Looking For Penny Stocks to Buy? These Were Taking Of Friday Morning
Whether you’re looking for penny stocks to buy now or just putting together your watch list, I’m sure you looking for trends. Whether it’s high volume stocks or companies with penny stock news, finding potential catalysts is a good place to start. Needless to say you’ve got plenty of different things to look at. Some traders will even look at certain chart patterns indicating either bullish or bearish trends.
So why penny stocks? The real idea behind penny stocks is to make money quickly. As such, you typically find people trading them versus investing in penny stocks. These traders are able to leverage smaller sums of money for quicker and greater returns that typical blue-chips. Now, keep in mind, with new things like “fractional shares,” people can buy into part of higher-priced companies for pennies.
This much is true but the returns, in general, aren’t nearly as fruitful. For instance, someone buying fractional shares of Tesla will own a percentage of 1 share of TSLA stock. That’s great, and for this example, let’s say someone bought $100 worth of Tesla. Now, let’s say Tesla stock moves up 10 cents. That’s a nominal move for TSLA and one that is a blip on the map on your P&L. On the flip side, let’s say you bought $100 worth of shares of a $0.40 stock.
That would give you 40 shares. If that stock simply moves up by 10 cents, the trader’s looking at a 25% gain altogether. As far as long-term investing, maybe fractional shares are a way to gain some exposure. But for trading to make quick money, stocks under $5 have far outperformed on a day-to-day time frame. With that being said, it’s important to exercise caution as these “10 cent moves” can go in both directions. Are these top penny stocks to buy today in light of recent trends?
Penny Stocks To Buy [or avoid]: Westwater Resources Inc.
Westwater Resources Inc. (WWR Stock Report) has been wrapped into the lithium and “rare earth metals” conversation this week. Not only is there pent-up demand for lithium to meet EV production milestones, the government recently issued a Rare Earth Mining executive order. The Order essentially outlines and expands the production of rare earth minerals. These are ones “vital” to numerous manufacturing sectors. Through the Order, the Department of Defense has been tasked with boosting the production of rare earths.
Westwater explores and develops mineral resources that are materials essential to clean energy production. It holds minerals rights in the Western United States and the Republic of Turkey for both lithium and uranium deposits, as well as licensed production facilities for uranium in Texas.
Late in the third quarter, Westwater’s uranium assets came into focus. The company announced that it entered into a binding letter of intent with enCore Energy Corp. to acquire all of Westwater’s United States uranium assets. Westwater is taking up a full-court press to focus on advancing its battery-grade graphite production business including its Coosa Graphite Project in Alabama. Over the last few weeks, WWR stock has soared on the heels of Tesla’s Battery Day excitement.
Penny Stocks To Buy [or avoid]: Guardion Health Sciences
Guardion Health Sciences (GHSI Stock Report) has been trying to reclaim some of its losses from over the summer. What started with some negative sentiment stemming from its recent earings, compounded after Guardion announced a registration of “up to” $75 million in stock.
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. The Chairman of Guardion, Robert N. Weingarten stated in the company’s recent earnings that “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.”
While this is yet to be expanded upon, there is an upcoming event to keep in mind. That is the Guardion’s Annual Meeting. There are four matters scheduled for a vote. One of these is to effectuate a “reverse stock split,” at a ratio within a range of no split to a maximum of a one-for-thirty split. Needless to say, Friday’s action is evident with GHSI stock breaking out strongly during the morning session. The biggest question is can the momentum continue through October?
Penny Stocks To Buy [or avoid]: Sesen Bio Inc.
If you remember the article “Making A List Of Penny Stocks Right Now? 4 Spiking This Week” Sesen Bio Inc. (SESN Stock Report) had just hit our radar for the year. Excitement initially originated from Sesen receiving a product-specific pediatric waiver from the European Medicines Agency for its Vicineum™. This is the company’s lead product candidate, which is currently in the follow-up stage of a Phase 3 registration trial.
Fast-forward to more recent weeks and SESN stock continues heading higher. Since July, the penny stock has moved up from around $0.96 to highs of $1.54 at the end of the third quarter. One of it’s more recent developments came when Sesen announced an exclusive licensing deal with Qilu Pharmaceutical. The two plan on developing and commercialization Sesen’s Vicineum treatment for certain types of bladder cancer.
What’s more is that several filings at the end of September show additional, key milestones reached by the company. On September 29 Sesen received $10.0 million in net proceeds associated with the $12 million upfront payment due under its Exclusive License Agreement with Qilu Pharmaceutical Co., Ltd.
In addition, the company successfully completed the final of three commercial-scale Drug Product process performance qualification manufacturing runs for Vicineum™ with its contract manufacturing organization partner, Baxter Oncology GmbH.
Penny Stocks To Buy [or avoid]: Solid Biosciences
After a wild day yesterday, Solid Biosciences (SLDB Stock Report) has gone into recovery mode. A huge gap up premarket followed by a massive sell-off on Thursday left a bad taste in the mouths of traders jumping into a hype-fueled move, early in the day. As we discussed in our premarket update, morning gappers should generally be taken with caution.
All-too-often we’ll see these early movers perform well during premarket. But then when the bell rings, a sell-off ensues yet some traders still buy in hopes that the market will recover. SLDB stock was a clear example of why it’s important to wait and see how a trade sets up especially considering the huge gap up.
On Friday, however, Solid Biosciences stock has managed to hold its higher levels for now. At the open, shares began trading at $3.35 and have since come close to testing the $4 mark. On Thursday, the company reported that the FDA lifted the hold on its clinical trial based on its response to the FDA’s requests. Carl Morris, PhD, Chief Scientific Officer at Solid Biosciences said, “We are working diligently to complete all activities necessary to resume dosing, which we expect to occur in the first quarter of 2021.”
Friday, Solid Biosciences announced that management will participate in a virtual fireside chat at the Chardan 4th Annual Genetic Medicines Conference next Tuesday after the close.
Penny Stocks to Buy [or avoid]: CTI Biopharma Corp.
One of the top biotech penny stocks we’ve discussed recently was CTI Biopharma Corp. (CTIC Stock Report). It’s actually been on the list since December when shares experienced their first big move at the end of last year. Fast-forward to recently and CTIC stock has reached highs not seen since 2018 and from December, CTI has climbed by as much as 225% as of its Friday morning highs.
The company develops several treatments for blood-related cancer. CTI has stated that blood cancers have a distinct need that has not been met by popular biopharmaceutical companies as of yet. In the company’s late-September update, CTI reached an agreement to submit an NDA for potentially accelerating approval of its pacritinib treatment. This the company’s candidate to treat myelofibrosis patients with severe thrombocytopenia.
Since then, the stock has been flying. One thing to note is that since it has become so extended and it’s trading at levels of previous resistance/support in 2018, this could be an important level to note. Will CTIC manage to establish itself above $3 in October or is there a pullback in store. Keep in mind that even since our September 30th update, shares are up nearly 40%.