Here we are at the start of a brand new week in the stock market. Penny stocks are at the top of mind for thousands of traders right now. Thanks to the excitement surrounding them, these cheap stocks continue growing in popularity. There are few places where you can find an investment option that can climb in price hundreds of percentage points in a few hours or climb thousands of percentage points in a few weeks or even days.
Aside from their potential for short-term breakouts, penny stocks also offer another perspective for investors to have. This is the opportunity to buy into early-stage companies. Penny stocks are at the prices they trade at for a reason. In many cases, these companies are just starting out, are in their emerging stages, or are developing early growth initiatives. Then again, as we saw from the pandemic in 2020, large companies can become penny stocks if they fall on hard times.
Gamestop (NYSE: GME) and AMC Entertainment (NYSE: AMC) are two shining examples of how penny stock companies falling on hard times can reemerge as market leaders. The percentage gains that accompany instances like this can be life-changing. Both GME and AMC stock have climbed thousands of percentage points over the last 12 months. They also continue captivating the interests of retail traders worldwide.
Obviously, not all penny stocks experience such massive rallies. But even with that as the case, that doesn’t mean market-beating gains of 30% or more are a bad thing either. Heading into the last full week of June there are several trending stocks to watch right now. Will they be on the list to buy or avoid? I’ll let you decide.7 Penny Stocks To Buy [or avoid]
- CarLotz Inc. (NASDAQ: LOTZ)
- Amarin Corporation (NASDAQ: AMRN)
- Aeterna Zentaris Inc. (NASDAQ: AEZS)
- Globus Maritime Limited (NASDAQ: GLBS)
- Intec Pharma Ltd. (NASDAQ: NTEC)
- DURECT Corporation (NASDAQ: DRRX)
- MediWound Ltd. (NASDAQ: MDWD)
CarLotz just left the penny stocks range after plummeting to lows of $4.06 last month. Believe it or not, LOTZ stock traded as high as $12.90 earlier this year. An earnings miss sent shares into a freefall in May. Even though that was the case, the “consignment-to-retail used vehicle marketplace” recorded record revenue and retail unit sales in the first quarter. However, retail gross profit per unit declined.
Needless to say, with reopening triggering a bottleneck in supply chains across industries, automotive companies are gaining some appeal. LOTZ stock joins the Russell 3000 at the end of the month. Thanks to this added attention, it could be one of the reopening penny stocks to watch during the final stretch of June.2. Amarin Corporation (NASDAQ: AMRN)
Shares of Amarin mimicked a similar trend as LOTZ. The penny stock surged as high as $9.25 before pulling back during the months to follow. The company’s VASCEPA® product has been at the center of attention. It’s being used in reducing the risk of Major Adverse Cardiovascular Events. Last month the company presented details on VASCEPA® and its unique active ingredient-related scientific findings at the American College of Cardiology’s 70th Annual Scientific Session.
Steven Ketchum, Ph.D., senior vice president, president of research & development, and chief scientific officer, Amarin explained, “…We are hopeful that our continued support of robust scientific presentation of the clinical effects and unique multifactorial mechanisms of action of icosapent ethyl will lead to a greater understanding and usage of this important product to help appropriate at-risk patients.”
The company has been making presentations at several investor conferences this month. These have included the Goldman Sachs Global Healthcare Conference and Jefferies’ Virtual Healthcare Conference.3. Aeterna Zentaris Inc. (NASDAQ: AEZS)
One of the “cheap penny stocks” on this list is Aeterna Zentaris. Trading under $1 right now, AEZS stock has gained attention this year thanks to reaching a few key milestones. The company develops specialty biopharmaceuticals working on commercializing therapeutics and diagnostic tests. Aeterna recently began its previously announced preclinical program to qualify its candidate, macimorelin, for clinical development as a potential treatment option for amyotrophic lateral sclerosis (ALS; Lou Gehrig’s disease).
This is part of its Material Transfer Agreement with The University of Queensland. Researchers will handle preclinical studies in disease-related in-vitro and in-vivo models for demonstrating the potential of macimorelin on disease progression. According to Aeterna, this candidate is the only FDA-approved oral drug indicated for diagnosing adult growth hormone deficiency. It’s also currently marketed in the U.S. under the trade name Macrilen by Novo Nordisk (NYSE: NVO).
Aside from macimorelin, the company is also conducting in-vitro and in-vivo assessments to identify and characterize an AIM Biologicals-based development candidate for treating neuromyelitis optica spectrum disorder that affects the central nervous system.Penny Stocks To Buy [or avoid] #4: Globus Maritime Limited (NASDAQ: GLBS)
Shipping stocks have become a focus for retail traders this quarter. As discussed earlier, hiccups in the global supply chain have put stress on certain industries. However, shipping has actually benefited from what some are calling the “reflation” trade. Increased demand for goods has helped give many of these industry stocks a boost, Globus included.
Last week just after Friday’s closing bell, the company released its latest round of earnings. Sales were up year-over-year from $2.29 million to $5.17 million this quarter. Furthermore, Globus managed to narrow its EPS loss from $0.75 to $0.15 in the latest quarter. Management explained, “We believe the market looks healthy today with the foreseeable future looking bright. The signals and information we receive regarding the supply and demand balance illustrate a positive picture for the industry well into 2023; past that point, we will have to monitor the newbuilding market and the potential supply to be added in the market in order to reassess.”
With a rise in global trade, shipping stocks like GLBS could be on the watch list.5. Intec Pharma Ltd. (NASDAQ: NTEC)
What’s a list of penny stocks without at least one cannabis company? Intec Pharma is on the medical/biotech side of the industry. While the newswires have been relatively quiet for the company, that hasn’t stopped traders from flipping shares in the market. Since mid-May, NTEC stock has steadily climbed from $3.25 to highs last week of $5.09.
Heading into the week, the penny stock is coming off of a strong volume trend. Speculation has also played its part in the move that Intec has made in the market. Merger news continues buzzing. Last month a proxy statement was filed showing details of a proposed merger with Decoy Biosystems, Inc. Considering that this special meeting of shareholders is being held on June 21st, timing has clearly become the center point of focus over the last few days. Since Monday is the day, NTEC could be one of the marijuana stocks to watch at the top of the week.6. DURECT Corporation (NASDAQ: DRRX)
Intec isn’t the only company with an upcoming event to be aware of. DURECT Corporation presents two posters at the 2021 International Liver Conference at the end of the week starting June 23rd.
The first poster will discuss efficacy data from a Phase 1b clinical study of DURECT’s orally administered DUR-928 in nonalcoholic steatohepatitis patients. Previous data has already shown that DUR-928 was well tolerated at all three doses evaluated. There was also an overall improvement from baseline observed in liver enzymes, serum lipid profiles, liver fat by imaging, and biomarkers of liver health.
Its second poster covers data from a Phase 1 study assessing the safety, tolerability, pharmacokinetics of DUR-928 in subjects with moderate and severe hepatic impairment who received a single oral dose of 200mg DUR-928. While there are still a few days before these presentations, DRRX stock could be on the radar of some trades early in the week.7. MediWound Ltd. (NASDAQ: MDWD)
MediWound is also expected to offer data soon. The company’s Biologics License Applications was accepted by the U.S. FDA last year for the company’s NexoBrid® candidate. This is targeting eschar removal in adults with deep partial-thickness and/or full-thickness thermal burns. The important thing to note about this is that the FDA assigned a Prescription Drug User Fee Act (PDUFA) target date of June 29, 2021. While this isn’t exactly the week it happens, it is interesting to see the current trend in MDWD stock leading up to this date.
Since the start of June, MediWound shares have been on the move. In fact, from June 1st to June 18th, MDWD stock is up nearly 40% so far. Volume has also been trending t above-average levels. The company recently completed patient enrollment for an interim assessment of its EscharEx treatment in a phase 2 study. It’s designed to treat venous leg ulcers, and the interim assessment is expected by the end of July 2021. So with multiple potential milestones to look out for, it could be one name that traders watch heading into July.Penny Stocks This Week
This is the last full week of the second quarter of the year. With almost half of 2021 behind us already, new trends have emerged. Reopening stocks, “reflation” stocks, health & biotech, as well as industries like cannabis remain a focus for retail traders. We also can’t forget about the whole meme stock craze the remains a driving force in the retail market. As we look ahead, it’s important to know which trends are not only pushing market momentum but also identify emerging ones as well.