Looking For Penny Stocks To Add To Your Watch List? Check The News For Clues
Whether you want to trade penny stocks or find penny stocks to invest in, you need a strategy. It’s also a good idea to have a game plan should you enter a position. Starting with a watch list is usually best, but you’ll want to know how to find stocks to add to it. One of the ways that traders build these lists is by focusing on a theme.
Today’s list includes companies that have recently published headlines that have acted as catalysts in the market. We look at what was announced and identify any additional or potential triggers that may be worth noting. Then you can decide if any are worth putting on your watch list at some point.
Penny Stocks To Watch
Axcella Health Inc. (AXLA)
Shares of Axcella Health are on the watch list this week thanks to headlines regarding a regulatory path forward for its long COVID fatigue treatment candidate. The company announced that it received regulatory guidance from The Medicines and Healthcare products Regulatory Agency in there UK. This is expected to support a single trial serving as the registration trial of Long Covid fatigue patients.
Responding to the milestone, Margaret Koziel, M.D., CMO of Axcella, said, “The tenor of the MHRA response and the results of our trial informed our recently completed FDA IND submission for our phase 2b/3 Long COVID trial. AXA1125 is the most advanced clinical-stage program for this devastating disease, and we look forward to the opportunity to conduct a global trial that has the potential to rapidly enroll and submit for approval as the leading program in the field.”
In addition to the plan, Axcella also pointed out early performance results from study subjects who had received AXA1125. The company said they experienced “clinically and statistically significant improvement” in physical and mental fatigue scores compared to placebo. With these headlines, AXLA stock has been one of the names to watch this week.
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Jasper Therapeutics, Inc. (JSPR)
Another biotechnology company that has been on the radar in 2023 is Jasper Therapeutics. The company kicked things off in a big way to start the year with clinical data from a Phase I/II trial. This trial studied reactions to its briquilimab platform as a conditioning treatment in sickle cell disease and beta-thalassemia. According to the company, all three participants successfully engrafted with neutrophil engraftment within 12-16 days.
Ronald Martell, President and CEO of Jasper Therapeutics, explained, “While stem cell infusion with healthy donor stem cells or gene-corrected cells is potentially curative options for SCD and beta-thalassemia, they are both limited by the toxicity of current conditioning regimens using busulfan or melphalan, which are often cited as the most concerning safety risks for transplant patients and physicians.”
Fast-forward a few weeks, and JSPR stock remains a hot topic. The latest headlines include more positive data from its briquilimab platform, this time in acute myeloid leukemia, and news of a $90 million financing. In many cases, when companies announce they are raising capital, prices can decline due to dilution risk. For Jasper, however, that doesn’t seem to have been the case so far. With fresh capital in hand, the market reaction has been bullish this week.
Late last year, when JSPR stock was still trading below $1, analysts issued bullish forecasts on the company. EF Hutton, for instance, gave a Buy rating and announced a $4 price target. On another note, Oppenheimer cut its target from $21 to $8 but maintained its Outperform rating.
BigBear.AI (BBAI)
Tech stocks faced a tough year in 2022, but at the beginning of 2023, many are starting to bounce back. BigBear.AI is one of these companies, and it has continued trading higher this year after hitting fresh 52-week lows at the end of 2022.
The company specializes in AI-powered analytics and cuber engineering solutions. It recently closed a $25 million offering at a price of $1.80 per share and warrants that exercise at $2.39. BigBear caught a lot of interest earlier this month after announcing a 10-year multiple-award contract with the U.S. Air Force. The multiple award $900 million “Indefinite Delivery/Indefinite Quantity” contract by the Air Force allows BigBear to compete for orders delivering everything from capabilities and systems to synthetic environments as a prime contractor.
Tony Barrett, President and General Manager of Federal Markets at BigBear.ai, also said, “This contract will allow us to continue our long-term partnership with the U.S. Air Force and support as a prime contractor in future opportunities.”
In a blog post this week, BigBear.AI said, “The U.S. Navy Wants to Build the World’s First Fully Autonomous Fleet, and BigBear.ai’s Ursa Minor is Helping them Turn a Big Idea into a Reality.” Ian Newell, Ursa Minor Sr. Product Manager, wrote in the post that “Ursa Minor proved that incorporating the outputs into innovative computer vision models can help Navy decision-makers by alerting them of potential threats by delivering consistent decision-quality information.”
Though it wasn’t a formal headline, it was an official post on the company’s website, and the market took notice.
Fortuna Silver Mines Inc. (FSM)
With rising tensions stemming from a potential recession, inflation, and continuous rate hikes, precious metals have come back into focus as a safe haven asset. Fortuna Silver Mines is one of the companies benefitting from this renewed interest. In fact, since hitting 52-week lows of $2.05 back in September, FSM stock has rallied to highs of over $4.
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Earlier this month, the company announced record production for 2022. Fortuna yielded 401,878 ounces of gold equivalent. It also gave guidance for 2023. The company anticipates producing 282-320 ounces of gold, which would be an increase of 9% to 23% compared to 2022. Silver production is expected between 6.3 million and 6.9 million ounces, which would actually be a decrease of up to 9% compared to 2022. Meanwhile, gold equivalent production is projected to increase by 3% to 15% over 2022’s results in a range of 412 to 463 thousand ounces.
This week Fortuna continued announcing progress with an update on its San Jose mine in Mexico. The company said that the Mexican Federal Administrative Court granted a provisional injunction to Fortuna’s Mexican subsidiary, Compañia Minera Cuzcatlan. This allows the San Jose mine to continue operating. With this news, FSM stock has surged and retested highs from back in December.
It may also be worth noting that the FSM stock chart shows a golden cross formation as the 50-day MA has crossed above the 200 MA paired with higher volume during recent sessions. This formation is generally considered bullish and is something that technicians may be paying close attention to this month.
List Of Penny Stocks To Watch [News Edition]
- Axcella Health Inc. (NASDAQ: AXLA)
- Jasper Therapeutics, Inc. (NASDAQ: JSPR)
- BigBear.AI (NYSE: BBAI)
- Fortuna Silver Mines Inc. (NYSE: FSM)
