The June Federal Reserve meeting has concluded, and the stock market has responded. Investors and traders alike have begun positioning themselves based on the latest commentary from Jerome Powell’s FOMC press conference. The interesting part about this is that some stocks don’t depend on what broader markets do. You’ll see this phenomenon in action if you look at things like penny stocks.
Are Penny Stocks Worth It?: AERC Stock Case Study
One of the most recent examples is the move that AeroClean Technologies (NASDAQ: AERC) made over the last few weeks. As broader markets and primary index ETFs like the S&P 500 (NYSEARCA: SPY) and Nasdaq (NASDAQ: QQQ) dropped lower, AERC stock exploded.
On June 6th, we discussed the company after announcing that it received FDA clearance for its Purgo medical-grade air hygiene product. Specifically, the product can be used in various applications to remove bacteria, fungi, and viruses from the air. It’s designed for hospitals, businesses, and healthcare facilities, among others.
At the time of the article, AERC stock traded below $5, and a few weeks later, the former penny stock reached highs of more than $23. Is this the norm for low-priced stocks? No, but does it show how penny stocks can be worth the risk? Yes, but risk and reward always factor in.
Penny Stocks To Watch
- Applied UV Inc. (NASDAQ: AUVI)
- Optinose Inc. (NASDAQ: OPTN)
- Clovis Oncology Inc. (NASDAQ: CLVS)
- Hut 8 Mining Corp. (NASDAQ: HUT)
Applied UV Inc. (NASDAQ: AUVI)
Shares of Applied UV have moved in sympathy with AeroClean. The correlation between the two companies seems to focus on air hygiene and cleaning companies. Applied UV specializes in surface cleaning products. It recently installed its patented LumiCide disinfection solution into New York City’s Mt. Sinai Medical Center Morningside. Furthermore, the facility is expected to publish the installation results later this year.
Given this focus on AERC in the stock market today, AUVI has become a secondary name on the list. Moreover, you can see the closer tie-in between the two companies by looking at their corresponding charts. Both have made significant moves higher since the first week of June. With this understanding, it’s worth mentioning that speculation could have played a leading role this month.
Optinose Inc. (NASDAQ: OPTN)
Shares of Optinose Inc. have also skyrocketed this month. The company focuses on patients cared for by ear, nose, and throat and allergy specialists. Its Directional Exhalation Delivery Systems are designed to deliver a steroid into the nose where inflammation can be challenging to reach. There are also exploratory applications in treating neurological or psychiatric disorders.
[Read More] Why These 3 Penny Stocks Exploded Today
The company is also developing XHANCE with its EDS in a clinical trial. This is the product most recently in focus. Optinose announced positive top-line results of its ReOpen2 Phase 3 trial for treating chronic sinusitis.
Optinose explained in a June update, “The safety profile and tolerability of XHANCE in this trial were generally consistent with its currently labelled safety profile. Adverse events occurring at a rate of more than 3% with XHANCE and more common than the Exhalation Delivery System placebo group in this trial were: epistaxis, COVID-19, headache, and depression…When pre-planned analyses are completed, detailed results from ReOpen2 will be submitted for publication in a peer-reviewed journal and for presentation at future medical meetings.”
OPTN stock has skyrocketed from under $2 to over $3.40 within the last four trading sessions.
Clovis Oncology Inc. (NASDAQ: CLVS)
In some cases, traders hunt for stocks that have hit rock bottom (or so they hope). Clovis Oncology is one of the names that continue holding a spot on watch lists even after dropping like a rock over the last year. Its most recent, less-than-favorable earnings results added fuel to the fire and sent CLVS stock to new 52-week lows.
However, since then, shares have managed to bounce back strongly. CLVS stock is up more than 50% within the last three days. Like Optinose, the primary catalyst at the core of the move was trial data. In this case, Clovis’ Phase 1 clinical study of its targeted radiotherapy candidate, FAP-2286, raised eyebrows. No serious adverse events, treatment discontinuation, or death of dose-limiting toxicities were observed. Meanwhile, the candidate demonstrated high tumor uptake and “prolonged retention” in a range of solid tumors.
With ongoing recruitment for the third dose cohort, there could be more data to digest later on. For now, CLVS stock has captivated the attention of retail traders in the stock market this week and could be one to watch right now.
Hut 8 Mining Corp. (NASDAQ: HUT)
Like Clovis, Hut 8 faced a wall of selling over the last few weeks. Considering that it’s a company directly involved in cryptocurrency mining, a drop in the price of Bitcoin weighed heavily on the penny stock. Regardless, following Fed Chair Jerome Powell’s press conference, cryptocurrency prices rebounded strongly, which seemed to help related stocks.
Hut 8 is one of the larger North American digital asset mining companies that gained big during the Bitcoin bull run. In recent news, it reported that it advanced its Bitcoin holdings over the last month ending May 31st. According to the company, Hut 8 mined 309 Bitcoin at an average production rate of 10 BTC per day. Its Ethereum mining generated 14% of its total production at a cost of roughly $3,654 per BTC. Furthermore, Hut 8’s total Bitcoin balance in reserve amounted to more than 7,000 at the end of the period.
Given the rebound in digital currency stocks, HUT has come back into focus (for now). Ultimately, it could come down to how Bitcoin performs once the market has time to digest the FOMC meeting results and Powell’s commentary.
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