates medical foods and medical devices which are its two segments. One of its products is Lumega-Z, a medical food that restores macular protective pigment. Its devices division produces VectorVision, a useful tool for standardized vision testing.
On August 12th, the company announced results of operations for its quarter ending on June 30th. The total revenue for the company was $1,191,000 for this quarter, which is a 356% increase year over year. Its medical food sales were up 26%, but device sales were down 75% due to medical facility closures caused by COVID-19. For the six month period, its revenue went up 185% to $1,437,000.
The Chairman of Guardion, Robert N. Weingarten stated, “New research studies, development and roll-out of an e-commerce platform, enhanced trade promotion, and other programs and strategies that the Company expects will generate value over the long term, are being made to pave the way for a better and brighter future for Guardion and its shareholders.”
Since last Monday, GHSI stock has climbed as much as 14% to highs this week of $0.266. Something to note, however, is that the company has filed for a mixed shelf offering of up to $75 million. Depending on what prices the company ends up raising money at, periodically, if at all, there could be dilution risk to consider. Needless to say, GHSI stock kick started the week on a high note trading come of its highest share volume of the month.
Penny Stocks To Buy Under $0.99: Gevo Inc.
Gevo Inc. (GEVO stock Report) is another one of the penny stocks under $0.99 gaining attention this month. In fact, we touched upon it this weekend as energy stocks began piquing some market interest. Specifically, Gevo focuses on renewable fuels, which has become a very hot topic in the stock market today.
This week, Gevo reported on two key developments in Scandinavia regarding Sustainable Aviation Fuel. As you may or may not know, Sweden has a goal of becoming “fossil-free” by 2040. Earlier this month, the Swedish Government announced the intention to introduce greenhouse gas reduction mandates for aviation fuel. This continues a trend in that region. Earlier this year, Norway also announced a move to introduce biofuel blending through its own mandate.
Patrick R. Gruber, Chief Executive Officer of Gevo said, “Gevo’s mission is to produce transportation fuels that lower greenhouse emissions. Gevo’s SAF product is approved for use in commerce and has already been used to power numerous commercial flights. Gevo looks forward to increasing its production capabilities for SAF to help countries like Sweden and Norway in the battle to reduce Greenhouse gas emissions.”
GEVO stock has steadily up-ticked for the last week. Monday extended this move, which has now amounted to more than 15% so far.
Penny Stocks To Buy Under $0.99: Acasti Pharma Inc.
Last on this list of penny stocks under $0.99 is Acasti Pharma Inc. (ACST Stock Report). This is a biopharmaceutical company that researches, develops, and commercializes prescription drugs to treat cardiovascular diseases. Its primary product is CaPre, which is an omega-3 phospholipid therapeutic in a Phase III trial to treat those with hypertriglyceridemia. On August 13th, the company provided a business update for the first quarter of fiscal 2021.
Here are some highlights from this update. Acasti finalized and submitted TRILOGY2 Statistical Analyses Plan (SAP) to the FDA on July 21st. The company received a notice of allowance for the second composition of matter patent to be awarded by the Canadian Intellectual Property Office. The CEO and President, Jan D’Alvise said, “With the TRILOGY 2 SAP finalized and now submitted to the FDA, we continue to advance the process towards unblinding of our TRILOGY 2 clinical data. We believe if TRILOGY 2 can achieve statistical significance, and if the pooled efficacy results with TRILOGY 1 using the Intent to Treat population also reaches significance, we can proceed with our Pre-NDA meeting where we intend to discuss with the FDA the use of this data to support an NDA filing.”
As of September 21st, ACST stock price has climbed as much as 57% in the last week. Will ACST stock be able to keep up this momentum? That will obviously be seen in time. However, as we noted with this penny stock over the weekend, the company recently appointed a new CFO. Specifically, the new CFO, Brian D. Ford, said that his experience in evaluating strategic opportunities as well as M&A transactions will provide valuable insights to carve out a path forward for the company.