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This article is going to explain what penny stocks are and discuss four penny stocks under $1 to watch as small-cap stocks continue a hot streak this winter.
First thing's first, what are penny stocks? In short, these are shares of companies that trade for less than $5. Penny stocks are well-known for their volatility aside from just their cheap price. But whether you're looking at stocks under $1 or ones closer to $5, it's important to keep a few things in mind.
First, understand what you're buying and why you're buying it. Just saying you trade penny stocks isn't the goal. You're in the market to make money. So, identifying entry and exit targets are obviously important. What's more, is you should have a basic strategy in mind. Are you looking at day trading penny stocks or do you have a longer-term idea in mind? Also, it's important to account for the swings in price and how fast they're happening.
Small-Cap Stocks Continue Their Hot Streak
Why would anyone want to buy penny stocks right now? Case in point, small-cap stocks are red hot right now. Check out the benchmark ETF, the Russell 2000 (IWM). While the S&P, Dow, and even the Nasdaq struggle to maintain a bullish trend, the IWM just made fresh, all-time highs on Wednesday. Considering the strength in small-cap stocks - especially stocks under $1 - it's prudent to at least have some trending names on your watch list.
When finding penny stocks to buy, make sure you assess each trade independently and plan accordingly. Most wouldn't plan on investing in penny stocks that are rising and falling 50% in seconds. Furthermore, day traders wouldn't normally jump into a stock that is barely fluctuating in price. As a rule of thumb, the lower the price, the higher the volatility. That's simply for the fact that a small move in price equates to a larger percentage change. With this in mind are any of these penny stocks under $1 on your watch list right now?
Tonix Pharmaceuticals Holding Corp. TNXP is another one of the penny stocks under $1 gaining steam before the end of the year. This week the company came out with news that it finished the purchase of roughly 44 acres in Montana. This will be the site for its vaccine development and manufacturing facility. This adds to the growing footprint of the company as well. A few months ago, Tonix also bought a 40,000 sq/ft facility in Massachusetts.
These two facilities will support the development and production of the company's vaccine candidates. If you're new to TNXP stock's story, the company is currently developing TNX-1800 as a potential COVID-19 vaccine as well as TNX-801 for a smallpox/monkeypox vaccine.
Specifically, the TNX-1800 has been a center of attention as you could imagine. Many coronavirus vaccine stocks have garnered interest over the last few months. In this case, Tonix is aiming to report efficacy data from animal challenge studies of the vaccine candidate next quarter.
Biolase Inc BIOL is another one of the lower-priced penny stocks making moves at the end of the year. This week alone the penny stock has climbed from around $0.27 to over $0.31. While this is only a $0.04 move, it equates to a nearly 15% jump in price since Monday.
Unlike other biotech's Biolase is mainly focused on products used in oral health. The company's main products are dental laser systems that perform a wide range of procedures, including cosmetic and complex surgical applications. Last month the company launched Waterlase Endo Academy to foster education and best practices for integrating Waterlase technology in clinical settings.
"As endodontists continue to seek out more advanced solutions for challenging cases, the academy will serve as a resource for some of the greatest minds in the field to elevate the dissemination of best practices for the integration of advanced technology like the Waterlase," said Todd Norbe, President and CEO of Biolase.
Jaguar Health Inc. JAGX has continued climbing this week. Wednesday saw the penny stock further extend its December gains and reach highs of over $0.90. While we've reported on the company for weeks, the bigger move this week comes after Jaguar's latest update.
The company signed an agreement for a non-dilutive royalty financing transaction. Jaguar will sell a royalty interest of future royalties of its Mytesi® (crofelemer) and lechlemer for an aggregate purchase price of $6 million.
Lisa Conte, Jaguar's president and CEO, explained that, "The timing of this transaction aligns well with the progress of the recently initiated pivotal Phase 3 trial for CTD, for which patient enrollment is progressing."
Also keep in mind that the company held preliminary discussions with Swiss Growth Forum, a sponsor of a European special purpose acquisition company, “Post Pandemic Recovery Equity”. There’s a potential deal with the SPAC and an operational subsidiary of Jaguar to be established in Europe with an exclusive license to crofelemer and Mytesi for the indications of inflammatory diarrhea and HIV-related diarrhea.
Senseonics Holdings Inc. SENS has begun skyrocketing this week after a major U.S. patent win. Senseonics was granted a patent titled, "Remotely-powered sensing system with multiple sensing devices."
Considering that the company is a medical device company, patent wins come in very handy. Senseonics' implantable glucose monitoring systems are used by diabetes patients. The company's CGM systems, Eversense® and Eversense® XL, include a small sensor inserted under the skin. This communicates with a smart transmitter worn over the sensor. Data are then sent every five minutes to a mobile app on the user's smartphone.
Adding to the reasons to watch Senseonics, earlier this year the company entered a collaboration with Ascensia Diabetes Care, a global diabetes care company. Heading into the beginning of 2021, there are a few things traders are following. One of these things is the initiation of commercial activities outside of the US with the help of Ascensia. The company also expects a decision on approval of its Eversense product by the FDA in the first half of the year.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
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