So far, in 2021, it seems as though this is the year of penny stocks. Many companies have seen their share prices shoot up in the triple or even quadruple digits in the past twelve months. While this is not only due to the pandemic, it does have a huge influence. If anything, Covid has helped to put a sharp focus on the stock market. The last two weeks have been riddled with volatility thanks to the social media support of retail traders.
The Reddit penny stocks we see explode aren’t doing so based on fundamentals. Rather, traders are buying to get back at “the suits.” In a stand against tradition, retail traders are buying up penny stocks in droves, forcing prices higher and ultimately squeezing out short interest in the market. One thing to keep in mind is that companies in this sector, and under $5, tend to move quite quickly. This means that traders need to have a strategy in mind before pressing buy.
Besides the few select breakout penny stocks like GameStop (NYSE: GME) and AMC (NYSE: AMC) that’ve gained the interest of subreddits like r/WallStreetBets, there are still thousands of other cheap stocks gaining momentum. The buying frenzy in the market may fuel them. However, many are also supported by fundamental catalysts too.
With a heightened focus on small-cap stocks, it could be time to put a list of penny stocks together. Are these on your watch list right now?
Top Penny Stocks To Watch
- Atossa Therapeutics Inc. (NASDAQ: ATOS)
- Lipocine Inc. (NASDAQ: LPCN)
- Gold Resource Corporation (NYSE: GORO)
- Zomedica Corp. (NYSE: ZOM)
Atossa Therapeutics Inc.
Atossa has been on our lists of penny stocks to watch for months, and shares have seen a strong move higher. Since the second week of December, ATOS stock has climbed from around $0.90 to highs of over $3.50 this week. Following some consolidation on Wednesday, it looks like shares are trending during premarket hours on Thursday.
The company targets breast cancer and, more recently, COVID-19. The company has a Phase I study to see the efficacy of its drug, AT-301. This nasal spray can be administered at home. Something that traders are looking at is what comes next. Dosing is complete, and data output is expected this month. Atossa previously explained that the preliminary assessment is that AT-301 nasal spray was safe and well-tolerated in its study. These results could also support advancing into a Phase 2 study. Last month, Atossa submitted a pre-IND meeting request with the U.S. FDA.
Something to consider from its January PR is what Dr. Steven Quay, president, and CEO of Atossa said, “We are very encouraged by these preliminary results. In the next 30 days, we plan to file a pre-IND meeting request with the FDA and, subject to their input, plan to immediately commence a Phase 2 study, either in the U.S. or abroad, in patients recently diagnosed with COVID-19.”
Lipocine Inc. is another penny stock that we’ve been discussing for a few months now. With a 10.5% rise on January 26th, Lipocine is once again catching investor attention. In the past month, shares of LPCN stock are up by over 42% and in the past year by over 340%. This large rise is due to its work in the treatment of hormone disorders in patients.
The company has many drugs in its pipeline, including Tlando, LPCN 1144, and Tlando XR. Tlando is widely known as its flagship drug and has received tentative approval from the FDA to treat hypogonadism in adults. Lipocine recently announced that it is launching a new public offering of common stock.
Also, there is no guarantee of the timeframe that it will take for this offering to be completed. As stated many times before, offerings like these are quite common in the biotech industry. This is because they allow companies to further R&D for new and existing drugs before commercialization. While the details are still unknown, investors should continue checking LPCN stock for updates to this deal. Additionally, investors should look for Lipocine’s next balance sheet report to see where this funding goes into place. With this in mind, is LPCN on your list of penny stocks to watch?
Gold Resource Corporation
One of the market areas that hasn’t gotten much love in 2021 is precious metals mining. Thanks to a stronger dollar and less uncertainty in the market, gold stocks, for instance, had cooled off. However, Thursday is a different story, and spot prices are once again testing major technical levels. At the open, the price of gold broke above $1,865 in the first green opening session of the week. This, in turn, helped spark momentum in certain gold stocks, penny stocks included.
Gold Resource Corporation was one of these. The company had just declared its monthly dividend this week. Furthermore, it comes on the heels of reporting is 2020 gold and silver production figures. Allen Palmiere, President and CEO, said, “Our Oaxaca Mining Unit delivered solid production results during a demanding 2020 amid the global pandemic. While COVID-19 is expected to remain a challenge in the short to medium term, our team has done an admirable job managing the situation. The Company finished the year with a strong balance sheet, including $25.4 million in cash, which provides us with flexibility as we move to reinvest capital in Mexico to increase the productivity and the life of the operations.”
With strength in gold, will GORO stock continue climbing? Shares have reached low levels that the gold penny stock had bounced off 2 times before, during the last year. So it will be interesting to see if this becomes the case again in light of renewed gold interest.
Finally, Zomedica has been in the Wall Street spotlight (and ours) for weeks. One of the biggest points of interest is the company’s TRUFORMA™. Specifically, the company is approaching the commercial launch of its diagnostic medical device for the veterinary community. This week, Zomedica announced that it signed an agreement with Miller Veterinary Supply for the distribution of TRUFORMA™, which is planned to begin sales on March 30, 2021.
“It isn’t often that an industry-changing product like TRUFORMA™ comes along. We are honored and excited to have been chosen to help bring this technology to market.”Clay Cass, Executive Vice President and Chief Operating Officer of Miller
There’s also been a bit of fanfare surrounding ZOM too. Zomedica was at the center of attention following a Cameo video from Tiger King star Carole Baskin. This triggered a spike of interest in the stock, and shares managed to rally to highs of $1.48 on the heels of that. Regardless of the hype factor earlier this month, traders are refocusing on the future ahead. This hopefully involves a commercial version of TRUFORMA™.