Penny stocks are shares of companies trading for less than $5 and have offered speculative potential during the stock market crash this year. They’re known for their high-risk and high reward, and when it comes to a choppy stock market, as we’ve seen recently, traders seek out cheap stocks for quick gains instead of tying capital by investing in a broader market that could still have downside left.
This month marks the start of a new quarter and a new round of economic data & earnings to digest. The short week ahead has plenty of information to consider. Jobs and payroll data will be front and center as the market seeks more details on the future of a potential recession. Meanwhile, Fed members Bullard and Williams will take the stage multiple days to speak on the economy.
Whether or not this next round of data is bullish or bearish may not matter much to traders looking for penny stocks to buy. Let’s explain.
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Penny Stocks To Watch
Broader market trends generally take a back seat regarding penny stocks. As the stock market crash continues, we see plenty of penny stocks hitting new highs in the short term. This unique trend has become one of the reasons traders hunt for top trending penny stocks daily.
News is one of the most prominent reasons for cheap stocks to move erratically even with the stock market down tends. Whether it’s a formal press release from a company, a story seen on a website or blog, a corporate filing, a company Tweet, or some other type of “update,” these can become significant catalysts for a bullish (or bearish) trend. Here’s a quick list of penny stocks with recent news and updates that are moving this week.
- 36KR Holdings (NASDAQ: KRKR)
- Ra Medical Systems (NYSEAMERICAN: RMED)
- Tyme Technologies Inc. (NASDAQ: TYME)
- Titan Pharmaceutical Inc. (NASDAQ: TTNP)
- Endo International (NASDAQ: ENDP)
Best Penny Stocks To Buy Now
Are penny stocks with news worth it? That depends on a few things, including specific trading styles. News can bring short-term momentum that is generally more suitable for day traders. On the other hand, some headlines and the details within the update can prompt a longer-term forecast. For these reasons, diving deeper beyond the headline is a good idea whenever a company posts news.
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36KR Holdings (NASDAQ: KRKR)
Believe it or not, with the stock market crash in full effect this year, plenty of penny stocks are approaching new 2022 highs. 36KR Holdings is one of these and now sits just 30 cents shy of that figure. It isn’t the highest volume penny stock and generally doesn’t trade more than a million shares on its most active day. However, this week the content service and online advertising company saw a strong surge during Tuesday’s premarket session. Much of this move stemmed from its latest update.
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Why KRKR Stock Is Moving
36KR announced that its Enterprise Service Review Platform entered into a “one-stop” marketing service deal with Volcano Engine. This is ByteDance’s cloud service brand.
Commenting on the milestone, Dagang Feng, 36Kr’s co-chairman and CEO, said, “Our innovative Enterprise Service Review Platform will further extend 36Kr’s service boundaries, harnessing our content advantage, massive user base, and enterprise data to help clients improve efficiency in their customer acquisition as well as product selection. Moving forward, with our relentless efforts in product optimization and commercialization, we believe that our Enterprise Service Review Platform will become a new growth engine for 36Kr, accelerate the expansion of our business boundaries, and unlock more of the Company’s potential value.”
Other than the unusually higher trading volumes in the stock market today, KRKR stock has a lower float to consider. Most outlets have this figure sitting around 23 million. Generally, a float of 25 million or less can be regarded as “low.” Pair this with irregularly higher levels of trading activity, and it will be interesting to see how things unfold for KRKR stock.
Ra Medical Systems (NYSEAMERICAN: RMED)
Medical device company Ra Medical saw some fireworks on July 5. The company develops an excimer laser system for treating vascular diseases. The FDA has already cleared the DABRA excimer laser for patients with symptomatic infrainguinal lower extremity vascular disease. It also has a CE mark clearance for endovascular treatment of infrainguinal arteries.
Why RMED Stock Is Moving
RMED stock is on the move, thanks to FDA-related headlines. The company received 501(k) clearance for the DABRA 2.0 catheter as part of the DABRA Excimer Laser System. This would be positive news on its own, according to some traders. However, there’s a bit more to this than FDA news.
Will McGuire, Ra Medical Systems CEO, said, “As we have previously announced, the DABRA 2.0 catheter represents an interim step in our work to develop a guidewire-compatible version of the DABRA catheter, and at this time we have no plans to commercialize the DABRA 2.0.”
Right now, Ra’s Board is evaluating strategic alternatives. So this positive news may not be the most important for the company. RMED stock jumped to new 5-month highs during premarket trading on July 5th.
Tyme Technologies Inc. (NASDAQ: TYME)
Another biotech company to watch is Tyme Technologies. It focuses on cancer metabolism-based therapies. Tyme’s lead focus is on developing its SM-88 and pipeline of cancer metabolism-based therapy programs. SM-88, in particular, has already shown potential in early clinical results testing it on multiple cancers. These include prostate, sarcomas, and breast cancer.
Why TYME Stock Is Moving
Merger news is driving TYME stock today. The company and Syros Pharmaceuticals (NASDAQ: SYRS) signed a deal to combine where Syros will acquire Tyme and its development pipeline. This transaction will see TYME stock holders issued shares of SYRS once the transaction is finalized.
It’s also worth mentioning that this type of event has been in the works for some time as Tyme has been exploring strategic alternatives for months. In this case, it’s an example of how the market reacts to a favorable outcome when companies decide to pivot.
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Titan Pharmaceutical Inc. (NASDAQ: TTNP)
Shares of Titan Pharmaceuticals bounced strongly at the start of the short week. Its drug delivery technology, ProNeura, has been the focus. It’s Titan’s platform for developing products to treat chronic conditions and maintain static medication levels. Ironically, it’s the 3rd company on this list of penny stocks seeking strategic alternatives.
Why TTNP Stock Is Moving
Unlike Tyme, a favorable outcome to seeking a strategic alternative isn’t the reason behind the TTNP stock move. Titan announced FDA-related news that has sparked momentum back into the penny stock. Specifically, the FDA cleared its Investigational New Drug Application for a Phase 1 study of a six-month or longer nalmefene formulation to prevent relapse after opioid detox.
Kate Beebe DeVarney, Ph.D., President and Chief Operating Officer of Titan, said, “FDA clearance of the IND for our ProNeura®-based nalmefene implant marks an important milestone in developing a novel product that may help answer the call for long-term treatment options in addiction medicine. We are very grateful for the support we received from the National Institute for Drug Addiction, or NIDA, that enabled us to meet this objective.”
Endo International (NASDAQ: ENDP)
Endo International has consistently been on our list of penny stocks to watch since mid-June. The specialty pharmaceutical company is focused on developing an orthopedic product for treating osteoarthritis knee pain. One of the more recent milestones was signing a deal with Taiwan Liposome to commercialize its TLC599 injectable compound, which is in Phase 3 development for osteoarthritis treatment.
However, one of the catalysts credited with helping the latest uptrend can be found in the company’s filings. In our article Buy Penny Stocks Like Hedge Funds Do: A How-To Guide, we discussed specific forms and filings to pay attention to if you want to “follow” the money of investment firms.
On that note, Millennium Management LLC filed a 13G on June 27th, showing a 1.7% stake in the company. A 13G pertains to “passive investors” owning less than 20% of a company’s outstanding shares. For reference, once a “passive investor” reaches over 20% of the outstanding share count of a company, they must start filing 13D statements.
Why ENDP Stock Is Moving
The latest move, however, comes on the heels of legal news. Endo announced that a federal jury in Chicago decided that the company’s subsidiaries Endo Pharmaceuticals and Endo Health Solutions were valid in their antitrust claims. The verdict favored Endo on all counts of the proceedings that began eight years ago.
“Endo is very pleased with the jury’s verdict and is grateful for its careful deliberation,” said Matthew J. Maletta, Endo’s Executive Vice President, Chief Legal Officer, and Company Secretary. “Today’s verdict confirms that the 2010 settlement agreement between Endo and Impax was procompetitive and enabled Impax to come to market with its generic version of Opana® ER years earlier than otherwise would have been permitted.”
Best Penny Stocks Today
Headlines are an easy place to find companies for your penny stocks watch list. As we’ve seen with the names on this list, it’s essential to go beyond just reading the news and diving deeper into things like corporate filings. Regardless, penny stocks with news can experience volatility immediately after it hits the wires. Today we looked at 5 penny stocks with news, industry-related speculation, or corporate developments sending shares higher to start the week. After seeing why they moved, are any on your watch list right now?
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