Are These Hot Penny Stocks To Buy Right Now?
There is a lot of excitement involving penny stocks this year. Much of this has stemmed from the pandemic, sure, but there are other things to factor in more recently. In recent weeks, one of the more active market sectors has been biotech, and penny stocks have become a big focus there. Many of these assets have drastically increased in price over the last year. There are a few reasons why this is the case. It started when the pandemic began, and the world started scrambling for a vaccine or treatment for the virus a few months later.
Many biotech companies that investors may not have heard of before were now in the limelight. At one point, more than 200 companies were attempting to develop treatments for COVID-19. This brought a lot of attention to biotech penny stocks in general.
Regardless of COVID developments, many new investors have opened their eyes to all types of companies in this sector. Many biotech companies are making great progress and achieving new approvals etc. The volatility of biotech penny stocks is desirable to some investors as well.
You’ve also got consumer goods companies experiencing some strength recently with the rotation out of growth stocks like tech. Everything from paper companies to energy stocks have gained ground. In the stock market today, we see this trend push major indexes like the Dow even higher. Let’s take a look at a few penny stocks to watch right now with all of this in mind.
- Seelos Therapeutics Inc. (NASDAQ: SEEL)
- InspireMD Inc. (NYSE: NSPR)
- BGC Partners Inc. (NASDAQ: BGCP)
- IT Tech Packaging Inc. (NYSE: ITP)
Hot Penny Stocks To Watch: Seelos Therapeutics Inc. (NASDAQ: SEEL)
This healthcare company develops and sells therapeutics for treating the respiratory system, nervous system, and more. With some biotech penny stocks it can be speculative as to why they are moving. For Seelos Therapeutics, the answer for its recent gains seems to be clear cut.
On March 5th, the company announced that it completed the open-label patient enrollment for its proof of concept study. This study is for SLS-002 to treat acute suicidal ideation and behavior in patients with major depressive disorder. Seelos currently expects to release key data in the second quarter of 2021 now that it has completed this patient enrollment. The Chairman and CEO of Seelos Therapeutics, Raj Mehra Ph.D., said, “Our first look at the potential efficacy of SLS-002 in depressed and imminently suicidal patients should provide valuable insights in this large unmet need. We look forward to initiating Part 2 of this study and are continuing to identify more trial sites.”
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This news release has sparked momentum for SEEL stock this month. Just a few weeks ago, SEEL was at $3.06 per share. On March 12th, SEEL reached a 52-week high of $5.89. Of course, like many penny stocks that spike quickly, SEEL has cooled down a bit. But with the pending data expected next quarter, it could be one of the top penny stocks to watch in April.
InspireMD Inc. (NYSE: NSPR)
This next biotech penny stock has also seen a great amount of positive momentum. InspireMD creates medical devices. One of its main technologies is MicroNet, a treatment for vascular and coronary diseases. When 2021 began, the NSPR stock price opened at $0.384. Then on February 8th, the company announced something new, which triggered the initial rally it saw last month.
InspireMD released the announcement for its upsized $20.7 million underwritten public offering, with the full exercise of the overallotment option. The offering was made up of 29,032,258 units at a public offering price of $0.62 per unit. Similar to SEEL, NSPR pulled back toward the end of the month.
Heading into next quarter, traders are focused on the upcoming shareholder meeting. Up for vote is the company’s push to list on the Nasdaq exchange. Company CEO Marvin Slosman issued a shareholder letter last week urging other shareholders to vote in favor of the move. Considering that this meeting isn’t set to occur until April 14th, there’s still a lot of time left to advocate for this.
BGC Partners Inc. (NASDAQ: BGCP)
The next company on this list is a fintech penny stock. BGC Partners offers brokerage products. These include things like government bonds, fixed income, corporate bonds, and other debt tools. This is another penny stock that has generated a large amount of momentum in the last 6 months.
One recent update from BGC Partners was its presentation at the Piper Sandler Virtual FIA Invest Event. After this event took place, BGCP stock price jumped about 9%. Now, this penny stock has fallen from those highs but has still held onto some of its gains. A lot of this progress is due to the financial results that it released one month ago.
BGC beat on both earnings per share and sales for the quarter. The company also said it plans to prioritize share and unit repurchases over dividends and distributions. Given the state of fintech stocks right now and the brokerage business, in general, BGC could be one of the top penny stocks to watch next quarter.
IT Tech Packaging Inc. (NYSE: ITP)
This final penny stock, IT Tech Packaging, has also been a gainer in the last 6 months. The company produces and distributes paper products, primarily in China. It offers corrugating papers, cardboards, and printing papers, as well as many other products. It experienced a large uptick last month when it announced the pricing of $20 million for the offering of common stock and warrants. The offering of 26,666,666 shares of common stock and warrants to purchase 13,333,333 shares was announced. The combined price is $0.75 per share.
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Then on March 23rd, IT Tech Packaging announced its fourth quarter and fiscal year 2020 results. Its revenue fell year over year, as did its gross profit. It experienced an operating loss as well. This announcement caused ITP stock to drop nearly 6% on the day of. Since then, ITP stock has recovered by about 3% in the market. Since then, however, ITP stock has managed to hold a channel around its 200-day moving average.
In light of the company’s positioning in the personal protective equipment market, it could be one of the penny stocks to watch. That’s because it is in the process of applying for a surgical face mask production license. IT Tech said that this could boost both sales and margins in the “very near future.” The market now awaits on-site inspection on its production facilities which was delayed by the pandemic.
