When it comes to penny stocks, you can’t count out volatility. Price plays a big role, and based on the definition of these stocks, even 50 cents can mean big shifts in position value. If you’re new to these cheap stocks, you may not know what I’m talking about. The definition of penny stocks refers to those which trade for less than $5.
This hasn’t stopped traders from flocking to these high-volatility names. What happens when the stock market is doing what it’s doing right now. Why is the stock market down? Why is the stock market up? These are two questions asked during the same week, which has demonstrated how volatile things have gotten overall.
So when it comes to finding penny stocks to buy, you should also assess broader market trends, more specifically, broader sector and industry trends. The fact of the matter is that even when the overall market sentiment is bearish, there are pockets of bullish momentum, especially when it comes to cheaper stocks. The idea is that while larger stocks drop, the lower-priced names could offer “potential” simply because it takes a much smaller monetary move to realize a decent profit.
Time To Watch Biotech Penny Stocks?
What’s more, is that at some point, investors look for key levels for an opportunity. Usually, these are technical levels at the 200-day, 100-day, and 50-day moving averages. As sectors (indicated by ETFs) and stocks approach these key levels, some traders prepare for potential reversals. Now, whether or not this happens before April is to be seen.
But what we can say is that benchmark biotech ETFs like the Nasdaq Biotech Index ETF (NASDAQ: IBB) and the S&P Biotech (NYSE: XBI) have both come within range of their 200-day averages. Is it time to start looking at biotech penny stocks right now? Here are 4 names that have begun trending during the second half of the week.
Penny Stocks To Watch Right Now
- GT Biopharma Inc. (NASDAQ: GTBP)
- Immutep Limited (NASDAQ: IMMP)
- Pieris Pharmaceuticals, Inc. (NASDAQ: PIRS)
- Oragenics, Inc. (NYSE: OGEN)
Biotech Penny Stocks To Watch: GT Biopharma Inc.
Despite a slight pullback over the last few days, GT Biopharma Inc.’s shares are still up around 20% for the month so far. The company has begun turning heads after a series of headlines sparked attention. GT Biopharma’s pipeline of cancer treatments built on its TriKE platform is at the center of the excitement.
This type of therapy combines proteins that bridge an immune cell and a tumor cell, then drive tumor cell killing power to exponential levels. It has led to new first-in-human phase studies to treat leukemia. While its GTB-3550 trials have played a bigger role, the recent news has emphasized the platform’s dynamic capabilities.
This month, GT announced preclinical results for its ROR1 TriKE™ product candidate as a prospective therapy for prostate cancer. GT explained that targeting ROR1 on cancer cells with TriKE™ and redirecting NK cells to attack and kill cancer cells expressing ROR1 could result in a treatment that limits the metastatic potential and invasiveness of certain solid tumors. Based on these results, the company said that it plans to evaluate this ROR1 TriKE in additional IND-enabling preclinical studies to transition to a Phase I/II clinical trial.
Roth Capital also recently weighed in on the company. Not only did it issue a Buy rating on the company, Roth also set a $25 price target on the stock.
Another one of the biotech penny stocks to watch right now is Immutep Ltd. Share of IMMP stock jumped early on Thursday to pre-market highs of $4.19. No immediate headlines correlated with the move. However, the immunotherapy company has gained momentum thanks to its pipeline advancements.
The company has several notable treatment candidates. One of these is a candidate, eftilagimod alpha, in Covid-19. The treatment is currently undergoing an investor-initiated study at the University Hospital Pilsen, Czech Republic. This is a Phase II trial of the Eftilagimod Alpha Treatment and, based on initial data review, was recommended to advance enrolment for the randomized portion of the study.
The company also has a collaboration with Merk & Co., TACTI-002, evaluating the combination of the treatment with KEYTRUDA in patients with second-line head and neck squamous cell carcinoma or non-small cell lung cancer. This trial was also recently expanded this year following a positive efficacy and safety review.
Again, there haven’t been any new details that’ve emerged recently. But there are multiple things to point to as sources of speculation. Also, Alliance Global Partners boosted its price target earlier this year to $6 and currently maintains a Buy rating.
Pieris Pharmaceuticals, Inc.
This morning, Pieris Pharmaceuticals has been under pressure recently. But premarket news on Thursday has triggered a reversal for now. The company announced that Seagen had made a strategic equity investment in Pieris. This is part of an ongoing collaboration between the companies.
Pieris and Seagen have also entered into a clinical trial collaboration agreement to evaluate the safety and efficacy of combining Pieris’ cinrebafusp alfa (PRS-343) with Seagen’s TUKYSA® (tucatinib) for treating gastric cancer patients expressing lower HER2 levels (IHC2+/ISH- & IHC1+). This is part of an upcoming phase 2 study being conducted by Pieris.
“Preclinical data exploring the combination of cinrebafusp alfa and TUKYSA are encouraging and support evaluating the combination in the planned phase 2 clinical trial,” said Marjorie Green , M.D., Senior Vice President, Late-Stage Development of Seagen.
As a developer of antibiotics, Oragenics has experienced a strong year overall this year. Though it has pulled back the last few weeks, OGEN stock is still up over 60% year-to-date. The main point of focus from the market has been on Oragenics’ Terra CoV-2 vaccine for COVID-19. Earlier this month, the company entered into an agreement with Biodextris to use 3 intranasal mucosal adjuvants in Terra CoV-2. Biodextris’ BDX 100, BDX 300, and BDX 301 are designed to enhance an intranasal vaccine’s immune response.
This combination of Terra CoV-2 and Biodextris’ adjuvants is being studied in preclinical animal studies. The ultimate goal is to begin in-human studies. “We believe there is significant opportunity to help address the worldwide COVID-19 pandemic, particularly in the post-near-term immunization phase where booster shots and potential effectiveness against a variety of COVID-19 variant strains may continue to be required,” explained Alan Joslyn, Ph.D., President, and CEO of Oragenics.
Considering the recent uptick in Covid headlines and related lockdown news worldwide, vaccine stocks could be back in focus. Shares of OGEN stock popped early in the morning on Thursday.