Are These On Your List Of Penny Stocks To Buy Right Now?
No matter if you’re looking for penny stocks to buy or invest in, you’ve got the run of the mill. There are thousands of stocks under $5 that captivate attention on a daily basis. Herein lies the dilemma of sorts for traders. Are these wildly popular stocks good for investing or better suited for a trade? A free bit of advice here is that it all depends on the stock and company itself.
Not all penny stocks are well-suited for investing and not all penny stocks are good bets for short term trades. Then again, a lot of it depends on your trading style too. If you’re a high-volume, high-frequency trader, waiting for a stock to rise 10-15% over 2 weeks isn’t suited for you. The typical day trader will be in and out of a stock within the same session.
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Other traders, like swing traders, will typically hold a stock for a few days. Are there instances where swings will last for weeks, yes. But generally speaking, if you’re trading, you’re not holing shares for an extended period of time.
Trading VS Investing In Penny Stocks
Now, do some “trades” turn into good investment opportunities? To that question, I would say yes. But again it’s very subjective to the stocks themselves. You also can’t forget that you’re still talking about penny stocks. Investing can be very risky as these can flip direction overnight, literally.
If you look at countless biotech penny stocks this year alone, you’ll understand why I’m saying this. For example, this week we wrote about a company Akebia Therapeutics. We wouldn’t have been able to write about it had it not fallen 70% overnight. It missed a safety endpoint in one of its medical studies and that was the result in the market.
Again, not all penny stocks are that volatile but you should never forget that there is increased risk. With this in mind, take a look at a few of these names. Are they penny stocks to buy right now or should you avoid them at all costs?
Penny Stocks To Buy [or avoid]: NanoVibronix Inc.
NanoVibronix Inv. (NAOV Stock Report) is on the list of low float penny stocks to watch this week. The company hasn’t had the best year so far. In fact, shares hit a new 52 week low at the end of last week. It’s also a very illiquid stock. So pair that with an outstanding share count of less than 10 million, this could be a high-risk scenario. As we know, as well, low float penny stocks can also experience big swings higher very quickly. So keep that whole “investing vs trading” idea in mind.
In any case, NAOV stock is flying high during Tuesday’s premarket session. Shares ripped to highs of $1.29 before the bell after NanoVibronix’s latest update. The company announced that the U.S. FDA exercised its Enforcement Discretion to allow the distribution of the company’s UroShield device in the United States. According to the FDA, “UroShield® device can use Intended Use Code (IUC) 081.006: Enforcement discretion per final guidance, and FDA product code QMK (extracorporeal acoustic wave generating accessory to a urological indwelling catheter for use during the COVID-19 pandemic)”.
UroShield® is an ultrasound-based product that is designed to prevent bacterial colonization and biofilm on indwelling urinary catheters and increase antibiotic efficacy. The product essentially decreases the incidence of catheter-associated urinary tract infections. UroShield® is also intended to decrease pain and discomfort associated with urinary catheter use. In light of this latest development, the market is taking this in stride. The biggest question is will the momentum last or is premarket going to be the most bullish action NAOV stock sees today?
Penny Stocks To Buy [or avoid]: AcelRX Pharmaceuticals, Inc.
AcelRX Pharmaceuticals, Inc. (ACRX Stock Report) is not a lower float penny stock but has been one to watch. This morning the company came out with another big update for traders to digest. The specialty pharmaceutical company was awarded an initial contract of up to roughly $3.6 million by the U.S. Army. The deal is for the purchase of AcelRX’s DSUVIA supporting a study to help develop certain clinical practice guidelines.
If you’ve followed our coverage on the company recently, you’ll remember AcelRX’s last update. DSUVIA, was added to the Department of Defense’s Joint Deployment Formulary. Vince Angotti, CEO of AcelRx said, “This award is in addition to expected purchases from the U.S. Army for the initial stocking of their medical assemblages, sets, kits and outfits for troop deployment, as well as potential orders from other branches of the military following the recent approval of DSUVIA onto the Joint Deployment Formulary.”
We touched on this penny stock over the weekend, highlighting the recent surge of volume that ACRX stock has seen. Since September 14th, ACRX stock has been on the move. Shares have managed to climb from around $1.12 to highs this week of $2.13. Will today’s news continue the trend?
Penny Stocks To Buy [or avoid]: Fortress Biotech, Inc.
Fortress Biotech, Inc. (FBIO Stock Report) is no stranger to momentum. But again, in light of it’s epic move this quarter, it might’ve not been on the radar of high-volatility day traders. needless to say, you can’t ignore the massive move FBIO stock has made so far. Since the start of the third quarter, shares have climbed nearly 80%. It also is a continuation of the overall bullish move FBIO stock has made since the end of the 1st quarter of the year. Fortress Bio’s strategy is all about collaborations and founding key biotech companies.
This week, one of its companies, Mustang Bio (MBIO Stock Report) made a key update. Mustang announced that the FDA granted it Orphan Drug Designation to its MB-207. This is the company’s gene therapy for patients with X-linked severe combined immunodeficiency. Orphan Drug Designation is granted to drugs intended for safe and effective treatment of rare diseases affecting less than 200,00 people in the U.S. The FDA previously granted Rare Pediatric Disease, Orphan Drug and Regenerative Medicine Advanced Therapy Designations to MB-107 for the treatment of XSCID in newly diagnosed infants. Additionally, the European Medicines Agency granted Advanced Therapy Medicinal Product Classification to MB-107.
Furthermore, Mustang said it expects to file an investigational new drug application with the FDA in the 4th quarter of the year. Mustang will file this to begin a multi-center pivotal Phase 2 clinical trial of MB-207 in this patient population.