Will These Penny Stocks Show Momentum as Biden Takes Office?

As Joe Biden takes office after several months of uncertainty, the markets have responded favorably. As with any new President, policy changes could affect financial pros and cons for certain markets & we’re likely to see that translate into certain penny stocks. For example, Biden wishes to bring the U.S. toward being renewable energy-dependent within the next decade.

Because of this, many investors are searching for renewable energy penny stocks. There are also particular points of interest for tech and healthcare. While a lot of this is purely speculation, it is an exciting time to be a penny stock trader. 

The Dow Jones Industrial Average was up by around 0.8% at midday, mostly based on a new relied package’s potential.  While we may see inflation rise in the long term, it looks like the bulls could stay in the lead in the short term. Additionally, on Wednesday, tech stocks were up substantially, with Apple Inc. (NASDAQ: AAPL) rising by roughly 3.3% by midday, leading the charge.

These large moves are indicative of the potential for bullish sentiment to remain under the Biden presidency. Many investors feared that Biden would not be as big of a proponent of market growth as President Trump. However, today’s trading could demonstrate the opposite. With all of this in mind, will these penny stocks show momentum as Biden takes office?

Penny Stocks to Watch On Inauguration Day 

Qutoutiao Inc. 

One of the bigger gainers of the day on January 20th is QTT stock. During trading, shares were up by around 13% to just over $2.70 per share. The company works as a producer and distributor of entertainment content in China. It operates several platforms such as the news and content aggregator app known as Qutoutiao. Additionally, it offers its Midu platform, which allows access to e-books and is supported by advertising. In its third-quarter report posted last month, the company stated that net revenue came in at $166.4 million. QTT did post a net loss of around $40 million, which is a lot. Despite this, the company managed to reduce its net loss margin over Q3 2019 by roughly 48%. 

Eric Siliang Tan, CEO of Qutoutiao, stated that “we are delighted to see the resilience of our business as reflected in the results of the third quarter. As we continue to improve the operational efficiency, we see a balanced and promising path towards growth and profitability in the coming years.”

Obviously, the correlation between Qutoutiao and the Biden presidency is slim, but there is one factor we could consider. During Trump’s time in office, relations with China became extremely tense. With a new and more globalization-minded president, we could see China once again become friendlier with the U.S. While this might not directly affect QTT stock, the potential is always there. With all of this in mind, is QTT the list of penny stocks to watch?

Penny Stocks to Watch Qutoutiao Inc. (QTT Stock Chart)

Iterum Therapeutics PLC 

If you thought QTT’s gain on January 20th was big, shares of ITRM stock are up by around 41% at midday. In the past month, shares have climbed by almost 90% and since mid-October, by over 275%. This staggering gain is underlined by the company’s work on treating drug-resistant pathogens. This includes its Phase 3 trial that is currently underway on oral and IV formulations of sulopenem. To date, ITRM has received both a Fast Track designation and a Qualified Infectious Disease Product recommendation for seven indications surrounding sulopenem.

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Iterum Therapeutics may not have direct ties to Covid-19 like some other biotech stocks, but it does correlate with the larger market. This is one reason why biotech penny stocks have seen so much momentum in the past six months. Additionally, there is a great deal of capital flowing into these sectors, which helps boost R&D and the potential of drug commercialization. 

A few weeks ago, the company announced that it had received approval to transfer to the Nasdaq Capital Market. This was a big deal for both the company and investors as it showed there could be potential for both confidence and growth in its business. The hopes are that the various approval processes needed for sulopenem can occur swiftly. It could be big news for Iterum if it can commercialize either the oral or intravenous formulation of sulopenem.

Penny Stocks to Watch Iterum Therapeutics PLC ITRM Stock Chart

Palatin Technologies Inc. 

Another interesting company in the biotech sector is Palatin Technologies Inc. Palatin works by developing targeted peptide therapeutics to treat otherwise unmet medical industry needs. Recently, PTN stock has shown a great deal of positive momentum. The majority of this is due to the positive results from its Phase 2 study of the compound PL9643. This substance is used in treating certain ocular disorders such as dry eye disease or DED. The CEO of Palatin, Carl Spana, stated that the positive results are very encouraging for the company and that it remains committed to its drugs’ safety and efficacy. While this news is exciting, we haven’t seen any major updates in a few weeks. 

Despite this, a statement was released a few weeks ago with management explaining that “based on these positive trial results, Palatin plans to initiate a Phase 2/3 trial in the U.S. in mid calendar year 2021.” This is exciting news for investors to consider. One thing to keep in mind is that time frames can often be large with biotech companies. This is because it is difficult to predict when results from the FDA or other government bodies will come in. But, with this promising substance showing positive results at this point, investors should keep an eye on Palatin Technologies. Additionally, H.C. Wainwright put a $2 price target on PTN stock last year. This is more than its January 20th price of $0.95.

Penny Stocks to Watch Qutoutiao Inc. (QTT Stock Chart)

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