Investors looking to make sizable gains in a short time frame often turn to penny stocks. These low-cost stocks have the potential to generate a large profit in a short time frame due to the inherent high volatility. For the same reason, penny stocks can be risky assets. This makes some investors choose to invest in blue chips as an alternative. What many do not realize is that much of this risk can be mitigated with a proper investment strategy and a trading education.
One of the best ways to increase your chance of seeing profits is to utilize news. There are a lot of things that can impact a penny stock’s price. This includes sector news, world events, rumors, company updates, speculation, and much more.[Read More] Best Penny Stocks to Buy in 2021? 3 Cheap Stocks to Watch Right Now
This results in heightened speculation, which in turn can explain the high volatility we see with penny stocks. Even when broader markets are bearish, there are many penny stocks to watch that perform well as a result of these speculative moves.
So which companies are considered penny stocks? The SEC defines these assets as any stock under $5. Short-term investing is not the only way to take on these cheap stocks despite what many think.
There are a lot of penny stock success stories attributed to long-term investing. Sometimes a company can break out of penny stock territory and move much higher than $5 per share. However, this is more of an occasion than something that occurs regularly.
One of the largest aspects affecting the stock market right now is of course, Covid. For example, there are many stocks referred to as reopening penny stocks which benefit from restrictions loosening nationwide.
Another example is the positive performance of biotech penny stocks after the pandemic brought them to the forefront of the media. No matter what type of company you invest in, there are a lot showing bullish momentum right now. With this in mind, let’s look at four penny stocks to keep your eye on this week.4 Reddit Penny Stocks To Watch
- Phio Pharmaceuticals Corp. (NASDAQ: PHIO)
- Atossa Therapeutics Inc. (NASDAQ: ATOS)
- Centennial Resource Development Inc. (NASDAQ: CDEV)
- BIOLASE Inc. (NASDAQ: BIOL)
Speaking of biotech penny stocks, Phio Pharmaceuticals Corp. is one that is performing very well right now. Before we take a closer look at the reason behind its momentum, let’s look at what the company does. Phio Pharmaceuticals is a biotech company that develops immuno-oncology products to treat tumor-induced suppression of the immune system.
Phio’s latest update was released in mid-April. The company presented positive “in vivo” data showing strong tumor control for the intratumoral delivery of its INTASYL RNAi Targeting PD-1.
“We are pleased to announce new in vivo data today that show INTASYL mPH-762 offered strong tumor control in Hepa 1-6 and CT26 models, which are PD-1 responsive and PD-1 refractory models, respectively.
The modulation of key immune cell populations in the tumor microenvironment (TME) by local application of INTASYL mPH-762 provides further evidence that the desired efficacy to treat these cancers can be attained by direct intratumoral administration.”VP of Research at Phio, Dr. Simon Fricker
This last update from Phio came around a month after no other significant events were reported. But now in May, PHIO stock is soaring in price. Could this be due to its upcoming data presentations? The company will present at the 24th Annual Meeting of the American Society of Gene & Cell Therapy on May 11th-May 14th.[Read More] Robinhood Penny Stocks Under $5? Check These 3 Out
The company will also present at the 2021 American Society of Clinical Oncology Annual Meeting on June 4th-8th. This is likely when we will hear from the company next, and these presentations could have a speculative effect on PHIO stock. Considering this, will PHIO make your list of penny stocks to watch?Atossa Therapeutics Inc. (NASDAQ: ATOS)
Atossa Therapeutics Inc. is a biotech stock that discovers and develops pharmaceuticals. Its products are made for oncology and infectious diseases. One of its main products is Endoxifen, which is in Phase II clinical trials to treat and prevent breast cancer.
The company has gained more notoriety recently as it has been developing AT-301, which is a proprietary drug candidate for nasal administration in patients that have COVID-19. It also has a drug called AT-H201 to improve lung function in COVID-19 patients.
As you know, the pandemic has been the main talking point in the world for the last year and a half. So companies working on drugs for people with COVID-19 have a lot of eyes on them. This could explain why ATOS stock price has increased by more than 175% in 2021 so far. With these developments in the works, will ATOS make it on your penny stock watchlist?Centennial Resource Development Inc. (NASDAQ: CDEV)
Oil and gas have been in high demand, and this is the sector that Centennial Resource Development Inc. operates in. The company develops unconventional oil and liquids-rich natural gas reserves located in the United States. Its primary asset is the Delaware Basin, in which it leases or has acquired about 81,657 net acres.
Centennial has caught attention with its first-quarter 2021 results released earlier this week. The company generated free cash flow for the third quarter in a row. It additionally increased its pro forma liquidity by 22% compared to the end of 2020. Its revenue from natural gas sales went up 100% quarter over quarter which is a huge feat. Investors clearly see the hype as CDEV stock price has gone up since this announcement was made. On May 7th, this penny stock is up more than 4% by EOD. So will you be adding CDEV to your list of penny stocks to watch?BIOLASE Inc. (NASDAQ: BIOL)
Another notable biotech penny stock to watch is BIOLASE Inc. This is a penny stock we frequently mention on pennystocks.com for quite a few reasons. BIOLASE develops, manufactures, markets, and sells laser systems targeted to dental practitioners and patients alike. These systems allow dental specialists to perform cosmetic, surgical, and restorative procedures. These procedures include but are not limited to pain therapy, tissue cutting, and teeth whitening.[Read More] 5 Blockchain Penny Stocks to Buy? Take a Look At These
One of its latest advancements is the launch of the Waterlase Pediatric Dental Academy. The WPDA will give clinicians immersive training with its products.
“Pediatric dentists are actively seeking new ways to treat their young patients in a more gentle and holistic manner than traditional dental equipment offers; and we saw this as an opportunity to live out our mission of advancing dentistry in this community.”President and CEO of Biolase, John Beaver
The company also has plans to develop new EdgePRO laser-assisted irrigation devices for endodontists. These are just a few of the things in the company’s pipeline at the moment. Biolase will report its first-quarter 2021 results on May 13th. Financial and operational results usually have some sort of impact on a company’s stock price, especially in the biotech sector. With that in mind, will you invest in this biotech penny stock?Which Penny Stocks Are On Your Watchlist
Penny stocks are evolving constantly, so it can be difficult to keep up with what’s going on in the market. Staying up to date on the latest sector news and world events can help to give your portfolio a competitive edge.
If you are short-term investing, look at companies that have the latest positive news. In line with this, many investors find penny stocks on Reddit or other social media sites. This can help to show which companies may be trending and which may not.[Read More] What Are Penny Stocks? 2 Top Trading Tips for 2021
Reddit stocks are a grey area that should be tread lightly on, due to the extreme volatility that takes place with these securities. If you are long-term investing, consider looking at companies with a lot in their pipeline and seem to have a bright future. For example, if you are investing in biotech penny stocks, take a look at what trials the company has and how close those compounds are to commercialization.
With all of this in mind, which companies will you add to your list of penny stocks to watch?