These Penny Stocks May Be To Active To Ignore
We’re at the start of a new week, and you better believe research is already getting done on which penny stocks to buy on Tuesday. Whether you use technical analysis, search for fundamentals, or your own “secret sauce,” there’s one goal in mind. That goal is to make money as quickly as possible. This isn’t to say that all penny stocks are “built for speed,” so to speak. In fact, there are plenty of cheap stocks to invest in, but it takes a little bit more finesse and a stomach for volatility, in my opinion.
Last week finished things out at record levels. This isn’t just the highest intra-day level but the highest close in the stock market’s history. With a new Administration in place in the U.S. and a seemingly more robust economic backdrop in specific locations worldwide, 2021 has been a big year already. For instance, Japan’s economy, which is the world’s third-largest after the United States and China, grew 3% during the 4th quarter of 2020. This equated to an annualized growth rate of 12.7% and was the country’s second-consecutive quarter of growth.
Economists on average expected gross domestic product to expand nearly 4.9% this year, measured from the fourth quarter of the prior year, according to the business and academic economists surveyed in February, an improvement from their 4.3% forecast in January.The Wall Street Journal
Then we’ve got the market itself. The overwhelming bullish sentiment in the stock market today is remarkable. The Reddit squad has brought to light the strength that retail traders can actually have. Though fleeting, significant spikes in names like GameStop, AMC Entertainment, and even Express have brought to light the underlying potential of penny stocks, in general. One of the most popular (and infamous) trading platforms used by these retail traders is Robinhood.
Robinhood Penny Stocks To Buy [or avoid]
Despite waves of complaints against the platform, millions of traders continue using the app. However, one of the interesting parts about it is that the majority of penny stocks on Robinhood are listed on the NYSE and Nasdaq exchanges. For this article, we’re going to discuss a few that’ve been trending in recent weeks. Will they be the best penny stocks to buy or avoid right now?
- Timber Pharmaceuticals Inc. (NYSE: TMBR)
- Soligenix Inc. (NASDAQ: SNGX)
- InVivo Therapeutics Holdings Corp. (NASDAQ: NVIV)
- AzurRx BioPharma Inc. (NASDAQ: AZRX)
- Inpixon (NASDAQ: INPX)
Timber Pharmaceuticals Inc.
You may notice something interesting about this list of penny stocks. Most are biotech stocks. This has become one of the hottest sectors in the stock market today, not only stemming from coronavirus vaccine development but for its novel advancements, in general. We discussed that idea over the weekend in an article about biotech stocks to watch this quarter. The focus of these companies is to develop life-changing and life-saving treatments that aren’t even in existence. So, in this light, when you look for speculation as a driving force for stocks, biotech is definitely one to keep in mind as an industry focus.
In the case of Timber Pharmaceuticals, shares skyrocketed after the market closed on Friday. TMBR stock has already been climbing since the start of 2021, but shares surged even higher later in the afternoon. In fact, the stock ran as high as $2.69 in post-market trading. There weren’t any headlines to pair with the move, and while it wasn’t on Friday, there was a 13G filed Thursday showing Hudson Bay Capital Management had a 9.99% stake in the company. Generally speaking, we know that institutional interest is usually a bullish sign to the market.
The company itself focuses on dermatological treatments. Last month Timber’s TMB-003 systemic sclerosis treatment received Orphan Drug Designation from the FDA. The company is in the preclinical stages of evaluating the treatment. The company is also developing other treatments, including TMB-001 & TMB-002, for rare skin conditions. Timber expects to reach 50% enrollment in Phase 2b trials of both this quarter with full enrollment by Q2.
Another one of the biotech penny stocks climbing strong this year is Soligenix. The company had an awful finish to 2020, dropping from around $2.70 to lows of $1.21 overnight in late December. The reason behind that fall stemmed from Phase 3 trial results from its SGX942 oral mucositis treatment. It didn’t meet the primary endpoint of the study. Regardless of that, the company said it observed a 56% reduction in the median duration of the severe oral mucositis to eight days using the treatment, dusquetide, compared with 18 days using a placebo.
This year, the company has been at the center of attention for other things in its pipeline—specifically, Soligenix’s SGX301 photodynamic therapy. The active ingredient in SGX301 is synthetic hypericin; a potent photosensitizer topically applied to skin lesions. It is ultimately taken up by malignant T-cells. This year, Soligenix signed an exclusive Supply, Distribution, and Services Agreement with Daavlin to supply and distribute a commercially ready light device. According to the company, this was an important piece of the regulatory and commercial strategy for SGX301 to treat cutaneous T-cell lymphoma (CTCL).
This week, eyes are on Soligenix as its set to present at the 2021 BIO CEO & Investor Digital Conference. Chief Executive Officer Christopher J. Schaber, Ph.D., will give a corporate presentation. “The BIO CEO conference comes at an opportune time as we advance toward new drug application submission to the FDA while continuing to highlight SGX301’s unique commercial value proposition for the treatment of cutaneous T-cell lymphoma in the U.S.,” Schaber stated in a press release last week. Given the prospects of this treatment and the excitement surrounding it, will SNGX be on your list of penny stocks to buy or avoid this week?
InVivo Therapeutics Holdings Corp.
Continuing this list of Robinhood penny stocks to watch this week is InVivo Therapeutics. The company has been on our radar for a while and continues to reach new milestones. While no news came out last week, a filing showed growing interest from institutional investors, including L1 Capital. A 13G filing showed the firm now has a 4.8% stake in the company.
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InVivo is actively enrolling patients into its INSPIRE 2.0 clinical study. This is a 20-patient study designed to identify the possible benefits of the company’s investigational Neuro-Spinal Scaffold compared to the current standard of care. Considering that InVivo hasn’t made too many updates other than a few tweets this year, speculation may be one of the more significant momentum drivers.
Needless to say, shares of NVIV stock have climbed significantly since announcing a $15 million raise in October. At the time, the penny stock was trading around 50 cents. As of Friday’s aftermarket session, NVIV stock reached a high of $1.69 after closing the regular session at $1.57.
AzurRx BioPharma Inc.
Shares of AzurRx also traded higher after-hours on Friday. This continued to echo the bullish tone that AZRX stock has experienced this year. Since the start of 2021, the penny stock has climbed from around 80 cents to as high as $2.63. The company has focused on advancing its Phase 2b OPTION 2 study. It is investigating immediate-release capsules of MS1819 for the treatment of exocrine pancreatic insufficiency in patients with cystic fibrosis.
Not only has AzurRx completed enrollment, the company has also engaged PPD Inc. for its planned Phase 2 clinical trial evaluating a proprietary formulation of micronized niclosamide as a treatment for COVID-19-associated gastrointestinal infections. AzurRx anticipates initiating the trial in the first half of 2021.
H.C. Wainwright recently boosted its price target on the penny stock to $3.50 from $2 and reiterated its Buy rating on the penny stock. Heading into the week, something to keep an eye on is the market reaction to the company’s upcoming presentation. AzurRx CEO, James Sapirstein, will present at the BIO CEO & Investor Digital Conference this week. He will give an overview of the company and clinical development programs, including anticipated 2021 milestones.
Finally, the only name on this list of penny stocks on Robinhood that isn’t a biotech stock is Inpixon. Shares of INPX stock surged last week. At one point, the penny stock reached highs of $2.89. The move came after the company announced distribution by Unitronic of Inpixon’s carbon dioxide sensor modules to measure indoor air quality. Obviously, with COVID-19 still a huge thing, air testing is important in numerous settings
“By utilizing our CO2 sensor modules as part of a solution to identify stale air and trigger on-demand ventilation to supply cleaner air, organizations can reduce the risk of transmission within their premises.”Nadir Ali, CEO of Inpixon
The penny stock dipped a day later when Inpixon announced a $30 million financing round at $2. Proceeds were earmarked for things like future acquisitions & strategic activities to speed up Inpixon’s growth. With the closing of this transaction expected this week (Feb. 17th), it seems that traders weren’t overly pessimistic about the news. INPX stock closed Friday at $1.98 and continued trading higher after the closing bell.
Penny Stocks To Buy On Robinhood
Keep in mind that penny stocks on Robinhood are ones listed on the Nasdaq and NYSE. The fact that millions of traders still use the app means that they are searching for cheap stocks to buy. Given the recent momentum in some of these names, have they reached their peaks or is there still room to run?