We’re in the final stretch of June 2022 and the last few days of the second quarter. Gross Domestic Product results for the quarter and additional CPI data are also due out before July. Whether they reveal a recession, higher inflation, or something completely different may not matter as much to those looking for penny stocks to buy. That’s because these cheap stocks move to the beat of their own drums. This article looks at 5 penny stocks to watch right now that some traders are wondering if they’re a “Buy” or if they should be avoided entirely heading into July.
Penny Stocks To Buy
Penny stocks are shares of companies trading for less than $5. That means even the slightest move in share price equates to substantial percentage changes. Since the stock market crash this year, you’ve got plenty of cheap stocks to choose from. Something to keep in mind is your overall strategy. Are you looking for penny stocks to buy and hold, or are you looking to trade them? No matter your game plan and approach to the market, the goal is always the same: make money with penny stocks. Where’s a good place to begin? Ideally, you’ll want to make a list first.
List Of Penny Stocks To Watch
- HTG Molecular Diagnostics Inc. (NASDAQ:HTGM)
- Smart For Life Inc. (NASDAQ:SMFL
- Graybug Vision Inc. (NASDAQ:GRAY)
- Alaunos Therapeutics Inc. (NASDAQ:TCRT)
- Vallon Pharmaceuticals Inc. (NASDAQ:VLON)
HTG Molecular Diagnostics Inc. (NASDAQ: HTGM)
Over the last few weeks, we’ve talked about low-float penny stocks and the potential that traders see in them. If you missed the article, check out 4 Low Float Penny Stocks To Watch This Week to get an idea of why these stocks are so attractive.
The fundamental idea is that the lower the public float, the fewer number of shares trading in public hands. Generally speaking, a higher level of above-average trading activity can amplify the moves that these stocks make. It can be more significant than other stocks with “normal” trading volumes.
In this case, HTGM stock is one with a lower float. Most financial outlets will show this figure sitting below 10 million shares. What’s more, recent attention has centered around micro-cap biotechnology stocks as the sector attempts to mount a recovery.
What To Watch With HTGM Stock
HTG has been on the presentation circuit as of late. This includes a feature at the American Society of Clinical Oncology conference earlier this month. The company posted abstracts showcasing its HTG EdgeSeq diagnostic technology. It also presented a keynote featuring one of its customers at the MarketsandMarkets Biomarker and Companion Diagnostics Conference.
In addition, a notice of its annual meeting was submitted this week regarding several things up for shareholder approval. One of the focus points is on a proposed reverse stock split at a ratio between 1:5 and 1:15.
Smart For Life Inc. (NASDAQ: SMFL)
Other than the trend in “Plan B stocks” making its way across the market, another trend involving pregnancy is also raising eyebrows. This is the continued shortage of baby formula. Smart For Life specializes in health and wellness products. One of these products is Doctors Scientific Organica’s Milk Dust. The product line is an array of nutritional products, and lactation protein powder meant for breastfeeding mothers to boost their milk supply.
Given the baby formula shortage, SMFL stock has become a speculative angle for tackling the issue. “While breast feeding is not a panacea to the infant formula scarcity, we have seen increased demand for our Milk Dust formula and we are thrilled to be helping moms across the United States, and through our recent expansion in the UK and Europe,” stated Katie Pickett, the Founder and President of Milk Dust, in a June update.
What To Watch With SMFL Stock
Other than this market speculation trend, SMFL stock seems to be jumping after some prospectuses were filed this week. These are related to the issuance of shares and warrants for company stock. You can see these and other SMFL filings here.
Graybug Vision Inc. (NASDAQ: GRAY)
In many cases, penny stocks don’t “make it” and have to shift focus. There are countless examples of companies that go public as one type of business but ultimately turn into a completely different one. In between is typically a period where “strategic alternatives” are discussed. Graybug Vision is one of the companies going through this in-between phase.
Graybug reported lackluster earnings but emphasized its focus on advancing its pipeline treatments. Management highlighted GB-102 as a potential wet-AMD drug candidate being developed for an additional Phase 2 trial to evaluate its safety and efficacy further. It also holds a pipeline of gene therapies targeting rare vision-threatening diseases.
What To Watch With GRAY Stock
Strategic alternatives are the focus for GRAY stock right now. In particular, the company announced that its Board plans to review strategic alternatives to “maximize” shareholder value. The process will also include options for potential acquisition, merger, divestiture, and other strategic alternatives.
“The goal of this strategic evaluation process is to ensure that we are exploring a range of possible options to maximize value for our shareholders while leveraging our diversified pipeline and experienced team. Pending the outcome of this review, cost-containment measures are being put in place to maximize our cash resources available,” said Frederic Guerard, PharmD, Chief Executive Officer of Graybug.
GRAY stock could also be in focus as one of the low float penny stocks to watch. While its float isn’t as low as HTGM stock, most outlets show the GRAY stock float sitting below 20 million.
Alaunos Therapeutics Inc. (NASDAQ: TCRT)
Another lifesciences-related name on this list of penny stocks is Alaunos Therapeutics. Shares of the biotech company have steadily climbed since they reached 52-week lows of $0.41 in April.
Alaunos focuses on cell therapy in oncology treatments. Its T-cell receptor therapies are based on a proprietary, non-viral Sleeping Beauty gene transfer technology. Earlier this month, the company presented a trials-in-progress poster for its TCR-T library Phase 1/2 trial at the American Society of Clinical Oncology Meeting. The poster summarized the trial’s design, dosing regimen, and follow-up strategy.
Also, if TCRT stock seems familiar, we discussed it last week in the article Penny Stocks To Buy Now? 4 Biotech Stocks To Watch Before July 2022.
What To Watch With TCRT Stock
This week Alaunos and the National Cancer Insitute extended a cooperative research and development agreement. The focus of the Agreement was on the development of a personalized TCR-T-Cell therapy platform. This extends the collaboration of the two organizations to 2025 and is seen as a bit milestone for Alaunos, according to management.
Kevin S. Boyle, Sr., Chief Executive Officer of Alaunos, explained, “Our collaboration reinforces our commitment to improving the lives of cancer patients with solid tumors. We look forward to continuing our collaborating with Dr. Rosenberg and his team to generate proof of concept in this personalized TCR-T approach.”
Vallon Pharmaceuticals Inc. (NASDAQ: VLON)
Shares of Vallon Pharmaceuticals have bounced back nearly 100% since its $0.34 52-week lows, and that trend continues into the end of June. Much of the focus has been on the company’s treatment candidates targeting abuse deterrents in central nervous system disorder treatment programs.
Not much has been reported since the company announced a $3.9 million raise in May. However, some of the focus lately could be on the progress in exploring strategic alternatives.
What To Watch With VLON Stock
Like GRAY, VLON stock could be in the spotlight of speculating traders right now. Last month, after reporting disappointing study data from its ADAIR abuse-deterrent formulation, the company expressed that it would seek out strategic alternatives. While the company assesses the best path forward for ADAIR, the stock market’s overall climate for M&A activity has been heating up thanks to generally depressed share prices for most companies. Whether or not speculation has come to light for VLON stock is to be seen. However, it’s worth noting the string of events that have led up to this point.
Penny Stocks To Buy Now
The exciting part about penny stocks is that most will have specific catalysts to keep track of. Unlike other industries, these health-focused companies are constantly in or working toward phase trials and studies. Since each phase has several milestones along the way, it allows companies to deliver more data. Heading into July, these could be a few of the penny stocks to watch.