It’s funny to think that 2020 is almost over yet penny stocks remain a major focus for traders right now. One of the main reasons for this has been the unrelenting focus on volatility. Believe it or not, I think 2020 was pivotal for day trading, in general. While the pandemic lockdowns, social distancing, and negative economic impact were obviously hard on everyone this year, it created a new opportunity for those looking to make extra money. This, in turn, saw millions – yes millions – flock to the market.
Earlier this year we did a quick study of brokerage growth in 2020 (See: Penny Stocks Brokerage Growth Statistics For 2020). What we found was massive growth in apps like Robinhood, which aim to “gamify” the trading experience. Confetti-popping, happy messages, and congratulatory Now, anyone can simply download an app, fill out a form, transfer money and begin trading.
It’s this ease of access that had so many looking for quick money in things like penny stocks this year. While some newbie traders flourished, others found out that it isn’t just pressing buttons and making money. There is research and strategy that goes into day trading.Do You Know How To Day Trade?
If you’re one of these new traders, it’s important to have a strategy in place. Buying and selling blindly isn’t a strategy. Those who’ve become consistently profitable identify risk/reward, find proper entry & exit targets, while also keeping track of things like market trends. Take electric vehicle stocks, for instance. It’s a very recent trend we’ve seen day traders flock to.
While many of these stocks have skyrocketed hundreds of points in just days, some novice traders continue wondering “is it still safe to buy?” Nine times out of ten, these same traders are the ones who buy at the top, end up losing money, and write off penny stocks forever. The reality is that if they learn how to day trade in the first place, they might’ve been able to either catch the trend early or avoid chasing altogether.
So what trends are traders watching heading into the final days of the year? I’m sure we’ll see what materializes on Monday. However, one of the constantly watched sectors to watch is biotech. Here are a few names to know with recent and potentially upcoming events.Biotech Penny Stocks To Watch #1: Mustang Bio Inc.
Mustang Bio Inc. (MBIO Stock Report) has been one of the penny stocks to watch all year. In fact, if you’re a day trader, you’ve likely had this on your list here and there. While the MBIO stock price is relatively flat from the start of the year, it doesn’t paint the full picture. MBIO has seen big swings during the last few months bouncing between lows of $2.40 and highs of $4.85; quite the range and a reason why traders have flocked to the stock.
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The most recent attention has been on the company along with research firm, City of Hope announcing the formal launch of a Phase 1 clinical trial. The trial aims to establish safety and feasibility data of administering Mustang’s MB-101 to patients with leptomeningeal brain tumors. What’s more, is that the company gained some notable interest from certain analysts. B. Riley reinstated Mustang with a Buy rating and a $13 price target; over 200% higher than the current market price. Aside from the initiation of these clinical trials & analyst action, insiders are beginning to build upon their positions too. Last week, Dr. Manuel Litchman filed a Form 4 showing a December purchase of $291,000 worth of stock.
While this is all positive for the company, traders should keep technicals in mind as well. MBIO stock has once again approached a price level that has acted as a consistent resistance point this year. Will the end of year momentum carry MBIO stock to new highs or is another pullback coming?Biotech Penny Stocks To Watch #2: Stealth BioTherapeutics Corp.
Stealth BioTherapeutics Corp. (MITO Stock Report) is another one of the range-bound biotech penny stocks to watch this quarter. Similar to MBIO, the MITO stock price has held a sideways trend for most of the year. But its trading price range has been a point of focus for short-term traders. Since April, Stealth stock has traded between lows around $1.20 and highs around $2.50. However, most of the fourth quarter has seen MITO trading between $1.20 and $1.66.
Last Thursday’s half day of trading was actually one of its most active days of the quarter. It traded more than 1.4 million shares before the close and tested its 200 Day Moving Average for the first time in a year. While there haven’t been many updates during the second half of December, there is something to keep in mind heading into year-end.
Stealth, along with plenty of other biotechs are “expecting” data by “year end”. Considering we have less than 1 week left in 2020, this could be an important week for the industry as a whole. Specific to Stealth, however, the company’s elamipretide treatment for Barth syndrome is a big focus. In November, the company reiterated its commitment to the Barth community and its plan to submit its New Drug Application by year-end.Biotech Penny Stocks To Watch #3: Cellectar Biosciences Inc.
Cellectar Biosciences Inc. (CLRB Stock Report) is another one of the companies with a potential “fourth quarter” event. Again, considering there are only 4 trading days left in the year, this could be an important week for companies to deliver on their previously announced milestone dates.
In particular, in its most recent quarterly update, James Caruso, CEO of the company, stated that “we continue to make good progress towards the fourth quarter initiation of the CLR 131 pivotal study in our lead heme-oncology indication. Our recent FDA guidance meeting was most encouraging and we look forward to providing greater details in the near term.”
December has already been a big month for CLRB stock price. It shot up from around $1.20 to highs of nearly $3. Following news of a multimillion dollar raise, shares slid but have since begun a bit of recovery heading into the end of the year. In fact, between last Wednesday and Thursday, CLRB stock bounced from $1.80 to over $2.20. So with fresh cash and a potential milestone event, will this be on your list of penny stocks before 2021?Biotech Penny Stocks To Watch #4: Xenetic Biosciences Inc.
Xenetic Biosciences Inc. (XBIO Stock Report) is another one of the biotech companies that closed a multimillion-dollar raise this month. Net proceeds will be used for the advancement of its XCARTTM platform. This is the company’s personalized CAR T platform technology for targeting patient- and tumor-specific neoantigens. One of the biggest catalysts recently came when the company announced its partner, PJSC Pharmsynthez reported positive data from its pivotal Phase 3 clinical study. The study leveraging PolyXen® to develop a treatment for anemia in patients with chronic kidney disease.
“The PolyXen platform continues to demonstrate broad utility and ability to modulate the pharmacokinetic and pharmacodynamic profiles of protein drugs. We are pleased with the positive results Pharmsynthez has reported and we look forward to the outcome of their registration filing in Russia for Epolong, which they expect to submit in 2021.”Jeffrey Eisenberg, Chief Executive Officer of Xenetic
Once again, similar to Cellectar, with fresh cash and a rebound in stock price recently, will XBIO hit your list of penny stocks before 2021?Biotech Penny Stocks To Watch #5: Seneca Biopharma Inc.
Aside from new clinical developments or upcoming data read-outs, biotech is a frequent source of M&A. Seneca Biopharma Inc. (SNCA Stock Report) comes onto this list after announcing such an event. This month, Leading BioSciences entered into a merger agreement with a Seneca subsidiary, which will combine with Leading. The focus of the combined company will be on Leading’s pipeline asset, LB1148 in clinical studies. These will aim to identify the potential of restoring gastrointestinal function after surgery. Post-merger, the new company will be named Palisade Bio with a ticker symbol of PALI.
Keep in mind that the LB1148 treatment is a Phase-3 ready, patent-protected treatment.These later stages can present “make or break” instances for biotechs.
“This is a transformational event for Leading BioSciences, and a critical next step in the evolution of the Company. Through this merger, the newly formed Palisade Bio will be optimally positioned to advance our lead drug candidate LB1148 through the final phases of clinical development for FDA approval.”Tom M. Hallam , Ph.D., chief executive officer of Leading BioSciences
The completion of the merger is expected in the first half of 2021. Given the recent uptick in trading activity, SNCA could be one of the penny stocks to watch heading into the end of the year.