Penny Stocks Don’t Always Stay Low-Priced Forever; Here Are Some That Made A Splash This Year
When it comes to penny stocks, the average person is likely trading them. Why would anyone want to invest in penny stocks? They’re high-risk, extremely volatile, and usually involve companies with uncertain futures. The companies in this category are usually either early-stage or ones that’ve fallen on hard times.
Look at many of the penny stocks from last year during the pandemic. You had industry juggernauts that traded at much higher prices fall below the $5 mark. On the other hand, you also had lesser-known names capitalize on the virus to leave the land of penny stocks for good ultimately.
Now, I’ll be the first to say that investing in penny stocks can be hard. The fact that you’d be looking to buy and hold a stock trading for under $5 means small price fluctuations equate to big percentage changes. The $2 penny stock you own now needs to go up by 40 cents to return you a 20% gain. The flip side to that is a move down of 40 cents cuts your position value by 20%. But what if short-term volatility could lead to a massive windfall in just 12 months or less? This has been the case for plenty of penny stocks over the last year.
Former Penny Stocks Surge In 2021
For instance, look at what happened to Hertz (OTC: HTZZ). Last year, the car rental company’s shares were trading around $20 before the global shutdowns began. It was at that point that shares started plummeting. Ultimately, the stock would reach lows of $0.40. But, like most epicenter penny stocks, HTZZ shares recovered as global economies began reopening. Before its recent reverse, shares were trading around $9, a move of 2,150% from its 2020 low.
You also had biotech penny stocks like Novavax (NASDAQ: NVAX). In this case, the company’s shares were only at penny stock levels heading into 2020. The first trading day of the year saw NVAX stock open for trading at $3.99. The company took full advantage of its pipeline of treatments and applied it to addressing the coronavirus. This would ultimately see the now-former penny stock reach highs of $331.68 a little more a year later.
You also can’t forget all of these meme stocks that’ve captivated the interest of retail traders. It’s hard to believe now that at one time, shares of AMC Entertainment (NYSE: AMC) and GameStop (NYSE: GME) were both trading at less than $3 a share. Fast-forward to right now, and things are much different.
Former Penny Stocks To Watch Right Now
This week is another busy week for the stock market and the official start of Q2 earnings season. Not only that, but there’s plenty of other things to keep track of, including some former penny stocks that’ve made a splash in 2021.
1. GT Biopharma Inc. (NASDAQ: GTBP)
At the start of 2020, shares of GT Biopharma Inc. were trading around $1.50. Since then, the company has reached key development milestones in its oncology treatment pipeline and uplisting from the OTC to the NASDAQ earlier this year. Closing out last week, shares of GTBP stock finished the Friday session at $14.79.
But, if you look at some of the analysts following the company, there’s a lot more optimism surrounding the company right now. B. Riley, Roth Capital, and HC Wainwright cover GT Biopharma. Not only have they all issued Buy ratings, but price targets are also between $25 and $26 right now. One of the core focus points is on GT Biopharma’s TriKE – or “tri-specific killer engager” – treatment platform. Its solid tumor TriKEs are designed to target breast, lung, gastric, colorectal, and ovarian cancer indications. Furthermore, its lead treatment candidate, GTB-3550, has shown success in treating patients with acute myeloid leukemia (AML) and higher-risk myelodysplastic syndrome (HR MDS).
Analyst Commentary For GTBP
In fact, analysts from B. Riley have explicitly stated, “Based on the press release and our subsequent conversation with management, we are encouraged by the mounting evidence of clinical activity and the emerging safety profile of lead asset GTB-3550…With the dose-escalation portion of the trial expected to complete towards the end of August 2021, we are raising our probability of success for GTB-3550 in CD33+ acute myeloid leukemia (AML) and higher-risk myelodysplastic syndrome (HR MDS) from 25% to 30%, with a commensurate increase in our 12-month price target.” Read Full Analyst Report Here.
B. Riley also discussed how NK cell therapy combined with GT’s TriKE showed “synergy” in preclinical of other cancers, including prostate cancer. The image below shows GT Biopharma’s GTB-5550 TriKE combined with Fate Therapeutics’ (NASDAQ: FATE) FT538 iNK cells.
Read more on GT Biopharma B7H3 vs. Fate FT538: NK Cell Therapy & A New Generation Of Cancer Treatment.
2. Celldex Therapeutics (NASDAQ: CLDX)
The latest “former” penny stock to spark intrigue in the stock market today is Celldex Therapeutics. Shares skyrocketed during premarket trading on July 12th, thanks to several pieces of big news.
The company focuses on developing treatments for skin disease. Late Friday evening, Celldex announced positive data from a Phase 1b study of its CDX-0159 in patients with chronic inducible urticaria. In particular, patients showed a 95% complete response rate after a single dose of CDX-0159.
Anthony S. Marucci, President and Chief Executive Officer of Celldex, commented, “We believe these impressive early data show that CDX-0159 safely depletes mast cells which indicates its potential to impact other diseases with mast cell involvement. We continue to make excellent progress across the CDX-0159 development program in urticaria and expect to expand into prurigo nodularis later this year and additional indications with mast cell involvement in the future.”
Analyst Commentary For CLDX
Following this development, analysts at HC Wainwright reiterated their Buy rating. Furthermore, the firm raised its price projection. HC had a $36 target before the news came out last week. Monday morning, analysts increased their target to $50.
3. Moxian Inc. (NASDAQ: MOXC)
Moxian has been one of the penny stocks that we’ve discussed in the past. In 2020, at one point, shares were trading as low as $0.50. Fast-forward to this year, and MOXC stock has reached highs of more than $30. While the company, from a news standpoint, has been a bit ambiguous, filings and additional online research have shown some of the potential catalysts behind the move.
First and foremost, MOXC is considered one of the low float stocks to watch. With less than 20 million shares outstanding, the publicly available shares in the retail market are limited. This has clearly helped in the volatility department.
Aside from that, Moxian has become a part of the tech stock surge this year. The company’s offerings focus on targeted advertising campaigns and promotions to attract potential customers for their clients. As reopening trends have taken hold, so have different forms of marketing and awareness. Moxian’s digital advertising suite serves content across myriad platforms. These include mobile phones and smart TVs.
Despite its business model and service offering, the core point of interest is its share structure. Traders continue circulating details on MOXC as a low float stock to watch.
Are Penny Stocks On Your List Right Now?
Whether you’re looking for cheap penny stocks to buy or some of the higher-priced names, it’s important to have a strategy in place. Understand why you’re trading the stocks you buy and set profit targets along the way. Even if you’re initially planning on day trading and a stock ends up running for weeks, know how to use what the market gives you to profit. At the end of the day, this is the goal: make money with penny stocks.
Pursuant to an agreement between Midam Ventures LLC and GT Biopharma (GTBP) Midam has been paid $150,000 for a period from March 1, 2021, to April 1, 2021. This compensation is payment 1 of 12 as part of a 12-month agreement between Midam Ventures LLC & GT Biopharma (GTBP), for a period from March 1, 2021, to February 28, 2022. Midam Ventures LLC expects to be paid $150,000 per month for a total of 12 months by GT Biopharma (GTBP). Midam has been paid an additional $150,000 for a period from April 2, 2021, to May 1, 2021. This compensation is payment 2 of 12 as part of the Agreement. Midam has been paid an additional $150,000 for a period from May 2, 2021, to June 1, 2021. This compensation is payment 3 of 12 as part of the Agreement. Midam has been paid an additional $150,000 for a period from June 2, 2021, to July 1, 2021. This compensation is payment 4 of 12 as part of the Agreement. Midam has been paid an additional $200,000 for a period from July 2, 2021, to August 2, 2021. This compensation is payment 5 of 12 as part of the Agreement. We may buy or sell additional shares of GT Biopharma (GTBP) in the open market at any time, including before, during, or after the Website and Information, to provide public dissemination of favorable Information about GT Biopharma (GTBP). Click Here For Full Disclaimer.