Cheap Penny Stocks to Watch as the Bull Market Returns
Tuesday, February 2nd, was a strong day for both blue chip and penny stocks. While the past few weeks of trading have been quite volatile, the market’s overall sentiment right now seems to be bullish. There are a few positives that are currently in play. On the one hand, covid cases around the world are declining rapidly.
In the U.S., new daily cases have dropped to almost half of what they were at the end of January. And while we aren’t out of the woods in any way, this is definitely an encouraging sign for investors. Also, the $1.9 trillion stimulus package is still making its way through various government levels.
Lastly, we see renewed bullish sentiment in a wide variety of markets. This includes electric vehicles, renewable energy, resources, tech, and others. Obviously, the list goes on, but these industries have seen heightened popularity in the past few months. So as we continue to barrel through 2021, investors should make sure that they know what is affecting the larger market.
In the past few weeks, retail traders have helped to make speculation the new norm. For this reason, investors need to stay up to date with the news to see how it may impact their portfolios. Let’s take a look at three penny stocks to watch as the bull market returns.
Penny Stocks to Watch
One of the bigger gainers of the day on February 2nd is OCGN stock. During trading, shares of OCGN stock shot up to over $3 per share. Before we go into why OCGN shot up so much, let’s take a look at what it does daily. Ocugen operates as a biopharmaceutical company with a focus on producing gene therapies.
Recently, Ocugen has been working on a vaccine to help fight against Covid-19. The vaccine, known as Covaxin, is being co-developed with Bharat Biotech. With this, the company has seen heightened popularity in the past six months or so. The big reason for the bullish gain on Tuesday comes following the company’s latest update. At 6:30 AM PST, Ocugen announced that it had executed a definitive agreement with Bharat Biotech to commercialize Covaxin in the U.S.
Outside of the U.S., the company recently received EUA or emergency use authorization in India and is currently in a Phase III trial. Shankar Musunuru, CEO of Ocugen, stated that “the evaluation of Covaxin has resulted in several unique product characteristics including long-term persistence of immune responses to multiple viral proteins, as opposed to only the spike protein, and has demonstrated spectrum neutralizing capability with heterologous SARS-CoV-2 strains, thus potentially reducing or eliminating escape mutants. Requiring only a vaccine storage temperature of 2-8 degrees Celsius with the potential to treat all the groups.”
This is big news and shows that Ocugen could become a player in the fight against Covid. Whether or not this makes OCGN a penny stock to watch is up to you.
Tetra Technologies Inc.
Another big gainer of the day is Tetra Technologies Inc. During trading, shares of TTI stock shot up to around $2.15 per share. While you may not have heard of Tetra Technologies, the company is relatively well known in the energy and fluids industry. It has quite a broad market in which it operates. This includes producing oil and gas services, additives for use in oil production, and blowback services.
These services are offered around the U.S. and South America, Europe, Asia, and the Middle East. As an ancillary oil and gas company, Tetra Technologies has a great deal of exposure to increased demand for fossil fuel energy alongside the dropping Covid cases. As we head into the next few months, many investors believe that the energy industry could continue seeing a boost.
On Monday, Tetra announced that it had regained compliance with the NYSE minimum average closing price requirement of $1. This is great news for investors as being de-listed is not ideal for any publicly-traded company. Tetra had also recently announced that it had divested its interests in CSI Compressco LP and related assets. This divestment should bring in roughly $30.7 million.
Brady Murphy, CEO of Tetra, states that “the Tetra board and management team continue to focus on taking the necessary actions to unlock shareholder value. Tetra continues to perform well in difficult market conditions.”
BLRX is another penny stock that we’ve covered several times in the past few months. As a biopharmaceutical company with a focus on oncology, BioLineRx is working on developing several novel therapeutics. Its pipeline includes BL-8040, AGI-134, and BL-5010, which are all used to treat cancerous tumors. The company is also currently in a collaborative agreement to study BL-8040 with Keytruda.
The goal is to see its efficacy in treating pancreatic cancer. As you can see, BioLineRx has a lot going on right now. Additionally, the focus on biotech penny stocks has helped bring more momentum to BLRX in the past few months. A few weeks ago, the company announced the closing of a bought deal offering roughly $34.5 million.
It states that the proceeds will be used for both corporate purposes and future clinical trials. Capital raising events like these are quite popular amongst biotech companies. There are a few reasons why this is the case. For one, biotech companies often don’t post major revenue until a drug is commercialized. If a compound does see approval and commercialization, oftentimes, biotech companies will sell the rights to that substance.
This means that outside capital is usually needed to continue operations. BioLineRx could continue developing new compounds and put them through the various approval stages with this fundraising round in mind. Whether or not this puts BLRX on your list of penny stocks to watch is up to you.