When you think about penny stocks, what comes to mind first? Does it have something to do with making money quickly? Maybe it’s more along the line of getting in on the ground floor of a company before it takes off. On the other hand, it might be something in between. Whatever your definition of penny stocks actually is, one thing is consistently true. You can make a lot of money with penny stocks if you know what you’re looking for.
I had a conversation with one of the followers on social media the other day. They asked, “How do I get started” and my reply was, “start learning the ropes before jumping in head-first.”
It sounds easy, but it’s probably one of the hardest things that new traders deal with. Seeing massive breakouts while still trying to learn what to look for and how to navigate the stock market. But a little time spent on learning can end up saving you hundreds or thousands of dollars in the long run by helping you avoid some of the pitfalls of trading cheap stocks. If you’re new to penny stocks, we’ve got a great eBook that you can download for free. It’s got over 60 pages of introductory information for you to get started.Are Penny Stocks Worth It?
Assuming you’ve done some of the basics and understand how to trade penny stocks, you likely know already that these low-priced stocks can be well worth it. This can be for both short-term and long-term opportunities. In today’s article, we’ll take a look at a list of penny stocks that used to trade under $5 but have since “left the station” and continue moving higher in 2021. Are they still worth it? I’ll let you decide:
- GT Biopharma Inc. (NASDAQ: GTBP)
- Dynavax Technologies (NASDAQ: DVAX)
- Pacific Biosciences (NASDAQ: PACB)
- Cassava Sciences (NASDAQ: SAVA)
- Novavax Inc. (NASDAQ: NVAX)
Look at the last 52 weeks on the GT Biopharma chart, and you may notice something interesting. Yes, GTBP was once a penny stock, but after reaching key milestones over the last several months, it has clearly managed to leave the range and make new highs. Aside from uplisting to the Nasdaq exchange & then get added to the Russell 2000 Index earlier this year, there’ve been several fundamental developments that’ve sparked interest in the market and from Wall Street analysts.
The company is developing a pipeline of treatments targeting numerous cancers. Its novel platform called TriKE (tri-specific killer engager) focuses on expanding the use of NK (natural killer) cell therapy. I won’t give you a history lesson on NK cell treatment (read more here), but the 30,000 ft view of NK treatment is that they work agnostically for different patients and aren’t a 1-off for each patient individually. It not only offers rapid scalability but has the potential to drastically reduce costs for immunotherapy treatments (compared to things like CAR-T, which are currently on the market).
In GT’s case, its TriKE portfolio includes lead candidate GTB-3550, which is being developed for treating acute myeloid leukemia and myelodysplastic syndromes. Early results have shown promise, and upcoming data is expected by September. The company also has candidates for treating ovarian, prostate, pancreatic ductal adenocarcinoma, and lung cancers. In fact, new details were announced earlier this week, with GT reporting positive preclinical data from its GTB-5550 B7H3 TriKE treatment candidate.
It was found to be effective in multiple cancer cell types. In particular, B7H3 is overexpressed in cancers including non-small cell lung cancer, breast, renal, pancreatic, ovarian, liver, and colorectal cancers. In preparation for filing an Investigational New Drug application with the FDA, GT Biopharma’s GTB-5550 is going through GMP manufacturing scale-up processes.
Thanks to continued progress, analysts at HC Wainwright, Roth Capital, and B. Riley have all issued Buy ratings on GTBP stock along with price targets of $25-$26.
Another one of the former penny stocks taking off this year is Dynavax. The copay specializes in commercial vaccines. Its HEPLISAV-B product is an approved drug in the US and European Union for preventing infections triggered by different subtypes of hepatitis B. This first commercial product brought in nearly $14 million in revenue for the second quarter of 2021. This was the highest quarterly revenue to date, according to Dynavax.
It isn’t the only product the company has, however. Dynavax is also advancing a pipeline of other treatments. One of these is CpG 1018. This is being developed as a vaccine adjuvant for multiple indications but includes COVID-19, among other indications like the universal flu. If you’re unfamiliar with the term, an adjuvant aims to enhance the body’s immune response to a foreign substance.
“Multiple partners have reported that they currently intend to apply for emergency or conditional authorization for their COVID-19 vaccines in the second half of 2021. Importantly, these collaborations are generating meaningful revenue for Dynavax, with second-quarter CpG 1018 revenue of $39 million.”Ryan Spencer, Chief Executive Officer of Dynavax
Following this update, analysts at HC Wainwright adjusted their stance on Dynavax. This week, the firm boosted its $16 target to $20. It also maintains a Buy on DVAX stock.Former Penny Stocks To Watch #3: Pacific Biosciences (NASDAQ: PACB)
Shares of Pacific Biosciences have been on an incredible run over the last 52 weeks. One year ago to the date (August 5th), PACB stock had hit $3.90 (for the last time). Fast-forward, and this week the former penny stock trades above $35. At one point in 2021, Pacific Bio was trading above $50 a share. Needless to say, a lot has happened in that time to help push PACB stock higher.
Right now, the company is focusing on expanding its footprint through a string of acquisitions. Late last month, the company inked a roughly $800 million deal with Omniome to enhance its offering of biologic sequencing. The company said it aims to penetrate fast-growing clinical segments, including oncology and prenatal testing, among other areas of interest.
This week PacBio continued its buying spree. The company bought biotech firm Circulomics. Though the amount wasn’t disclosed, the deal further expands the company’s reach. Circulomics specializes in DNA extraction mainly for research purposes. Christian Henry, CEO and President at PacBio, explained that “By adding the team to PacBio, we will be able to deeply integrate their technology into our workflows which will improve our entire long-read sequencing workflow.”4. Cassava Sciences (NASDAQ: SAVA)
These next two former penny stocks have been frequently in the headlines recently. The first is Cassava Sciences. Less than one year ago, SAVA stock was trading for less than a Starbucks Coffee (below $3). Things have changed drastically for the stock and company since then. Cassava specializes in developing treatments addressing neurodegenerative conditions like Alzheimer’s disease, which has become a hot topic this year.
Shares of SAVA stock have been increasingly volatile over the last few weeks, both leading up to and following a key data readout at the end of July. The company delivered positive biomarker data with its Simufilam in Alzheimer’s disease. However, researchers critiqued the data harshly, which ultimately triggered a sell-off in the market.
Though this was the case, SAVA stock has managed to quickly recover by more than 45% since hitting a low of $65. Obviously, compared to where shares were trading less than a year ago, SAVA stock is still trading considerably higher even with the latest drop.
B. Riley analysts recently boosted their target on Cassava. While the firm keeps a Buy on the stock, analysts lifted the $111 target to $145 after a management Q&A.5. Novavax Inc. (NASDAQ: NVAX)
The second one of the former penny stocks that’ve been in the headlines recently is Novavax. At the start of 2020, this was just another biotech penny stock looking to advance an influenza drug. Then the pandemic hit, and Novavax got to work. Since its “humble beginnings” below $4, NVAX stock has reached highs of $331.68 this year. A recent surge of interest also has spiked shares back up to $242 this week.
The focus: a COVID vaccine. The rising cases of the Delta variant have placed a lot more attention on vaccine stocks recently. In Novavax’s case, the company’s NVX-CoV2373 candidate is raising eyebrows in the stock market. This week the European Commission reached an agreement with Novavax to purchase up to 200 million doses of its vaccine candidate.
The company has stated that “In a Phase 3 clinical trial with nearly 30,000 adults in the United States and Mexico, NVX-CoV2373 demonstrated 100% protection against moderate and severe disease and 90.4% overall efficacy. In a Phase 3 clinical trial conducted in the United Kingdom with approximately 15,000 adults, NVX-CoV2373 showed an overall efficacy of 89.7%, and more than 96% efficacy against the original strain of the virus.”Final Thoughts About Penny Stocks
Not all penny stocks follow these same patterns. Many end up seeing explosive gains within days or even hours. With such a wide range of potential, it’s important to have a plan in place. It’s also important to have a good grasp of the company you’re buying shares in. Is the company like one of those mentioned in this article with a pipeline and schedule of potential milestones? On the other hand, are you just looking at a technical setup on a chart to take advantage of? In either case, it’s good to be prepared with the right strategy to optimize your strategy and profit.
Pursuant to an agreement between Midam Ventures LLC and GT Biopharma (GTBP) Midam has been paid $150,000 for a period from March 1, 2021, to April 1, 2021. This compensation is payment 1 of 12 as part of a 12-month agreement between Midam Ventures LLC & GT Biopharma (GTBP), for a period from March 1, 2021, to February 28, 2022. Midam Ventures LLC expects to be paid $150,000 per month for a total of 12 months by GT Biopharma (GTBP). Midam has been paid an additional $150,000 for a period from April 2, 2021, to May 1, 2021. This compensation is payment 2 of 12 as part of the Agreement. Midam has been paid an additional $150,000 for a period from May 2, 2021, to June 1, 2021. This compensation is payment 3 of 12 as part of the Agreement. Midam has been paid an additional $150,000 for a period from June 2, 2021, to July 1, 2021. This compensation is payment 4 of 12 as part of the Agreement. Midam has been paid an additional $200,000 for a period from July 2, 2021, to July 29, 2021. This compensation is payment 5 of 12 as part of the Agreement. Midam has been paid an additional $200,000 for a period from July 29, 2021, to September 2, 2021. This compensation is payment 6 of 12 as part of the Agreement. We may buy or sell additional shares of GT Biopharma (GTBP) in the open market at any time, including before, during, or after the Website and Information, to provide public dissemination of favorable Information about GT Biopharma (GTBP). Click here for full disclaimer.