When you’re investing in penny stocks, what’s your goal? Why are you buying the stock you’re looking at? You can be one of the “AMC Apes” that focus on “never” selling. While AMC Entertainment (NYSE:AMC) has taken on a life of its own, this idea of “never selling” boils down to becoming an investor or, at the very least, becoming a longer-term swing trader.
Needless to say, AMC stock isn’t the only former penny stock that has demonstrated the potential of buying early into stocks under $5. In fact, thanks to the 2020 pandemic, many experienced investors were introduced to this world of penny stocks. The reason for that has to do with many of the higher-priced names fell hard, and many ultimately reached levels below the $5 threshold.
Are Penny Stocks Worth It?
At this point, if you’ve been trading low-priced stocks for a few months, you know many penny stocks are worth it. Some require a bit more attention than others. For instance, NeuroMetrix Inc. (NASDAQ:NURO) has become one of the most followed companies in the stock market today.
That’s because NURO stock has climbed from under $4 to nearly $40 in 3 days. While “10-bag” moves are great, these parabolic breakouts tend to result in swift breakdowns as well. Case in point, after NURO stock reached its high of $38.67 on July 21st, it dropped 37% in mere minutes. Unless you were monitoring this former penny stock in real-time, you could easily see how you quickly run the risk of big losses.
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Chembio Diagnostics (NASDAQ:CEMI) was another example of a parabolic move in the stock market today. Its early breakout move sent it to highs of $6.95.Following these highs, CEMI stock dropped over 15%. Again, this is one of the penny stocks to watch closely on a minute-by-minute basis.
Penny Stocks To Watch In 2021
Is this the case for all penny stocks? Absolutely not, and in this article, we’ll take a closer look at a few former penny stocks that have seen explosive gains since the early months of this year.
- GT Biopharma Inc. (NASDAQ:GTBP)
- Anavex Life Sciences Corp. (NASDAQ:AVXL)
- Cassava Sciences Inc. (NASDAQ:SAVA)
Keep in mind that these former penny stocks have left that $5 mark in the dust. But does the fact that they’ve continued higher this year mean they’re worth a closer look? Will that trend continue? I’ll let you read and decide for yourself.
Biotech Stocks To Watch #1: GT Biopharma Inc. (NASDAQ:GTBP)
Last year, GT Biopharma was considered a penny stock. Shares traded below $3 at times and as low as $2.38. Fast-forward to this year, and GTBP stock has already reached highs of $19.73. Not only did the company uplist to the Nasdaq, but it was also added to the Russell 2000. Following the last bout of the stock market selling off, GTBP stock has bounced back strong. Over the last few days, shares jumped from around $10.50 to over $12.60 on Wednesday.
The biggest draw from investors would seem to come from GT Biopharma’s novel oncology treatment platform. The company’s TriKE platform has inspired a suite of treatment candidates targeting multiple cancer types. These indications include ones that express HER2 (GTB-6550), PD-L1 (GTB-4550), and B7H3 (GTB-5550). However, its lead treatment, GTB-3550, has demonstrated strong progress in current clinical trials this year.
The treatment is going through clinical trials in a Phase 1/2 study in patients with acute myeloid leukemia (AML) and higher-risk myelodysplastic syndrome (HR MDS). In late June, the company presented interim data on GTB-3550 at the Raymond James Human Health Innovation Conference.
Anthony Cataldo, GT Biopharma Chairman and Chief Executive Officer explained, “We have seen significant reductions in CD33+ cancer cells in four of the last seven patients (57%) treated with doses of GTB-3550 ranging from 25mcg/kg/day to 150mcg/kg/day. This early sign of CD33+ target-specific cancer cell killing is very encouraging as we begin to focus on transitioning to the expanded efficacy part of the current GTB-3550 clinical trial.”
What To Watch With GTBP Stock
In addition to this, the company just signed a sponsored research agreement (SRA) with Jeffrey S. Miller, M.D., Deputy Director of the University of Minnesota’s Masonic Cancer Center and Consulting Chief Scientific Officer of GT Biopharma. This SRA focuses on the further clinical development of GT’s TriKE product candidates. Dr. Miller has been credited with being a pioneer in NK cell therapies after finding that these cells can induce remission in patients with refractory leukemia. He has also supervised over 400 NK cell products and sponsored more than 10 investigational new drug applications.
Since the start of 2021, GTBP stock is up more than 90% to date.
2. Anavex Life Sciences Corp. (NASDAQ:AVXL)
Another one of the former penny stocks with explosive gains this year is Anavex Life Sciences. For those who’ve read PennyStocks.com articles for a while now, you’ve probably seen this company mentioned before. The first time we discussed AVXL stock was in late-2019. At that time, it was trading around $3.20. Since then, the former penny stock has seen a massive jump. This year, AVXL stock reached highs of $31.50.
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While the company has come a long way from being an early-stage Alzheimer’s treatment development company, there are several things to watch right now. In particular, the company’s ANAVEX®2-73 is the focus for traders right now. This is Anavex’s treatment candidate for Alzheimer’s and Parkinson’s diseases. Late last month, the company reported positive results for a study targeting Parkinson’s.
What To Watch With AVXL Stock
The continued progress with ANAVEX®2-73 has set it apart from other early-stage companies from years past. Michael J. Fox Foundation awarded Anavex a research grant for an imaging-focused Parkinson’s disease clinical trial with ANAVEX®2-73. What’s more, the recently reported data is expected to be submitted to the FDA seeking regulatory guidance. While details of timing on this submission weren’t provided, it has become a source of speculation. Results are also expected to be presented at a scientific medical meeting later this year.
Similar to GTBP stock, AVXL experienced a pullback with the broader sector over the last few weeks. However, during these last few sessions, the form penny stock has bounced back from around $20.50 to highs of over $22 so far. Year-to-date, AVXL stock is up more than 300% so far.
3. Cassava Sciences Inc. (NASDAQ:SAVA)
Similar to Anavex, Cassava is no stranger to PennyStocks.com readers. We’ve followed this company since December of 2019. Another company focusing on Alzheimer’s treatments at the time, SAVA shares, was trading below $4. Fast-forward to now, and the former penny stock has reached highs of $117.54 this year and currently trades around $113 this week. The interesting part is that even as early as January, shares of SAVA stock were just barely out of penny stock territory.
I won’t give you the history lesson here. But I will say that thanks to several key milestones, Cassava Sciences has been able to capitalize. With more interest in Alzheimer’s treatments thanks to interest from Biogen’s drug approval, it has also helped give SAVA stock a boost.
What To Watch With SAVA Stock
This week Cassava continued turning heads in the stock market. Today the company announced that it would present clinical data at the 2021 Alzheimer’s Association International Conference. That Conference starts in 5 days, where Cassava will present details on its SavaDx and its Simufilam platforms.
Ahead of this data readout, analysts have grown bullish. For instance, HC Wainwright adjusted its price target on SAVA stock from $97 to $124 this week. This comes just a few days after Cantor Fitzgerald adjusted its target to $100 from $73. Year-to-date, SAVA stock is up more than 1,500%.
What’s Next For These Former Penny Stocks?
These were just a few examples of the magnitude of potential that penny stocks can present. Aside from NURO and CEMI, the other ones mentioned have seen their gains extend over a longer timeframe. Much of this extension has come on the back of major milestones, new findings, and optimism within the market. Will they be on your list of stocks to watch heading into the second half of the year?
Former Penny Stocks Discussed In This Article:
| Company | Price a/o Article | Market Cap | 52Wk % Change @7/21 High |
|---|---|---|---|
| Chembio Diagnostics (CEMI Stock Report) | $5.84 | $125.31m | 40.7% |
| GT Biopharma Inc. (GTBP Stock Report) | $12.77 | $268.11m | 251.4% |
| Anavex Life Sciences Corp. (AVXL Stock Report) | $22.10 | $1.60b | 397.6% |
| NeuroMetrix Inc. (NURO Stock Report) | $25.08 | $130.99m | 1,777% |
| Cassava Sciences Inc. (SAVA Stock Report) | $113.80 | $4.52b | 3,404.6% |
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 July 29, 2021. This compensation is payment 5 of 12 as part of the Agreement. Midam has been paid an additional $200,000 for a period from July 29, 2021, to September 2, 2021. This compensation is payment 6 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.
