With February right around the corner, we see heightened momentum in the stock market. After the Gamestop Corp. (NYSE: GME) debacle on Wednesday, January 27th, traders are figuring out how to find the best penny stocks to watch. With penny stocks, oftentimes, investors will consider the short term over the long term. This is because these stocks tend to be quite volatile in nature. And while this strategy can pay off, investors should also think about a longer time frame.
In the next year, there are a few things that could change the stock market’s trajectory. For one, trillions of dollars are being spent by the U.S. government on stimulus to help shore up the economy. In the short term, this has had a mostly bullish effect on the stock market. But with interest rates near zero and mortgage payments halted, we could ultimately see a lot of inflation in the next twelve months.
It is difficult to predict a definite timeline, and it may take longer than a year. But, many investors agree that the outcome of the pandemic will be long lasting. For this reason, investors should be searching for both short and long term penny stocks to watch. Also, investors need to consider how the industry a penny stock operates in will do once covid ends. If we utilize all of these factors in our trading strategies, finding winning penny stocks can be much easier than previously imagined. So with this in mind, here are three penny stocks to watch as February approaches.Biotech Penny Stocks to Watch
- Jaguar Health Inc. (NASDAQ: JAGX)
- Bellicum Pharmaceuticals Inc. (NASDAQ: BLCM)
- Catabasis Pharmaceuticals (NASDAQ: CATB)
Jaguar Health has been on a rebound trend this week. With a brief stint of consolidation and a lower-volume pull-back from highs, JAGX stock has bounced back above $3 on Friday. Its initial move up was sparked by developments in its treatment pipeline. The company is currently producing a novel, non-opioid medicine for certain conditions that affect the GI system.
Late last year, the company signed its second agreement for a $6 million financing transaction to sell royalty rights related to future revenue from its Mytesi and Lechlemer platforms. Fast-forward to this year, and Jaguar continues advancing its treatment pipeline. The company’s wholly-owned subsidiary, Napo Pharmaceuticals, announced a preclinical toxicology and safety study in dogs to support the development of Lechlemer. The 28-day study began on January 6th.
As momentum has begun building, JAGX stock has started gaining momentum. What’s also helped is mounting interest from institutional investors. In a 13G filing this week, Oasis Capital, LLC reported a 9.99% stake in the company.Bellicum Pharmaceuticals Inc.
Another biotech penny stock that shot up big this week is Bellicum Pharmaceuticals Inc. While trading of BLCM stock was relatively flat all day, after hours, shares of BLCM shot up by over 57% $6.03 per share. Although many gains come without news, Bellicum made an exciting announcement during after hours on January 28th. At 1:30 PM, BLCM announced that the FDA lifted the clinical hold on the trial of its drug BPX-601. This substance is used in the treatment of pancreatic and prostate cancer in adults. The company stated that it can now begin enrolling patients in a Phase 1/2 dose-escalation trial.
Rick Fair, CEO of Bellicum, stated that “I am pleased that our team was able to address the FDA’s clinical hold questions promptly, enabling us to evaluate BPX-601 in a cohort of patients with previously treated metazoic prostate cancer. I remain optimistic about the safety and potential clinical benefit of our BPX-601 product candidate in these patients.”
Outside of this, Bellicum has several other product candidates in its pipeline. This includes its GoCAR-T product as well as BPX-603 and more. As a cancer treatment focused biotech company, Bellicum has a large potential market for its products. And with this exciting announcement, it could move forward with research regarding BPX-601.Catabasis Pharmaceuticals
Finally, Catabasis Pharmaceuticals is on the move Friday. Shares of the company popped during premarket trading. This was thanks to a big update from Catabasis. The company announced a multi-part development that included the acquisition of Quellis Biosciences. The company also signed a definitive agreement to sell Series X convertible preferred stock in a private placement to a group of institutional accredited investors. The deal was led by Perceptive Advisors, with participation from several other funds.
The placement is primarily to enable the completion of IND-enabling studies, Phase 1a and Phase 1b/2 clinical trials for the lead program QLS-215. This is the company’s treatment for hereditary angioedema (HAE), a rare, debilitating, and potentially life-threatening disease.
With this acquisition, funding, and new treatment candidate, Catabasis expects to file an Investigational New Drug application for QLS-215 in the first half of 2022. It also plans to begin a Phase 1 clinical trial with initial results anticipated by the end of next year. Furthermore, the company expects to initiate a Phase 1b/2 trial in patients affected by HAE in 2023, with initial results anticipated by the end of 2023.
With a fresh milestone schedule laid out, new money, and this acquisition, will CATB be one of the names on your list of penny stocks to watch right now?The Wild World Of Biotech Penny Stocks
When it comes to this industry, there are a few things traders should keep in mind. The foremost is volatility. I know penny stocks are volatile as it is, but due to biotech companies’ highly speculative nature, that can be heightened even further. While COVID remains a hot button, there are many other treatment indications to keep track of.
All that are geared toward enhancing or treating certain health conditions. So if you’re looking for top biotech penny stocks to buy right now, keep your risk management in check. It’s easy to get caught in the hype of what’s to come. But like many emerging stage companies, there are plenty of milestones and potential pitfalls along the way.