3 Penny Stocks Gainers on May 17th
Finding the biggest gaining penny stocks of the morning is a great way to start making a watchlist. However, with penny stocks, it’s always important to consider every factor that goes into its pricing. This includes both speculative and fundamental aspects that could make your penny stocks watchlist go up or down.
In May 2021, there are plenty of things for investors to consider when forming a list of penny stocks. This includes the ongoing pandemic, expectations regarding inflation, and the effects of social media on both penny stocks and blue chips.[Read More] Penny Stocks To Buy According To Analysts With Price Targets Up to 341%
But as investors in stocks under $5, large events are always welcome. This is because they tend to have an equally large effect on the price of many leading stocks. And because of this, investors can find plenty of entrance and exit points. So, as May is past the halfway point, we are entering into the second half of 2021.
And as Covid cases in the U.S. continue to reach new lows, the public and investors alike are excited about the future. While other countries are still struggling to get the pandemic under control, massive vaccine efforts have made this more possible in others. With all of this in mind, let’s take a look at three penny stocks that shot up big in pre-market trading.
3 Pre-Market Gaining Penny Stocks to Watch
- Aerpio Pharmaceuticals Inc. (NASDAQ: ARPO)
- Ideanomics Inc. (NASDAQ: IDEX)
- Onconova Therapeutics Inc. (NASDAQ: ONTX)
Aerpio Pharmaceuticals Inc. (NASDAQ: ARPO)
Up by around 17% in pre-market trading are shares of the biotech penny stock, Aerpio. While sometimes large gains cannot be attributed to anything, in particular, ARPO announced its Q1 financial results as well as some business updates during pre-market hours.
As far as business updates go, the company announces yesterday that it had entered into a merger agreement with Aadi Bioscience Inc. and Aspen Merger Subsidiary Inc. Aspen is a subsidiary of Aerpio that it uses for mergers so this makes all too much sense.
In connection with this, Aerpio will raise roughly $155 million in a private investment in public equity financing deal. Moving on to its financials, Aerpio reported having roughly $39 million in cash on hand.
Additionally, it posted a net loss of around $4.4 million or $0.09 for the quarter. This is slightly more than the $3.9 million it posted at the same period last year. For some context, Aerpio is working on the development of compounds that activate the Tie2 receptor which could have therapeutic potential.
It’s worth noting that today’s gain is most likely based on the merger mentioned above and the announcement of these financials. Although none of the numbers are shocking, often a balance sheet will be a large catalyst for intraday moves.
It’s worth noting that Aerpio also discontinued its RESCUE trial for the prevention of aRDS associated with Covid-19. It states that this is due to the difficulty associated with recruiting patients during the pandemic. So considering this, investors should look at what else Aerpio is doing before making a decision. With all of this in mind, is ARPO stock worth watching?
Ideanomics Inc. (NASDAQ: IDEX)
Up by around 5% in early morning trading is Ideanomics Inc. While no news came out today that would spark this gain, the company did make an exciting announcement at the end of last week. Before we get into it, let’s talk about what IDEX does. Ideanomics weeks through several divisions, where it invests in disrupting technology. This includes Ideanomics Mobility and Ideanomics Capital.
On one hand, Ideanomics Mobility is a service provider for commercial fleet operators looking to adopt electric vehicle technology. It facilitates this through vehicle procurement, financing, leasing, and energy management. Additionally, its Ideanomics Capital division invests in groundbreaking fintech solutions for the financial services industry.[Read More] 3 Lithium Penny Stocks to Play the EV and Tech Market in 2021
On Thursday, Ideanomics reported that it signed into a definitive agreement to acquire U.S. Hybrid. U.S. Hybrid has been around for more than 20 years, providing zero-emission powertrain components for a large range of energy-efficient vehicles. This includes those used in electric, hybrid, and fuel cell-based cars.
“The acquisition of US Hybrid is a significant one for our EV efforts across the Ideanomics Mobility division and is the stepping-stone we were looking for to ensure we provide vehicles and technologies that can proudly allow us to state the meaningful components are Made in America.”Alf Poor, CEO of Ideanomics
Poor goes on to state that “We will be bringing their technologies and capabilities into our vehicles, as well as helping the broader industry leverage the outstanding technology the US Hybrid team has developed in Hybrid, EV, and Hydrogen fuel cells.”
This is a big move and one that should help IDEX to move further into the renewables market. Considering this, will it be on your penny stock watchlist?
Onconova Therapeutics Inc. (NASDAQ: ONTX)
Shares of ONTX stock are up by around 13% in pre-market trading. Although no company-specific news came out today, Onconova will be reporting its Q1 2020 financials as well as a corporate update today at market close. Ahead of this, let’s look at what Onconova has been up to. Onconova is a biopharmaceutical company working to develop treatments and cures for cancer.
Its primary compound right now, ON123300 is in several trials to see if it can treat KRAS+ lung adenocarcinoma in combination with nivolumab. In addition to this, the company is working on seeing if its compound rigosertib, can be an effective treatment for Covid-19. A few weeks ago, Onconova announced that it had dosed the first patient in an investigator-initiated Phase 2 study of rigosertib in those with recessive dystrophic epidermolysis bullosa.
“Recessive dystrophic epidermolysis bullosa is a genetic skin blistering disease that often results in squamous cell carcinoma in severe subtypes. In this patient cohort, squamous cell carcinoma is the leading cause of death…We hope rigosertib can prove beneficial to this rare patient population with a tremendous unmet medical need.”Steven M. Fruchtman, M.D., President and CEO of Onconova
So considering that ONTX has a lot going on in its pipeline, it looks like an attractive company to investors. However, we should wait to see its Q1 results and corporate update before making a decision. Whether this makes it a penny stock to watch is up to you.
Are These Penny Stocks Worth Buying?
When looking for penny stocks to buy, it’s important to consider the factors that go beyond just its pre-market gains. This includes what is making it rise and fall in value, what it has in its pipeline, and what its financial situation is. These three things will help to ensure that there are no unnecessary surprises when it comes to price action.[Read More] Penny Stocks On Robinhood For You May 2021 Watch List
With all of this in mind, it’s up to you and your investing style to determine if these penny stocks are right for you. So, considering this, will you add these penny stocks to your May watchlist?