Are These Low Priced Penny Stocks On Your Watch List?
We’re almost to the halfway point of December, which means the countdown has officially begun. Penny stocks are still at the top mind for many retail traders. Best known for being shares of companies trading below $5 per share, these are high-volatility, high-risk assets that can produce significant gains within days or even hours.
The obvious caveat here is that they can drop just as quickly as they move up. But if you know a little bit about day trading, penny stocks can be a great way to leverage less capital in exchange for more significant potential gains.
How To Make A Penny Stocks Watch List
The first place to begin is with a list of penny stocks. The easiest things to look for besides the overall trends are catalysts. Anything from news, earnings, insider trading, stocks with higher short positions, and even rumors can become the catalysts that drive certain penny stocks higher. In today’s article, we’ll look at four penny stocks that can be bought for under $5 right now and that have recent catalysts to consider.
Penny Stocks To Watch
- First Wave BioPharma Inc. (NASDAQ: FWBI)
- 180 Life Sciences Corp. (NASDAQ: ATNF)
- Xeris Biopharma Holdings, Inc (NASDAQ: XERS)
- Petros Pharmaceuticals Inc. (NASDAQ: PTPI)
First Wave BioPharma Inc. (NASDAQ: FWBI)
Shares of First Wave BioPharma have been quiet for weeks. Despite a few 1-day moves like it saw at the end of November 2021 hasn’t brought much bullishness to the stock. The company was previously known as AzurRx BioPharma. However, it changed its name and symbol to better reflect the underlying acquisition of First Wave earlier in the year. The company develops targeted treatments for gastrointestinal diseases.
This focus has also extended in applications for CoVID patients as well. In November, First Wave reported that an independent data monitoring committee recommended enrollment will continue in Part 2 of the current RESERVOIR Phase 2 Trial. This is to evaluate the company’s FW-COV as a potential treatment for COVID-19 related to GI infections.
As the company ramps up for enrollment and preparations to begin the trial, First Wave Has also built its Scientific Advisory Board. Brian Feagan, M.D., was recently appointed to the SAB this week. Furthermore, thanks to continuing concern on another pandemic, virus stocks have come back into focus recently.
For traders, you’ve also got to keep in mind that FWBI stock has come into the fold of “low float” penny stocks too. If you look at the FWBI stock profile page, you’ll see the total outstanding share count sits below 20 million. For those searching for low float penny stocks, the lower the O/S, the chances are, the lower the float. In this case, it could be something to keep in mind if FWBI stock is on your list right now.
180 Life Sciences Corp. (NASDAQ: ATNF)
Another one of the penny stocks that has recently attempted to recover is 180 Life Sciences. It had an excellent finish to the month in November, reaching highs of $6.96. However, after dipping back below $5 this month, eyes are on the company’s next move.
180 Life Sciences has been working on drug development for inflammatory diseases. The recent focus is specifically on its candidate for Dupuytren’s disease. This month, follow-up information was reported related to its Phase 2b trial for the treatment candidate, which seems to have shown some excitement in the stock market. In a press release earlier this week, Dr. James Woody, 180 Life Sciences Chief Executive Officer, commented further on this.
“We believe the Phase 2b clinical trial for Dupuytren’s disease using adalimumab was a phenomenal achievement, having met both primary and secondary endpoints by significantly diminishing the hardness and size of the Dupuytren’s nodules, respectively. We believe these results affirm our team’s scientific and clinical expertise and fundamentally position us to be a major leader in fibrosis therapies.”
In light of these results, it’s also interesting to see what’s transpired heading into mid-December. Looking at the company’s latest filings will show you what I mean. A series of Form 4s came out this week, showing Woody and Directors Steinman and McGovern Jr. buying shares of ATNF stock. The trades were made on December 9th and between average prices of $4.13 and $4.27.
Xeris Biopharma Holdings, Inc (NASDAQ: XERS)
Another one of the biotech penny stocks to watch this week is Xeris Biopharma. Shares have bounced from lows of $1.94 to highs of over $2.30. The company specializes in treatment development in the fields of endocrinology, neurology, and gastroenterology. Most recently, the acquisition of Strongbridge Biopharma in October has been a point of focus in the market.
Following its integration, Xeris Management has mentioned that the company could be on track to realize $50 million in synergies, “while at the same time intensely preparing” for the potential commercial launch of Recorlev next quarter if approved. Recorlev is the company’s possible treatment for endogenous Cushing’s syndrome. This is a disease that results in the production of too much cortisol by the adrenal glands.
There’s currently an NDA under review with the FDA with a PDUFA goal date of January 1, 2022. Considering we’re just weeks away from this, XERS gained additional attention. In addition to this platform, Xeris also has two commercially available products, including Gvoke, a treatment for severe hypoglycemia, and Keveyis, in treating primary periodic paralysis.
Petros Pharmaceuticals Inc. (NASDAQ: PTPI)
There’s no shortage of volatility when it comes to biotech penny stocks. Petros Pharmaceuticals is an obvious example of that. Over the last few months, shares have bounced between lows of $1.19 and highs of more than $5. This company has been on our penny stocks watch list recently thanks to the latest bullish market in December.
The men’s health company has made progress with its sales growth of STENDRA tablets. This is a prescription drug for treating erectile dysfunction. A digital health marketing agreement with Hims & Hers Health Inc. (NYSE: HIMS) has helped amplify things for the company as Petros reported a 476% year-over-year uptick in STENDRA sales. Petros also closed a $10 million financing this week with funds earmarked for expanding STENDRA availability.
Further to this, Petros’ latest catalyst comes in the form of more news. This week, the company announced positive over-the-counter draft label comprehension study results for STENDRA this week.
“The label comprehension study is a key component of our plans to help expand access for STENDRA beyond the prescription model and to make STENDRA potentially the first prescription-grade ED medication to become available over-the-counter in the United States. While the process of gathering data to be shared with the U.S. Food and Drug Administration (FDA) continues, we are enthusiastic about our progress toward providing new hope for the millions of men suffering from this condition,” commented Fady Boctor, Petros’s President and Chief Commercial Officer.
Amid this frequent and significant progress, PTPI stock could be another one of the names to know heading into year-end.
Penny Stocks To Watch Before 2022
Should you buy penny stocks before 2022? While that decision is entirely up to you, it’s essential to understand that there are different ways to capitalize on these low-priced stocks. Some people want to invest for the long term and take advantage of the early-stage opportunities that may be presented. Meanwhile, others want to capitalize on things like upcoming catalysts. Whichever basket you fall into, having a proper strategy in place and know-how for handling volatility will be necessary.
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