3 Penny Stocks That Investors Can’t Get Enough Of
The potential with penny stocks is largely unmatched by any other securities. This is not to say that all penny stocks have value, however, the large intraday fluctuations we see are not common amongst blue chips. For this reason, many swing traders and those looking for cheap stocks to buy for the long term, prefer to find penny stocks to watch. The key with stocks under $5 is volatility.
Because it is so common to see prices shoot up and down substantially in a given day, investors can find many entrance and exit points that could present opportunities. Now, on the downside, investors who are not as experienced, many find some trouble in these big price movements.
However, with the right trading education, anyone with a brokerage account can find valuable penny stocks to watch. While a lot of penny stocks are traded on OTC or over-the-counter markets, there are plenty of penny stocks on Robinhood or other brokerage firms.
Due to this, accessibility is higher than ever before. But, just because a stock is under $5, doesn’t mean that it will have forward value. Rather, investors of all experience levels need to do the proper research to ensure that a company has solid financials and a game plan for the future.
With these factors in mind, it can be easy to create a top-notch, penny stock watchlist. Considering all of the above, here are three penny stocks that you might want to add to your watchlist.
3 Penny Stocks to Watch Right Now
Zomedica Corp. (NYSE: ZOM)
We’ve been covering ZOM stock for months now. And, there are a few distinct reasons for that. For one, ZOM stock has shot up by more than 1,050% in the past six months. This is a staggering gain and one that is highly indicative of Zomedica’s volatility. However, it does have a lot going on in its pipeline. For some context, Zomedica is a provider of diagnostic tools for use in the veterinary industry.
Its main focus is on creating innovative tools to diagnose common issues with domestic pets. This includes both cats and dogs, which are its primary market This includes its Truforma platform, which is a point-of-care product for use in veterinary offices.
Last week, the company announced that it would be building a direct sales force for the Truforma platform. This is very important to consider because one of the most common issues with any biotech company is distribution.
“As Truforma’s market presence grew, we intended to transition from a distributor-based sales model to a direct sales organization. However, due to anticipated changes at our current distributor that we believe have impacted its ability to market our products effectively, we will be accelerating that transition and the building of a direct sales organization.
While this effort may slow initial sales of Truforma, we have taken this action now to avoid any disruption to our customers.”
CEO of Zomedica, Robert Cohen
Currently, Zomedica has eight salespeople working in the field. Because it only announced the first commercial sale of Truforma last month, the company is still in the very early stages of commercialization. Considering this, is ZOM stock worth watching?
Jaguar Health Inc. (NASDAQ: JAGX)
If you’re looking for a more pure-play commercial-stage biotech company, Jaguar Health could be worth checking out. The company is focused on the development of new, plant-based, non-opioid, and sustainably derived prescription medicines. These medicines are in use to treat gastrointestinal or GI-related issues.
Additionally, its subsidiary Napo Pharmaceuticals is working on a similar goal. Jaguar’s main product, known as Mytesi (crofelemer), is an FDA-approved compound for the symptomatic relief of noninfectious diarrhea in those with HIV/AIDS on retroviral therapy.
Additionally, Mytesi is the only oral plant-based prescription medicine for this treatment that holds an approval under the FDA Botanical Guidance. Only a few weeks ago, the company announced an upsized, $15.3 million at-the-market offering with Ladenburg Thalmann & Co. Inc. This offering will help the company to engage in new business opportunities without the worry of stock dilution.
Lisa Conte, the CEO of Jaguar, stated that “we are very pleased to have expanded the capacity of the ATM program. While we do not anticipate issuing any shares at this time, the upsized ATM program is available to provide the Company with future funding, if needed, at the prevailing market price at the time of sale, hence, based on timing.”
Also, this funding will help to allow Jaguar and Napo to fund the ongoing pivotal Phase 3 trial of crofelemer for prophylaxis of diarrhea in adult cancer patients. So considering this funding and what it will do for the company, is JAGX stock on your penny stock watchlist?
ConforMIS Inc. (NASDAQ: CFMS)
ConforMIS is another biotech penny stock that we’ve discussed frequently in the past few months. Before we get into its recent developments, let’s talk about a brief overview of what the company does. ConforMIS is a medical tech company utilizing its proprietary iFit Image-to-Implant technology. It uses this to create replacement implants that are custom fit and produced for the individual.
In its pipeline are replacement joints such as personalized knee and hip implants as well as single-use instruments. Its iTotal CR Knee replacement has shown incredibly high clinical efficacy on its own and compared to existing, off-the-shelf implants.
Yesterday, the company announced the achievement of its third milestone under its licensing and development agreement with Howmedica Osteonics Corp. Because of this, it will now receive a milestone payment of $11 million from the parent company of Howmedica, Stryker Orthopaedics. The
“With the recent FDA clearance, we are pleased to have attained the last milestone of our project and to report the successful conclusion of our joint development agreement with Stryker. Despite the global challenges of the last 12 months, the dedication of our project and support teams has enabled us to achieve this major milestone on schedule.”
President and CEO of ConforMIS, Mark Augusti
This announcement comes only a week or so after it released the information regarding a licensing agreement with Paragon 28 for the use of its patents in patient-specific instruments. Because of all of this exciting news, ConforMIS looks like it is making big strides in the biotech industry. With this in mind, is CFMS stock worth watching?