Are These On Your List Of Small Cap Stocks Today?
While the technical definition of small cap penny stocks is shares of companies with market caps between $300 million to $2 billion, the term has been loosely used to describe all penny stocks. It’s a common misconception by some and the fact is, there are numerous tiers of market capitalization. The smallest companies have market caps below $50 million and are considered nano-cap stocks. Next, you’ve got stocks between $50 million and $300 million, which are considered micro-cap stocks. You’ve then got small-cap stocks following by large-cap and even mega-cap stocks.
I’m not here to give you a lesson on market caps. But I will say that if you’re looking for small cap stocks to buy right now, not all penny stocks are technically considered “small cap”. Whether or not that plays a role in your strategy is obviously subjective to your preferences. It is good to know, however, especially when you want to weigh out volatility against trading momentum. Generally speaking, the smaller the market cap, the more volatile things might become for certain stocks.
Market cap is found by multiplying total shares outstanding by the current share price. As a result, there are two things you might deduce from the market cap. Either you’re dealing with a higher-priced stock with fewer shares outstanding or you’ve got a very cheap stock with many shares outstanding. In either case, you’re still looking at a volatile trade. This is great for traders looking to capitalize on big swings in price. This might be a reason why the idea of “small-cap stocks” is closely associated with “penny stocks” in general.
Small Cap Stocks To Watch
- GT Biopharma Inc. (GTBP Stock Report)
- Titan Pharmaceuticals Inc. (TTNP Stock Report)
- 22nd Century Group (XXII Stock Report)
- GreenSky Inc. (GSKY Stock Report)
- Evogene Ltd. (EVGN Stock Report)
No matter the market cap, it’s a good idea to also monitor trends. Are most stocks moving based on a certain headline? On the other hand, are certain sectors or industries trending apart from the broader market? We saw that trend this week with electric vehicle stocks, for instance. Of course, with news from Pfizer and Moderna over the last few weeks, biotech remains red hot. You’ve also got a bit of a rotation back into certain technology names. This came after traders took profit from the last surge in the stay at home stocks late last week. With this in mind, are any of these small-cap stocks on your watch list right now?
Penny Stocks To Watch #1: GT Biopharma Inc.
GT Biopharma Inc. has experienced some higher than average trading activity this week. If you look at the market last week, this highest volume day was just under 370,000 shares. This week, both Monday and Tuesday, GTBP stock has traded more than 390,000 both days with Tuesday being over 500,000 shares. When looking for penny stocks to add to your watch list, the volume might be a factor.
What may have helped on Tuesday was the company’s latest update. GT Biopharma announced that Bruce J. Wendel joined GT’s Board of Directors as Vice Chairman of GT Bioscience, Inc. Wendel has experience commercializing drugs at several, big-name biotech companies. This includes Hepalink USA, Bristol-Myers Squibb, and Abraxis BioScience. He played an integral role in negotiations that lead to the acquisition of Abraxis by Celgene (CELG Stock Report). This ended up becoming a deal valued at over $2.9 billion.
Aside from this, traders have monitored the company’s treatment pipeline over the last few weeks. This specifically includes the company’s lead treatment for acute myeloid leukemia, GTB-3550. Speculation had been building after the company announced interim results would be featured at the upcoming ASH Conference in December. What we do know right now, however, is that the online ASH meeting program revealed some clues of these results:
“Though no objective responses were seen at the initial low dose cohorts tested, these early data suggest proof of principle that the drug has immune activity in humans. Subsequent patients given higher dose levels will determine if NK cell proliferation translates into clinical efficacy.”
Penny Stocks To Watch #2: Titan Pharmaceuticals Inc.
Another one of the small cap stocks to watch in biotech is Titan Pharmaceuticals Inc. This is a frequent mention on lists of penny stocks under $1 and one of the more volatile names over the last few months. At the end of October, there was a strong pop in the stock after a few key updates. Those included a debt settlement and an acquisition of treatment joining its pipeline. However, after announcing an upsized offering, sellers came in and TTNP stock dropped to new 52-week lows of $0.094.
Jump ahead to this week and things appear to have reversed course for now. This came after Titan reported its third-quarter results on Monday. The company also highlighted several key achievements from the last quarter. Titan saw an increase in earnings per share, with a loss of 5 cents per share compared to an 18 cent loss last year.
“In addition to refocusing our efforts on the ProNeura platform, our recent restructuring significantly reduced operating expenses, while our debt settlements restored our ability to fully capitalize on our IP. These, combined with the recent completion of two financings, positions Titan to execute on our new strategy.”Dr. Marc Rubin, Executive Director
With a late afternoon surge on Tuesday without any additional catalyst, TTNP stock could be on the watch list come Wednesday morning.
Penny Stocks To Watch #3: 22nd Century Group
22nd Century Group was hovering around $1 at the end of the day on Tuesday. The company’s stock has been surging most of November thanks to several key milestones that began with earnings. At the start of the month, 22nd Century beat analysts’ estimates for both earnings per share and sales. What’s more, is that management revealed strategic plans moving forward for investors to keep an eye on.
22nd Century focuses primarily on its Modified Risk Tobacco Product (MRTP). It’s looking to obtain authorization from the FDA for its VLN® product. The company plans to commercialize VLN® in the U.S. 90 days after receiving MRTP authorization. The company also has placed a keener focus on its cannabis arm too. The strategy there is to target different segments of the industry, initially targeting plant biotech research, breeding, and extraction. The company said that it also identified a plant-based franchise with similarities to the hemp/cannabis plant. 22nd Century is in the process of securing IP around this franchise.
Aside from participating in an investor conference Tuesday, insider trading has piqued investor interest. Specifically, CEO James Misch purchased 100,000 shares of XXII stock at an average price of $0.93 per share. This came just a day after ETF Managers Group LLC reported a 4.21% stake in the company.
Penny Stocks To Watch #4: GreenSky Inc.
GreenSky Inc. is still recovering from a rough start to the month. Not only did Citigroup start its coverage with a Sell rating, but GreenSky also missed on earnings estimates. This is both on EPS and sales. The financial technology company focuses on eCommerce and point of sale services. The company’s technology is also leveraged by banks to provide loans to super-prime and prime consumers.
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Aside from these two latest negative catalysts, GreenSky has actually managed to see some growth over the last few months. The company recently completed a $600 million per year bank funding partnership for up to $1.8 billion for its healthcare business. GreenSky also executed a total of $875 million in loan participation and whole loan sales. These were to institutional asset managers and bank partners. Why is GSKY stock on the watch list right now?
You won’t find anything on the PR wire but you will find something in the latest filing. CEO David Zalik and Direct Robert Sheft filed FORM 4s showing the purchase of millions of dollars in company stock. The transaction date for these was last Friday and adds to the series of insider buying that has gone on this month. Prior to these filings, SVP Angela Nagy and Director Gregg Steven Freishtat each made their own insider buys. Will this spark a rebound for GSKY stock in November?
Penny Stocks To Watch #5: Evogene Ltd.
One of the bigger movers over the last few weeks, Evogene Ltd. has been consolidating for the last 4 weeks. Prior to that, we got to watch, first-hand, the rise from under $1.20 to highs of over $5. Regardless, EVGN stock is back on the radar after experiencing a strong surge on Tuesday. There weren’t any headlines to justify the move and the last filing was much earlier this month. What we can see, however, is that some news last week could be a big center of focus right now.
Evogene isn’t just focused on traditional biotechnology. As we discussed back in September, Evogene also has some reach in the cannabis arena. Its subsidiary, Canonic focuses on leveraging plant genetics to produce valuable strains of medical cannabis. Last week, Canonic received an IMC-GAP approval from the Israel Medical Cannabis Agency for the commercial operation of its propagation farm. This allows Canonic to move forward with its commercialization plan of medical cannabis products.
Something to keep in mind that could pose high-risk/reward is Wednesday the company reports Q3 earnings before the open. Obviously, depending on the results, it could see EVGN stock moving in one direction or another. Keep this in mind if this is one of the small cap stocks on your list right now.