Cheap Penny Stocks To Watch Right Now; Are They On Your List To Buy?
Penny stocks on Robinhood have gotten a jolt of momentum this month. Thanks, in part, to outlets like Reddit, cheap stocks are coming into the mainstream. More importantly, “the retail investor” is getting some respect. Everyone from Mark Cuban and Elon Musk to Dave Portnoy and AOC are backing the fight against “the suits” and for valid reasons. They argue that “old Wall Street” has played games with the market for far too long, taking advantage of retail traders.
With the rise of social media has come a wave of momentum from brand new traders. Last year millions flocked to markets as a means of making money during lockdowns. That has spilled over into 2021 and accelerated at a breakneck pace. This is where we see big moves from former penny stocks like Express Inc. (NYSE: EXPR) and even GameStop (NYSE: GME). Both had traded well below the $5 threshold of the penny stock definition.
Additionally, we see that many of these traders are using apps like Robinhood to buy stocks. The issue has become that the app itself has blocked users from accessing certain stocks with increased volatility. The list of penny stocks on Robinhood is short enough since it blocks access to most OTCs, and not that list became even shorter this week. That isn’t to say there aren’t more stocks to watch this week. In fact, there’ve been several biotech penny stocks surging higher on Thursday. Will they be on the next list of penny stocks to buy before next month, or avoid entirely?
Top Penny Stocks To Buy [or avoid]
Seneca Biopharma Inc.
Shares of Seneca Biopharma continued along with their multi-week uptrend on Thursday. The penny stock had an uneventful year in 2020. But at the beginning of December, shares began making a move. Since then, SNCA stock has managed to climb from around $0.70 to highs this week of $1.69.
What triggered this move? Merger news between Seneca and Leading BioSciences helped spark some bullish sentiment in the market. The combination will form a company focused on advancing Leading’s LB1148. This is the company’s lead drug candidate for restoring normal GI function after surgery. It’s also being studied for its potential to reduce certain post-op complications.
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In an update, earlier this month, Leading BioSciences announced that the FDA granted Fast Track Designation to LB1148. This facilitates the development and expedites the review of the drug. With the merger expected to close in the first half of 2021, eyes are on any signs of a definitive headline.
With a move to new 52-week highs a few days ago, BIOL stock is once again on our radar. We’ve discussed Biolase Inc. several times in the past few months. This is due to the progress that the company has made during that time. Biolase provides laser systems to the dental industry. It has a large range of proprietary products backed by its 271 patents and 40 pending patents.
To date, Biolase has sold over 41,000 laser systems in more than 80 countries throughout the world. While BIOL stock was adversely affected by the pandemic, it is working to recover in a big way. The company states that dental procedures are occurring at around 80-90% of their pre-covid levels. This means more demand for its products and a potential return to normalcy for its business model.
On January 26th, Biolase posted its preliminary Q4 2020 financial results for the period ending on December 31st. In the results, the company expects a 26-31% revenue growth range over the previous quarter. Also, the company stated that almost 80% of total sales came from new users. This means that Biolase is working hard to ensure that its products are being distributed around the world. Todd Norbe, CEO of Biolase, stated that “our preliminary fourth-quarter revenue, which now represents two consecutive quarters of meaningful improvement, is being driven by sales to new customers, specialists and DSOs in the U.S. as they seek safer and advanced alternatives to grow their practices while ensuring their patients are being cared for.”
Upcoming events can be a cause for speculation in certain stocks. This could be what we see with Soligenix right now. This month, the company announced it would host an Investor Webcast Event on Tuesday, January 26. Leading up to that presentation, SNGX stock began climbing. The only thing to put a pause on that move was a sell-off following news that Soligenix was going to raise money.
The company is planning a commercial launch of its SGX301 in the treatment of Cutaneous T-Cell Lymphoma. Soligenix recently completed pivotal Phase 3 FLASH (Fluorescent Light Activated Synthetic Hypericin) trial of SGX301. Data showed a “statistically significant treatment response rate” in the primary endpoint after just 6 weeks (Cycle 1) of therapy compared to placebo.
This positive treatment response continued to improve with extended SGX301 treatment in its open-label treatment cycles after 12 weeks (Cycle 2) and 18 weeks (Cycle 3). Based on this, the company has stated that it believes the treatment, supported by trial data, represents “significant near-term” commercial opportunities. With this on the table, traders have grown bullish on the stock. Will it remain the case this quarter?
Are Penny Stocks Right For You?
There’s been a lot of jockeying going on this week. It’s not only penny stocks but blue-chips that are also experiencing significantly higher levels of volatility. With this as the backdrop to the stock market today, it’s important to keep your strategy in mind. The last thing to do is let emotions dictate your strategy. In this light, are any of these cheap stocks going to be on your watch list this quarter?