Whether you’re looking at the “Magnificent Seven stocks,” or just the next round of penny stocks to watch, news & company events can quickly sway sentiment. This week is a short holiday week with Thursday’s Thanksgiving Holiday and one of the “Magnificent Seven” could become a major catalyst.
NVIDIA (NASDAQ: NVDA) reports earnings on Tuesday. All eyes are on the mega-cap tech stock to see what their numbers reveal, what their guidance is, and which industries the company plans to tackle. Whether or not that has a direct impact on penny stocks is to be seen but certainly, things like AI stocks and tech stocks, in general, could be a prominent focus.
What Are Magnificent Seven Stocks?
An obvious question if you’re not familiar with the “Magnificent 7” monachre. The term is borrowed from popular culture, specifically from the title of the 1960 Western film “The Magnificent Seven.” In the context of stocks, the “Magnificent Seven” is used to characterize these particular companies based on their size, influence, and performance in the stock market. Earlier this year, Bank of America analyst Michael Hartnett coined the phrase, and it has stuck ever since.
Stock Market News & Penny Stocks
Chances are, NVDA stock earnings will not only influence broader tech but the Magnificent Seven stocks in general. We’ve seen trends like this impact other groupings, including FAANG, FAAMG, MAMAA, The Big 4, and others. These “unofficial ETFs” have become underlying stock market catalysts on their own.
If you’re trading penny stocks today, however, these broader market headlines might not mean as much as individual company news. So how do you find penny stocks to buy when there’s news to digest?
Firstly, evaluate the news’ nature and its potential long-term impact on the company. Is it a new contract that could boost revenues? Or a regulatory hurdle that might hinder operations? Not all news is created equal; some might offer sustainable growth potential, while others may only cause short-term hype. After a significant event, take a closer look at the company’s fundamentals. Scrutinize financial statements, management quality, and business models.
This step helps in distinguishing between stocks with solid growth potential and those riding the wave of temporary excitement. An increase in trading volume following news can indicate heightened investor interest. However, discern whether this interest is based on speculative trading or genuine belief in the company’s future prospects.
Penny Stocks To Watch
Penny stocks are inherently risky. Even with positive news, it’s crucial to set realistic expectations regarding potential gains and the time frame for those gains. Understand that not all positive news will translate into long-term success. While news and company events can create lucrative opportunities in penny stocks, they also come with heightened risks. With that, here are 4 cheap stocks to watch this week, gaining momentum.
- HOOKIPA Pharma Inc. (NASDAQ: HOOK)
- Altamira Therapeutics (NASDAQ: CYTO)
- Kronos Bio, Inc. (NASDAQ: KRON)
- Fortress Biotech, Inc. (NASDAQ: FBIO)
HOOKIPA Pharma Inc. (HOOK)
HOOKIPA Pharma Inc. is a biopharmaceutical company. They focus on developing new classes of immunotherapeutics based on their proprietary arenavirus platform. Thanks to some new headlines, HOOK stock is rocketing on Monday. It announced FDA clearance for its Investigational New Drug (IND) application for HB-500. This is an arenaviral therapeutic vaccine for treating HIV.
Developed in collaboration with Gilead Sciences, HB-500 will be evaluated in a Phase 1 trial set to commence in the first half of 2024. The vaccine has shown promise in preclinical studies, generating robust immune responses and reducing viral load in non-human primates. HB-500 uses an alternating 2-vector approach, incorporating lymphocytic choriomeningitis virus and Pichinde virus to target HIV antigens. This IND clearance marks HOOKIPA’s fourth active IND program, showcasing the potential of their arenavirus platform across multiple diseases.
Something else that could be a potential catalyst for HOOK stock is commentary from its CEO. Joern Aldag said that the company has “significant, and achievable, upcoming milestones across our portfolio of programs, a testament to the potential of arenaviral platform technology to address unmet needs in cancer and infectious diseases.”
Altamira Therapeutics (CYTO)
Altamira Therapeutics, a company developing RNA-based treatments, is pivoting its strategy. This month, the biotech announced plans to spin off part of its Bentrio business. Bentrio is Altamira’s OTC nasal spray for allergic rhinitis.
Under the deal, Altamira will sell a 51% stake in its Bentrio subsidiary Altamira Medica to an undisclosed buyer. The $2.3 million transaction allows Altamira to retain a 49% share in Medica while refocusing efforts on its core RNA therapeutics pipeline.
Altamira aims to advance RNA interference programs targeting KRAS-driven cancers and rheumatoid arthritis. The spin-off aligns with this vision. It also provides near-term funding through the deal and future licensing income from Medica.
The market response to this strategic repositioning remains uncertain. However, the balanced approach to spinning off a non-core asset while retaining upside optionality could be viewed favorably. Execution on the RNA pipeline will now be key for Altamira to demonstrate the benefits of this refocused strategy.
Kronos Bio, Inc. (KRON)
This biopharmaceutical company focuses on developing treatments for cancer. They specialize in therapies targeting deregulated transcription in serious diseases and its quarterly update has raised some eyebrows recently.
The financial results from Kronos Bio indicated a solid cash position, which can be positive for confidence. However, the reported net loss could raise concerns about the company’s profitability in the short term. The prospects for the company will likely hinge on future clinical programs, balanced against its current rate of expenditure. However, with an active pipeline and potential for more near-term events, KRON stock has been one that traders have watched.
It’s also one that insiders have begun actively buying. CEO Norbert Bischofberger picked up over 1.7 million shares of KRON stock this month. He made the purchases at average prices ranging from $0.765 to $1.12, bringing his direct ownership to more than 2.5 million shares.
Fortress Biotech, Inc. (FBIO)
Another one of the biotech penny stocks seeing active insider trading is Fortress Biotech, Inc. The company focuses on acquiring, developing, and commercializing therapeutic products and candidates. One of the things attracting attention in the stock market recently is its financial update posted earlier this month.
The company reported substantial growth in the third quarter of 2023. Consolidated net revenue reached $34.8 million, doubling from the previous quarter. This includes a significant upfront payment from a licensing agreement for Qbrexza® in Asia. The company is advancing several late-stage clinical assets, with potential NDA and BLA submissions to the FDA, including one for DFD-29 to treat rosacea. The company also explained that it anticipates multiple significant near-term milestones, including submissions to the FDA for various treatments.
Fortress Director Michael Weiss and CEO Lindsay Rosenwald were the prominent insiders boosting their positions. Together, they purchased a total of 1.71 million shares at a price of $1.70 per share.
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