When it comes to penny stocks, things can change at a moment’s notice. We saw this first-hand over the last few days. On Friday, there were several stocks under $5 that finished the week strong. But if you were to look at them on Monday morning, there’s a stark difference in sentiment. For instance, GNC Holdings (GNC Stock Report), yes the same GNC in your local mall, put out news that triggered a big move after hours.
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The company reached an agreement with its lenders to extend certain debt maturity dates on its debt. GNC stock jumped as high as $1.27. But on Monday, shares of the penny stock were trading closer to $0.90 than $1.27. Nothing really changed fundamentally but traders who were optimistic going into the weekend ultimately woke up to something very different on Monday morning.
This is just one of many examples of why it’s important to have a strategy in place. So what should traders do? For starters, aftermarket trading is very different from regular market hours. There’s less liquidity and therefore the movement of certain penny stocks may not be as definitive as it would be during market hours. Keep this in mind, not only for weekend diligence but also after hours on any given trading day.
That also goes for premarket research as well. Needless to say, penny stocks trading higher during off-hours aren’t bad to watch. But it’s important to understand that the trading trend might not be as accurate or “trustworthy” as that of active market hours. With this in mind, here are some stocks that saw a surge before the opening bell on Monday. Will they be the best penny stocks to buy?Penny Stocks To Buy [or avoid]: Brickell Biotech Inc.
Shares of Brickell Biotech Inc. (BBI Stock Report) traded higher during Monday’s pre-market session. BBI stock closed the week last week at $1.26 but has jumped much higher to start the week. Brickell Biotech shares reached a premarket highs of $3.68 following the companies latest update.
Brickell announced the release of positive Phase 3 pivotal study results from its development partner, Kaken Pharmaceutical Co. Ltd. According to the company, all primary and secondary efficacy endpoints of the study were met. The results were presented as part of the Late-Breaking Research Program during the American Academy of Dermatology Virtual Meeting Experience.
Earlier this year, Kaken announced the submission of a new drug application for approval in Japan of manufacturing and marketing of sofpironium bromide gel for primary axillary hyperhidrosis based on these data.
For most of the year, BBI stock wasn’t much to write home about. After reaching a 2020 high of $3.98 in February, the rest of the year saw the stock pull back. Will these latest results see BBI stock finally reverse course or is this just a brief glimmer of hope before it fizzles out again? Feel free to comment below.Penny Stocks To Buy [or avoid]: Biocept Inc.
Biocept Inc. (BIOC Stock Report) has been one of the top penny stocks to watch for most of the second quarter. On Friday we talked about BIOC stock. We discussed how the stock dropped to 52-week lows in March and has made a strong recovery since. Since then, the penny stock has steadily recovered.
Furthermore, this momentum carried through into the new week. BIOC stock traded over $0.70 before the opening bell however, there wasn’t much to point to as far as a catalyst. But attention has been on the company amid the discussions surrounding coronavirus.
The last update showed that Biocept was moving its corporate offices and lab to a new location in San Diego. “This location is well-suited to meet our commercial, development and administrative needs and aligns with our strategy of supporting growth while reducing rent expense and other facility costs,” said Tim Kennedy, CFO and Senior Vice President of Operations of Biocept.
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Could this have something to do with the recent surge in COVID-19 cases over the weekend? Biocept performs testing of FDA approved protocols for Emergency Use Authorization for COVID-19 testing.Penny Stocks To Buy [or avoid]: AIM Immunotech
AIM Immunotech (AIM Stock Report) has been on the list of penny stocks to watch for months. We started following the progress with this company in late-January when coronavirus headlines first started emerging. AIM stock managed to breakout from around $1 to highs of $7.11 on COVID-19 treatment speculation. Its biggest focus has been on its Ampligen treatment.
Earlier this month AIM entered into a “material transfer and research agreement” with the University of Rochester. AIM will provide the University with Ampligen. The University plans to conduct a series of in vitro experiments to test the direct antiviral activity and mechanism of action of Ampligen on SARS-CoV-2.
Kicking things off this week, AIM stock is on the move once again following its latest announcement. The company provided an update on the commercial launch of Ampligen® for the treatment of severe Chronic Fatigue Syndrome in Argentina. While this isn’t COVID-related news, it has sparked some early momentum in the market. The next steps in the commercial launch of Ampligen® include ANMAT conducting a final inspection of the product and release tests before granting final approval to begin commercial sales. Will traders see AIM as one of the penny stocks to buy or avoid this week?Penny Stocks To Buy [or avoid]: Edesa Biotech Inc.
We’ve seen many biotech penny stocks jump to new highs this year. Many of which came through with positive, early-stage news on trials. But, when companies come out with late-stage, phase 3 data, for example, the stakes are high. One slight miss on an endpoint and it could mean shares implode. However, if there’s a positive outcome, it may give a big reason to keep an eye on certain companies.
This week Edesa Biotech Inc. (EDSA Stock Report) could fit the mold. Shares closed out last week under $3 but have since realized a significant jump in trading activity on June 15. The company announced receipt of expedited approval from Health Canada to begin a Phase 2/3 clinical study of its investigational drug, EB05.
The company is developing this drug as a potential treatment for moderate to severe COVID-19 patients. Edesa reported that it has EB05 drug product available now and is seeking government grants to accelerate the initiation and rollout of the study, beginning at up to 30 sites.
It’s also worth noting that EDSA stock’s total outstanding share count is below 10 million. In light of this news and momentum, EDSA could be one of the low float penny stocks to watch right now. As the story develops, we’ll make sure to update any new findings.