January’s CPI inflation report is out, and investors have begun digesting the data in the stock market today. Whether you’re trading penny stocks or not, it likely comes secondary to what information was released. Both CPI and Core CPI inflation numbers came in above expectations.
But that is only one part of the story. According to the report, shelter seemed to be a sticking point. In fact, the shelter index increased 7.9% over the last year, accounting for nearly 60% of the total increase in all items, less food and energy.
The January CPI report also highlighted other indexes with notable increases over the last year. These include household furnishings and operations (+5.9%), medical care (+3.1%), recreation (+4.8%), and new vehicles (+5.8%). Whether this means more tightening ahead, a revised rate hike outlook or something else is yet to be seen.
Traders know that low-priced stocks could be a haven for opportunities. In many cases, penny stocks are disconnected from the overall stock market’s broader trends. Today we look at a few that have turned heads after the latest CPI data gave mixed messages to investors.
Penny Stocks to Watch
Blue Water Vaccines (BWV)
Even with the stock market trading lower today, biotech penny stocks have remained a hot button for day traders. Blue Water Vaccines is the latest company to hit the radar after a surge of volume triggered momentum in the stock market today. The company was relatively quiet this year, but after its recent collaboration news and management appointment this month, BWV stock is back on the watch list.
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What To Watch With BWV Stock
You might be asking why BWV stock is moving this week if there weren’t any headlines. As we’ve discussed plenty in the past, there’s more to stock market catalysts than only what’s long the press wires. In this case, BWV stock has climbed after a new 13G filing revealed Joseph Hernandez’s more than 18% stake in Blue Water Vaccines.
According to the filing, “Includes (i) 2,650,351 shares of common stock, which were purchased upon incorporation of the Issuer in October 2018 (as adjusted for a 4-for-1 stock split effected by the Company in November 2021 and (ii) 200,000 shares of common stock issuable upon exercise of options, granted on May 4, 2022 with an exercise price of $6.45, which fully vested on October 31, 2022.”
Through the company’s recent partnership with AbVacc, the two have begun collaborating on the joint development of vaccine candidates targeting monkeypox and Marburg virus disease.
Glycomimetics Inc. (GLYC)
Another one of the biotechnology penny stocks trading higher this week is Glycomimetics. The company has focused on developing therapies for cancers, including AML and inflammatory diseases. We discussed this company at the end of 2022 in the article “Best Penny Stocks To Buy Now? 4 Stocks Under $4 To Watch.”
In it, we talked about its extended uptrend on the heels of Phase 3 study data. In particular, its relapsed/refractory acute myeloid leukemia (AML) candidate showed patients lived longer than expected. This blinded pooled final survival events trigger is now projected around year-end 2023.
What To Watch With GLYC Stock
Glycomimetics approached the FDA, wanting to conduct an interim analysis and have an independent Data Monitoring Committee (DMC) to determine whether the survival was linked to the treatment with the company’s uproleselan. In response, the FDA aligned with its position. Looking ahead, the DMC is set to determine if the study should continue as planned or be immediately unblinded for complete analysis if efficacy data is compelling by the end of this quarter.
The company has already announced results from two investigator-sponsored trials studying uproleselan in AML patients. Last year, the results were presented at the 64th American Society of Hematology (ASH) Annual Meeting.
Edwin Rock, M.D., Ph.D., Chief Medical Officer, explained, “These presentations provide the first uproleselan clinical data in AML generated outside of company-sponsored studies.”
Iris Energy Ltd. (IREN)
Certain tech penny stocks are another popular topic in the discussion today. Iris Energy saw its share price rally to new 2023 highs thanks to several tailwinds related to the cryptocurrency industry. Iris specializes in Bitcoin mining data centers that it powers using 100% renewable energy.
If you’ve followed the saga of Bitcoin over the last few years, you know that energy costs and the strain on the grid have been a sticking point for some investors. Green and clean energy alternatives are taking center stage as the latest iteration of Bitcoin mining companies come to the forefront.
What To Watch With IREN Stock
In an update this week, Iris announced that it is boosting its self-mining capacity. In the February 13th update, management discussed increasing from 2.0 EH/s to 5.5 EH/s. New miners will be installed in the company’s data centers over the coming months to achieve this target.
Co-CEO Daniel Roberts explained, “This is a significant milestone for Iris Energy. We are delighted to have been able to utilize our remaining Bitmain prepayments to acquire new miners without any additional cash outlay and, in doing so, not only increase our self-mining capacity to 5.5 EH/s, all powered by 100% renewable energy data center infrastructure, but also fully resolve our obligations under our contract with Bitmain.”
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Last month Iris operated at an average hash rate of 1,575 PH/s. It also mined 172 Bitcoin, up 40% from December. The company will release financial results from its second quarter of Fiscal 2023, ending December 31, 2022, this week. Also, remember that many Bitcoin- and cryptocurrency-related stocks are tightly connected to the price of the currencies themselves. With that can come added layers of risk and volatility.
List of Penny Stocks To Watch
- Blue Water Vaccines (NASDAQ: BWV)
- Glycomimetics Inc. (NASDAQ: GLYC)
- Iris Energy Ltd. (NASDAQ: IREN)
