Are These On Your Penny Stocks List This Week?
What a wild week it has been for penny stocks. September is really one of the craziest months of the second half so far. First, it was a month with fewer trading days. Second, we also saw an uptick in general market concern amid a potential second-wave of COVID. On top of this we also have a number of key economic data that has spawned its own share of mixed responses to the market.
Needless to say, this week, the small cap portion of the stock market is gaining some big attention. This comes as SPI Energy, Sunworks, Peck, and other penny stocks took off screaming this week. Heading into the end of the week, we’re seeing a rebirth of interesting in these tiny stocks. What has begun with sympathy stemming from Tesla’s Battery Day, has now turned into sympathy from small caps in general.
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So, the focus now should be on how to capitalize on this momentum. If you’re new to trading penny stocks, we need to set some groundwork, first. I know there are plenty who’ll read an article and immediately go out and trying to place a trade. However, because of the rampant activity right now, researching why a stock is moving is just as important.
How To Research Penny Stocks
Here’s an example from today, actually. There was a company this morning, Nano Dimension, who’s stock began skyrocketing. News was posted on brokerage sites identifying the company’s supposed involvement with a battery maker. For those who took a moment, stepped back, and researched the penny stock quickly found that there were different companies with similar names.
NanoDimension (no space) is a capital company that made the investment. The other business was associated with a different model entirely. Once traders started to actually figure this out instead of continuing to buy more, that penny stock plumetted. Anyone who bought the hype without researching first likely ended up losing on that trade.
We also so this earlier in the year when we talked about Lucid Motors stock. There were rumors that Lucid Inc. (whose name was actually Caliber Imaging & Diagnostics) was going to “become” Lucid Motors. Now, I’ve written about plenty of penny stocks. I can tell you a company will announce such an intention and wouldn’t be quiet or not make any filings for years. (Read: Penny Stocks & Mistaken Identity? Lucid Motors In Focus).
We saw this with Twitter before it went public and well as with Zoom. Mistaken identity can get traders in trouble. So even just a basic search for 10 minutes can save you some stress in the end, no matter how “big” a stock is breaking out. Consider this the first line of defense before looking into filings, technical indicators, or previous corporate developments.
Putting Together Penny Stocks List
Now, when it comes to putting together your list of penny stocks, what I explained above is one way to further render down a broad list into a target list. Next steps are looking into news, filings, and even market sentiment. If a particular industry is “hot,” like we saw with EV stocks this week, there’s likely an even heavier level of momentum fueling sector stocks.
One of the other industries that continues to benefit from momentum is biotech. So keep things in mind like COVID treatment stocks and, lately, cancer stocks. With all of this in mind, are any of these on your list of penny stocks to watch heading into October?
Penny Stocks To Watch: GT Biopharma Inc.
GT Biopharma (GTBP Stock Report) is focused on a novel treatment for immuno-oncology related illnesses. The company’s NK cell engager referred to as TriKE and has been evaluated in ovarian, breast, prostate, pancreatic ductal adenocarcinoma and lung cancer models. Its GTB-3550 is its main pipeline treatment that has garnered attention in recent months. Amid all of the excitement stemming from Gilead’s $21 billion acquisition of Immunomedics, companies like GT Biopharma are gaining traction.
Earlier this week, the company announced that its GTB-3550 TriKE Phase I/II clinical trial completed treatment of the first patient enrolled at Dose Level 3. According to the company, the first patient treated with GTB-3550 at a 25mcg/kg/day dose showed a decrease in AML blast levels from 18% to 12% in the bone marrow.
“We also observed improvement in marrow cellularity, a decrease in AML blast levels, and improving platelet and red blood cells numbers. The patient will be retreated with an additional round of GTB-3550 therapy at the 25mcg/kg/day dose.”
GTB-3550 is being evaluated in patients with acute myeloid leukemia – AML. If you’ve been following biotech stocks recently, you’ll notice that leukemias and lymphomas have gained more attention this year. The Phase I portion of this trial evaluates the treatment’s safety & tolerability. Phase II will evaluate efficacy in the patient population. GT Biopharma has an exclusive worldwide license agreement with the University of Minnesota to further develop and commercialize therapies using proprietary TriKE™ technology developed by researchers at the university to target NK cells.
Penny Stocks To Watch: Evogene Ltd.
Shares of Evogene Ltd. (EVGN Stock Report) saw its shares climbing on Thursday morning. This has been one of the biotech penny stocks we’ve discussed for a while now. As you’ll see on the chart, EVGN stock has experienced a strong move during the second half of 2020 so far. Much of that move has come at the end of August and into September. Early on during the month, the company announced positive pre-clinical results in a study of its BMC128 immuno-oncology product.
Evogene’s subsidiary, Biomica, said it tested BMC128 alone and in combination with immune checkpoint inhibitors and found “significantly improved” anti-tumor activity in mice. The company said the study “indicates that treatment with BMC128 conditions the immune system and primes it for an efficient, well-orchestrated anti-tumor response.”
Biomica has also initiated a scale-up process for GMP production of its drug candidate in its immuno-oncology program. The company expects a first-in-man proof-of-concept clinical trial next year following this year’s pre-clinical studies.
Also keep in mind that at the start of the month, Evogene announced that it entered into a definitive agreement with ARK Investment Management, LLC and Alpha Capital Anstalt in connection with a registered direct offering of $10 million. ARK Invest is a leading technology investment firm, specializing in thematic investing in disruptive innovation. It will invest $7 million and Alpha Capital Anstalt will invest $3 million.
Over the last few weeks, EVGN stock has been consolidating a bit since hitting its 52-week high of $3.74 earlier this week. This consolidation comes after a near-1-month 171% move from late August through this week.
Penny Stocks To Watch: Corbus Pharmaceuticals Holdings Inc.
Corbus Pharmaceuticals Holdings Inc. (CRBP Stock Report) has been trying to mount a comeback for weeks now. The penny stock fell hard this month after a bad trial result. Prior to that, CRBP stock traded over $7 on average, this year. Earlier this month, Corbus reported that the Phase 3 RESOLVE-1 study of its lenabasum treatment didn’t meet its primary endpoint. Lenabasum was targeted for patients with diffuse cutaneous systemic sclerosis.
However, as we always discuss, it’s about the company’s response to the results; not just the results alone. “Once we have a fuller understanding of the data, we would like to engage the FDA to determine potential next steps in the clinical development program of lenabasum in systemic sclerosis. We remain committed to lenabasum and to our additional pipeline programs,” Chief Executive Yuval Cohen said on a conference call discussing the results.
What are traders looking at right now? If you look back in June, the company announced that the last subject completed their final visit in the Company’s Phase 2b JBT101-CF-002 trial of lenabasum for the treatment of cystic fibrosis. Corbus said topline results from the study are on track to readout in the third quarter of 2020. Considering the countdown to the end of the quarter is upon us, will CRBP mount the comeback it’s tried to since plumeting earlier this month?