When it comes to penny stocks, market catalysts can be a big plus (or minus) depending on what that catalyst is. In many cases, the news will play a big role. Whether it’s good or bad news, penny stocks tend to aggressively shift as a result. One of the sectors that continued to see big moves after company-updates this year was health care. Specifically, biotechnology penny stocks have been in the spotlight.
Initially we saw a flight to these companies in light of new coronavirus vaccine candidates. However, now that the dust has settled a little bit, investors are still watching these companies but now, for their main pipeline developments. Don’t get me wrong, COVID-19 news will likely play a role if or when it is released. But let’s compare right now to a few months ago.
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If a biotech company put out new progress in a cancer drug that was easily overshadowed by companies reporting the most basic COVID news. With a surge of new traders in the stock market recently, it doesn’t take long to see that these penny stocks are attracting a catalyst driven crowd. In a very simple explanation, in between coronavirus update, these same traders are looking for more catalysts, those being anything newsworthy.
I know that was a little more long-winded than normal but it’s important to point out. The reason being is that psychology is a big toll to have in your toolbox right now. While the stock market isn’t “acting normal”, it’s important to have a cool head. As part of that, being able to see the bigger picture and stay ahead of the trends can give you a leg up. With this in mind, let’s take a look at some biotech penny stocks to watch right now.Biotech Penny Stocks To Watch: Myos Rens Technology
Toward the end of May, we were introduced to MYOS RENS Technology (MYOS Stock Report). At the time, shares of MYOS stock jumped following news that it partnered with GetHealthy.store to help increase business for MYOS’ products among medical practitioners and their patients. Since then, things have been relatively flat in the market but all the same, exposure was key for MYOS.
The company’s Fortetropin is a proprietary bioactive composition that helps build lean muscle. In any case, shares of MYOS stock began jumping again during late afternoon trading on June 30. This came as the company announced that it would merge with MedAvail Inc. The company is an in-clinic, telemedicine enabled pharmacy organization. MedAvail also offers things like home delivery targeting the Medicare Advantage market in the U.S. MYOS will merge with and into MedAvail, with MedAvail being the surviving corporation and a wholly-owned subsidiary of MYOS.
Now, as a result, the key focus wil now be on the MedAvail pharmacy network.MYOS’ muscle health business will spin off as a private unaffiliated company. It’s also important to note that through the transaction, the new name of the company will be changed to MedAvail Holdings, Inc. Given the dramatic change in business, could this news leave a lasting impact on MYOS stock heading into the new quarter?Biotech Penny Stocks To Watch: Titan Medical Inc.
Titan Medical Inc. (TMDI Stock Report) was another one of the penny stocks to watch in Q2. The end of March set things off for TMDI stock as it caught its first wave of above-average momentum. It rallied from $0.18 to highs of $0.45 at the time. Then, if you remember from back in early June, TMDI stock was red hot again. The penny stock jumped from around $0.30 to highs of $1.57 within a matter of 24 hours. The company announced that it entered into a development and license agreement with Medtronic plc (MDT Stock Report). The deal was to further the development of robotic-assisted surgical technologies.
After such a huge jump, it wasn’t surprising to many to see TMDI stock slide from those highs during the weeks to follow. But what’s notable is that it seemed to reach a poin of relative support. If you look on the chart, the recent “lowest lows” were the same point as the previous “highest high” from January. Needless to say, Titan is back on watch following a strong start to Q3.
There hasn’t been any news since June 26th nor any filings since the 25th. This was when its head of intellectual property, Jasminder Brar, was promoted to Vice President of Legal, IP and Strategic Initiatives, and General Counsel. The July 1st move is notable but you should also keep in mind that the company has also filed an F1 to sell common shares of the company. Obviously dilution risk can play its role. But that depends a lot on the price of the actual offering. In the mean time, TMDI stock continues trading higher. It will be interesting to see how things unfold during the early parts of Q3.Biotech Penny Stocks To Watch: Oragenics
Oragenics Inc. (OGEN Stock Report) has been one of the biotech penny stocks we’ve watched off and on throughout 2020. It hasn’t established it as a long-term mover. But it has become very popular among day traders. Sporadic moves in price have opened short-term opportunities to capitalize on volatility. Realistically, OGEN stock has noticeably jumped 1 to 2 times per month since March and in a big way.
While there hasn’t been much news to speak of in June (or July so far), OGEN stock has been in a strong uptrend for the last 4 trading sessions. In late-May the company the company announced its Noakis Terra subsidiary signed a deal with Aragen Bioscience. The arrangement will see the two companies work to advance the SARS CoV-2 vaccine candidate, TerraCov2. Given the fact that COVID-19 cases are on the rise, coronavirus penny stocks have started gaining more attention again. Is this the case for OGEN stock or just another bout of speculation before another dip?
That is still up in the air. But right now I can say it has been a point of focus for some trading looking for penny stocks on Reddit and Twitter. Chances are people are paying attention to the fact it’s on the list of names on the Milken Institute’s COVID tracker.
So this could be a speculatively fueled given that there’s no major material information coming from the company right now. But again, like most biotech penny stocks, we’ll have to see what comes next. If OGEN stock is on your list right now, what are your thoughts on this latest move?Biotech Penny Stocks To Watch: AMERI Holdings, Inc.
This was one of the low float biotech penny stocks we talked about early on in June. But to be honest, AMERI Holdings Inc. (AMRH Stock Report) left more questions than answers since then. Sure, AMRH stock jumped hugely to over $5, and while it didn’t drop to record lows, the penny stock still pulled back to around $1.45 where it stayed for most of the month. This week, AMERI Holdings is back in focus after its latest announcement.
The company revealed on July 1 that it continues to progress toward closing its transaction with Jay Pharma Inc. If you’re just stumbling upon this company let’s get you up to speed. Ameri filed a Registration Statement on Form S-4 and preliminary Proxy Statement on May 27, 2020. This was in connection with its proposed amalgamation agreement with Jay Pharma. The deal was thought to close during the first half of the year. However, here we are at the first day of what you can call the second half.
In any case, AMERI is updating the public about the deal so at least we know they didn’t forget about it. Jay Pharma develops evidence-based cannabinoid products and combination therapies to address unmet needs in cancer care. If and when the deal closes, AMERI will spin off its existing business. So with respect to this deal, the next thing investors are likely looking for is the filing of a special meeting date to approve the proposal. This news seems to have acted as a catalyst on July 1. This time around will momentum last for more than just a day?