May
12, 2021
9 min read
This story originally appeared on PennyStocks
Hot Penny Stocks To Watch You Might’ve Missed This Year
Most people think of penny stocks as fly-by-night companies that see explosive moves and then fade off into the sunset of a massive sell-off. While that may be true for some of these cheap stocks, it isn’t true for all of them. In fact, if you’ve traded this market over the last year, you’ve likely seen the complete opposite.
The pandemic sent many “big name” companies plummeting last year. Many of them ended up dropping below $5 and, as a result, became penny stocks. This ultimately introduced thousands of new investors to the world of low-priced names by default. For example, one of the big names in headlines this month, Novavax (NASDAQ: NVAX), was just $3.99 at the start of 2020. Fast-forward to this month, and it’s trading above $130 a share & competing with some of the biggest names in coronavirus vaccine makers.
No matter how you slice it, there are plenty of clear examples of penny stocks that went on to hit it big. Today, we’ve got a fresh list of names that not only climbed out of the penny stock range but have also continued climbing this year. Several have also turned heads in the analyst community, with several gaining clearly bullish appeal.
Hot Stocks To Watch
Despite what’s happening in the broader markets, several companies have continued gaining momentum. Big news, key milestones, and generally bullish sentiment have added to this trend. Keeping this in mind, here are 3 former penny stocks to watch right now.
GT Biopharma Inc. (NASDAQ: GTBP)
If you look at certain stock market trends, there’s always been a focus on immunotherapy companies. Not only have they become a source of excitement for new drug development but also for the red hot M&A deals that’ve surfaced throughout the years. Some examples include Merck’s (NYSE: MRK) buyout of cancer drug research company VelosBio Inc. for $2.75 billion. Last September, Gilead Sciences (NASDAQ: GILD) acquired Immunomedics for $21 billion to gain access to a breast cancer treatment, Trodelvy. These are just a few examples but the list goes on.
Obviously, early-stage development companies have a clear risk/reward. But when there’s promise in the pipeline, attention usually follows. In this case, GT Biopharma has not only executed several milestones, but it has also done so in a way that has attracted some of Wall Street’s top analyst firms. Aside from Roth Capital issuing a Buy rating and $25 target earlier this year, analysts at B. Riley recently reiterated their conviction on the company. The firm handles everything from wealth management & investment banking to corporate advisories services and venture capital. It also carries a Buy rating and $21 target on GT Biopharma.
What To Watch With GT Biopharma
In its latest comments, B. Riley analysts Justin Walsh and Mayank Mamtani say, “The longer your look, the better it gets” with regard to GT Biopharma. You can click here for the full analyst report. Their main thesis focused on the company’s GTB-3550 TriKE™ treatment platform. Right now, it’s being evaluated in a Phase 1/2 trial in patients with higher-risk myelodysplastic syndrome and acute myeloid leukemia.
B. Riley’s analysts explained that they “believe that the future and clinical development pathway for GTB-3550 will be clearer by the end of the summer, with multiple potential outcomes providing opportunities for investors to benefit.”
This also comes at a time when GT Biopharma announced an update to its commencement of Phase 2 trials for GTB-3550 along with other solid tumor TriKE™ product candidates. With the success of its Phase 1 trial in the first 9 of 10 patients so far, Phase 2 aims to target enhanced efficacy, the durability of response, and overall survival. Ultimately the goal is gaining accelerated approval from the FDA. In tandem, the company has begun advancing 3 other TriKE™ candidates for cancers expressing HER2, PD-L1, and B7H3. These would cover a range of indications including breast, lung, gastric, colorectal, and ovarian cancers.
Considering the progress being made, additional candidates in the pipeline, bullish sentiment from analysts, and momentum in the stock market this year, GTBP could be a stock to watch.
Ocugen Inc. (NASDAQ: OCGN)
Shares of Ocugen have soared this year as coronavirus ripped through countries globally. As the virus grew, so did OCGN stock in the market. Putting things into perspective, this time last year, shares of the former penny stock were trading around $0.30. Fast-forward to this year, and shares managed to reach highs of $18.77.
What has been driving momentum in an otherwise quiet penny stock? I won’t get into a history lesson the company. But I will say that initial rumblings began after Ocugen started showing off its pipeline treatments for wet-AMD last year. However, the bigger catalyst came when the company seemingly pivoted into the coronavirus arena. Its co-development deal in December with Bharat Biotech sparked much more excitement in the stock, and rightfully so.
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Fast-forward to this year, and traders are intently watching the progress. The COVAXIN™ treatment being developed received Emergency Use Authorization in India in January. Obviously, the global pandemic has put a strong focus on major hot spots, especially in places like India. The death toll in India crossed 250,000 attributed to the virus. This was the deadliest 24 hours since the pandemic began. New variants and a second wave have overwhelmed the healthcare system across the country. So any potential remedy has gained interest.
What To Watch With Ocugen
Ocugen recently announced studies of the potential efficacy of COVAXIN™ against 3 variants of SARS-CoV-2. That helped spark a continuation in the recent bull rally in the former penny stock. An expert panel recommended COVAXIN™ for Phase II/III trials on 2 to 18-year-olds. A Master File has also been submitted for FDA review before a planned Emergency Use Authorization application for the treatment candidate in the U.S.
Similar to GT Biopharma, all of this progress has lead to growing attention from analysts. Among 3 analysts right now, the price targets range from $8 to $11, with Cantor Fitzgerald maintaining the high end of that range. However, even in light of these bullish targets, sentiment remains mixed. Roth Capital, for instance, has a Buy on the stock. However, Cantor Fitzgerald & Chardan Capital rate the stock at Neutral.
Nemaura Medical Inc. (NASDAQ: NMRD)
Finally, Nemaura Medical Inc. is somewhat of a newcomer to this list of penny stocks to hit it big in 2021. The company focuses on the development of non-invasive diagnostic devices. It has commercialized several products, including its sugarBEAT and proBEAT devices. Each is designed to monitor glucose levels.
While the sugarBEAT is an insight-driven monitoring system to help diabetes and pre-diabetes patients manage the disease, the proBEAT includes advanced options. These include artificial intelligence and a digital healthcare subscription, which has already launched in the U.S.
This month the company gained some of the highest levels of interest in the recent history of the stock. Shares managed to surge from under $5 to highs of over $15.50. The initial jump came after the company announced an order for 200,000 sugarBEAT sensors from its U.K. licensee, DB Ethitronix Ltd. There’s an additional rolling monthly purchase order forecast for the next 24 months as well. These will include 15,000 transmitters and 2.1 million sensors and an option to increase volumes.
What To Watch With Nemaura
The company announced that it had made progress on listing sugarBEAT for reimbursement in Germany. This was a big point of focus for traders this month. Following a dip in shares late last week, this week has seen the NMRD stock price climb for several days in a row.
“The availability of SugarBEAT® in Germany would be an important milestone for Nemaura, and we are actively collaborating with the appropriate agencies to ensure timely availability there. In the meantime, we are actively negotiating to identify the right partner to market and distribute the product and our program in this very important market. We will continue to provide updates as appropriate on our progress,” explained Nemaura CEO Dr. Faz Chowdhury in a May press release.
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In light of the broad scope of the glucose monitoring device industry, the global expansion in the UK has become a core focus in the stock market this year.
Are Penny Stocks Worth It?
Penny stocks are well-known for the ability to fly high in a short period of time. However, this doesn’t mean that one spike is the only move these cheap stocks will ever make. Clearly, in this article, there are several former penny stocks that’ve continued gaining steam. Not only did this have to do with momentum in the market but also fundamental developments from the companies. If you’re looking for penny stocks to add to your watch list, keep these different factors in mind and understand that there is risk involved. Depending on your approach to the market, penny stocks could be well worth the risk.
Disclaimer: Pursuant to an agreement between Midam Ventures LLC and GT Biopharma (GTBP) Midam has been paid $150,000 for a period from March 1, 2021, to April 1, 2021. This compensation is payment 1 of 12 as part of a 12-month agreement between Midam Ventures LLC & GT Biopharma (GTBP), for a period from March 1, 2021, to February 28, 2022. Midam Ventures LLC expects to be paid $150,000 per month for a total of 12 months by GT Biopharma (GTBP). Midam has been paid an additional $150,000 for a period from April 2, 2021, to May 1, 2021. This compensation is payment 2 of 12 as part of the Agreement. Midam has been paid an additional $150,000 for a period from May 2, 2021, to June 1, 2021. This compensation is payment 3 of 12 as part of the Agreement. We may buy or sell additional shares of GT Biopharma (GTBP) in the open market at any time, including before, during, or after the Website and Information, to provide public dissemination of favorable Information about GT Biopharma (GTBP). Click here for full disclaimer.