Are These Penny Stocks The Best Ones For Your May Watchlist?
As we inch closer toward the second half of May, penny stocks are highly in focus. Some of the most sought-after assets in the stock market right now are biotech penny stocks as well as tech stocks and blockchain penny stocks.
Usually, investors will look at these companies for their future potential. The COVID-19 pandemic has also brought a lot of these penny stocks to the top of mind for a variety of reasons. What’s more, is that there are many of these companies that have exited penny stock status as a result of the coronavirus and gains in the past year. For example, Novavax Inc. (NASDAQ: NVAX) grew past $5 per share when 2020 started and is now worth over $160 per share due to its work on pandemic-related products.
The pandemic is not the main focus of the biotech industry anymore, although some companies are still working on developments. Biotech penny stocks in general are a high-performing market right now. This could be a lasting effect of the pandemic however, it’s worth noting that the market is on fire right now.
Because biotech companies tend to release news often, it can be easy to see where and why momentum is occurring. This is where research comes into play. When investing in any sector, let alone biotech, research is an essential step.
With biotech companies, you can look at current developments and the corresponding progress. This includes the different phases of trials, treatments, research, and commercialization news. It is often a long process between inception and FDA approval, however, it’s important to keep up with the news in between. Because there are so many different aspects to keep track of, keeping up with information is crucial if you want to see profits.
There is a lot of excitement in many areas of the stock market at the moment, and this is seen in the increased volume overall of the past few weeks. While Covid is still playing a role, cases in the U.S. for the most part are dropping substantially.
So while the industry is focused on biotech, other industries such as cannabis stocks, and tech stocks are also seeing major bullish runs. With all of this in mind, here are five penny stocks to watch right now.
5 Penny Stocks to Watch in May 2021
- Atossa Therapeutics Inc. (NASDAQ: ATOS)
- 22nd Century Group Inc. (NYSE: XXII)
- Evofem Biosciences Inc. (NASDAQ: EVFM)
- 4Front Ventures Corp. (OTC: FFNTF)
- Cellect Biotechnology Ltd. (NASDAQ: APOP)
Atossa Therapeutics Inc. (NASDAQ: ATOS)
Atossa Therapeutics Inc. is a biotech penny stock we have mentioned frequently in the past. The company is a clinical-stage biotechnology company developing medicines in oncology and infectious diseases. One of its main programs is Endoxifen, which is in Phase II trials to treat and prevent breast cancer. The reason Atossa has gained so much momentum is due to its COVID-19 related candidates.
Atossa has a drug candidate for nasal administration in patients who have COVID-19 called AT-301. Additionally, the company is developing AT-H201, a drug to improve lung function for those infected with COVID-19. The pandemic has been the leading proponent for biotech for a while, although it has calmed down in some places globally.
Last month, the company announced that an ovarian cancer patient has begun treatment with oral Endoxifen under the FDA’s expanded access pathway. This shows that the FDA could potentially approve it in the future, but for now, has issued Atossa a “Safe to Proceed” letter. This is big news for ATOS as endoxifen is one of its leading compounds. Keeping all of this information in mind, will Atossa make your list of penny stocks to watch?
22nd Century Group Inc. (NYSE: XXII)
22nd Century Group Inc. is a biotech company and marijuana stock that develops plant-based solutions for pharmaceutical and consumer markets. Its products include Moonlight brand low nicotine content tobacco and cigarette products, as well as genetically engineered hemp and cannabis plants.
Its cannabis products are used in therapeutic, medical, and agricultural markets. A few days ago the company reported its financial results and business highlights for the first quarter of 2021. Its current focus is on expanding its business.
“Our 2021 is off to an exciting start as we anticipate achieving multiple key milestones that will dramatically expand our commercial opportunities in both our tobacco and hemp/cannabis franchises.” The company is also working on the production of reduced-nicotine cigarettes which aligns with the U.S. goal of phasing out current cigarettes with high nicotine levels.
The CEO of 22nd Century Group, James A. Mish
It did report a first-quarter loss in earnings and revenue, but it did not seem to impact XXII stock too much. XXII stock has increased by more than 30% in the last month. Elsewhere in its pipeline, 22nd Century has installed state-of-the-art nicotine testing equipment at its laboratory to help its VLN reduced nicotine cigarette production. With all of this in mind, will XXII make your penny stock watchlist?
Evofem Biosciences Inc. (NASDAQ: EVFM)
Evofem Biosciences Inc. is a biotech company developing and commercializing products for women’s sexual and reproductive health. Its main product is Phexxi, a contraceptive gel. This product is already FDA-approved and is a major selling point for EVFM.
The company recently released its financial results which could be driving its volume up. On May 6th, Evofem announced its quarter-over-quarter revenue grew 550%. This is a major growth number and shows how quickly the company is expanding.
In addition to this great news, the company now has more than 5,000 healthcare providers providing its Phexxi product. The CEO of Evofem, Saundra Pelletier said, “Our ‘Get Phexxi’ DTC campaign launched nationwide on Valentine’s Day, resulting in strong first-quarter growth. More than 5,000 healthcare providers have prescribed Phexxi to date, and Phexxi prescriptions increased 83% from February to March.”
In just the first three months of 2021, its net product sales totaled $1.1 million. If all of this information is positive, then why is EVFM stock performance not looking great? Well, this could simply be due to the natural ups and downs of penny stocks and the biotech industry. It’s difficult to say for sure, however, we often see large fluctuations across the market.
Only time will tell if these advancements will result in positive stock price progression for EVFM. Knowing this information, will your penny stock watchlist include Evofem?
4Front Ventures Corp. (OTC: FFNTF)
Cannabis has been a huge market in the last year, and 4Front Ventures Corp. has seen the benefits of this. Because of massive stay-at-home orders over the past year and a half, more people have been consuming cannabis than ever before. This has led to a major increase in demand from both consumers and retailers.
For some context, 4Front Ventures owns and manages licensed cannabis facilities in the United States. It produces and sells both cannabis and CBD products under the MISSION brand name.
FFNTF is showing higher than average trading volume in many recent sessions. This is indicative of both high interest in cannabis as well as a specific bullish interest in 4Front. On May 10th, 4Front Ventures announced that it would be participating at the Cannacord Genuity Virtual Cannabis Conference on May 11th.
The Chief Investment Officer, Andrew Thut, is expected to participate in a panel discussion at the event. FFNTF stock opened in 2021 at less than $1 per share and is now at more than $1.30 per share as of EOD. With this in mind, will you place FFNTF on your list of penny stocks to watch?
Cellect Biotechnology Ltd. (NASDAQ: APOP)
This last penny stock on this list, Cellect Biotechnology Ltd., is developing a platform to select stem cells to enhance regenerative medicine and stem cell therapy safety in Israel. This program is called ApoGraft and is its primary product. It also develops ApoTainer, a kit for hematopoietic stem cell transplants.
There is no apparent news that is causing APOP stock to go up on May 10th. We can look at recent updates from April, which are of significance. The company reported top-line data from the Phase 1/2 clinical trial of ApoGraft. All eleven patients in the trial were engrafted on time without incident.
“The data validates earlier results and supports the ongoing development of our products. I remain committed and believe that the human data from this study will expedite the clinical development of the ApoGraft.”
CEO of Cellect Biotechnology Ltd., Dr. Shai Yarkoni
On May 10th, APOP trading volume is higher than average. Its stock price also increased by around 18% by EOD, indicating solid momentum for the company. Considering these exciting announcements, is APOP stock worth watching?
Are These the Top 5 Penny Stocks In 2021
Many things are affecting penny stocks this year. While the pandemic is still running its course, many companies are seeing gains as a result of reopening. Companies that are making solid progression in trials, reaching commercialization, and receiving FDA approvals are the top performers in the sector.
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Because there are hundreds if not thousands of penny stocks to choose from, being picky will always be your best bet. In addition, using the tools you have at your disposal and proper research can lead to higher chances of profitability in the long run. This includes knowing how to make a penny stock watchlist, and knowing what to look for in a prospective company. With all of this in mind, are these five penny stocks worth watching?