These Penny Stocks Are Turning Heads In October & 2020 In General
We can finally say that October is off to a running start and penny stocks are leading the charge. More specifically speaking, small cap stocks are gaining a lot of interest. I’m not just saying that because of the volume in some of the big breakouts we’re seeing. It’s in black and white. Just look at the ETF trends right now. One example is the Russell (IWM Report):
If you look at the IWM, you’ll not only see the chart climbing, you’ll also notice something in its volume. It has been consistently rising since the end of September. Now look at the S&P ETF (SPY Report):
Notice something different? While the price is climbing, it isn’t to nearly the same extent as IWM. Furthermore, you’ll notice a volume trend that is almost the exact opposite of IWM. Does this suggest traders are rotating into small-cap stocks and out of large-cap stocks right now? That argument might be able to be made especially after what we’ve seen in the stock market recently.
Penny Stocks To Watch
- GT Biopharma Inc. (GTBP Stock Report)
- Selecta Therapeutics (SELB Stock Report)
- Lipocine Inc. (LPCN Stock Report)
- Hexo Corp. (HEXO Stock Report)
This doesn’t mean to start investing in penny stocks for the long haul. We’ve still got tons of volatility in the stock market. Today alone we saw why it’s important to stick to a strategy when high-volatility is in play. Fast-moving stocks tend to be better as trades than investments. Now, not all penny stocks moving that way are “bad” to invest in.
However, the trends might need to develop a bit further. Given that aspect, for a longer-term approach to penny stocks, consistency and trend strength are key. Also looking for potential short and long-term catalysts become more important. No matter what your approach is to trading, the goal is the same and that is to make money. Will you put these on your list of top penny stocks to watch tomorrow?
Penny Stocks To Watch #1: GT Biopharma Inc.
GT Biopharma Inc. saw one of its biggest days of the month so far. The immuno-oncology company has been captivating a lot of attention after its recent trial update. This is specifically pertaining to its lead candidate, GTB-3550 in patients with acute myeloid leukemia -AML. The company’s TriKE™ platform is the backbone of GTB-3550. TriKE™ is combination protein that bridges an immune cell and a tumor cell to drive tumor cell killing power exponentially.
It has led to new first-in-human phase studies to treat leukemia. It has also shown potential for indications in ovarian, breast, prostate, pancreatic ductal adenocarcinoma and lung cancer models. The basis for TriKE™ is to present a true, off-the-shelf option for treating a multitude of immune diseases without the costly impact of multiple specialized treatments.
The recent surge of momentum stems from GT completing the treatment of the first patient enrolled at Dose Level 3 in its GTB-3550 TriKE™ Phase I/II clinical trial. Not only does this mark the halfway dose in this part of the trial, but the results also proved favorable. This dose was at a 25mcg/kg/day dose, which showed a decrease in AML blast levels from 18% to 12% in the bone marrow. The dose also didn’t demonstrate any adverse impact to the patient.
What’s more is that this week the company announced it entered into a Master Services Agreement with Cytovance Biologics, Inc., a subsidiary of Shenzhen Hepalink Pharmaceutical Group Co., Ltd. Cytovance will become the exclusive manufacture for three of the Company’s TriKE™ therapeutic product candidates. Cytovance will manufacture TriKE™ using Cytovance’s proprietary Keystone® bacterial or mammalian expression systems. On the heels of this news, GTBP stock has climbed to new October highs of $0.22. Will this surge continue though the rest of the week? Year-to-date, GTBP has managed to make a consistent move of just over 100% so far. For more information on GTB-3550 & the TriKE™ Click Here.
Penny Stocks To Watch #2: Selecta Therapeutics
Selecta Therapeutics was one of the biotech penny stocks we watched at the end of September. This was in anticipation of topline data for the Phase 2 COMPARE trial comparing the efficacy of SEL-212. As we always explain, when data is good in the case of GTBP, for instance, the market tends to react favorably. However, in SELB stock’s case, it didn’t fair as well. This gout treatment did not show statistical superiority, its primary target, against Horizon Therapeutics’ Krystexxa. But that’s not what we’re looking at right now.
In fact, after dropping, SELB stock has made a much faster comeback than most that miss endpoints in trials. Late Thursday afternoon, Selecta’s latest development took shares much higher during afterhours. In fact, SELB jumped so high that it almost filled the drop-down gap that was created from that bad PR.
What was announced? Selecta and IGAN Biosciences, Inc. entered into a Research License and Option agreement to study Selecta’s ImmTOR™ immune tolerance platform in combination with IGAN’s immunoglobulin A (IgA) protease for the treatment of IgA Nephropathy (IgAN). In advance of exercising its option to enter into an exclusive license agreement, Selecta will conduct preclinical research to evaluate the utility of the combination of ImmTOR and IGAN’s IgA protease.
According to the company, previous studies in animal models conducted at independent laboratories established the ability of IGAN’s IgA protease to remove injurious IgA from kidneys. Will SELB stock be on the list of penny stocks to watch tomorrow?
Penny Stocks To Watch #3: Lipocine Inc.
Lipocine Inc. is on our list of Top Biotech Stocks To Watch For October 2020. One of the main reasons has everything to do with a long-awaited event. It actually stems from late last year. Lipocine stock had dropped below the $1 after a big miss. Its TLANDO treatment is an oral testosterone product candidate for testosterone replacement therapy. It didn’t meet the 3 secondary endpoints for maximal testosterone concentrations.
Fast-forward to recent and momentum has begun to build once again. Furthermore, even after dipping in September, LPCN stock is up over 300% to date. Regardless of this fact, we still have something to keep in mind and it could be a very big “something”. While the company has other pipeline treatments like its LPCN 1144 for steatohepatitis the top thing to keep in mind for October is TLANDO. Back in August, the FDA said it needed more time to review the company’s New Drug Application for the treatment. This NDA was a big point of focus earlier this year.
“Although the FDA did not provide a timeline on a new action date, the FDA informed the company that the review is expected to be completed in the coming weeks,” Lipocine said in an August 28th PR. This, however, can also pose a high risk if there’s a negative outcome. So if LPCN stock is on your list, there’s a lot of moving parts to keep in mind heading into October.
Penny Stocks To Watch #4: Hexo Corp.
What list of penny stocks would be complete without one of the pot stocks to watch right now. Hexo Corp. is one we’ve discussed for months. Despite its trading sideways, overall, HEXO stock has made a decent channel for itself between $0.68 and $0.78 for months. This is likely what has attracted the day trading crowd to the marijuana penny stock in the first place. Aside from what the company’s got going on, the entire cannabis sector is cruising higher (for now) after Wednesday’s Vice Presidential debate.
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During election years, the topic of legalization has remained in focus. Comments made were enough to spark a strong boost across the entire sector. Vice Presidential nominee, Kamala Harris said marijuana would be decriminalized at a federal level in the United States under a Biden administration. She also explained that the Biden administration would also expunge the criminal records of people convicted of marijuana-related offenses in the past.
The biggest question now is can it continue? This is a speculative sector-based move. There’s no idea who will win the presidency right now and with about a month left until election day, the sector itself might continue experiencing bigger volatility. For now, however, HEXO could remain one of the marijuana penny stocks to watch at least heading into the Friday session. In any case, share marked a new October high of $0.75 during the regular session and $0.81 after-hours.