Are These Penny Stocks On your Watch List Today?
Is the stock market safe? Whether you’re trading penny stocks or higher-priced names, it’s hard to ignore what’s transpired over the last week. The S&P, Nasdaq, Dow, and Small-Cap indexes have all pulled back. That drop continued into Monday’s premarket session with fresh September lows.
Why Is The Stock Market Dropping?
This is an exciting week for the market. First, jitters persist ahead of this week’s Fed meeting. Traders are looking for the U.S. Federal Reserve to give a timeline on its tapering timeline. In addition to this, there’s likely also a hope that the Fed will give some clarity on when it might raise interest rates.
Then you’ve got to consider the global outlook. The elephant in the room right now is China Evergrande. The Chinese property developer has two trillion yuan ($310 billion) in liabilities and has an $80 million bond coupon payment sitting on its desk right now. One thing that analysts are looking at right now is if or how the Chinese government will intervene in this process. Is China Evergrande going to end up the same as the Lehman Brothers catastrophe during the financial crisis? That’s something to be seen. But there are many analysts right now that don’t see a worst-case scenario presented for China Evergrande.
Best Penny Stocks To Buy Today
Where do penny stocks sit in the grand scheme of things? If you look at historical trends for low-priced stocks, you’ll notice something interesting. That “something” is the fact that no matter what the broader markets are doing, you’re likely to find at least a handful of penny stocks to buy that climb in the face of bearish selling in the S&P, Dow, etc. Just look at some of the meme stocks trading higher today. A long-time favorite, Camber Energy (NYSE:CEI) and former penny stock Aterian Inc. (NASDAQ:ATER) are on the watch list right now. Other than those, what are some of the best stocks to buy today? Here’s a quick list of stocks to watch as the market continues selling off early on September 20th.
Penny Stocks To Buy [or avoid] 1. Virpax Pharma Ic. (NASDAQ:VRPX)
As you’ll see, this list of penny stocks has companies from multiple exchanges. The first, Virpax Pharma, trades on the Nasdaq and is one of the higher-priced former penny stocks we’ve discussed numerous times in the past. One of the things that put VRPX stock on the map was news last month on the FDA’s response and guidance on the company’s MMS019 platform. This is Virpax’s intranasal treatment to act as an anti-viral barrier product. The FDA said that the company could pursue a New Drug Application drug approval with the Office of Non-Prescription Drugs.
A multi-million dollar share offering was the culprit to the latest sell-off leading to VRPX stock falling from over $20 to where it is right now. More headlines have come out this morning, with Virpax as the center of attention once again. This time, the company announced that it was going to develop new intranasal product for epilepsy. Under a licensing agreement with Nanomerics, Virpax secured rights to develop VRP324.
Will this be the catalyst for turning things around in the stock market today? That’s something to be seen. However, volume is trending at above-average levels as the news has begun circulating.
2. BEST Inc. (NYSE:BEST)
Shares of BEST stock have been on our radar ever since this new “short squeeze” trend has emerged among retail traders. With a short float percentage of over 30% right now, BEST is one of the higher “short squeeze stocks” to watch. The company specializes in smart logistics services in China. The company offers express and freight delivery, supply chain management, and truckload service brokerage, among other things.
Something that’s in focus right now is how BEST stock will perform among other China-based names. Uncertainty in related names has made for volatile market conditions. However, for BEST, the trend overall has been strongly bullish. Upcoming earnings will likely be the next point of focus for traders.
This comes after a mixed quarter last quarter. The company beat earnings per share estimates by a long shot, but sales came in lower than the previous year’s quarter. Johnny Chou, Founder, Chairman, and CEO of BEST, explained, “In the second quarter we continued to press forward with our strategic refocusing plan and build on the encouraging signs we are seeing in network stability, service quality, and cost reduction while adapting to the competitive industry landscape…Our Global business continued its growth momentum, with parcel volume in Southeast Asia increasing 140.7% year-over-year despite a resurgence of the COVID-19 pandemic in the region…Given the supportive industry regulatory environment and continued strong e-commerce growth, we are optimistic that our strategic refocusing plan will position us to deliver improved operating and financial results in the coming quarters.”
With October 20th quickly approaching, it will be interesting to see if BEST can continue this pace of growth. For now, it continues turning heads as one of the short squeeze penny stocks to watch.
3. CytoDyn Inc. (OTCMKTS:CYDY)
The OTC penny stock on this list, CytoDyn, has been one of the company’s we’ve discussed off and on. The last week has seen some more robust buying come into the market. Furthermore, from a technical perspective, CYDY stock managed to break and hold above its 50-day moving average for the first time since February. Generally speaking, a jump through a major moving average is taken as a bullish directional move. Will it continue?
Last week the company updated on its recent industry presentation progress. Director Bruce Patterson, M.D., presented at the International COVID Summit. Dr. Patterson was one of three scientists from the United States invited to participate in the summit.
CytoDyn focuses on developing therapeutic drugs. Its lead candidate, leronlimab, is being studied in multiple indications. In an update late last month, the treatment was highlighted for its ability to decrease circulating tumor cells in patients. Responding to the data, CytoDyn’s President & CEO, Nader Pourhassan, Ph.D., explained that “These exploratory findings will now enable us to proceed for further regulatory review. With today’s report, we are delighted that we are presented with the possibility of achieving first approval with HIV, COVID-19, or possibly now cancer.”
Penny Stocks To Watch During A Stock Market Sell-Off
Not all stocks are selling off right now. With that, more of a “stock picker’s” market has begun developing. It’s important to understand that individual company’s present their own risk/reward profiles. Plus, when you’re looking for penny stocks to buy, volatility is always present. Lower prices tend to do that as a move of a few pennies can mean a shift in percentage by 10% or more. Understanding that, however, can help you navigate these wild waters a bit better and capture gains just as quickly.
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