If you’re having trouble finding good penny stocks, you’re not alone. This week has been one of the most frustrating weeks for some traders. I’m seeing this from mostly new traders who’ve been accustomed to “YOLO-ing” penny stocks on a weekly basis. Who could blame them though?
All we’ve seen recently were skyrocketing small caps that broke out without much of a catalyst. While they came down just as quickly, it trained the millions of new traders that this is somewhat of a norm. The fact is, it’s much easier to make money in a bull market than in a choppy market especially if you’ve just begun learning how to day trade.
Honestly, if you take a little time to learn more than just the basics, you can make money no matter what the market’s doing. Today, traders had a lot of information to digest. This included, among other things, more coronavirus cases. While you might think coronavirus penny stocks would be a focus, it’s actually much broader. Not only are we seeing biotech stocks taking off, we’re also seeing “health care” stocks as well. There’s a reason for the quotes around health care that I’ll explain later in this article.
The beauty of penny stocks is that there are usually at least a few that respond opposite of the broader market. Even today we were able to find several that produced early and all-day gains. The sector also saw some stronger sympathy momentum after some good news from Regeneron (REGN Stock Report). The company announced on Wednesday that its outpatient trial in its COVID-19 antibody cocktail showed a significant reduction in viral load and patient visits. So there could be some resonating sentiment from this news when the next opening bell rings.Penny Stocks To Watch #1: GT Biopharma Inc.
GT Biopharma Inc. (GTBP Stock Report) saw one of its more active trading days in the stock market on Wednesday. Similar to the rest of the market, the penny stock dipped. But something to note is that not only did it bounce by the end of the day, but the level it bounced from was also a major technical level.
If you look at the GTBP stock chart, you’ll see what I mean. Shares tested the 50-Day Moving Average but promptly bounced back by the end of the day, closing above $0.20. One of the things that technical traders observe is how well (or not) penny stocks hold up when major levels like this are tested. In this case, it looks like this level held up as a stronger support level during the Wednesday session.
Much of the anticipation that could have contributed to the bounce stems from the company’s string of progress. Not only did it report favorable Dose Level 3 results in its GTB-3550 Phase I/II trial, but interim data was also chosen for presentation at the upcoming ASH conference. Furthermore, GT Biopharma’s treatment platform as a whole, TriKE™, has also turned heads recently. While GTB-3550 (built on TriKE) is in trials for treating acute myeloid leukemia, the TriKE platform could have myriad other indications. The platform, itself has been evaluated in ovarian, breast, prostate, pancreatic ductal adenocarcinoma, and lung cancer models. As the company continues bringing on new Scientific Advisory Board members and expands its TriKE platform, momentum has become a defining factor in the market this month.Penny Stocks To Watch #2: Liquidia Technologies Inc.
Liquidia Technologies Inc. (LQDA Stock Report) has been in a nice uptrend over the last week or so. Since pulling back on October 13th, the penny stock was trying to find some footing. At the start of last week, LQDA began making its way back up. What turned things around? The company announced postponement of its special meeting of shareholders. At this point you might be wondering why this is a positive. It’s not so much the event itself but why it was postponed to begin with.
The company received an unsolicited offer to enter into a license agreement for its LIQ861 product candidate. The license agreement also came with a rider that Liquidia cancel its pending plan of merger from this past June. Right now the board of directors is evaluating this offer to see if it’s a superior proposal to the previous merger agreement. In lieu of this, the decision was made to postpone its special meeting.
- 3 Epicenter Penny Stocks To Buy Under $4 In October; Worth The Risk?
- Are These The Best Penny Stocks On Robinhood As COVID Cases Surge
The company’s LIQ861 is for the treatment of pulmonary arterial hypertension. Earlier this month, Liquidia gave an update on its U.S. patent Trial against United Therapeutics and its Tyvaso treatment. The Patent Trial and Appeal Board instituted an inter partes review against a patent for Tyvaso; a similar product to LIQ861. “We believe PTAB’s decision on ‘066 to be in error and while there are options for reconsideration, we remain confident in the arguments of non-infringement and invalidity to be made in district court,” said CEO Neal Fowler. So with at least two speculative catalysts at play, will LQDA be a stock to watch before November?Penny Stocks To Watch #3: BioSig Technologies Inc.
BioSig Technologies Inc. (BSGM Stock Report) saw a pullback of its own recently. Shares were trading above $5 at the end of last week. Kicking things off this week, BSGM stock gapped down to around $2.80. The drop came as a result of the company’s’ majority-owned subsidiary, VistalClear Pharmaceuticals halting its signal finding Phase 2 trial of its coronavirus treatment candidate. There was an imbalance in survival rates to which the company said would make it unlikely that the trial would meet its primary safety endpoints.
Fast-forward a few days and BSGM stock has bounced back as much as 32%. The company issued a shareholder update for October 2020 highlighting several key initiatives to regain some optimism.
“Our company demonstrated strong operational progress in some of the most challenging economic and social conditions, delivering on multiple catalysts in 2020 and building a foundation for robust growth in 2021.”Kenneth L. Londoner, Founder, Chairman, and CEO of BioSig Technologies, Inc.
Aside from its subsidiary, BioSig has its own platform to build upon. Its PURE EP system has begun gaining acceptance through new installations at medical centers. It’s used to enhance signal acquisition, digital signal processing, and analysis used in cardiology settings.Penny Stocks To Watch #4: Universal Security Instruments
Universal Security Instruments (UUU Stock Report) is the one “health care” stock that isn’t technically saving lives in the drug treatment sense. However, it does sell a portfolio of devices to keep you safe from robberies, fires, and the like. The pandemic has hit the company particularly hard. Earlier this year Universal said that many customers had to reduce their overall purchases since many had to actually close operations for different lengths of time. Despite this as the case, UUU stock has traded relatively sideways for the last few months.
This week, shares started waking up in light of a communication that Universal received from one of its larger stakeholders. David Lazar, CEO of Activist Investing LLC sent a message to the boar of Universal security. The letter discussed repeated efforts by Activist to consider strategic options and shift the course of “long and consistent destruction” of shareholder value.
In recent weeks, a serious candidate for a strategic transaction emerged – a biopharmaceutical company with a promising therapeutic for COVID-19. To our dismay, you have failed to act in what we would consider to be a timely or commercially reasonable manner with respect to this particular opportunity.
Activist emphasized its worry as the largest shareholder. In light of these developments and the apparent reveal of a potential “strategic transaction”, UUU stock saw a strong boost in momentum. Now the ball is in Universal’s court. Will the company pull through and deliver for shareholders or is a delisting and bankruptcy around the corner?