These Penny Stocks Are Jumping After Big News This Week
Some of the biggest things traders look for when it comes to penny stocks are catalysts. This may come in the form of what we saw with GameStop and AMC; technical. But you’ve also got the other side of this coin, which is more fundamentally driven. In this light, looking at news headlines, corporate filings, or even broader market or industry news. How this news translates into trading has a lot to do with what the headlines are actually about.
Are we looking at biotech news that shows insufficient trial data? In that case, it will be important to observe management’s comments to see if or how they plan on moving forward. On the other hand, are we talking about strong earnings? If that’s the case, it will be essential to see the company’s guidance. If you’re new to trading, the most significant part of the news is reading more than just the headline.
The intro paragraph may appear exciting, but read the details and make sure you have the full story. It’s also not a bad idea to check out corporate filings to see if there are other specifics to updates. This is usually a good idea when there’s news on financing. The filing – usually and 8-K – will break down the price per share that the money was raised at, any associated warrants or options, as well as any conversion discounts in the case of debt financing.
I could go on about the specifics, but for this article, I want to introduce the idea that there’s more to news than just the headline. With this in mind, here are a few companies that came out with big news on Thursday. Will they be the best penny stocks to buy right now, or should you avoid them altogether?
Hot Penny Stocks to Buy [or avoid]
- Infinity Pharmaceuticals Inc. (NASDAQ: INFI)
- Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP)
- Greenpro Capital Corp. (NASDAQ: GRNQ)
- Outlook Therapeutics Inc. (NASDAQ: OTLK)
- Celsion Corporation (NASDAQ: CLSN)
Infinity Pharmaceuticals Inc.
This has been one of the companies on our radar for a while now. Infinity Pharma was most recently in our update over the weekend ahead of a big week this week. Why was this the case? The company was set to report data from MARIO-275 on the first day of the American Society of Clinical Oncology 2021 Genitourinary Cancers Symposium. This randomized, placebo-controlled Phase 2 study evaluates the benefit of adding eganelisib (IPI-549) to Bristol-Myers Squibb Co’s (NYSE: BMY) nivolumab (Opdivo®) in patients with advanced urothelial carcinoma. That presentation was today, and here’s what Lead Study Investigator Piotr Tomczak, M.D., Ph.D., had to say:
“These encouraging data demonstrate that the addition of eganelisib to the approved 2L standard of care nivolumab monotherapy is well-tolerated with the potential to improve outcomes, including progression-free survival, in patients with advanced urothelial cancer.”
Based on the results, the company is now planning a registration-enabling study in advanced urothelial cancer. It’s also exploring the potential of the treatment in more broad cancer types.
Tonix Pharmaceuticals Holding Corp.
Another company with big news on Thursday is Tonix Pharma. The company announced a technology licensing agreement using oxytocin-based therapeutics for treating Prader-Willi syndrome and non-organic failure to thrive disease from Inserm.
This allows Tonix to build upon its intranasal potentiated oxytocin development program to a new indication. According to the company, this program has the designation TNX-2900 (intranasal potentiated oxytocin) to treat Prader-Willi syndrome. The patents covering the technology could provide market exclusivity for the co-licensees in the U.S. and Europe through 2031.
The company plans to submit an application to the FDA for Orphan Drug & Fast Track designations for the treatment down the road. President and Chief Executive Officer Seth Lederman, M.D., explained that “With the license from Inserm Transfert, we have the opportunity to expand our ongoing efforts with intranasal potentiated oxytocin to this new indication.”
Greenpro Capital Corp.
Looking for market trends is also helpful. Broader industry trends tend to impact the companies within, and they also inspire these companies to expand. Look at things like cryptocurrency right now. Many of the quiet companies that’ve waited in the wings for the last few years are now in expansion mode. Whether it’s purchasing mining rigs or building data centers, the hype factor has played out well and pushing many of these companies to build their business.
In this light, Greepro Capital has recently become a point of focus for traders. This was a company we talked about earlier in the week as bitcoin began to boom again. At the heart of its business, Greenpro is a financial consultant and offers corporate services to an extensive range of businesses in Hong Kong, Malaysia, and China.
Here’s where crypto comes into the conversation. Thursday, the company announced an investment agreement for $7,206,000 with Innovest Energy Fund. What’s the significance of the deal? Innovest Energy Fund is developing a suite of products and services for the cryptocurrency industry. The broader focus is on the institutional side of the crypto industry.
Outlook Therapeutics Inc.
Another familiar name on this list of penny stocks with news is Outlook Therapeutics. Since September, OTLK shares have been climbing strongly. What’s more, is on the bigger picture, shares are up significantly even on a 1-year timeframe. More recently, something that has driven momentum has been Outlook’s funding rounds, bringing sufficient capital to support current pipeline development initiatives.
In particular, Outlook seeks to use funds for its potential Biologics License Application (BLA) filing for ONS-5010 for wet age-related macular degeneration. This is planned for the end of this year. Outlook said this financing also provides it with “optionality” as it evaluates the best commercialization path for ONS-5010.
This week, Outlook announced that the last patient completed their final visit for the ongoing open-label safety study evaluating ONS-5010/LYTENAVA™ (bevacizumab-vikg) to treat retinal diseases (NORSE THREE). This means that 2 of the 3 planned clinical trials for ONS-5010 / LYTENAVA™ wet AMD U.S. BLA are now completed. According to the company, commercial launch planning has begun.
Outlook said it has also received agreements from the FDA on three Special Protocol Assessments for 3 more registration clinical trials. These are for evaluating ONS-5010 to treat branch retinal vein occlusion and diabetic macular edema. These other trials are expected to have registration initiated later this year.
Finally, Celsion Corporation issued a letter to shareholders today that has triggered big momentum early on. This included more details on its vaccine initiative using its PLACCINE DNA platform for preventing/treating infectious agents. In particular, it’s targeting agents that could be global pandemics like SARS-CoV-2. Outside of this, the company said it expects clinical development programs with is immunotherapy treatment, GEN-1, which is in Phase 2 for ovarian cancer.
It also gave an update on the status of its Phase 3 OPTIMA Study with Celsion’s ThermoDox® plus radiofrequency ablation treatment for liver cancer or hepatocellular carcinoma with a decision to stop following patients in the study. This is in response to the second interim analysis results in its study announced in July of last year. However, this may not be to the official end of ThermoDox® entirely. Remember, I explained that it’s important to see what management presents. “Following inquiries from the NIH, we intend to renew our Cooperative Research and Development Agreement with the Institute at a nominal cost, one goal of which is to pursue their interest in a study of ThermoDox® to treat patients with bladder cancer.”
Penny Stocks To Watch With News
When it comes to news and penny stocks, always read as much as possible. The research portion of trading may take a bit of time, but in the end, good research can help you identify profitable trades early. It can also help you avoid potentially harmful trades before they end up turning. At the end of the day, make sure you take some time to understand why stocks are moving the way they are and identify the potential catalysts that may be in play.