5 Penny Stocks To Watch This Week
With the approval of a new vaccine and a bullish response from investors, penny stocks are showing higher volume across the board. While heightened volume may not seem like a big deal, it indicates several factors about individual security. For one, higher than average volume means more investor attention.
Simply, the higher the volume, the more shares are trading hands between investors. We see volume trends across either individual companies or entire industries. This can be indicative of either announcements specific to a company or larger implications for a broader industry as a whole.
Often, the increased volume is due to speculation surrounding either a short or long-term idea. With the higher number of retail traders in the stock market today, sentiment seems to be a bigger momentum driver. While we like to think that all movement is based on fundamentals, speculation has a major role in changing stock prices. This can relate to either large gains or large losses. The best way to utilize speculation to one’s advantage is to stay updated on current events.
Penny Stocks to Watch This Week
As of March 1st, markets saw a bigger gap up than in many trading days over the last few months. Whether this is a combination of good news relating to the pandemic or excitement surrounding a new month of trading remains to be seen. But, this bullish momentum is a positive shift from last month. Keeping this in mind, here are five penny stocks that are showing higher than average volume and could be on the watch list later this week.
- vTv Therapeutics Inc. (NASDAQ: VTVT)
- Gaucho Group Holdings Inc. (NASDAQ: VINO)
- Dirtt Environmental Solutions Ltd. (NASDAQ: DRTT)
- Northern Dynasty Minerals Ltd. (NYSE: NAK)
- Predictive Oncology Inc. (NASDAQ: POAI)
Penny Stocks To Watch #1: vTv Therapeutics Inc.
vTv Therapeutics is a clinical-stage biotech penny stock that we’ve written about quite a few times. The company works on the production of small molecule drugs, which can be used to treat diabetes, inflammatory disorders, and more. Also, vTv has a large range of partners that allow its pipeline to encompass a broader range of compounds. A few weeks ago, vTv announced its fourth-quarter and full-year financial results for 2020.
Despite the impact of the pandemic, the company managed to post a relatively solid balance sheet. In the fourth quarter, VTVT pulled in $0.02 in diluted net income. This represents around $1.6 million in income overall, a substantial increase from the net loss of $2.3 million only a quarter earlier. Additionally, vTv managed to greatly improve its cash position to $5.7 million over $1.8 million in the previous quarter.
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Speaking on the results, CEO Steve Holcombe stated that “despite the challenges of operating through a global pandemic, 2020 was a successful year for vTv Therapeutics. In 2021 we look forward to building on these successes as we advance our two lead programs for the treatment of type 1 diabetes and psoriasis.” During the quarter, the company also dosed its first patient with HPP737, a psoriasis treatment. Also, it signed into a strategic partnership with Anteris Bio, where the latter will receive worldwide rights to vTv’s HPP971 compound. One of the extra drivers on Tuesday came as company director Rich Nelson reported the purchase of 60,000 shares of VTVT stock at an average price of $2.86. Another director, Hersh Kozlov, also picked up 10,000 at an average price of $2.74.
#2: Gaucho Group Holdings Inc.
While you may not have heard of Gaucho Group Holdings, the company has recently made some waves. Gaucho Group focuses on both real estate and consumer products across Argentina. Its brands include e-commerce sites, luxury goods products, wines, hotels, fashion brands, and more. A few weeks ago, its Gaucho luxury leather goods brand began selling products on Amazon. Scott Mathis, CEO of Gaucho Group Holdings, stated that “this is such an exciting development not only for Gaucho – Buenos Aires but also for all of its sister companies. We look forward to more e-commerce opportunities and more collaboration across all of our brands, including Gaucho, as well as the fine wines, hospitality, and real estate associated with Algodon Fine Wines and Algodon Wine Estates.”
Only a few days later, Gaucho announced an $8 million public offering in a response to its need for capital and increased share prices. One thing that’s interesting about Gaucho is its move to transition into e-commerce. While it has been selling products online for quite some time, the emphasis on e-commerce has become very strong in the past year.
With this, we see that Gaucho is committed to finding revenue even during times of struggle due to the pandemic. With its recently announced appointment of Edie Rodriguez to its board, Gaucho is working hard to stay competitive in the short and long term. Considering this is a newly uplisted Nasdaq company, it’s only had a few weeks for the market to get updated on developments from the company. However, as the story develops (and as the price allows), we’ll continue keeping updated on any new milestones the company reaches.
Penny Stocks To Watch #3: Dirtt Environmental Solutions Ltd.
Dirtt Environmental Solutions is another penny stock that you may not have heard of until now. Dirtt is a provider of customized interiors that utilize its proprietary ICE software in its design. The company engages in the complete interior design process, including design and manufacturing. Together with its over 70 partners around North America, Dirtt provides sustainable interior spaces through its three manufacturing facilities. On February 24th, Dirtt announced its fourth quarter and full-year 2020 financial results. The company pulled in over $42 million in revenue with a net loss of around $4.2 million. Dirtt brought in more than $171 million in revenue for the full year with a net loss totaling $11.3 million.
Kevin O’ Meara, CEO of Dirtt stated that “We benefitted throughout most of the year from the completion of projects that were underway at the beginning of the pandemic. However, with continued lack of clarity on how Covid-19 and associated restrictions will evolve, end customers remain reluctant to make firm commitments on new projects. This dynamic began to impact our activity levels in the fourth quarter of 2020 and has continued into 2021.”
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Something else to note this week is that insiders are buying shares. One of them, filed by Shaun Noll, jointly with 726 BC LLC, 726 BF LLC, Peter L. Briger Jr., & Matthew Briger, showed the purchase of over 200,000 shares recently. The shares were picked up between average prices of $2.4483 & $2.48. Each of the Reporting Persons is a member of a Section 13(d) group which collectively owns more than 10% of Dirtt’s outstanding shares.
#4: Northern Dynasty Minerals Ltd.
NAK is a penny stock that we’ve been discussing for many months at this point. Throughout that time, we’ve discussed how mining penny stocks could hold a great amount of potential in the future. As an exploration company, Northern Dynasty holds claim to its principal property known as the Pebble copper-gold-molybdenum project. This area alone encompasses roughly 417 square miles in Southern Alaska. In the past few weeks, NAK has seen several days with higher than average volume. Much of this is based on the issues relating to a permit rejection for the Pebble Mine project.
After submitting an appeal several weeks ago, the company and investors have eagerly waited for a response. A week ago, the company received news that the Corps of Engineers accepted its request for appeal. While this is a major step, it is only one part that contributes to whether this project can begin. But, seeing as though at the end of 2020, hopes were all but dead, this is, without a doubt, positive news. As this was announced, shares of NAK skyrocketed by around 33% at the end of February. There isn’t a final decision regarding this, but the acceptance of this appeal gives the Army Corps 90 days to make a definitive stance. Now, the clock starts ticking.
#5: Predictive Oncology Inc.
One of the more interesting biotech companies right now is Predictive Oncology Inc. As opposed to traditional oncology companies, POAI utilizes AI to personalize cancer treatments. The company gathers information from a patient, where it then works to create targeted therapies for each individual.
Predictive collaborates with its large range of subsidiaries. In total, it has four sub-sects that work in three segments. These are Helomics, TumorGenesis, Skyline Medical, and Soluble Biotech. The company uses these subsidiaries as a pipeline, where a treatment can be optimized at each stage. Each one of these subsidiaries specializes in a unique area of the biotech industry.
TumorGenesis produces media for growing cancer cells. Skyline Medical holds its patented and FDA-approved STREAMWAY System, which can run diagnostics and collect waste fluid in a patient. Lastly, Soluble Biotech provides proteins for use in vaccines & antibodies.
Recently, the company announced that Helomics has progressed on several milestones with its AI-driven Ovarian cancer model. Dr. Schwarts, CEO of POAI, stated that “we are excited to have reached these key sequencing and data generation milestones as these data are the foundation of our AI-driven predictive models of patient outcome.”
Also, Predictive Oncology recently announced the closing of a $17.6 million private placement. Roughly $5.88 million of the net proceeds have been earmarked to repay certain indebtedness with the remained going toward working capital. As a diversified biotech penny stock with new cash in hand, POAI could be worth watching.
