As retail investors seek explosive returns, penny stocks remain enticing potential opportunities capable of massive short-term gains. However, the considerable risks of these cheap equities also highlight the need for due diligence. With the final November 2023 week approaching, several penny stocks display share price catalysts ahead.
In this article, we discuss three top penny stocks showing notable momentum this week. While risks abound with penny stock investing, the potential also exists for strong returns in short periods. We recommend extensive individual research before investing to understand each company at hand fully.
The penny stocks covered range across industries. Some represent relative unknowns trying to disrupt competitive markets with innovative products or services. At the same time, others come as established entities looking to execute operational turnarounds or leverage sector tailwinds.
Each profiled penny stock currently trades below $5 per share. More so, the chosen tickers all showcase upcoming events that could spur periods of intense volatility. Potential catalysts on the horizon include quarterly earnings releases, FDA decisions, drilling updates, and rumored mergers and acquisitions.
Are Penny Stocks Worth It?
While past performance never guarantees future returns, astute traders may still want to keep these specific penny stocks on their watchlists moving ahead. The potential exists for rapid short-term surges surrounding the upcoming share price catalysts.
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Risk-tolerant investors should limit penny stock positions as part of balanced portfolios, however. Speculation tends to run rampant among cheap stocks due to limited liquidity and sparse public information in many cases. But the right penny stock picks at opportune moments can deliver exponential returns within weeks—if not days.
The coming week provides investors and traders with several opportunities to capitalize on volatility. Riding positive momentum surrounding earnings surprises, clinical trial data, exploration discoveries or M&A deals could lead to game-changing rallies. As always, personal due diligence remains vital when assessing penny stocks to watch.
Penny Stocks To Watch [List]
- Can-Fite BioPharma Ltd. (NYSEAMERICAN: CANF)
- Coeur Mining, Inc. (NYSE: CDE)
- Ardelyx Inc. (NASDAQ: ARDX)
Can-Fite BioPharma Ltd. (CANF)
Can-Fite is a biotechnology company focusing on developing small-molecule drugs. These drugs target oncological and inflammatory diseases. This week shares are trading higher after a recent news catalyst.
The company announced results from its Phase II Liver Cancer Study. A patient treated with Namodenoson showed a complete response and survived for 6.9 years. This is significant for hepatocellular carcinoma (HCC), a major global health concern with high mortality and limited effective treatments, especially in advanced stages like Child-Pugh B.
Can-Fite has received approval from the FDA and EMA for a pivotal Phase III clinical study. This study will involve patients in Israel, Europe, and the US. Namodenoson has gained Orphan Drug and Fast Track Status for treating HCC, and a compassionate use program is in place in Israel and Romania.
Against this backdrop, CANF stock is trading higher on much more significant daily volume in the stock market today.
CANF Stock Forecast Speculation
Here may be a few different cases the market is looking at depending on which side of the speculation its on:
- Bullish Case: The successful Phase II results and progression to Phase III trials, along with FDA and EMA approvals, may indicate strong potential for Namodenoson. Its unique mechanism and safety profile could make it a significant player in the lucrative HCC treatment market.
- Bearish Case: The high risk associated with clinical trials, potential regulatory hurdles, and the competitive landscape in cancer treatment could pose challenges to Can-Fite’s success.
- Balanced Case: While Can-Fite shows promise with Namodenoson, the outcome of the Phase III trials and market acceptance are key factors. It’s important to consider the potential benefits against the inherent risks in biotech investments.
Coeur Mining, Inc. (CDE)
Coeur Mining, Inc. is a U.S.-based precious metals producer. They own four major mining operations. These include the Palmarejo gold-silver complex in Mexico. It has also popped on a news catalysts from earlier in the week.
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The company announced an agreement to acquire mining concessions near the Palmarejo Mine from Fresnillo plc. The deal involves a $25 million cash payment and future royalties on discoveries. The concessions span nearly 7,000 acres near Palmarejo’s current operations. They include areas with significant mineralization and historic resources.
This acquisition aims to fill strategic gaps, increasing land holdings by nearly 20% and forming a large, contiguous mining district. The transaction terms include a $10 million upfront payment, with additional payments over two years and royalties on new discoveries. This expansion represents a strategic move to increase resource potential and extend the mine life of Palmarejo.
CDE Stock Forecast Speculation
- Bullish Case: Coeur Mining’s strategic expansion at Palmarejo could lead to significant new mineral discoveries. This may enhance the company’s resource base and extend the mine’s life, potentially boosting revenue and profitability.
- Bearish Case: The high upfront investment and risks associated with mining exploration could strain Coeur Mining’s finances. Any delays or failures in realizing the expected benefits could negatively impact the stock.
- Balanced Case: While the acquisition offers potential growth opportunities for Coeur Mining, it also comes with considerable risks and costs. The market could balance the long-term resource potential against the immediate financial and operational risk.
Ardelyx Inc. (ARDX)
Ardelyx, Inc. is specializing in developing innovative medicines for significant unmet medical needs. It recently announced that the U.S. FDA granted Orphan Drug Designation to its XPHOZAH® (tenapanor) for treating pediatric hyperphosphatemia.
XPHOZAH is a first-in-class medication that blocks phosphate absorption. It’s primarily used to reduce serum phosphorus in adults with chronic kidney disease on dialysis. Hyperphosphatemia, characterized by elevated phosphate levels in the blood, commonly affects patients with chronic kidney disease, especially those on maintenance dialysis. The Designation supports the development of drugs for rare diseases or conditions and includes benefits like market exclusivity and exemptions from certain fees.
What does this mean for Ardelyx? The FDA’s designation for XPHOZAH acknowledges its potential in treating pediatric hyperphosphatemia. It could lead to potential growth, therefore positively affecting its prospects. But it’s important to note that if XPHOZAH encounters challenges in clinical development or market penetration, or if competitive treatments emerge, it could negatively impact the company.
ARDX Stock Forecast Speculation
- Bullish Case: The FDA’s Orphan Drug Designation for XPHOZAH highlights its potential in a niche market. This could lead to market exclusivity and increased attention for Ardelyx.
- Bearish Case: The challenges of developing and marketing treatments for rare pediatric conditions could limit the commercial success of XPHOZAH.
- Balanced Case: While the Orphan Drug Designation offers potential advantages for Ardelyx, the market could also consider the challenges in developing and marketing treatments for rare conditions
