The price of penny stocks can shift in an instant as many of you already know. This is one of the top reasons that these cheap stocks garner so much attention. What’s more, is that so many of these companies tend to captivate interest in sympathy with news from bigger companies.
This week, for instance, two of the hot topics are coronavirus vaccines and tech IPOs. Obviously, COVID-19 hasn’t gone anywhere and has even become worse in some parts of the world. Over the weekend, Israel announced that it would go back into a national lockdown period. In light of this, we’ve started seeing coronavirus vaccine stocks gain interest again.
When it comes to the tech side of things, Snowflake’s IPO is a major focus. It’s anticipated that the IPO will debut at a price between $75-$85. This could value the company at nearly $24b on the higher end of that range. The Snowflake IPO itself could raise more than $2.7 billion alone. So, of course, we’re seeing traders looking for smaller companies in the SaaS niche of the tech sector. Regardless of these two topics, there are plenty of other things driving momentum in the stock market today.
Independent of broader sector updates, individual company news is obviously a factor too. Over the last few weeks, we’ve reported on companies presenting at upcoming conferences this week. These are opportunities for these companies to directly engage with investors, analysts, and funds. In light of this, we’re seeing several continue higher. Will they be the top penny stocks to buy today or have they topped out?Penny Stocks To Buy [or avoid]: Trevena Inc.
Trevena Inc. (TRVN Stock Report) has been on our list of top penny stocks to watch for the better part of the summer. We first began following Trevena in June after it started collaborating with Imperial College London to evaluate the potential of TRV027. This is the company’s potential treatment for acute lung injury contributing to acute respiratory distress syndrome (ARDS) in COVID-19 patients.
After pulling back in August, TRVN stock managed to settle out around $1.50. Over the last few weeks, we’ve seen, first hand, its strong recovery. On Monday, the penny stock tested its 50 Day Moving Average at $2. This is likely going to be an important level for the penny stock. Major moving averages like this and the 200 day are typically stronger areas of support and resistance. Will TRVN stock manage to break above it this week? We’ll see what happens next.
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The company is set to present at several upcoming conferences this month. These include H.C. Wainwright’s tomorrow, Cantor Fitzgerald’s Healthcare Conference on Thursday following by Oppenheimer’s Healthcare Summit next week. Today, Guggenheim initiated coverage on Trevena. The firm gave a Buy rating and a price target of $5.Penny Stocks To Buy [or avoid]: AquaBounty Technologies, Inc.
One of the more recent penny stocks to watch has been AquaBounty Technologies, Inc. (AQB Stock Report). We first started following the penny stock about a week ago. At the time AQB stock was trading around $3 and trading momentum was beginning to build again. As you’ll see, earlier in the year, AQB stock experienced a solid move on lighter volume. Shares climbed from around $1.60 to highs of $4.55 in July. After some weak earnings results, shares dropped back to around its 200 Day Moving Average.
A good showing at the LD 500 Conference and speculative momentum stemming from a business update, shares began recovering. Specifically, the comments were made by Sylvia Wulf, Chief Executive Officer of AquaBounty, who stated, “The highlight of the second quarter was the announcement of our first harvest of conventional Atlantic salmon at our Indiana farm, an important milestone as we refine harvest systems and processes ahead of our expected initial harvest of AquAdvantage salmon in the fourth quarter this year in Indiana, followed by the anticipated first harvest of AquAdvantage salmon at our Canada-based, Prince Edward Island Farm in the first quarter of 2021.”
The company also said that it’s on schedule to select its planned 10,000 metric ton farm’s location this quarter. Like Trevena, AquaBounty also presents at more conferences this month. Both are this week and include the H.C. Wainwright conference tomorrow as well as the Lake Street BIG4 conference on Thursday.Penny Stocks To Buy [or avoid]: New Gold Inc.
This week, gold stocks are still a big focus. There’s been little changed, fundamentally, when it comes to the global economy. There’s still plenty of geopolitical unrest and concerns over fiscal policy. The shakeup in Israel hasn’t helped abate concerns either. In light of this, gold penny stocks are in the spotlight.
New Gold Inc. (NGD Stock Report) managed to inch closer to testing its current 52-week highs on Monday. This $1.97 level was reached late last week and gold prices mounted a brief recovery. For the better part of the last few months, NGD stock has continued making new 52-week highs this year. A lot of its recent momentum has stemmed from the pent up demand for gold.
At the end of the month last month, the company announced the closing of its sale of the Blackwater Project. New Gold sold it to Artemis Gold Inc. for $190 million that included an initial cash payment of $140 million. The deal also comes with an 8% gold stream that reduced to 4% at a certain production milestone.Penny Stocks To Buy [or avoid]: Aytu BioScience Inc.
A company discussed over the weekend was Aytu BioScience Inc. (AYTU Stock Report). Late in the Friday session, shares began climbing even without any event catalyst. However, heading into this week, coronavirus penny stocks are in focus again. So it makes sense as to why AYTU stock could be gaining momentum. Much of the general focus on biotech stocks today has stemmed from the recent acquisition of Immunomedics by Gilead announced Sunday.
Aytu BioScience is a specialty pharmaceutical company commercializing novel products addressing patient needs. Last week the company announced that it inked a deal to distribute the Pinnacle CovID RAD Rapid Antigen Detection Test worldwide. The rapid antigen test delivers results in fifteen minutes. Pinnacle IVD Corporation plans to scale U.S. manufacturing capacity for the CovID RAD Rapid Antigen Detection Test to 25 million tests per month.
The company has worked on numerous solutions for COVID testing and prevention. In August, for example, the company began piloting its Healight device. It administers UV light in the respiratory tract. Aytu’s not only looking to apply it to COVID patients but also for other indications as well. Additionally, the company partnered with Apollo Med Innovations and Olympus Health and Performance to launch a mobile COVID-19 testing initiative. Considering this continued focus on COVID-19, will AYTU stock remain one to watch this week? Over the last week, shares have climbed by as much as 20%.