These Penny Stocks Are Climbing Faster Than The S&P This Week
When it comes to finding the best penny stocks, traders will often go with the most popular choices. Searching for hot topics on Reddit and other social media outlets has become somewhat normal in 2021. But you can’t forget about fundamentals entirely. These can become catalysts of their own, even on a short-term timeframe. Just look at some of the top penny stocks this week. Many of them have jumped after company events ranging from insider buying to public announcements.
Also, it’s important to monitoring market interest. One of the ways to do so is by looking at trading volume. If the volume is low, interest is relatively lower. You may have trouble exiting a position if stocks are inactive. On the other hand, high volume penny stocks may include a bit more volatility; at least, that’s what we’ve seen recently. Though that might be a factor, stocks with higher volume tend to offer more potential for easy entry and exit.
High Volume Penny Stocks To Buy [or avoid]
- Rigel Pharmaceuticals Inc. (NASDAQ: RIGL)
- Clearsign Technologies Corp. (NASDAQ: CLIR)
- Vyne Therapeutics (NASDAQ: VYNE)
Rigel Pharmaceuticals Inc.
Rigel Pharmaceuticals Inc. is a company that we’ve covered several times in the past few months. With a 6% gain on February 2nd, RIGL stock is once again on our radar. While you may not have heard of RIGL among other leading biotechs, the company has seen heightened popularity in the past few months. This is due to its work related to Covid. The company produces drugs for both hematologic disorders and cancer.
It received the first FDA approval for its Tavalisse (fostamatinib disodium hexahydrate) compound and has since worked on commercializing it. In addition to Tavalisse being available in the U.S., it is on sale in Canada and Europe to treat chronic immune thrombocytopenia. More recently, the company has been working on a treatment for hospitalized Covid-19 patients. It states that it is in Phase 3 clinical trials to test fostamatinib’s efficacy in treating these patients.
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Only a few days ago, the company announced that it had been awarded almost $17 million from the U.S. Dept. of Defense. This award will help to further research and allow the company to move quickly through the next steps of the process.
Raul Rodriguez, CEO of Rigel, stated that “Data from this trial, coupled with findings from the NIH sponsored Phase 2 trial, which is anticipated to report topline results in early April 2021, could potentially facilitate an EUA filing for a much-needed therapy for hospitalized Covid-19 patients in the U.S.”
Clearsign Technologies Corp.
CLIR stock is one of the larger gainers of yesterday’s after-hours session. Shares ended up climbing as high as $6.33. On Wednesday, however, shares reset back to levels around $4.50. For some context, Clearsign is a designer and developer of emission reduction systems. This includes those made for both industrial and commercial purposes. In its product pipeline are several unique systems including the ClearSign Core and ClearSign Eye sensing devices.
These are used to sense energy consumption in vehicles and adjust emission output respectively. The company has a very broad market for its products. This includes petrochemical, transport, and power systems. For this reason, some investors believe that Clearsign could continue to advance in the tech industry moving forward.
This week, Clearsign announced that it received a large order from a major European refining company. The deal relates to its ClearSign Core process burner. With this, the company will supply its NOx emissions technology for the refining company’s large range of global facilities.
Jim Deller, CEO of ClearSign, states that “we are delighted to have received this order and to have advanced to this stage with a second global refining company. This order is another installation of our technology with a supermajority at one of their European facilities. This marks our first installation in Europe.”
This is exciting news, and investors should make sure to stay up to date with any further announcements. In light of this update, trading momentum has picked up a bit more this week. Will that continue into the rest of February?
Vyne Therapeutics
Vyne has been on our list of penny stocks for weeks, thanks to the attention surrounding the company’s treatment pipeline. In fact, earlier this week, Vyne gained approval by the FDA to include new information in the product label for AMZEEQ® (minocycline). This is the company’s treatment for certain types of inflammatory lesions. This move was supported by its antimicrobial characterization program for AMZEEQ and its minocycline published last year in a peer-reviewed journal, Anaerobe.
If you’ve followed VYNE as we’ve reported on it, you should remember the update from January. In particular, Vyne announced a contract with a “major” pharmacy benefit manager (PBM) for AMZEEQ and ZILXI. ZILXI is the company’s treatment for inflammatory lesions of rosacea. While it wasn’t listed by name, this PBM is one of the largest in the U.S., according to Vyne.
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This week also saw increased interest from the institutional community. Tuesday, BlackRock Inc. reported a 7.1% stake in the company. This came just 1 day after Perceptive Advisors filed a Form 4 showing the purchase of 4,219,409 at an average price of $2.37, which was part of the previously announced $50 million raise late last month.
Penny Stocks & Volume
The goal of trading penny stocks and really any equity for that matter is to make money. Volume is the lifeblood for a stock. Some traders don’t even know what certain companies do. They understand that 1, 2, 3, 4, or 5 letters are active; there’s volume and momentum. The rest is up to charting and technicals. It’s never a bad idea to know a little bit more than just technicals when it comes to cheaper stocks. Unless you’re a scalper or high-frequency day trader, some catalysts (like news or insider buying) can impact a stock greater than other catalysts (such as vague, sector news). So keep this in mind, especially when you come across the countless high volume penny stocks this week.
