Penny Stocks To Watch Before Next Week
In the past few weeks, we have seen a great amount of bullish interest in penny stocks. Specifically, there are a few key markets that have seen more bullish growth than others. First, we have biotech penny stocks. These companies have experienced growth in the past six months due to the COVID pandemic. On December 10th, Pfizer Inc. (PFE Stock Report) announced that the FDA recommended approval for its vaccine candidate for emergency use.
This is a big step and something that was only announced at the end of the day. With this, we could see a new wave of bullish interest in certain stocks today. Next on the list, we have EV penny and renewable energy penny stocks. While these may seem like very different categories, they have traded with a high degree of correlation to one another in the past few months.
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In addition to speculation surrounding the future of EV cars, the election of Joe Biden means the U.S. will move toward renewable energy in the next decade or so. This is one of the top reasons that investors have been paying attention to both EV and renewable energy stocks. Lastly, we have other epicenter penny stocks such as hospitality and biopharmaceutical stocks. For some context, an epicenter penny stock is any company that has been adversely affected by the pandemic. With so many penny stocks to watch right now, here are a few names to watch on Friday. Will they be the best penny stocks to buy right now? You decide.
Penny Stocks To Buy [or avoid]:
- aTyr Pharma Inc. (LIFE Stock Report)
- Dynavax Technologies Corporation (DVAX Stock Report)
- Kintara Therapeutics Inc. (KTRA Stock Report)
- Progenity Inc. (PROG Stock Report)
- Lexicon Pharmaceuticals Inc. (LXRX Stock Report)
Penny Stocks to Buy [or avoid]: aTyr Pharma Inc.
aTyr Pharma Inc. Is one of the biggest gainers that we saw on December 10th. During the day, shares of LIFE stock at one point were up by as much as 71%. At EOD, LIFE stock finished with around 21% in gains. One of the main reasons that it has seen so much bullish interest is for its participation in the COVID niche. The company is currently working on its drug candidate known as ATYR1923, for clinical trials in patients with coronavirus. CEO of the company, Sanjay Shukla, stated that “throughout the third quarter, we remained focused on our clinical program for our lead therapeutic candidate, ATYR1923. We now have three active clinical trials as part of this program. Most notably, we have completed enrollment in our Phase 2 trial in COVID-19 patients with severe respiratory complications.”
While a vaccine rollout has yet to occur in the U.S., on Thursday, the FDA finally approved Pfizer’s vaccine candidate for emergency use. Because of this, many biotech penny stocks with correlations to COVID, shot up in value during intraday trading. Investors should note that these companies do tend to trade highly off of speculation.
Dynavax Technologies Corporation is another biotech company that saw positive momentum during trading on Thursday, December 10th. While it only shot up by a modest 4%, shares of DVAX are up by almost 20% in the past month. On Thursday, the company announced that the European Medicines Agency (EMA) has offered a positive opinion on the companies Marketing Authorization Application. This application involves its drug known as HEPLISAV-B, which is utilized in the treatment of Hepatitis B. Ryan Spencer, CEO of the company stated that “hepatitis B is a highly infectious and potentially deadly virus with increasing infection rates, and over 250 million people infected worldwide. Thankfully, it can be prevented with effective vaccination.”
In addition to this, the company is working on collaborations right now to produce adjuvanted vaccines for COVID-19. This seems to be the main explanation behind the company’s big jump on Thursday. With cases continuing to rise around the world, it seems as though there is a large focus on biotech penny stocks.
When looking for a biotech penny stock to watch, investors should consider the company’s participation in the market as well as what plans it has for the future. One thing to note is that this virus will not be a huge threat forever. And if investors want to be long on a given penny stock, they should make sure to understand that company’s long term plans. With Pfizer’s vaccine seeing approval after hours, the focus remains on biotech penny stocks.
Penny Stocks to Buy [or avoid]: Kintara Therapeutics Inc.
Kintara Therapeutics Inc. is a Californian based biotech company working on a wide range of treatments for various types of cancer. The company currently has two Phase-3 ready therapeutics that will go into use in areas of unmet medical needs. The two drugs known as VAL-083 and REM-001 work to provide an alternative type of chemotherapy that can be much more targeted than traditional ones. In addition to this, the company is working on creating a proprietary platform that will allow for localized cancer treatments alongside its REM-001 therapy. Last month, the company announced its Q1 2021 fiscal results as well as a corporate update.
During the quarter, the company stated that it was able to raise $25 million through a private placement. With this, it ended the quarter with roughly $22 million in cash and cash equivalents. During the quarter, the company spent around $16 million on new research and developments expenditures. This led to it reporting a loss of around $19.5 million or around $1.33 per share. While this loss is definitely concerning, the potential for biotech penny stocks seems to be in the long term. If it is able to gain approval for the drugs in its pipeline, investors could consider Kintara Therapeutics to be a penny stock to watch.
Penny Stocks to Buy [or avoid]: Progenity Inc.
Progenity Inc. is one of the larger gainers of the day, pulling in around 12% by EOD. Progenity Inc. operates as a major biotechnology company working on the development and commercialization of molecular testing products. This includes medical devices as well as precision medicine tools. On Tuesday of this week, the company announced that it has closed on an offering of $85,525,000 in senior notes. This includes a $10,525,000 principal amount which will be partially exercised prior to the larger amount. The company also announced during the day that it had completed an underwritten public offering of around 7.6 million shares of common stock. It did this at a price of $3.27 per share.
All of this fundraising should together bring in around $110 million in capital. This capital will be put to use on research and development fees as well as for tests regarding its products. While it does offer testing for other illnesses, the company has also moved into the COVID testing market. It states that it is now offering high-quality PCR testing for those who need results quickly. With this, it has gained a correlation to many other leading biotech penny stocks. Considering the announcement from Pfizer coming after hours on Thursday, companies like Progenity Inc. could see more popularity in the coming weeks.
Penny Stocks to Buy [or avoid]: Lexicon Pharmaceuticals Inc.
Lexicon Pharmaceuticals Inc. rounds out this list of penny stocks. Should it be one to buy or totally avoid? I’ll let you decide that one. However, if you look at the penny stock’s chart you should notice a very aggressive move that has been made this month. The company received an upgrade from Citigroup earlier this week. The firm gave the biotech company a boost to “Buy” from a previous “Neutral” rating. It also adjusted its price target from $2.10 to $6; a significant upgrade.
While momentum has continued this week, Friday’s premarket news has lit another fire under the penny stock. Lexicon announced receipt of Fast Track Designation from the FDA for its LX9211 treatment. The company’s LX9211 is targeting diabetic peripheral neuropathic pain. Furthermore, the treatment is being prepared for a second Phase 2 clinical trial in post-herpetic neuralgia. The company’s also enrolling patients with diabetic peripheral neuropathic pain in a Phase 2 study for proof of concept with LX9211.
This Fast Track Designation gives Lexicon the ability to gain expedited review of LX9211 from the FDA. The idea is to bring novel treatments targeting unmet needs to the market sooner. “The FDA’s Fast Track designation of LX9211 reflects the serious unmet medical need of people suffering from diabetic peripheral neuropathic pain,” said Praveen Tyle, Ph.D., executive vice president of research and development.