The premarket hours are back in the red again on Wednesday. But we’re seeing plenty of penny stocks shine. The fact that most small-cap stocks are disconnected from the overall market trend is something I think is overlooked. While not all penny stocks will respond this way, many do. Of the ones that don’t, there’s usually a much broader and stronger sector trend pushing or pulling in one direction or the other.
We saw this today with several of the breakout, midstream oil stocks that were moving hugely in after-hours trading on Tuesday evening. While the moves didn’t make sense due to oil prices tumbling, those penny stocks moved explosively higher.
But much like the rest of the year, overnight volatility is something you can almost bank on. When traders woke up on Wednesday morning, they were greeted with a big COVID slap in the face. New cases, fears of more lockdowns, and, oh no, Chicago isn’t letting people eat in doors. Is this history repeating itself? Obviously time will tell but surging coronavirus cases definitley bring back that market volatility that we saw earlier this year.
- What Are The Best Penny Stocks To Watch Before Friday? 5 For Your List
- Are These Penny Stocks To Buy Now Or Wait On?
So where could the focus be next? If you remember back when the pandemic first started going mainstream, we saw several industries thrive. This included biotechnology, tech, and really anything else, company-specific, that would succeed amid shutdowns. This is where we all met “Zoom” as a means for social interaction and understood how Shopify could become the standout in online retail order processing. Amazon jumped and plenty of biotech stocks soared. Will that be the case this time around?Penny Stocks To Watch: GT Biopharma Inc.
GT Biopharma Inc. (GTBP Stock Report) is an immunotherapy company with a focus on different cancers. Its lead candidate, GTB-3550 is being first tried on patients with acute myeloid leukemia. In a recent Dose Level 3 update, GTB-3550 was shown as well tolerated and able to noticeablly decrease AML blast levels in the patient. Furthermore, the patient is going forward for another round of treatment. Interim results from the GTB-3550 study were selected for presentation at the upcoming ASH conference in December. What’s more is that the company explained in a PR that, “your abstract will also be published online in November supplemental issue of the journal Blood”. The first publication will be in the online ASH meeting program on November 5, 2020.
Aside from coronavirus, cancer treatment stocks have been on the move this year. Thanks to big M&A activities and new IPOs investors have put a focus on companies with novel treatments and upbeat prospects from trial updates. GT Bio’s platform, itself is based on its TriKE™ technology. The platform, itself has been evaluated in ovarian, breast, prostate, pancreatic ductal adenocarcinoma, and lung cancer models. Just recently the company has both added to its Scientific Advisory team and reported favorable potential in industry journals for TriKE™ in other indications.
In a recent publication in the journal Cancers, TriKE™ was researched along with a B7-H3 protein. Anthony Cataldo, Chairman and Chief Executive Officer of GT Biopharma said, “We are pleased with the results of the research, and expect to advance a B7H3 TriKE™ product candidate to clinical development. Thanks to these key developments over the past month, GTBP stock has managed to climb from around $0.15 to recent highs of $0.25.Penny Stocks To Watch: miRagen Therapeutics Inc.
Another one of the biotech penny stocks to watch is miRagen Therapeutics Inc. (MGEN Stock Report). We’ve discussed the company a few times here and there. But most recently, MGEN stock had been under selling pressure. This came after the company announced Phase 2 lymphoma data lacked compelling results for the study’s primary endpoint.
This week, however, the sentiment is much different. The company announced the completed acquisition of Viridian Therapeutics, Inc. This is a privately held biotechnology company focused on advancing new treatments for patients with underserved diseases. What’s more, miRagen entered into a definitive agreement for the sale of Series A non-voting convertible preferred stock in a private placement to a group of institutional accredited investors led by Fairmount Funds Management LLC with participation from some big names in biotech financing.
This included Venrock Healthcare Capital Partners, BVF Partners L.P., Cormorant Asset Management, Perceptive Advisors, Wellington Management, Ally Bridge Group, Logos Capital, Surveyor Capital (a Citadel company), Commodore Capital, and Ridgeback Capital. The private placement is expected to result in gross proceeds to miRagen of approximately $91 million.
The company will use funds to study its lead candidate, VRDN-001 as a potential treatment for patients with thyroid eye disease. Pending feedback from regulatory authorities, miRagen expects to initiate a Phase 2 clinical trial of VRDN-001 in TED in 2021.Penny Stocks to Watch: RealNetworks Inc.
We discussed RealNetworks Inc. (RNWK Stock Report) on Tuesday citing unrest in Philadelphia. The penny stock surged in volume and price late Tuesday afternoon. While there weren’t headlines, some speculation cited potential sympathy from the civil unrest in the city from police-related headlines.
The company’s SAFR is a facial recognition platform for live video intelligence. Utilizing AI technology, it can help monitor occupancy, face mask detection, or touchless entry control. SAFR can also be deployed on-premises or in the cloud. How SAFR could be playing off of these latest headlines is via its use as a means for enhancing security. But there are more applications for the technology as we’ve seen from Wednesday’s announcement.
RealNetworks announced improved face detection and recognition accuracy for both masked and unmasked faces with the release of SAFR 3.0. This version introduces a new default high sensitivity face detector.
“SAFR’s accuracy improvements will enable customers to deploy face-based contactless secure access without requiring removal of PPE and ensure persons of interest and registered VIPs don’t go unrecognized while wearing face masks,” said Brad Donaldson, VP Computer Vision, SAFR. Will this news help spark another round of momentum? However, with COVID headlines buzzing today, it could be one of the penny stocks to watch.Penny Stocks To Watch: Titan Pharmaceutical Inc.
Sticking with the trend in biotech, Titan Pharmaceutical Inc. (TTNP Stock Report) hit scanners early on Wednesday. The company announced a definitive asset purchase agreement with JT Pharmaceuticals, Inc.
They are a peptide drug development company. Through the deal, Titan plans to acquire JT Pharma’s kappa opioid agonist peptide, JT-09, for use in combination with Titan’s ProNeura® long-term, continuous drug delivery technology. These treatment targets chronic pruritus.
“We are looking forward to conducting additional preclinical studies to establish proof-of-concept with data available in the first half of 2021.”Dr. Kate DeVarney, President and Chief Operating Officer of Titan
Something to keep in mind is the overall trend with TTNP stock. Shares just recently hit a new 52-week low. Furthermore, despite a few “good days” here and there, the overall trend this year has been bearish for Titan. Will this latest acquisition news finally turn things around or is this another head-fake for traders?