3 Penny Stocks To Buy For Under $4
Are you looking for small cap stocks right now? While many of these could be penny stocks, not all things defined as “small-cap” trade below $5 a share. In fact, the main focus when looking at any “cap stock” is the market capitalization. This is what we’re looking at. The definition of small cap stocks are ones with a market capitalization or market value of $300 million and $2 billion.
How is market cap determined? It’s not as complicated as you might think. It’s basically the total shares outstanding multiplied by the price per share. So, yes, the market cap will fluctuate as the price of a stock changes. For this article, we’re also going to be discussing nano-cap stocks. Nano cap stocks are defined as companies with a market capitalization of less than $50 million. In many cases, the smaller the market cap, the higher the chances are that traders will encounter higher volatility.
Small Cap Stocks Surge On Wednesday
This week has already been a wild week. The U.S. Presidential Election is still undecided as of this article. We’re also seeing some upbeat optimism in play. This optimism is stemming from the thought that there will be a clear winner to the election. Compared to original expectations of a contested election, this appears to be a warm welcome from investors in the stock market today.
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Obviously, things can change at a moment’s notice, but, for now, bullish momentum has become a driving force. With that, comes a sort of “safer feeling” that it’s “okay” to take on more risk. During times of upbeat activity, investors tend to search for higher risk trades in front of the backdrop of a market that is moving higher.
Supporting this idea is the small-cap ETFs. The Russell 2000 (IWM Report) saw an explosive move on November 4th. This took the ETF from around $155 during pre-market to highs of $1.62.35 during mid-day trading. So are small-caps finally back in play? You be the judge. Keeping this in mind, are any of these trending names on your list of penny stocks to buy right now?
Penny Stocks To Buy [or avoid]: Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX)
Catalyst Pharmaceuticals, Inc. (CPRX Stock Report) caught a nice surge of trading activity on Wednesday. This was a warm welcome for traders who’ve been watching this penny stock for the past few months. Catalyst stock dropped hard during the early weeks of August thanks to a general downturn across the biotech sector at the time. However, to its benefit, the company was able to reach several milestones, many of which centered around its firdapse platform. It has shown potential treatments in Lambert- Eaton myasthenic syndrome, certain myasthenia gravis, and certain types of spinal muscular atrophy.
Firdapse® is currently being evaluated in clinical trials for the treatment of MuSK-MG and SMA Type 3 and has received Orphan Drug Designation from the FDA for myasthenia gravis. Last month, the company filed a patent infringement against Jacobus Pharmaceuticals and PantherRx Rare LLC. Specifically, the suit alleges the the two companies’ Ruzurgi product infringes on Catalyst’s ‘893 patent when administered according to product labeling.
Patrick J. McEnany, Chairman and CEO of Catalyst. “We intend to diligently and vigorously protect our patent rights for the benefit of our company and our stockholders and prevent infringing use by others. Catalyst remains confident in its patent portfolio, and has filed several additional patent applications claiming priority from the ‘893 patent to enhance the protection of the Firdapse® patent estate.”
The company’s set to hold its 3rd quarter results and business update next Tuesday. Maybe by then there will be some clue as to the progress of these hearings.
Penny Stocks To Buy [or avoid]: Selecta Biosciences, Inc. (NASDAQ:SELB)
If you’ve been reading our articles frequently then you’re definitely familiar with Selecta Biosciences Inc. (SELB Stock Report). Shares of this company have been in rally mode for the last months. Following a drop early in October, SELB stock not only reclaimed what it lost in the massive gap down, but it has also far surpassed September trading levels. Of course, there’ve been days of parabolic activity with several wild sessions. However, for the most part, SELB has maintained a strong uptrend that has now resulted in a move so far of more than 100%.
So what’s there to watch with Selecta in November? Aside from the increase in momentum, this week the company reports earnings and gives an operational update. Selecta has reached several key milestones over the last month. This includes an FDA Rare Pediatric Disease Designation in combination with Asklepios BioPharmaceutical for MMA-101. This is targeted for the treatment of isolated methylmalonic acidemia due to methylmalonyl-CoA mutase gene mutations. AskBio and Selecta expect to initiate a Phase 1 clinical trial of MMA-101 and Selecta’s ImmTOR for patients with MMA in the first half of next year.
The company also entered into a research license agreement with IGAN Biosciences. The two will conduct preclimicat resaerch evaluating the use of ImmTOR and IGAN’s IgA protease for IgA nephropathy. It’s also worth mentioning that along the way, Selecta’s director, Timothy Springer has been buying up millions of shares over the past month.
The biggest focus of the week right now, however is likely what happens Thursday in Selecta’s update. Do you think SELB should be on the list of penny stocks to buy or will this be a “sell the news” event?
Penny Stocks To Buy [or avoid]: Harvest Health and Recreation (OTCQX:HRVSF)
You can’t talk about small-cap stocks to watch without mentioning at least one of the marijuana penny stocks. Harvest Health and Recreation (HRVSF Stock Report) has been a top trending name leading up to the election. With the recent legislation for states like New Jersey, Arizona, and Montana, the race is on for rapid expansion in multi-state operators.
Harvest’s hometown is in Arizona and the company had just recently added 3 more medical marijuana licenses in Arizona, building on its U.S. footprint. This came in tow with opening its 8th Harvest-affiliated Pennsylvania dispensary. Big wins for state-level legalization now means that 1 in every 3 American’s technically live somewhere recreational cannabis is legal.
“Regardless of who controls the White House, the House and the Senate, we should demand landmark federal marijuana reform in 2021,” Steve Hawkins told Politico this week. Hawkins is the executive director of legalization advocacy group Marijuana Policy Project.
While Wednesday was more of a “sell the news” event for most marijuana stocks, HRVSF shares managed to hold the line a bit better. The pot penny stock closed the Tuesday session at $1.72 and has since traded around the mid $1.70’s for the majority of Wednesday’s session. While we wait for the results of the Presidential election, there’s likely going to be jockeying among MSOs across the U.S. You can also see this reflected in the AdvisorShares Trust Pure US Cannabis ETF (MSOS Report). It was the only marijuana ETF to reach new 2020 highs on Wednesday. In light of this, will HRVSF stock be on your buy or sell list?