Are These On Your List Of Penny Stocks To Buy Or Avoid Right Now?
Making a list of penny stocks right now? Whether you’re looking for tech penny stocks to buy, biotech stocks to watch, or other industry names, these cheap stocks are seeing explosive momentum this month. Almost daily, we’re seeing these stocks under $5 skyrocket. While this might seem exciting and sure, it is, you’ve got to keep some things in mind. First, know the type of trader you are.
Are you a scalper, a day trader, a swing trader, etc.? I say this because certain strategies lend themselves to a better outcome than others. Let’s take a swing trader as an example. These are people who look to buy penny stocks and hold them for a day or maybe even a week. Most likely, if you work a full-time job, swing trading is a better suit. But again, don’t forget that this is the style you’re comfortable with.
Trading Penny Stocks Efficiently
If you see a stock like WEI breaking out like it did yesterday, a swing trade approach would end up resulting in a losing trade. The highly volatile, low float penny stock produced the bulk of its gain in a single day. There weren’t any fundamental catalysts to speak of either. Just simple hype and market momentum.
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Instead of $10.20 were WEI was trading at after-hours on Tuesday, the penny stock is back below $3. A big win for scalpers and day traders, but a big “L” for a swing trader. On the flip side, let’s say you’re a scalper; someone who’s in and out of trades in minutes. There’s a stock that begins to spike slightly so you enter the position and it doesn’t move after that. However, over the next 5 days, that stock ends up climbing 50%. As a scalper, you missed the mark. As a swing trader, however, that was likely the perfect trade.
Now, not all penny stocks will react the same way. Also, not all traders are versed in only 1 trading style. But if you have a plan and want to stick to it, one of the things to keep in mind might be the length of time that you plan to be in a trade. In light of this, here’s a list of penny stocks trading more actively this week. Are they on the buy or avoid, side of your list?
Penny Stocks To Buy [or avoid]: Selecta Biosciences Inc.
Selecta Biosciences Inc. (SELB Stock Report) is one of the top biotech penny stocks to watch this month. After ripping lower at the end of September, October has been a considerably strong month for recovery. In fact, as of this week, SELB stock has reclaimed the entire loss from the gap down between the end of September and start of this month.
Something to always look at when it comes to biotech penny stocks is management’s comments after bad results are released. In this case, Selecta’s gout treatment, SEL-212 missed its primary endpoint but showed statistically significant results compared to the current standard of care. What’s more, is that the company’s pipeline advancements also helped spark a rebound in the stock.
Selecta and IGAN Biosciences 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. Then we saw the company and AskBio received FDA Rare Pediatric Disease Designation for their gene therapy for methylmalonic Acidemia; several key milestones in a very short time span.
So why is SELB stock trading higher right now? While there weren’t new headlines, there were new filings to note. One of which was a FORM 4 filing showing Selecta’s Director, Timothy Springer purchased nearly 1.9 million shares between $2.2123 and $2.42 from October 16th through the 20th.
Penny Stocks To Buy [or avoid]: Marin Software Inc.
We discussed low float penny stocks in this article. Marin Software Inc. (MRIN Stock Report) is classified as one of these. The current outstanding share count sits below 10 million shares. By all intents and purposes, that is something I would consider as a “low float penny stock”. In light of that, MRIN shares skyrocketed on Wednesday morning. During premarket trading, the penny stock reached a high of $8. Considering that it was trading below $2 on Tuesday, that’s a huge jump.
What was behind this move? That’s a very good question. While there was a surge in trading momentum on Tuesday, the October 21st session was much more active. There weren’t any news headlines to go along with the massive move in price. But it’s important to note that tech stocks have been gaining some interest recently. As discussed above, MRIN and other low float penny stocks may require a bit more caution especially if short-term trading isn’t a skill you’ve mastered yet. While it is one of the popular penny stocks to watch today, it has already shown to be incredibly volatile. If MRIN in on your list of penny stocks to watch, keep that in the back of your head.
The last formal update from the company was back in August. The company won Paid Search Technology of the Year at the UK Biddable Media Awards 2020 for its new MarinOne platform. This is Marin’s advertising platform designed for digital marketers.
“We’re thrilled to win this prestigious award for the second year in a row. It’s a testament to our R&D team’s hard work in developing MarinOne to meet the challenges facing digital marketers today. Always striving for innovation, we’re excited to launch new features in September. Watch this space for more information on these two great innovations for marketers.”Wesley MacLaggan, SVP Marketing at Marin Software.
Penny Stocks To Buy [or avoid]: Advaxis Inc.
Advaxis Inc. (ADXS Stock Report) is another one of the early movers on Wednesday. The company focuses on commercializing immunotherapy products. We’ve discussed earlier this month about how companies in this niche have gained much more attention recently. It seemed to have begun after the multi-billion dollar buyout of Immunomedics by Gilead for Immunomedics’ cancer portfolio.
There haven’t been any new updates this week. However, earlier in the month the company announced that it would present a poster at the Society for Immunology of Cancer in early November. On the 12th, Advaxis presents, “Phase 1/2 Study of an Off-the-Shelf, Multi-Neoantigen Vector (ADXS-503) Alone and in Combination with Pembrolizumab in Subjects with Metastatic Non-Small Cell Lung Cancer.”
Earlier this year, the company expanded its Phase 1/2 Study of ADXS-503 in NSCLC . This was based on sustained and durable clinical responses in its first two patients from Part B combination arm with KEYTRUDA®.
“These updated data from our ongoing Phase 1/2 study of ADXS-503 in NSCLC increase our confidence that ADXS-503 may synergistically enhance and/or restore sensitivity to checkpoint inhibitors and we are particularly encouraged by the sustained clinical benefit observed, now out to 16 and 25 weeks, in two patients who had immediate prior progression on KEYTRUDA®.”Kenneth A. Berlin , President and Chief Executive Officer of Advaxis
What will be revealed in this upcoming poster presentation next month? We’ll obviously have to follow those developments as they come. For now, however, ADXS is one on this list of penny stocks after experiencing a strong surge during the first half of this week.
Penny Stocks To Buy [or avoid]: Cleveland Biolabs Inc.
Cleveland Biolabs Inc. (CBLI Stock Report) was one of the high-flying penny stocks this week after merger news was released. The company and Cytocom, Inc. a definitive merger agreement to combine their businesses in an all-stock transaction. Cytocom is a leading biopharmaceutical company in the area of immune-modulation.
In an update today on the merger, Cytocom issued an updated to its shareholders.
In the months to come, Cytocom will be working to close its merger with Cleveland BioLabs, formalize its acquisition of ImQuest Life Sciences and its subsidiaries, and prepare for our potential debut as a publicly-traded company.
After the closing of the acquisition, ImQuest BioSciences will continue to operate as a wholly-owned subsidiary of Cytocom under its existing management team. Moving forward, the company plans to change the stock symbol to CYTO once approved by the exchange. Despite having dropped after the parabolic spike, CBLI stock managed to maintain a much higher level of support on Wednesday compared to previous weeks. In light of these latest updates and proposed new roll-up, will CBLI (or CYTO) be on our list of penny stocks to buy or avoid?