Are These On Your List Of Penny Stocks To Buy Right Now?
Everyone knows penny stocks can be risky. But with that higher risk comes the potential for higher rewards. Sure penny stocks under $0.50 that jump a quarter or more bring some big wins and great excitement to traders. How about the ones that go on to sustain multi-month uptrends to the tune of 1,000’s of percentage gains?
Seem too good to be true? Not really. If you look at many of the penny stocks in 2020, there were more than a handful that did exactly that. No, I’m not talking about the Reddit stocks that exploded earlier this year. I’m talking about the companies that have actually executed their business plans. Ones that may have experienced a few “big days” here and there. Overall, however, their trends have remained consistently higher.
Take, for instance, Novavax (NASDAQ: NVAX). It has quite possibly become the epitome of a true penny stock success story. Back in 2020, when we were reporting on it, shares of NVAX stock traded below $4. As the pandemic struck and the company pivoted from influenza treatment to a platform focused on COVID-19, the market began seeing some excitement.
Many of the early pandemic penny stocks rose and fell simply due to the increase and decrease of speculative excitement; Novavax stood strong. Eventually, it would be competing with the likes of Pfizer (NYSE: PFE), AstraZeneca (NASDAQ: AZN), and Johnson & Johnson (NYSE: JNJ). Shares climbed as high as $331 and still trade above $200. NVAX went from being a penny stock to one trading for hundreds of dollars per share in just one year.
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By no means should this suggest that all penny stocks perform like this. In fact, many ultimately fail. We’re talking about early-stage/emerging growth companies for the most part. Lack of funding, lack of manpower, and in many cases, an uphill battle to gain market share are some of the big obstacles faced. For this reason, many traders chose to avoid investing in penny stocks, initially and instead flip in and out of them in shorter periods of time.
Most will look for potential catalysts to try and find a trend as it emerges instead of after the broader market finds out. One thing traders use is news. In this article, we’ll look at some penny stocks with upcoming potential catalysts. The news has already been released. Now it’s just a matter of how the market responds when details are revealed. Will they be the best penny stocks to buy right now? I’ll leave that up to you to decide.
- Cyclerion Therapeutics Inc. (NASDAQ: CYCN)
- BioLineRx Ltd. (NASDAQ: BLRX)
- Aptinyx Inc. (NASDAQ: APTX)
- Lineage Cell Therapeutics, Inc. (NYSE: LCTX)
- Palatin Technologies Inc. (NYSE: PTN)
Penny Stocks To Buy [or avoid] #1: Cyclerion Therapeutics Inc. (NASDAQ: CYCN)
This week, Cyclerion Therapeutics could be one to watch. The company focuses on restorative treatments for cognitive function. In April, Cyclerion announced that it would host a webinar on April 27th to discuss its clinical programs for its CY6463 in Alzheimer’s Disease with Vascular pathology and Mitochondrial Encephalomyopathy Lactic Acidosis, and Stroke-like episodes.
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Recent clinical and preclinical data has also shown potential in Cyclerion’s treatment for Cognitive Impairment Associated with Schizophrenia. The company also plans to introduce a new candidate, CY3018. This is a differentiated, next-generation CNS-penetrant soluble guanylate cyclase stimulator.
Given that Tuesday is the day this all unfolds, CYCN could be on the list of penny stocks to watch early in the week. In addition to this, Thursday could also be another important day to track the company. Cyclerion’s COO Cheryl Gaul will present a corporate overview at B. Riley’s Neuroscience Investor Conference.
2. BioLineRx Ltd. (NASDAQ: BLRX)
Another one of the biotech penny stocks to keep in mind this week is BioLineRx. The company itself focuses on oncology treatment. It mainly takes advantage of in-licensing compounds and developing them through the clinical process. Its lead program, Motixafortide (BL-8040), is a cancer treatment. It’s been evaluated for several things. It was successful in a Phase 3 study in stem-cell mobilization for autologous bone marrow transplant.
It was also successfully studied in a Phase 2a trial combined with Merck’s (NYSE: MRK) KEYTRUDA in pancreatic cancer. Right now, BL-8040 is being studied in combination with Regeneron’s (NASDAQ: REGN) LIBTAYO and chemotherapy as a first-line Pancreatic Ductal Adenocarcinoma therapy.
While “this week” isn’t necessarily a focus, “early Q2” and “H1 of 2021” are. Last November, the company announced that Motixafortide would be evaluated in an investigator-initiated Phase 1b clinical trial in patients suffering from acute respiratory distress syndrome secondary to COVID-19 and other respiratory viral infections. Results of the preliminary analysis are expected in “the first half” of this year. Furthermore, in February, the company announced that top-line data from its Phase 3 GENESIS study in stem-cell mobilization are due in “early Q2 2021.”
While neither of these potential catalysts has firm dates to pair, it’s important to note the time of the year right now. This week marks the end of the first month of Q2. Furthermore, the end of the first half is slowly creeping up.
3. Aptinyx Inc. (NASDAQ: APTX)
Shares of Aptinyx haven’t had as much success as the other penny stocks on this list in 2021. In fact, APTX stock is down over 20% year-to-date as of April 23rd. Why would anyone be watching the company right now?
The answer to that could come as early as this week. In March, Aptinyx announced that it would hold a Type C meeting with the U.S. FDA on April 29. The parties will meet and discuss the future development path for the company’s NYX-783 in PTSD. What’s more, data from a Phase 2a exploratory study will be presented at the 2021 Society of Biological Psychiatry (SOBP) Annual Meeting. It’s being held between April 29 and May 1.
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But, given the state of the market for APTX stock, will the company report any details worth any excitement? That is something we’ll have to see when the time comes. So if this is on your list of penny stocks this week, keep Thursday in mind.
4. Lineage Cell Therapeutics, Inc. (NYSE: LCTX)
While the year has been relatively sideways, Lineage is coming off of a banner 2020. If you look at its stock chart over the last year, you’ll see what I mean. Since April 1st of 2020, shares of LCTX stock are up more than 200% and have even climbed as high as $3.13 earlier this year. The company’s OpRegen® has become a focal point for investors. It’s a treatment for dry age-related macular degeneration or dry AMD. Data has already demonstrated positive results.
Why is Lineage on the list of penny stocks to watch this week? Once again, it has to do with OpRegen®. Data from a Phase 1/2a study of its lead product candidate will be presented at the 2021 Association for Research in Vision and Ophthalmology Annual Meeting (ARVO 2021). Though Lineage’s presentation won’t be made until May 6th, the event itself starts on the 1st (next Saturday). It will be interesting to see if any speculative momentum plays a role at all.
Last week, the company announced a worldwide license and development collaboration agreement with Immunomic Therapeutics, Inc. A new product candidate will be derived from Lineage’s VAC allogeneic cancer immunotherapy platform and target a proprietary Tumor-Associated Antigen construct provided by Immunomic. According to the company, it is for the treatment of glioblastoma multiforme.
Lineage is entitled to upfront payments totaling $2 million anticipated in the first year and up to $67 million in development and commercial milestones across multiple indications and territories. Lineage also will be eligible to receive royalties up to 10% on net sales of future products.
5. Palatin Technologies Inc. (NYSE: PTN)
Palatin is another company that has a presentation coming at the end of the week. Specifically, the company has two presentations of its melanocortin platform, including PL9643 in dry eye disease, at ARVO 2021. The first presentation comes next Saturday (May 1) and focuses on Palatin’s Dry eye clinical treatments. The second of the two presentations won’t be until May 6th to highlight the protective effects of melanocortin in retinopathy.
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“Palatin is excited to present two examples of the significant utility of melanocortins in the treatment for inflammatory conditions. The eye, as well as the gut and kidney, offer a unique environment where melanocortin agonism promotes resolution of inflammation,” said Carl Spana, Ph.D., President, and CEO of Palatin, in an April 20th release.
PTN stock hasn’t had the greatest year, with shares falling from highs of $1.30 in February to under $0.60 this month. It will be interesting to see if and how the market reacts to the two presentations coming at the start of next month.
