Will Reopening Penny Stocks Continue to See Investor Interest?
Reopening penny stocks have become extremely popular with investors over the past few months. Before we get into why let’s first define what a reopening penny stock is. This term applies to penny stocks that have benefitted from economic reopening and the loosening of Covid-restrictions around the country.
To better understand this, let’s look at one example. When the economy shut down early last year, many entertainment stocks dropped swiftly in value. This makes sense given the substantial rise in Covid infections, and the restrictions surrounding in-person gatherings.
However, as time went on and businesses began to open back up, many entertainment penny stocks shot up in value. This includes companies like Drive Shack Inc. (NYSE: DS) which has increased by over 120% since April of last year.
One thing to keep in mind is that finding reopening penny stocks to buy might take a little bit of creativity. This means thinking outside the box to consider which companies may rise in value as Covid cases decrease nationwide. Also, investors should consider larger factors such as vaccine rates, Covid-positivity testing numbers, and other statistics related to the pandemic.
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This is one of the best ways to identify what could happen in the coming months with certain penny stocks. Considering all of this, let’s take a look at three reopening penny stocks to watch in April 2021.
3 Reopening Penny Stocks to Watch
- Biolase Inc. (NASDAQ: BIOL)
- Wrap Technologies Inc. (NASDAQ: WRAP)
- AzurRx BioPharma Inc. (NASDAQ: AZRX)
Biolase Inc. (NASDAQ: BIOL)
Biolase Inc. is a penny stock that we’ve discussed plenty of times in the past few months. For some context, it develops a large range of laser systems used across several dental and medical indications. Its laser products hold over 271 patented and 40 patent-pending technologies.
These products are used to revolutionize the way that common dental and medical procedures are done. To date, Biolase reports that it has sold more than 41,200 laser systems across 80 countries around the world. So why exactly is it a reopening penny stock?
Well, back when widespread stay-at-home orders were in place, much of the public avoided both elective and more necessary dental procedures. In tandem with this, many dental offices closed up shop for a decent period, while Covid case numbers subsided.
However, the company reports that the industry is now seeing just as much demand as pre-covid levels. For this reason, Biolase could begin selling its laser systems at the same rate as it was before the pandemic.
Early on in the day on April 20th, Biolase announced the co-development of the EdgePRO, next-generation Laser-Assisted Microfluidic Irrigation device with the American Association of Endodontists. This device could allow for the modernization of current cleaning and disinfection products used in the dental setting.
It states that it will be submitting a premarket notification (510(k)) to the FDA by the second quarter of this year. It is always exciting when a biotech penny stock announces a new product or FDA submission. So considering this, is BIOL a penny stock to watch or not?
Wrap Technologies Inc. (NASDAQ: WRAP)
Wrap Technologies is another penny stock that has seen substantial upside during the pandemic. While it is not necessarily a pure-play reopening stock, it has benefited from events that have occurred during the past year or so. On April 20th, shares of WRAP stock surpassed penny stock territory, hitting an intraday high of over $5.40 per share. Additionally, it has an average analyst price target of $13 from Ladenberg Thalmann & Co, which represents a 160% gain from current levels.
Wrap Technologies works as a provider of tech and services in the public safety industry. This includes its BolaWrap Remote Restraint device; a Kevlar tether product that works to restrain individuals from a safe distance as well as other products. Many law enforcement agencies claim that the BolaWrap could be a game-changer in detaining dangerous persons without injury to the individual or the law enforcement officer.
Because of the large quantities of political unrest that have occurred during the pandemic, companies like Wrap have seen increased investor attention. Additionally, there is a large public outcry for the reduction of police-caused homicides, which could result in the popularization of less-lethal detainment methods.
Only a week ago, the company released bodycam footage showing the successful use of its BolaWrap technology in the real world. Tom Smith, the CEO of Wrap, stated that “we are pleased to see the continued usage of BolaWrap. As previously stated, many BolaWrap deployments are not known or reported to the Company, as agencies consider its application a very low use of force. It is rewarding for us to be able to see the bodycam footage of our remote restraint solution in action, preventing escalation and generating a safe outcome for all invoked.” Considering this and the overall utility of its products, is WRAP stock worth watching?
AzurRx BioPharma (NASDAQ: AZRX)
If you’re looking for a pure-play biotech penny stock, AZRX may be worth checking out. AzurRx is a clinical-stage biopharmaceutical company working on the development of therapies for GI or gastrointestinal diseases. This includes its lead candidate MS1819, a recombinant lipase for use in treating exocrine pancreatic insufficiency in those suffering from both cystic fibrosis and chronic pancreatitis.
More in line with the topic of reopening stocks, AzurRx is working on a compound known as FW-1022 for gastrointestinal infections stemming from Covid-19. FW-1022 or niclosamide is set to begin a Phase 2 trial with top-line results expected in the second quarter of 2022. The trial will measure the rate of the SARS-CoV-2 virus in fecal matter to demonstrate the drug’s efficiency in clearing the GI-related viral load.
Last Thursday, the CEO of AZRX, James Sapirstein, stated that “AzurRx began 2021…with two new therapeutic indications, for Covid-19 GI infections and immune checkpoint inhibitor-associated colitis (ICI-AC), to our clinical-stage pipeline. We are on track to launch both niclosamide programs in the clinic.”
Sapirstein goes on to state that “In April 2021, we announced the initiation of RESERVOIR, our Phase 2 clinical trial of niclosamide for the treatment of Covid-19 related gastrointestinal infections, and that we engaged PPD Inc., a leading clinical research organization to manage the Phase 1b/2a ICI-AC trial that we plan to initiate in Q2 2021.” While the data may be several months away, it is always exciting to find a biotech penny stock that is engaged in Covid-related work. Whether this makes AZRX a penny stock to watch is up to you.
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