3 Penny Stocks To Watch Before Next Week
Can you make money in penny stocks? The quickest answer to that is yes you can but you’ll need a few things first. Prior to looking for penny stocks to buy, you’ll need to understand how to actually trade. Getting the proper education is just as important as picking penny stocks. Without a keen understanding of how to navigate the market, you’re relying solely on luck. That’s not the best method for trading penny stocks. So, first, get some education on how to trade.
Once you’ve got a handle on that, it’s time to find a broker for penny stocks. You’ve got plenty to choose from. Just make sure it allows you to trade certain penny stocks. Robinhood and Webull, for example, limit users to NYSE and NASDAQ penny stocks; not OTC stocks.
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You’ll also want to understand the different fees (if any). Depending on the size of your account, fees can play a bigger role. Then, once you’ve got that down, you’re ready to start trading, technically. When it comes to penny stocks, they can react opposite of the broader markets.
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For instance, late in the afternoon on Wednesday, Senate Leader Mitch McConnell said that Republicans and Democrats were “far apart” on coronavirus relief. Most blue-chip stocks and, in turn, the broader markets sold off. However, that doesn’t mean everything dropped.
In fact, if you look at many of the stocks under $5, it was as if nothing had happened. This is the beauty of these cheap stocks but again, knowing how to trade penny stocks is key. Yes, you can make money with them but strategy is important. With this in mind, are any of these on your list of penny stocks this week?
Top Penny Stocks To Watch: Soleno Therapeutics, Inc.
Soleno Therapeutics, Inc. (SLNO Stock Report) was stuck, more or less, in a sideways trend for the last 3 months. Following a massive drop from over $3.50 to under $1.60, SLNO stock established a channel between $1.60 and $2.30 since June. What sparked the initial drop was a late-stage trial miss.
Fast-forward a few months and Soleno was able to raise over $57 million at a price of $1.65 per share. The main use of funds was for R&D and advancement efforts primarily focused on advancing its lead candidate, Diazoxide Choline Controlled-Release tablets for the treatment of Prader-Willi Syndrome.
This week, things were much more active. First, Guggenheim initiated coverage on the stock giving it s Buy rating. The firm also issued a price target of $8. One day later, Soleno announced a key update. During the afternoon session, the company announced that updated top-line results from its Phase III trial, DESTINY PWS (C601), evaluating once-daily Diazoxide Choline Controlled Release (DCCR) tablets for patients with Prader-Willi Syndrome (PWS), were highlighted in an oral presentation by Jennifer L. Miller, M.D. She’s a professor in the Division of Pediatric Endocrinology at the University of Florida, at the Foundation for Prader-Willi Research Annual Research Symposium. This is the same trial it missed its endpoint on, in June.
“These compelling updated data bolster our confidence in DCCR’s safety and efficacy profile in PWS,” said Anish Bhatnagar, M.D., Chief Executive Officer of Soleno Therapeutics. “We continue to treat patients in study C602, our open-label extension. As we have previously communicated, we expect to meet with the U.S. Food and Drug Administration before year-end to determine next steps and a potential path forward to address the unmet need for a safe and effective treatment option for PWS patients.”
Top Penny Stocks To Watch: Sintx Technologies Inc.
Another one of the penny stock breaking out while the market breaks down is Sintx Technologies Inc. (SINT Stock Report). The penny stock is no stranger to big moves. We started following along in late March and a lot has happened since then. While the trend has been bullish, the biggest move in SINT stock came in late-June.
The move and larger level of attention came after the company’s silicon nitride powder showed positive effects on “inactivating” SARS-CoV-2. Since then the company has focused on evolving its offering and building it on its silicon nitride platform.
Earlier this month the company announced new studies confirming that its material inactivates SARS-CoV-2. It also was able to inactivate the Influenza A virus that is responsible for the common cold. Since the, there haven’t been many further updates from the company. However, this breakthrough for medical and non-medical applications demonstrated the potential of its powder.
Something else to note is that Sintx said it was in discussions with ‘prospective partners interested in developing a variety of products, such as automotive parts, cell phone cases, air filters, and medical PPE.” Considering the fact that COVID-19 remains prevalent in society now and for the foreseeable future, SINT and other coronavirus penny stocks could remain a focus.
Top Penny Stocks To Watch: Sundial Growers Inc.
Sundial Growers Inc.(SNDL Stock Report) also saw some unusual volume on Wednesday. The marijuana penny stock has been beaten down ever since announcing a $20 million offering at $0.50. While cash is great for public companies financings can leave a bad taste in investors’ mouths. In this case, the penny stock was trading well-above 50 cents at the time the initial financing was announced. The market reacted in bearish fashion and a sell-off ensued. SNDL ended up hitting new 52-week lows of $0.1651 last week.
This week, some attention was on Sundial. The company took part in one-on-one sessions at the Alliance Global Partners Consumer Cannabis Conference on the 29th. Aside from that, there haven’t been many new updates from the company direction.
Obviously, the sector is seeing some excitement in light of the latest focus on the SAFE Banking Act. In particular, the Democrat-backed HEROES 2.0 package for stimulus relief includes some verbiage on the matter. The SAFE Banking Act would allow banks and other financial institutions to work directly with state-legal marijuana businesses.
While Sundial is a Canadian-based company, the idea that the entire cannabis sector could experience another “event” has seen bullish sentiment grow.