Penny Stocks To Watch For March 2021 If You Like The Biotech Sector
As we approach the third week of March, penny stocks seem to be on a hot streak. This is a combination of the massive decline in covid cases and the $1.9 trillion stimulus package passing. Also, investors’ fear about potential long-term inflation in the U.S. seems to be dwindling.
All of this adds up to show that investors are quite bullish about the near term. And this bullishness is extending from blue-chip stocks to penny stocks. While not all cheaper stocks are winners, a few industries are seeing more attention than others. This includes biotech, mining, technology, and others.
It makes sense that these industries would be gaining momentum given the current events. And as the economy continues to return to normalcy, the hopes are that more industries will see their values rise. Investors should remember that this process takes time. And research will always be your best friend. So when making a list of penny stocks to watch, it’s critical to consider what is going on in the world.
Are Biotech Penny Stocks On Your Watch List In March?
This has lead many to biotech. Look at benchmark ETFs like the Nasdaq Biotechnology Index ETF (NASDAQ: IBB) or the S&P Biotech ETF (NYSE: XBI). Both had gone into bear market territory following the late-February pullback. The XBI dipped 26.5% from its high, and the IBB dropped 18%. But since then, both have experienced an aggressive rebound worth noting. In fact, since reaching their lows, these biotech ETFs bounced back between 9% and 14%. This same period saw the SPY and QQQ only rebound 6-7%.
Retail or “Robinhood traders” continue seeking out volatility, and biotech has certainly become a source of that. Even with the rally, the sector has seen that both XBI and IBB are still off their record levels. What’s more, if you look at the 100 most popular stocks on Robinhood right now, it’s peppered with a slew of different biotech names.
Since biotech stocks have far outpaced broader markets, this could warrant a closer look. All things in consideration, here are five penny stocks to watch heading into the second half of March.
Biotech Penny Stocks On Robinhood to Watch Right Now
- GT Biopharma Inc. (NASDAQ: GTBP)
- Acer Therapeutics Inc. (NASDAQ: ACER)
- Biolase Inc. (NASDAQ: BIOL)
- Synthetic Biologics Inc. (NYSE: SYN)
- IsoRay Inc. (NYSE: ISR)
Penny Stocks To Watch #1: GT Biopharma Inc.
Shares of GT Biopharma have flirted with the upper end of the penny stock range for the last few weeks, with the last few days seeing a big boost in market momentum. Last Tuesday, GTBP stock experienced the most active trading day in its recent history, with more than 4.4 million shares traded. What was the source of excitement?
The company announced preclinical results for its ROR1 TriKE™ product candidate as a prospective therapy for prostate cancer treatment. GT Biopharma explained that ROR1 recently showed to be overexpressed on certain cancer cells and appears to play a functional role in “promoting migration/invasion and influencing the metastatic potential” of various solid tumor cancers. By targeting ROR1 on cancer cells with its TriKE™ platform and redirecting NK cells to attack and kill cancer cells expressing ROR1, GT Biopharma said it could result in a treatment that limits the metastatic potential and invasiveness of certain solid tumor cancers.
However, something to note with GT Biopharma is that this is just one piece of the company’s broader treatment pipeline. The TriKE™ platform has become the framework for numerous therapeutics, including GT’s GTB3550. It’s initially indicated for treating acute myeloid leukemia, myelodysplastic syndrome. Interim data has already been released, showing progress in its current Phase I/II clinical trials. Not only were no toxicities observed, but significant benefits were observed after treatment with GTB-3550 in the seven patients that have been enrolled & have also completed therapy. An 8th patient has also begun treatment in this trial.
Heading into this week, GT Biopharma will also present at the Roth Conference on Wednesday. So if GTBP stock is on your list, that date may be something to keep in mind.
#2: Acer Therapeutics Inc.
An interesting biotech penny stock right now is Acer Therapeutics Inc. The company acquires and develops therapies that treat rare illnesses. This includes those that are otherwise unmet by current treatments. In its latest Q4 report published a few weeks ago, the company announced some exciting updates.
CEO Chris Schelling stated that “in spite of the challenges presented by the global pandemic in 2020, we continued to advance our existing programs while expanding our pipeline. As a result, we anticipate a number of key milestones next quarter, including the proposed ACER-001 pre-NDA meeting with the FDA, continuing to work toward a potential ACER-001 collaboration and license agreement with Relief Therapeutics.”
Financially, Acer ended the quarter with more than $5.8 million in cash and cash equivalents. While it did pull in a net loss of $6.2 million, this is quite common amongst biotech companies. Before commercializing a compound, biotech companies will often incur losses. This is due to the massive capital expenditures involved in producing a new drug.
In addition to this, the company recently submitted a Type B meeting request to the FDA for its Edviso (celiprolol) compound. The company is also developing ACER-2820, which could be an efficacious treatment option for Covid-19 patients. All of this adds up to show that Acer has a lot in its pipeline right now. While it may take time before it reaches more milestones, ACER could be worth watching.
#3: Biolase Inc.
Biolase Inc. is a penny stock that we have frequently discussed over the past few months. In that time, it has made some big strides with its business model. Biolase is a producer of dental lasers that are used in a large range of procedures. With over 271 patented and 40 patent-pending technologies, Biolase is constantly innovating with its products. The patents it holds for its lasers allow it to claim some of the most advanced dental laser system options on the market.
When 2020 turned the corner, Biolase reported hitting a milestone of selling more than 41,200 laser systems across 80 countries. Shares have climbed several times in the past few months off of news regarding its laser systems. A week ago, the European Patent Office announced that it might give a new specification to Biolase’ Dual Pulse-Width Medical Laser With Presets. If Biolase receives this, it would be another large win for the company.
A few weeks prior, the company announced the closing of a sizable $14.4 million bought deal offering. CEO Todd Norbe stated that “this latest offering has bolstered our cash to over $40 million and provides us with the necessary resources to execute the Biolase growth strategy.”
Because dental procedures have resumed to most of their pre-covid levels, many investors are bullish on the future of Biolase. While it is affected by the pandemic, the company is working to build new strategies. This goes hand in hand with its need to continue innovating and receiving new patents. With all of this in mind, is BIOL a penny stock to watch?
#4: Synthetic Biologics Inc.
After Maxim Group upgraded SYN from a hold to a buy, shares of the biotech company dramatically increased. In addition to this, Maxim Group analysts gave a price target for SYN of $2.50. This represents a 10% or so gain from where it was before the rating. At the end of Friday, March 12th, SYN stock had shot up by over 29% to $0.92.
This rating comes only a few days after the company released its year-end financial and operational results. In the results, Synthetic Biologics posted over $72 million in cash on hand. It also stated that it should have enough cash to fund all clinical programs up to 2023. Also, it announced that it had received Institutional Review Board or IRB approval from Washington University School of Medicine in St. Louis for its SYN-004 compound.
CEO Steven Shallcross stated that “we are more encouraged than ever by this outlook for the business as we have made important progress during the fourth quarter advancing and demonstrating the significant value of our clinical development programs. With a number of upcoming catalysts later this year, we believe there is potential to continue to deliver significant value for our shareholders.”
Shallcross went on to state that “during the fourth quarter of 2020, we also made significant progress and gained additional clarity on potential clinical development pathways for our SYN-020 IAP program.”
So with all these exciting programs in mind, SYN could be a penny stock to watch.
#5: IsoRay Inc.
Back in February, IsoRay announced its Q2 results for 2021. With no major changes to its bottom line, ISR stock remained quite stable after the announcement. In the report, IsoRay managed to increase revenue by 7% year over year. Also, its revenue from non-prostate brachytherapy increased by more than 92% year over year.
While fewer surgeries occurred last year due to covid, IsoRay has managed to work around this, building its brachytherapy use cases along the way. CEO Lori Woods stated that “we are very pleased that we have been able to continue to make progress this quarter despite the ongoing challenges that the Covid-19 pandemic has presented. Amongst the highlights has been our continued success in expanding adoption of Celsium-131 in our core prostate market.”
The company’s Cesium Blu brachytherapy seeds are used in broadening the indications that brachytherapy has overall. A few weeks ago, the company appointed Lisa Lauer to be its new VP of Business Development. With over 27 years of experience in the industry, Lauer’s addition could help develop IsoRay’s business model moving forward.
The company will also be presenting at the upcoming Oppenheimer 31st Annual Healthcare Conference on March 17th. This is important for investors as it could give insight into where the company is headed in the coming months. Since January, shares of the biotech penny stock are up by over 180%. With this bullish interest in mind, ISR could be one of the penny stocks to watch before next month.