July has been a wild month for penny stocks. To think that some of the names we’ve discussed were once trading under $1 and now trade above $7 might seem crazy. But to be honest, this is a reoccurring trend among penny stocks. While there’s no denying that cheap shares can breakout to the tune of big percentage points, 2020 has been a year full of some of the biggest moves I think many have seen in years.
Just a few recent examples were companies like Novavax (NVAX Stock Report), Alpha Pro Tech (APT Stock Report), and even iBio Inc. (IBIO Stock Report), which shot to $7.23 on Monday. By far, the biggest mover of this small bunch was NVAX stock which jumped from under $5 to more than $151 this week.
APT stock rallied from under $4 to highs of $41 and IBIO stock has moved from below $0.30 to more than $7.20 in just 7 months. Just do the math on these moves. We aren’t talking “just a few hundred percentage points” here, we’re talking thousands in some cases. APT was the smallest mover on the list at 925%, IBIO comes in at 2,300% and NVAX a whopping 2,920%.Are Penny Stocks Worth Your Time?
Did it happen overnight? Obviously not, but current trends, in this case, coronavirus, has helped boost sentiment and speculation across the board. Larger drivers to these moves also come in the form of industry leaders reporting positive developments too.
Today, for instance, AstraZeneca has some big COVID-related news that helps life coronavirus vaccine stocks. Then again, we’ve also seen a number of tech penny stocks making bigger moves as this week is set for a round of tech earnings to be released. Keeping all of this in mind, we also can’t forget the risks either.
Just as quickly as penny stocks rise, they can fall. In this case, it’s important to keep your head on a swivel and make sure to take profit when it’s staring you in the face. If a stock continues higher afterward, then you can always decide to line up another trade. A strong trend tends to give multiple opportunities as we’ve already seen with just those 3 names mentioned above over the last few months. That having been said, are these penny stocks worth your time to take a closer look at this month?Penny Stocks To Watch: Ideanomics Inc.
Shares of Ideanomics Inc. (IDEX Stock Report) were off to a running start this week already. But a mid-afternoon surge took things to another level. IDEX stock jumped from around $1.37 to highs of $1.48 around 1:00 PM EST. This not only saw price spike but big volume came in as well. During the last 4 sessions, IDEX stock has extended gains but the biggest question is why?
There’s been quite a bit of attention on options activity in IDEX stock recently. This wee saw another bigger volume day of Call buying for the August 21 strike price. The last few weeks have been full of questions raised as to the validity of Ideanomics’ Asian operations. Furthermore, the company went further and brought on Harvest Alternative Investments to act as an advisor with an emphasis on Ideanomic’s Mobile Energy Global division.
According to the press release associated with this move, the types of advisory activities include the potential to assist with capital raising, M&A, and other types of investment banking services for MEG and Medici Motor Works. IDEX stock has built up somewhat of a cult following over the last few months. With Tesla earnings coming this week and EV stocks in focus, is this pushing bullish sentiment in IDEX?
Sometimes traders will focus on options activity to see where “bets” are being placed in relation to certain pre-announced corporate events like earnings. Does this mean traders are bullish on IDEX stock or are they simply hedging a prior bearish bet?Penny Stocks To Watch: Biolase Inc.
Biolase Inc. (BIOL Stock Report) also saw a mid-day surge in trading activity on Monday. Shares spiked from around $0.45 to highs of $0.52 with well-above-average volume during the afternoon session. There wasn’t any big updates from the company to go along with the move. In fact, the last update from Biolase was the announcement of the expiration of an oversubscribed rights offering.
But that doesn’t mean there wasn’t anything to cite as a potential catalyst. If you do a little bit of searching, you’ll see another company’s news may be something to take into consideration. Creekwood Dental Arts added two new BIOLASE® Epic Hygiene™ lasers to the practice.
Creekwood explained, “With these additions to their in-office technology, they are able to offer a greater selection of minimally invasive treatments and even more effective hygiene cleanings, while also minimizing infection risks—an advantage that is especially important during the COVID-19 pandemic.”
While nothing has come from Biolase quite yet, it’s worth mentioning the latest development. These two new lasers at Creekwood Dental Arts make a total of four Epic Hygiene lasers within its practice. Obviously, curbing the transmission of coronavirus is key. Will this latest development spark continued interest in BIOL this month?Penny Stocks To Watch: Adamis Pharmaceuticals
Adamis Pharmaceuticals (ADMP Stock Report) has seen above-average trading volume in the market for the last few weeks. Back in April, the company announced that its wholly-owned drug outsourcing facility, US Compounding Inc. increased its product mix to provide additional drugs to assist in the ongoing fight against COVID-19. This included a variety of pharmaceutical products.
As we discussed last week, ADMP stock has been surging following a few recent developments. This included a distribution and commercialization agreement with US WorldMeds, LLC for the United States commercial rights for the SYMJEPI products, as well as its ZIMHI™ (naloxone HCI Injection, USP) 5mg/0.5mL product candidate. Fast-forward to the start of this month and US WorldMeds is now actively promoting both SYMJEPI products.
“We are very excited that US WorldMeds is now actively promoting both SYMJEPI products. Adamis has always believed that sales reps calling on high-prescribing allergists and primary care physicians was key to the success of SYMJEPI. I am very pleased those efforts are underway and I believe the US WorldMeds commercial infrastructure, combined with their expertise in acquiring and turning around underperforming assets from larger pharmaceuticals companies, bodes well for finally realizing the value of SYMJEPI in the market,” said Dr. Dennis J. Carlo, President, and CEO of Adamis in a PR earlier this month. After seeing the latest surge from ADMP stock since our last update, are there other factors to consider right now? On the other hand, is coronavirus enthusiasm acting as a bigger driver at the start of this week? Leave a comment below.Penny Stocks To Watch: Biocept Inc.
Biocept Inc. (BIOC Stock Report) pushed higher late in the afternoon on Monday. The penny stock moved from around $0.66 to over $0.72 within minutes. Last week we followed up on Biocept’s progress as more COVID cases hit new record levels. Since we started following along in April, BIOC stock has climbed nearly 100% to date. So BIOC stock has been on the watch list for a few months now.
If you aren’t familiar with the company, Biocept is a commercial-stage molecular oncology diagnostics company. At the end of June the company was awarded Canadian Patent 2812291, entitled METHODS AND REAGENTS FOR SIGNAL AMPLIFICATION. The issuance of this patent increases Biocept’s total patent awards for use in its molecular diagnostics business to 40.
Then late last week the company announced that Institutional Shareholder Services and Glass Lewis, two advisory firms, recommend shareholder vote in favor of a reverse split of BIOC common stock. On July 13, 2020, Biocept mailed a postcard to stockholders related to Proposal 4. So there may be a possibility that this could have become a catalyst this week. The information was reported in a DEF14A filing on the 13th. Is this what’s has helped drive momentum at the start of the week and can it continue through the end of July?