5 Penny Stocks to Watch In October 2020
Penny stocks have been very popular for quite some time. There are several reasons why this is the case. For one, the opportunity to make large gains quickly is highly present amongst some penny stocks. This is due to the volatile nature of small-cap companies. Investors should also note that the opportunity for big losses is also just as present. With penny stocks, it truly comes down to finding a company that matches one’s portfolio and investing style.
So, the first step in finding the best penny stocks is to identify what type of investor you are. When it comes to the types, there are two main schools of thought. Both of these strategies have to do with the time frame of investing. On one hand, we have the short term day or swing traders.
These types of traders look for companies that will make big moves during the trading day or in a few days. This can be a solid strategy to use, but you have to make sure that you’re watching your portfolio very closely. In addition, these traders are looking for companies with high volatility and high volume. Volatility can mean large swings in price, and volume can make it easy to enter and exit positions.
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On the other hand, we have longer-term investors. These are people that look for companies with a long-term future in mind. While volatility is not so much a focus, it is something that investors usually stray away from. With these two strategies in mind, let’s take a look at some penny stocks to watch in October.
Penny Stocks to Watch Under $4.50: Opko Health Inc.
Opko Health Inc. (OPK Stock Report) is one of the top biotech penny stocks to watch recently. In fact, since the start of the year, OPK stock has climbed as much as 334% to highs of $6.47. This is quite a substantial gain and shows just how much bullish interest there is in the company. With a market cap of around $2.6 billion, Opko is by no means a small company.
But, it has shown some big performance this year. The company has what is known as the BioReference Platform is reportedly the third-largest full-service clinical laboratory in the world. With this, it has been able to make some big strides in the industry. In its second quarter, the company reported a 45% year over year growth in its prescriptions category.
This has to do with Opko’s flagship drug, RAYALDEE. Since the drug was launched, more than 20,000 patients have been prescribed it by over 3,200 doctors. In addition, the company is working on getting approval to sell this drug in Europe. What’s more interesting is that the company’s been working on seeing how useful RAYALDEE can be in treating those with COVID-19.
Because of its role in the fight against COVID, many believe that Opko Health could be a major contender. Of course, a lot of this depends on how quickly it can gain approval to use this drug to treat COVID. Needless to say, over the last 5 sessions including today, OPK stock posted new highs and closed green.
Penny Stocks to Watch Under $4.50: Boxlight Corp.
Boxlight Corp. (BOXL Stock Report) is a penny stock that has been taking the market by storm during the past few months. The company recently announced that it had received a $22 million investment from NY-based fund The Lind Partners. The goal with this capital is to be able to grow steeply in the near future.
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CEO of the company, Michael Pope stated that “specifically, we are targeting companies for acquisition that will either increase our global footprint or enhance our solutions portfolio for the education market. Potential candidates will be immediately accretive, generate significant revenues, produce positive earnings, and exhibit substantial growth potential.”
On the heels of this, the company began acquiring companies and assets. This included three LAN based screen sharing patents and one pending patent application from Circle Technology, Inc. Boxlight also announced the acquisition of Sahara Presentation Systems for $94.9 million
Since April of this year, BOXL stock has shot up by over 240%. In addition, during intraday trading on September 5th, BOXL stock shot up over 14%. All of this data shows that there is a great deal of bullish sentiment behind Boxlight Corp. Whether or not it can keep this momentum up in the future remains unknown. For now, however, it continues to be touted as a penny stock to watch.
Penny Stocks to Watch Under $4.50: Xtant Medical Holdings Inc.
Xtant Medical Holdings Inc. (XTNT stock Report) is one of the penny stocks we’ve covered recently. If you remember, this is one of the big movers from last week. XTNT stock ended up racing from under $0.90 to highs of $2.50 before coming back to a range between $1.40 and $1.50. The company announced the closing of its debt restructuring that had been in motion this year.
“We are pleased to have completed this debt restructuring transaction, which significantly reduced Xtant’s total indebtedness to less than $16 million under our credit facility, lowered our cost of debt to more serviceable levels, and will allow us to focus on further improving the Company’s operating model and growth profile,” said Sean Browne, President, and CEO of Xtant Medical.
As a result of the deal, the fund affiliates of OrbiMed Advisors LLC own 94.5% of Xtant’s outstanding shares. While this transaction essentially could give Xtant a new lease on life, it doesn’t give all other shareholders much control. On Monday all of the related filings came out confirming this with Orbimed Advisors LLC triggering a strong move after hours. Will this momentum continue into Tuesday’s session?
That will be something to keep in mind in light of these recent developments. Also, take into consideration that XTNT stock has a history of jumping big and then pulling back just as aggressively. So, volatility has definitely played a bigger role in this penny stock.
Penny Stocks to Watch Under $4.50: YRC Worldwide Inc.
YRC Worldwide Inc. (YRCW Stock Report) is a company that is comprised of several well-known brands. This includes companies such as Holland, YRC Freight, HNRY Logistics, and more. Because it is a transport and logistics company, YRCW stock has seen a lot of bullish sentiment in the past few months. With COVID leading to more people at home than in many years prior, more people are getting products shipped to their homes.
The company recently announced that it has entered into an agreement with the U.S. Treasury Department to receive a $700 million loan. The loan, which is a part of the CARES Act, should help to keep the company afloat and thriving during this difficult time. YRC employs more than 24,000 Teamster employees which is a very substantial amount of workers.
As a result, the government has been more than willing to offer these funds to help ensure that these employees do not get laid off. In addition, YRC Worldwide will be able to update its fleet of delivery vehicles, ensuring that they are up to date with the most current tech.
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CEO of YRC, Darren Hawkins stated that “we would like to thank Congress for passing the CARES Act and the U.S. Department of the Treasury for providing this vital funding which recognizes the essential role YRCW plays in the nation’s supply chain. Through our work with over 200,000 customers, including being a leading transportation provider for the departments of Defense, Energy, Homeland Security, and Customs and Border Protection, YRCW’s freight professionals have developed a deep understanding of, and expertise in, the importance of a secure and reliable supply chain.”
Penny Stocks to Watch Under $4.50: Glycomimetics Inc.
Glycomimetics Inc. (GLYC Stock Report) is relatively quiet in comparison to some of the names on this list. However, it wasn’t that way after the company’s latest update on Monday. GlycoMimetics has two late-stage clinical development programs and a pipeline of glycomimetic drugs.
These address unmet medical needs resulting from diseases in which carbohydrate biology plays a key role. The company’s drug candidate, uproleselan was evaluated in a Phase 1/2 clinical trial as a potential treatment for acute myeloid leukemia (AML). It’s also being evaluated across a range of patient populations including a Company-sponsored Phase 3 trial in relapsed/refractory AML under breakthrough therapy designation.
The company’s exploring the Rivipansel treatment for acute vaso-occlusive crisis in Sickle Cell Disease. This is the point of focus for Monday’s update. Glycomimetics announced that the FDA granted the company Rare Pediatric Disease designation for Rivipansel. Rachel King, Chief Executive Officer said, “We plan to roll out the full data set from the Phase 3 RESET program at upcoming medical meetings, based on the acceptance of abstract submissions.”
After the closing bell, shares of GLYC took off during extended hours. The penny stock hit an early aftermarket high of $4.36. Considering this news came out after the market closed, it will be interesting to see how the sentiment is, come Tuesday morning.
