Are penny stocks worth it? It’s not a rhetorical question and one I’m sure people ask themselves every time they look at small-cap stocks. I’m sure that if you’re reading this, you’ve got some interest in making money with penny stocks at the end of the day. As far as “worth” goes, it’s a case-by-case basis for many traders. It all comes down to the risk vs reward of each trade.
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In the stock market today we’ve seen a bit of a shift in focus. Earlier in the year, COVID penny stocks were surging. Any headline mentioned the topic seemed to trigger a breakout. Since then, I think traders have become more educated on what is or is not a good coronavirus-related update. They’re actually starting to read the news; not just the headlines. But something else we’re noticing is that daily trading volumes in the market, in general, are lower right now.Is A New Trend Emerging In Penny Stocks?
Compared to the last few months, most major index volumes are slower this week. That could mean a few things. First, lower volume means you might need to be pickier with the stocks you trade. Less volume overall means less liquidity flowing into stocks.
As traders, we want liquidity in order to buy and sell without any issues for getting the best price possible. You also want to see higher liquidity in stocks to actually support the overall trend.
Basically, if you’ve got penny stocks with lighter volume, the slightest bit of selling pressure could actually trigger a more rapid sell-off. That’s because there isn’t buying volume present in the market – no safety net at that point. So, heading into these final days of summer, keep that in mind. Volume is one of the important things to factor into your trading strategy.Penny Stocks To Buy [or sell]: Bio-Path Holdings
Bio-Path (BPTH Stock Report) is a company we started following back in late-March. At the time shares traded around $3.80 and ended up moving up to a high of $6.97. Since then it’s been a relatively slow-bleed back to those same levels by August. However, this week, BPTH stock has made a bit of a turnaround. Shares pulled an about-face on Friday. The penny stock reached highs of $5.40 during the morning session and settled out around $4.60 during the lunch hour.
Last week the company reported earnings and an EPS beat. Bio-Path reported a net loss of $2.0 million, or $0.55 per share compared to a net loss of $2.5 million, or $0.87 per share in 2019. “As we look to the balance of the year, we will continue to advance our studies for prexigebersen and BP-1002.
We look forward to initiating a Phase 1 study of prexigebersen for the treatment of solid tumors by year-end and remain steadfast in our goal to bring these potentially life-saving therapies to patients in need,” continued CEO, Peter Nielsen.
This week there hasn’t been much news to suggest a catalyst for Friday’s move. However, analysts covering the stock appear bullish in their ratings. Most recently HC Wainwright maintained its “Buy” rating on the penny stock. However, it did lower its price target to $12 from its previous $18 target.Penny Stocks To Buy [or sell]: StealthGas Inc.
StealthGas Inc. (GASS Stock Report) saw irregular trading activity on Friday. Normally, GASS stock trades far less than 100,000 shares a day. However, on August 21st, it traded more than 1.7 million by lunch. Energy stocks have, of course, been more active recently. StealthGas primarily serves the liquefied petroleum gas sector of the international shipping industry.
This week the company reported its A2 earnings and results appear to have impressed the market. Highlights included over 99% fleet utilization during the quarter. Voyage revenues came in at $36.3 million in Q2. That was an increase of $2.2 million compared to Q2 ’19. StealthGas said it was mostly due to the sharp rise of revenues stemming from its time charters and reduced presence in the spot market by 48%. What’s more is that the company posted net Income of $8.9 million for the quarter. That corresponded to an EPS of $0.23, which was its best quarterly performance since the first quarter of 2013.
Commenting on these results, Chairman Michael Jolliffe said, “StealthGas exerted a very strong performance in the second quarter of 2020 – marking the best quarterly results we have seen over the last seven years. The pillars of our success were principally our strong period coverage secured ahead of the imposed lockdowns, our stable operating cost base and the lowering of our finance costs.”
This is the highest GASS stock has traded at since January. It also marks a turnaround of 110% since reaching 52-week lows of $1.51 in March.Penny Stocks To Buy [or sell]: AIM ImmunoTech Inc.
AIM ImmunoTech Inc. (AIM Stock Report) is no stranger to our lists of penny stocks this year. In line with what was said above, AIM stock is one of the coronavirus penny stocks that took flight earlier this year on COVID-related news. Shares of the company have jumped from around $0.50 at the start of 2020 to highs of $7.11 and currently trade just under $2.50. Over the course of the last 8 months, a lot has happened with AIM stock and the company.
AIM has placed a focus on its pipeline treatment, Ampligen, for treating COVID-19 patients with cancer. Specifically, the therapy hosts anti-viral and anti-cancer properties. At the start of July, AIM signed a clinical trial agreement with Roswell Park Comprehensive Cancer Center supporting a Phase 1/2 clinical trail of Ampligen combined with interferon alfa-2b. This week the company presented at the SNN Network Virtual conference.
This month, AIM reported Q2 earnings as well. The market seems indifferent about these results as shares haven’t really moved out of its sideways trend. However, there were some things to take away from the business update that followed the financial results. Specifically, following the FDA’s authorization of an IND in May, AIM entered into a clinical trial agreement in July, with Roswell Park Comprehensive Cancer Center. It was to support Roswell Park’s Phase 1/2a trial of Ampligen in combination with interferon alfa-2b in cancer patients with COVID-19.
The important thing to take away from this piece of info is AIM said the trial is “on track to commence patient enrollment soon”. Outside of COVID, a study of Ampligen as a drug for late-stage pancreatic cancer is complete. AIM said that the research team at Erasmus M.C. is currently compiling the final data from this early access approval-based study. So this could be another point of focus for the market as well.