Penny Stocks To Watch After Recent Volume Spikes
Penny stocks come in all shapes and sizes. Well, really all prices under $5 and industries, to be specific. Looking for penny stocks under 10 cents? You’ll find some. How about penny stocks between $4 and $5? There’s a stock for that. While these might seem like cheap stocks to buy and treat it like a casino, there’s a strategy you can actually employ to be consistently profitable with penny stocks.
Price is just one aspect of it. There’s a lot more to take into consideration before you go and buy penny stocks. The first step is weighing your risk and reward. While penny stocks under 10 cents might seem attractive because of their low price, volatility plays a huge role. For example, let’s say you’ve got a stock trading at a penny.
- 3 Best Penny Stocks To Watch Right Now; 1 Up Over 160% In October
- What Are The Best Penny Stocks To Buy Right Now? 5 To Watch In Tech
- 5 Hot Penny Stocks To Watch Ahead Of A Stimulus Decision
A move up of just half a penny is worth a 50% gain to your portfolio. Then again, that same move in the other direction just cut your holdings in half. The lower the price, the less price movement it takes to reap significant percentage gains. Again, while penny stocks under 10 cents might seem attractive, they aren’t for everyone.
Do You Day Trade Penny Stocks?
Similarly, you can also see higher-priced penny stocks that experience similar volatility due to their share structure. Earlier today we posted an article about low float penny stocks. The float refers to the number of shares freely trading in the retail public’s hands. It doesn’t include restricted shares or unregistered shares. The fewer the number of shares in the float, the more that volume plays a role.
It all goes back to supply and demand. Lower supply (low float) and higher demand (more buying) tend to rapidly push prices higher. Similarly, low float penny stocks can crumble with slightly above average selling volume as well. So if you’ve got stocks under 10 cents with large floats, they might not fluctuate as dramatically as a very low float $4 penny stock. At the end of the day, it’s all about weighing your risk against potential reward.
In addition to share structure, you’ll also want to observe potential catalysts as well. These are things like news, filings, rumors, industry events, etc. All of which can impact the stock or sector stocks as a whole. Keeping all of this in mind, are any of these on your list of penny stocks to watch before the Tuesday morning opening bell?
Top Penny Stocks To Watch
- GT Biopharma Inc. (GTBP Stock Report)
- 22nd Century Group Inc. (XXII Stock Report)
- Cleveland BioLabs (CBLI Stock Report)
- Acorda Therapeutics (ACOR Stock Report)
- Aptinyx Inc. (APTX Stock Report)
Top Penny Stocks To Watch #1: GT Biopharma Inc.
Shares of GT Biopharma Inc. saw another heavy volume day with a slight bit of consolidation before the closing bell. Despite this, GTBP stock remained in its recent uptrend, overall, that began a few weeks ago. The last week of September saw shares trading around $0.16. Since then, the biotech penny stock has managed to climb as high as $0.25 and currently sits above $0.20. A big point of focus for traders has centered around GT’s GTB-3550 treatment and, more specifically its combination protein that bridges an immune cell and a tumor cell to drive tumor cell killing power exponentially referred to as TriKE™. This is the platform that GTB-3550 is built on.
GTB-3550 has initially targeted treatment for acute myeloid leukemia. Its interim results were also selected for presentation at the 62nd (ASH) American Society of Hematology Annual Meeting. While the meeting is set for December, the company pointed out that in addition to the presentation, “your abstract will also be published online in November supplemental issue of the journal Blood”. The first publication will be in the online ASH meeting program on November 5, 2020.
TriKE™ itself has been evaluated in ovarian, breast, prostate, pancreatic ductal adenocarcinoma and lung cancer models. In light of this, the company recently brought on new Advisory Board members to help expand the therapeutic indications for TriKE ™ to non-hematologic cancers such as prostate.
With a strong focus on cancer stocks this month, the recent surge in volume, and several key updates, will GTBP be on your list of penny stocks to watch right now?
Top Penny Stocks To Watch #2: 22nd Century Group Inc.
22nd Century Group Inc. has gained ground in a similar fashion to GTBP. Right around the same time in late September, shares of XXII stock began climbing. Just recently, it has experienced a bit of consolidation yet volume has remained higher. One of the main initiatives for 22nd Century is obtaining FDA authorization for its VLN modified risk tobacco product.
Securing FDA marketing authorization for this product is a top priority of the company and has been the source of speculation in the stock market. Last week, 22nd Century was granted a new U.S. patent related to the reduction of nicotine in the tobacco plant. This now gives the company a way to bring very low nicotine traits into virtually any variety of tobacco.
Meanwhile, this week the company’s news cycle continued impressing investors. The director of the Center for Tobacco Products at the FDA, Mitchell R. Zeller, will provide an update on the FDA’s Comprehensive Plan for Tobacco and Nicotine Products at the Food and Drug Law Institute’s Tobacco and Nicotine Products Regulation and Policy Conference on Wednesday October 21, 2020 at 11:15 a.m. ET.
22nd Century’s VP of Regulatory Science, John Pritchard, will participate in the conference’s “Nicotine and Harm Reduction” panel this Thursday. The company’s president and chief operating officer, Michael Zercher, and Steven Przybyla, general counsel and corporate secretary will also be in attendance.
Top Penny Stocks To Watch #3: Cleveland BioLabs
Cleveland BioLabs is another one of the penny stocks to watch right now. The attention comes after the company’s latest update during the aftermarket hours on Monday. Cleveland BioLabs and Cytocom released an agreement to combine their businesses in an all-stock deal. Cytocom is a biopharmaceutical company focusing on immune-modulation.
“We believe that the merger with Cytocom is the ideal way to unlock the value of our technology platform and our lead drug candidate, Entolimod, and I look forward to seeing this exciting new therapy advance through the clinic.”Dr. Andrei Gudkov, Chief Scientific Officer of Cleveland BioLabs.
This is the first notable development from the company in months. In light of this recent biotech roll-up, will CBLI stock begin surging once again like it did earlier this year?
Top Penny Stocks To Watch #4: Acorda Therapeutics, Inc.
Acorda Therapeutics has been another one of the penny stocks to watch here and there. However, its overall trend has been relatively flat for the better part of this year. Will that end up changing this week? We’ll have to see how the market reacts to the latest update from the company.
After the closing bell on Monday, Acorda there weren’t any headlines. However, a quick look at the company’s filings and you’ll see some interesting information. An 8-K filing shows that the company was entitled to receive $15 million as a milestone payment from Biogen International GmbH under its license agreement with Biogen.
This is based on Biogen’s ex-U.S. net sales of Fampyra exceeding $100 million over the four consecutive quarters ending with the third quarter of 2020. The company expects to receive the payment by the end of October 2020.
We’ll have to see if the company comes out with any further updates regarding this development. Needless to say, ACOR stock began taking off after the close. Can this continue heading into Tuesday’s opening session?
Top Penny Stocks To Watch #5: Aptinyx Inc.
Aptinyx Inc. announced in June that it had completed enrollment in a Phase 2 exploratory study of NYX-783. This was to evaluate the safety and efficacy of NYX-783 in patients with post-traumatic stress disorder (PTSD). Late 2020 was the slated timeframe for reporting data from the study. As we know, readouts from biotech companies can be a high-risk scenario. Favorable results tend to spark bullish momentum but negative results could give a crushing blow to biotech penny stocks.
Coincidentally, Monday, Aptinyx reported top-line data in the Phase 2 study. According to the update, NYX-783 demonstrated “statistically significant and clinically meaningful” efficacy results and a favorable adverse event and tolerability profile. Based on these results, the company expects to initiate a pivotal study in 2021.
“Although few drugs have shown efficacy in PTSD, this study of NYX-783 has demonstrated preliminary evidence of clinically meaningful effect along with excellent tolerability. These data position NYX-783 as a promising therapeutic candidate moving into further clinical development, which is welcomed news for the underserved patients currently living with PTSD.”Murray Stein , MD, MPH, FRCPC, Distinguished Professor of Psychiatry and Public Health and Vice Chair for Clinical Research in Psychiatry at the University of California San Diego and a consultant to Aptinyx