Are These Penny Stocks on Your Watch List Right Now?
With the new year in full swing, investors are recharged and ready to find opportunities. When first searching for the “best penny stocks” or at least the “best” for right now, there are a few things that investors and day traders should do. The first involves critically thinking in regard to how current events may affect certain industries and the correlating penny stocks. One example of this is that COVID has put a large focus on biotech penny stocks. But, with so much going on in the world right now, there are a lot of factors to consider.
Once we’ve passed this step, the next phase is searching through those industries to find prospective stocks for your watch list. It may be easy to make a crude list at first, that can then be narrowed down. Once we have this list, investors should work on finding as much information about the companies in question that they can. This involves researching everything from balance sheets to profitability and press releases.
Investing VS Day Trading
On another side of this coin, it’s also important to take a look at technicals. Now, if you’re investing in penny stocks, you may look at different factors compared to day traders. There are, of course, both short and long-term indicators to consider. Investors won’t typically look at the same thing as traders but it’s never a bad idea to have at least a quick look at stock charts to see where prices are, relative to the specific trend you’re looking to follow.
With this research in hand, you’re more well-equipped to buy penny stocks with greater potential than others based on your research. In addition, consider the possibility of both long and short-term timeframes. While some penny stocks may be attractive for the short term, others may have better long term prospects. This is not, by any means, a comprehensive article on how to find penny stocks (though we have that in our free eBook), it is a quick synopsis of basic research strategy. With this in mind, here are four penny stocks that have turned heads this week. Will they be the best penny stocks to buy/trade during the early days of 2021?
Penny Stocks to Buy [or avoid] This Week:
- Tonix Pharmaceuticals Holding Corp. (TNXP Stock Report)
- Zosano Pharma Corp. (ZSAN Stock Report)
- Gritstone Oncology Inc. (GRTS Stock Report)
- Synthetic Biologics Inc. (SYN Stock Report)
Penny Stocks to Buy [or avoid]: Tonix Pharmaceuticals Holding Corp.
Tonix Pharmaceuticals Holding Corp. is one of the bigger gainers of the day on January 4th. During intraday trading and into after-hours, shares of TNXP stock shot up by around 15%. This large price move comes on the back of an announcement regarding CEO Seth Lederman. On January 4th, Lederman announced that he purchased 35,000 shares of the company at around $0.68 per share. While this isn’t a major announcement, it does illustrate that Lederman has a great deal of faith in the company. This is quite common for CEOs to do and is usually a good sign about the underlying business. For some context, the company operates as a biopharmaceutical company working on utilizing biologics to treat diseases.
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This includes vaccine candidates, pain and neurologic drugs as well as psychiatric and addiction-related substances. One of its leading vaccine candidates known as TNX-1800 is utilized as a vaccine for Covid-19. This substance utilizes horse pox viral vector platforms in order to provide an efficacious result. This is one of the major reasons that TNXP stock is seeing so much positive sentiment from investors. In addition to this, on Tuesday, the company announced a second research collaboration with Massachusetts General Hospital. This is to develop its TNX-1500 treatment for organ transplant rejection.
“TNX-1500 is a third generation anti-CD40- ligand mAb that has been designed by protein engineering to target CD40-ligand therapeutically, while potentially decreasing FcγRII binding and the potential for thrombosis.”Seth Lederman, M.D, Tonix’s President and Chief Executive Officer
Penny Stocks to Buy [or avoid]: Zosano Pharma Corp.
Zosano Pharma Corp. is another big gainer of the day on January 4th. During the trading day, shares of ZSAN stock shot up by around 17.4% which is quite a sizable gain. On January 4th, Zosano announced that it has requested a Type A meeting with the FDA in the U.S. regarding its drug Qtrypta. The goal with this is to receive input from the FDA regarding the resubmission of Qtrypta.
Steven Lo, CEO of Zosano Pharma stated that “we have been working diligently to prepare the meeting package required at the time a Type A meeting request is submitted to FDA. We are sharply focused on the resubmission of the NDA for Qtrypta and have been preparing strategies to address the comments received. We look forward to discussing our proposed plans with the FDA and we expect that the Type A meeting will provide valuable insight into the agency’s expectations for a resubmission package.”
Zosano Pharma is a clinical-stage biopharmaceutical company focused on several unique areas of the pharmaceutical market. This includes treatments for migraine patients where Qtrypta is its leading product. Since November, shares of ZSAN stock have rocketed up by around 61%. This is quite a big gain and takes into account the upward momentum ZSAN stock showed on Monday.
Penny Stocks to Buy [or avoid]: Gritstone Oncology Inc.
Gritstone Oncology Inc. is a biotech company working in the field of immuno-oncology. Within this, the company researches and develops new immunotherapies that are based in the prevention and treatment of various types of cancer. The company states that its lead product known as GRANITE, is currently in a Phase I/II trial to see its efficacy in treating solid tumors. This includes those found in patients suffering from lung cancer, gastroesophageal cancer, bladder cancer and more. In addition, the company is also developing its SLATE platform, which is currently in a Phase I/II trial to see its efficacy in treating common types of solid tumors.
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With these two drugs in their early stages, it may take some time before we see either hit the shelves of drug stores. But in the meantime, the company continues to show forward momentum. On January 4th, Ecor1 Capital reported a 9.99% passive stake in GRTS stock. This is good news for the company as it provides more confidence in what Gritstone is doing. Additionally, the company reported at the end of December that it is engaging in a private placement worth around $125 million. This should help to provide working capital for research purposes and general corporate purposes.
Penny Stocks To Buy [or avoid]: Synthetic Biologics Inc.
Synthetic Biologics Inc.has seen its shares surge over the last few weeks. However, on Monday, SYN stock recorded one of its biggest 1-day moves in recent months. The penny stock rallied from under $0.40 to highs of $0.5618 on heavy volume. While there weren’t any headlines to accompany the move, attention could be focusing on previously reported upcoming milestones.
Toward the end of December, Synthetic announced receipt of approval from the Institutional Review Board at Washington University School of Medicine in St. Louis, to begin its Phase 1b/2a clinical trial of SYN-004 (ribaxamase). The trial will focus on allogeneic hematopoietic cell transplant (HCT) recipients. Here’s the speculative part to note: because of this, the company said it “expects to commence patient enrollment for the Phase 1b/2a clinical trial in the first quarter of 2021.”
Considering the excitement we’re seeing in small-cap biotech stocks, SYN has caught a similar wave. The biggest question now is can the momentum continue or is SYN set for a pullback after this massive run this week?