Are These On Your List Of Penny Stocks To Buy Or Sell Right Now?
There are still plenty of penny stocks to watch right now. We’re heading into the final days of the month and small-cap stocks remain a focus. One of the things that I’ve continued to see are questions arising from the price of penny stocks.
Not so much the definition, per se, but rather a misconception that “higher-priced penny stocks” are better than lower-priced ones. Considering that you’re working with a range between $0 and $5, there are quite a number of penny stocks to watch.
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Herein lies “the rub”. Just because you’ve got penny stocks under $5 or above $3 on your list, it doesn’t mean they’re any “safer” than, say penny stocks under $2. Realistically it all comes down to managing risk and understanding lower-priced penny stocks tend to be more volatile simply due to small fluctuations in price equating to larger percentage changes.
How Can You Trade Penny Stocks?
In general, determining if certain penny stocks are worth it more than others requires you to have a plan in mind. How do you want to trade certain stocks? Are they swing trades or day trades? Why are you buying the stock in the first place?
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It’s also good to have an exit strategy as well. Are you looking to make a certain percent or are you trying to hit a certain dollar value? Also, keep in mind the current trends. Let’s take coronavirus penny stocks as an example. The sector is very volatile so it isn’t uncommon to see these types of stock jump up big and drop quickly as well.
So when it comes to having a plan, maybe your goal, in that case, would be trading the stock for a certain amount of time and capturing whatever profit you can in that window.
There are plenty of ways to buy penny stocks and sell them for profit. But just because something is trading toward the upper end of the price range, it doesn’t mean it’s any better or worse than penny stocks under $1 for example. Today, we’re taking a look at a few trading under $1.25. Similar to my last question, just because these can be bought for under $1.25, will actually be on your list of penny stocks to buy, or will you avoid them at all costs?
Penny Stocks To Buy For Under $1.25: Ampio Pharmaceuticals Inc.
Ampio Pharmaceuticals Inc. (AMPE Stock Report) has been off and on lists of penny stocks to watch this year. However, right at the beginning of the second quarter, we started following things a bit more closely. This was just after the company was preparing an expanded access FDA protocol. This was to study the possible benefits of its Ampion treatment via nebulizer to targeting Acute Respiratory Distress Syndrome induced by coronavirus.
In May we saw more progress from the company. A manuscript accepted for publication in The Journal of Patient Safety in Surgery showed that Ampion treatment could improve clinical outcomes for COVID-19 patients. Ampio then filed an IND application for Ampion with the FDA about a week and a half later. From there, the FDA gave clearance to formally begin trials for human testing of its investigational COVID-19 treatment.
Last week the company announced that it began enrollment in its Ampion COVID-19 Program. Patients are being dosed in a Phase 1 United States-based clinical trial evaluating a 5-day intravenous AmpionTM treatment for COVID-19 patients requiring supplemental oxygen. If you look at the information on the ClinicalTrials website itself, you can see that the estimated primary completion date isn’t that far off.
August 13th is the official date with the estimated completion date in mid-November. With all the excitement surrounding COVID-19 vaccine stocks, it’s no wonder why AMPE stock has caused some excitement. Since the beginning of Q2, shares have climbed over 100% and Friday’s aftermarket session saw AMPE stock continue higher still. Will that momentum carry over into the final week of July?
Penny Stocks To Buy For Under $1.25: Novan Inc.
Novan Inc. (NOVN Stock Report) is one of the stocks we focused on as far back as March as coronavirus first started taking its grip on the stock market. At the time, Novan was focusing on diseases that affect the immune system. While its pipeline included treatments like STDs and Dermatological treatments, immune treatment-related companies just started getting a lot of attention by those looking at coronavirus stocks. It was also one of the penny stocks we discussed at the top of the week last week.
While the penny stock ended up pulling back from its early highs, shares mounted a bit of a recovery on Friday. The initial dip came after Novan announced Aspire Capital had committed to buy up to $30 million of the company’s shares over the next 30 months. The issue wasn’t with the money being raised, but the price it was raised at. As part of the agreement, Novan Tuesday issued nearly 5.6 million shares to Aspire priced at $0.90, representing a 27% discount to its last closing price.
This week, NOVN stock is back in focus. The company will host a live audio webcast of its 2020 Annual Meeting of Stockholders. Recently, Novan has pushed for shareholders to support Proposal 2 of its previously filed proxy statement. This is specific to a reverse stock split of between 1:2 and 1:15. I supposed we’ll see what happens on Tuesday. With Friday’s reversal, NOVN stock has begun approaching its 200 Day Moving average again. The biggest question is will it act as resistance like it did last week or can it break through?
Penny Stocks To Buy For Under $1.25: Ocugen, Inc.
At the end of last week, we talked about Ocugen, Inc. (OCGN Stock Report) in a bit more detail. Shares were surging later in the afternoon. While this was the case, similar to Ampio, OCGN stock didn’t continue higher after hours. However, shares were actively trading after the closing bell.
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Ocugen focuses on rare and underserved eye diseases. Its pipeline includes OCU400 and OCU410 for the treatment of inherited retinal disorders. Its OCU200 is for the treatment of wet-AMD, DME, and diabetic retinopathy. Finally, OCU100 is for retinitis pigmentosa and OCU300 is in Phase III clinical trial for the treatment of ocular graft versus host diseases. The company has a strategic partnership with CanSino Biologics Inc. for gene therapy co-development and manufacturing as well.
There is an upcoming presentation on August 24th. In its most recent 8-K, the company also submitted an updated corporate presentation. But other than these two updates, there hasn’t been many new things. Late last week the company tweeted about developing modifier gene therapy product candidate OCU410 for the treatment of Dry AMD and has no approved treatment.
Could this be one of the sources of OCGN stock’s recent momentum? I pose this question as Friday was the second-highest share volume date of July without any news release.