Are These The Best Penny Stocks To Buy Today?
In this article, we’ll go over some of the basics of penny stocks. What are they, how do you find them, and should you buy them? I’ll also go into detail on 4 of these cheap stocks that have begun trending mid-week. Will they be on your watch list before February?
What Are Penny Stocks?
Penny stocks are shares of companies trading for less than $5. This definition of penny stocks is based on the Securities & Exchange Commission’s own stance on the topic. Some traders may say, “penny stocks are ones trading for pennies,” but I like the SEC’s overview better. At the very least, it gives me more companies to write about.
How Do You Find The Best Penny Stocks To Buy?
This is the tricky part for traders and investors to grasp. How do you find these low-priced shares? In short, you find penny stocks by analyzing data. Look for trends by using things like a volume or price scanner. Identify irregularities in trading. It also doesn’t hurt to keep an eye on what the market is saying. What’s trending on social media, and is there merit to it? That last part is important, merit.
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There’s so much noise to cut through, and it’s important to understand what’s “pumpy” and what could actually be a valid analysis. I mention this because the buzz around penny stocks on Reddit is at a high. With so much hype, it’s not hard to see a random post talking about a random company and think, “Hey, that’s the next Reddit penny stock to go.”
But I will be the first to say not all Redditors are looking out for your interests. Some will use the platform to take advantage of this unbridled hype. However, many others do put their best foot forward to give insight for the whole community to use. Remember that this is still social media, so take certain things with a grain of salt. Nineteen rocketship emojis aren’t a substitute for valid research. Finally, once you find some penny stocks you like and end up buying, don’t forget to take profit. Leaving money on the table is better than losing it. With all of this in mind, here are a few trending penny stocks to watch right now on popular apps like Robinhood, Webull, & others.
Robinhoood Penny Stocks To Buy [or avoid]
- Timber Pharmaceuticals (NYSEAMERICAN: TMBR)
- Aeterna Zentaris Inc. (NASDAQ: AEZS)
- Vislink Technologies (NASDAQ: VISL)
Timber Pharmaceuticals Inc.
One of the biotech companies gaining attention is Timber Pharmaceuticals. It focuses on producing treatments for a wide range of dermatological diseases. These include facial angiofibromas, tuberous sclerosis complex, and more. While this may seem very specific, Timber Pharmaceuticals has carved out a solid niche for itself in this industry. On January 26th, shares of TMBR stock shot up by a solid 31%, ending the day at $1.47 per share. In the past month, shares are up by over 90%, which is quite substantial. The gain on Tuesday is underlined by the company’s hiring of a new Chief Medical Officer.
After trading commenced, the company announced that Alan Mendelsohn, M.D., would become the new CMO, assuming the previous Chief Scientific Officer’s roles. John Koconis, CEO of Timber, states that “we are pleased to welcome Dr. Mendelsohn to our management team. Dr. Mendelsohn recently supported the approval and launch of a new treatment for moderate to severe plaque psoriasis and has a deep understanding of clinical development and medical commercialization in dermatology.”
Furthermore, earlier this month the company received Orphan Drug Designation from the FDA for its TMB-003 systemic sclerosis treatment. Timber is in the preclinical stages of evaluating TMB-003 for the treatment and expects to submit an Investigational New Drug application to the FDA in 2022.
Aeterna Zentaris Inc.
One of the companies we’ve discussed for the last few months is Aeterna Zentaris. The company focuses on treatments for growth hormone deficiency. Late last year, in fact, Aeterna amended its license agreement with Novo Nordisk to develop and commercialize macimorelin. This is an oral test to diagnose adult growth hormone deficiency. Novo Nordisk agreed to make an immediate upfront payment to Aeterna of €5 million.
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The company also signed a licensing deal with Consilient Health, Ltd. in December. The goal is to commercialize macimorelin in Europe and the UK. This is based on an upcoming safety and efficacy study, AEZS-130-P02, evaluating macimorelin in diagnosing childhood-onset growth hormone deficiency. A Phase 3 Study is expected to be initiated this quarter. So speculative optimism could also play a role right now.
Besides receiving a 180-day listing extension from Nasdaq, there haven’t been many new events this month. However, with the looming Phase 3 initiation still not having a date, traders may be focusing on that as a potential catalyst.
Vislink has also been on our list of penny stocks to watch recently. The technology and communications company recently launched its IP Link 2.0 system. The system allows broadcasting service platform accessibility to new revenue streams, according to Vislink.
Sean Van, Product Manager, Live Production, Vislink explained, “Vislink is enabling broadcasters to transition to the new ATSC 3.0 standard with our new IP Link 3.0 RF transmission system. The IP Link 3.0 allows broadcasters to easily upgrade to ATSC 3.0 and carry the higher quality IP video data out from the studio to transmitter sites over RF links.”
Also, this week, Vislink continued reporting new milestones. The company announced that it began shipping its DVE6100 product providing quick, secure communications for satellite transmission. This could bode well for Vislink’s customer base. It supplies satellite communications solutions to the live news production, entertainment, defense, public safety, border security, counter-terrorism, and military surveillance sectors.
So, where encryption is of the utmost importance, this DVE6100 could offer a solution. The news has also sparked premarket trading momentum on Wednesday. This big question is can this trend continue? VISL stock is known for its volatility and big swings. So it may be important to monitor certain technical trends early on.
Final Thoughts On Penny Stocks
In summing a few things up, penny stocks are a great tool for making money in the market. Higher volatility and lower price allow even small accounts to benefit. But if you are looking for penny stocks to buy, it’s very important to understand risks involved. It’s also important to know how to actually trade volatile stocks. With this in mind, these are just a few of the trending penny stocks today. We’ll continue to monitor markets for more in 2021.