Penny stocks come in all shapes and sizes. They range anywhere from the cheapest penny stocks at $0.0001 to the high end of $4.9999. Whether you’re buying the cheapest of these or the “most expensive,” price alone doesn’t necessarily mean you’re guaranteed to get rich with penny stocks. This isn’t to say all penny stocks under 10 cents or all penny stocks over $4 should be traded the same.
The biggest thing to remember as a rule of thumb is the lower the price, the higher the volatility. It boils down to simple math really, any penny stocks below 10 cents only need to move a penny to return 10% or more. If you’re talking about those $4 and above stocks, a 1 cent move doesn’t really move the needle.
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However, there’s more to it than price-alone that dictates overall volatility. Keep share structure in mind as well. I’ll use the same examples I did above. Consider some of the penny stocks under 10 cents that have bulky share structures. In many cases, you’re talking about stocks with outstanding share counts and floats in the hundreds of millions or even billions.Trading Penny Stocks
The chances of that type of stock moving up quickly are slim compared to low float penny stocks. If you’ve been trading and reading our articles for a little while, you’ve already seen how even a $4 penny stock can return hundreds or even thousands of percentage points in a single day. The unique factor was having a low float.
Keep all of this in mind the next time you’re looking for stocks at a certain price point. Just because they’re considered high or low-priced penny stocks, it may require you to dig a little deeper and see what the company has going on as a potential catalyst. In this case, these companies have all seen a recent surge in activity on the heels of new developments. Will they be on your watch list this week?Penny Stocks Under $1 To Watch #1: GT Biopharma Inc.
GT Biopharma Inc. (GTBP Stock Report) has experienced a spike in volume and overall trading momentum over the last few weeks. The initial spark stemmed from a big update the company issued with regard to progress in its current Phase I/II clinical trial for acute myeloid leukemia – AML.
Specifically, the company reported positive findings after the first patient completed treatment at Dose Level 3. One of the things we can agree on is the case for biotech catalysts. Obviously, this is an earlier segment of its overall Phase trials. However, even these early results suggested some progress in the company’s lead GTB-3550 treatment according to management. The company reported that the dose showed a decrease in AML blast levels from 18% to 12% in the bone marrow.
“We also observed improvement in marrow cellularity, a decrease in AML blast levels, and improving platelet and red blood cells numbers. The patient will be retreated with an additional round of GTB-3550 therapy at the 25mcg/kg/day dose.”
The company’s TriKE™ remains its core focus. While GTB-3550 is the lead candidate, TriKE™ has shown to have potential applications for various immune indications. TriKE™ has been evaluated in ovarian, breast, prostate, pancreatic ductal adenocarcinoma and lung cancer models. According to GT, it demonstrated a significant reduction in tumor burden in animal models. It also boosted overall survival in animal models of solid tumor cancers. What’s more, is this week the company brought on additional advisors to explore even more opportunities utilizing the TriKE™ including in non-hematologic cancers such as prostate.Penny Stocks Under $1 To Watch #2: Genesis HealthCare
Genesis HealthCare (GEN Stock Report) is another one of the stocks under $1 to watch this week. The company’s shares actually reached a fresh 52-week low on Tuesday with increased volume. So why even mention the stock in this list? Well, for starters, this is the first time we’ve actually come across the company. It’s been a topsy-turvy year for Genesis Health and mostly to the downside. Tuesday’s trading was the bearish cherry on the sundae so to speak. GEN stock hit a low of $0.50 and considering it was trading at more than $1.60 in January, this marked a significant drop for the year.
What makes this a potentially exciting penny stock to watch right now? It has everything to do with what the company announced after hours on Tuesday. One of the company’s subsidiaries, LTC ACO, the first long-term care sponsored Accountable Care Organization in the US, received a positive reconciliation and settlement under the Medicare Shared Savings Program. This was for the 2019 performance year and as a result, generated shared savings for the second consecutive year.
Specifically, LTC ACO will recognize Medicare Shared Savings Program, shared savings of roughly $18.8 million and income of approximately $17.0 million net of participating provider distributions. This news brought a massive surge of bullishness to GEN stock after details emerged. During post-market trading, GEN shares hit a high of $0.87; more than 65% higher than where it closed during the regular session on Tuesday.Penny Stocks Under $1 To Watch #3: Oragenics Inc.
Oragenics Inc. (OGEN Stock Report) saw a late afternoon spike to close just shy of its high of day around $0.60. There wasn’t any news on Tuesday however, OGEN stock continues gaining interest following last week’s update. Oragenics announced that it expects the timeline for the filing of an investigational new drug application for its COVID-19 vaccine candidate, Terra COV-2, as well as the launch of its planned phase 1 study will proceed on schedule.
The company is set to file an investigational new drug application by the end of Q1 2021 and begin patient enrollment for a phase 1 study in early Q2. Dr. Joslyn Ph.D., President and Chief Executive Officer of Oragenics explained, “The FDA’s response is an important step as we work to provide a vaccine against SARS-CoV-2 that is focused on the stabilized prefusion spike protein, with a potential profile that may include lifetime immunity to COVID-19.”
As more and more companies like AstraZeneca and most recently, Eli Lilly put their vaccines on pause, the market remains in a rotation. “If this one’s bad, let’s find the next,” is kind of the mentality right now. In light of this, we’re beginning to see a bit more excitement surrounding coronavirus vaccine stocks.Penny Stocks Under $1 To Watch #4: Cocrystal Pharma
Cocrystal Pharma (COCP Stock Report) saw a significant spike in late afternoon momentum on Tuesday. The majority of Tuesday’s session saw COCP stock trading around $0.92. However, during the last hour of trading, shares spiked aggressively to highs of $0.989, seemingly unprompted. That is the case if all you looked at were the company’s recent headlines. In fact, the only major news stories from the last few months pertained to the companies upsized capital raising activities.
Cocrystal was an epic runner earlier this year, however. When we first began to follow the evolution was in February when COCP stock was trading around $0.60. Shares ended up hitting highs of over $3 this past summer in a lead up stemmed from coronavirus momentum. Cocrystal initiated its preclinical studies of COVID-19 inhibitors during Q2 2020. While corporate headlines haven’t made waves for COCP stock, related developments have. In a release titled, “New published study from K-State virologists identifies potential COVID-19 treatment,” Yunjeong Kim and Kyeong-Ok “KC” Chang, virologists in the College of Veterinary Medicine at Kansas State University, have published a study showing a possible therapeutic treatment for COVID-19.
Come to find out, the “new compounds” in the publication are exclusively licensed and being developed by Cocrystal Pharma for COVID-19. The most recent analyst rating came from H.C. Wainwright giving COCP a Buy and $5 price target. It will be interesting, in light of the recent shake-up across coronavirus stocks, if COCP will once again shine among its peers.Penny Stocks Under $1 To Watch: Onconova Therapeutics, Inc.
Onconova Therapeutics, Inc. (ONTX Stock Report) was actually one of the penny stocks discussed earlier today. While some of the previous excitement might’ve stemmed from its pipeline development progress, this week could be a bit different. Just since Tuesday’s earlier coverage, ONTX stock managed to climb over 30% with aftermarket highs of $0.359. This week, Onconova’s CEO presents at a company update during the 2020 BIO Investor Forum Digital event. That takes place Tuesday through Thursday.
The company’s lead candidate, Rigosertib, showed the ability to block cellular signaling. Preclinical work with rigosertib is underway in COVID-19, according to the company as well. With the rotation in and out of other coronavirus names right now, will ONTX remain one of the top COVID-19 penny stocks to watch heading into the Wednesday session?Penny Stocks Under $1.50 To Watch: Heat Biologics Inc.
Heat Biologics Inc. (HTBX Stock Report) is another one of the penny stocks to watch with a nice surge after hours on Tuesday. The penny stock closed the session at $1.31 just 4 cents shy of its high of day. The company develops therapies to modulate the immune system. This includes things like oncology product candidates and a COVID-19 vaccine. Last week Heat announced it was issued a new US patent – No. 10,780,161.
This covers compositions of matter that are part of Heat’s gp96 platform (antigen presentation, T cell activation, TLR activation) in combination with Inducible T cell Co-stimulator (ICOS) ligand or ICOSL, a T cell immune booster, in a single therapy. It’s a mouthful, I know. However, the goal of the combination therapy is to boost immunity to potentially overcome the immunosuppressive tumor microenvironment and address the needs of patients refractory to current therapies.
As the focus continues remaining on COVID names right now, it would appear the recent surge is, in part, due to the pause on treatment development for Ely Lilly, most recently. Will Tuesday’s momentum remain in play on Wednesday?