Have you ever monitored penny stocks before? If you have, you know that they are capable of making significant runs in the short-term. And, by short-term, I mean the same day. Have you ever seen one run 50%, 100%, or even 1,000%+? Sometimes penny stocks, which are stocks that are $5 and under, can be some of the most explosive movers in the market. Heck, if you have been watching only the first few days of this week, there have been multiple penny stocks that have gone on epic intraday runs.
Sure, it’s nice to see penny stocks go on amazing runs, but you need to have a specific strategy in place to help you along the way so you don’t get stuck “holding the bag.” Usually, penny stocks with a very low float, the number of available shares to trade in the market, are the ones to go on these big time surges. That potential for a major swing in price will be there as the stock can be extremely volatile. That said, as quickly as one of these penny stocks with a low float goes up, it can also come crashing down.
Here is a plan for today. As you analyze the penny stocks out there, I want you to look for things they have in common. If you can’t find too many things, that’s okay. You’re not alone. For the most part, penny stocks typically do whatever they want and do not follow the broader market. When a major headline, news article, press release, etc., makes an Amazon or an Alphabet shift momentum, it may do the complete opposite for a penny stock.
Right now, I’ve come across 3 stocks under $5 that have tremendous news/headlines out on them. Check these out:
Your No.1 Penny Stock Profile For This Thursday: Rexahn Pharmaceuticals, Inc.
Rexahn Pharmaceuticals, Inc. (Nasdaq: REXN), a clinical stage biopharmaceutical company, develops therapies for the treatment of cancer. The company’s product pipeline includes RX-3117, which is in Phase IIa clinical trials for the treatment of patients with relapsed or refractory metastatic pancreatic cancer, as well as bladder, colon, lung and cervical cancer. It is also developing RX-0301, which is in preclinical development stage for the treatment of hepatocellular carcinoma. Rexahn Pharmaceuticals, Inc. has collaboration agreements with Zhejiang Haichang Biotechnology Co., Ltd.; and BioSense Global LLC.
Rexahn Pharmaceuticals, Inc. and Ocuphire Pharma, Inc., a privately-held clinical-stage ophthalmic biopharmaceutical company focused on developing and commercializing therapies for the treatment of eye disorders, announced the companies have entered into a definitive merger agreement under which Ocuphire will merge with a wholly-owned subsidiary of Rexahn in an all-stock transaction. Following closing, which is expected to occur in the second half of 2020, the combined company will change its name to Ocuphire Pharma, Inc. and is expected to trade on the Nasdaq Capital Market under the ticker symbol “OCUP.” The combined company will focus on the advancement of its pipeline of ophthalmic drug candidates.
Certain institutional healthcare and other accredited investors, including certain Ocuphire directors and executives, have also committed to invest $21.15 million in a private placement that will close immediately prior to the closing of the merger, assuming the satisfaction or waiver of customary closing conditions. Investors in this pre-merger financing will receive Ocuphire common stock prior to closing, which will convert into Rexahn common stock upon closing of the merger. Additionally, following the closing of the merger, Rexahn will issue to these investors warrants to purchase shares of Rexahn common stock and, potentially, additional shares of Rexahn common stock.
“After completing a comprehensive review of multiple strategic alternatives, we determined that the proposed merger with Ocuphire would provide the best opportunity for Rexahn shareholders moving forward,” said Douglas J. Swirsky, President and Chief Executive Officer of Rexahn. “The decision by our management and board to choose Ocuphire to be our merger partner will allow our shareholders to participate in a dynamic company with a robust pipeline, backed by a sizeable commitment from institutional investors to continue the development of multiple drug candidates in a growing ophthalmic market.”
Your No.2 Penny Stock Profile For This Thursday: Farmmi, Inc.
Farmmi, Inc. (Nasdaq: FAMI) processes and sells agricultural products in China, the United States, Japan, Canada, Europe, and the Middle East. The company offers shiitake and Mu Er mushrooms; and other edible fungi products, including bamboo fungi, agrocybe aegerila, pleurotus eryngii, grifola frondosa, coprinus comatus, and hericium erinaceus. It also operates Farmmi Jicai, an online store that sells edible fungi products under Forasen and Farmmi Liangpin brands; Farmmi Liangpin Market, an online store that sells edible fungi products under Farmmi Liangpin and Puyangtang brands, as well as other agricultural products purchased from third party manufacturers. The company offers its products through distributors.
Farmmi, Inc. (“Farmmi” or the “Company”) announced its subsidiary Zhejiang Forest Food Co., Ltd., has received an additional repeat order for distribution of its Shiitake mushrooms and black fungus in Israel.
Ms. Yefang Zhang, Farmmi’s Chairwoman and CEO, commented, “While China has been the world’s largest producer of high-quality Shiitake mushrooms, Israel has been a major consumer going back to ancient times. In addition to the many potential benefits of including mushrooms (shveml in Yiddish) in a regular diet, mushrooms are kosher in their natural state once checked for bugs. There are numerous nutritional benefits to eating mushrooms, which are fat-free, low-sodium and cholesterol-free. Mushrooms are rich with fiber, vitamins and minerals, with the flexibility to be consumed dried or used in soups, stews, appetizers and countless other delicious, healthy dishes. This latest order, our fifth from the same customer this year, reflects the healthy demand we are seeing and the overall momentum in our business in key markets worldwide.”
Your No.3 Penny Stock Profile For This Thursday: Tonix Pharmaceuticals Holding Corp.
Tonix Pharmaceuticals Holding Corp. (Nasdaq: TNXP), a clinical-stage biopharmaceutical company, focuses on discovering, licensing, acquiring, and developing drugs and biologics to treat and prevent human disease and alleviate suffering in the United States. It is developing TNX-102 SL, a tablet containing cyclobenzaprine that is Phase III clinical trial for the treatment of fibromyalgia; and that is in Phase III clinical trial for the treatment of posttraumatic stress disorder, as well as TNX-102 SL for the treatment of agitation in Alzheimer’s disease and alcohol use disorder. The company is also developing TNX-1300, a recombinant protein enzyme, which is in Phase II clinical trial for the treatment of cocaine intoxication; TNX-1800, a vaccine for the novel coronavirus disease; and TNX-801, a potential smallpox and monkeypox vaccine; TNX-601 CR, a tianeptine oxalate controlled release tablet for the treatment of depressive disorder, posttraumatic stress disorder, and neurocognitive dysfunction from corticosteroids.
Tonix Pharmaceuticals Holding Corp. announced an expansion of its strategic collaboration with Southern Research to include a study of T cell immune responses to SARS-CoV-2 in volunteers who have recovered or remain asymptomatic after exposure to COVID-19. The research is part of an ongoing and broader collaboration between Tonix and Southern Research to develop and conduct animal testing of Tonix’s TNX-1800, which is a live replicating virus vaccine designed to protect against COVID-19. The data will support the interpretation of animal trial results with TNX-1800, which are expected in the fourth quarter of 2020 and subsequent human trials.
“More than 200 years of vaccine experience, beginning with Dr. Edward Jenner’s landmark discoveries with horsepox and cowpox vaccines, have shown that T cell eliciting vaccines are particularly effective against viruses,” said Seth Lederman, M.D., President and CEO of Tonix. “We believe that protective vaccines against the SARS-CoV-2 virus will be similar in that regard. The data we plan to collect from recovered and asymptomatic COVID-19 volunteers will inform vaccine development on how to safely provide to vaccine recipients the same immune responses that others got from recovering from actual CoV-2 infection. If approved by the U.S. Food and Drug Administration (FDA) for use in healthy, non-pregnant adults without moderate or severe eczema, TNX-1800 would feature single-dose immunity without the use of adjuvants, ease of manufacturing on readily available systems, and glass-sparing distribution since we believe 100 doses of TNX-1800 could be packaged in a single vial. Our goal with TNX-1800 is to develop a vaccine that is well tolerated, produces strong, long-lasting immunity, and can be rapidly and broadly deployed.”
Dr. Lederman, a former tenured professor at Columbia Medical School, who has made original contributions to immunology and virology, continued, “Tonix’s TNX-1800 is based on a virus that we believe is closely related to Dr. Jenner’s first vaccine. Vaccines that descended from Dr. Jenner’s vaccine were used to eradicate smallpox globally, the only virus ever successfully eradicated. Smallpox was spread through the respiratory route, but it was eradicated with a vaccine administered in the arm. Tonix’s lead COVID-19 vaccine candidate, TNX-1800, is designed to elicit a predominant T cell response, with some antibody response, while three other early candidates in the Company’s vaccine portfolio are designed to elicit almost pure T cell responses.” Dr. Lederman added, “The features of a protective immune response to SARS-CoV-2 remain unknown. But since SARS-CoV-2 is a virus, we believe that T cell responses, in particular T Helper Type 1, or TH1 responses, will play an important if not dominant role in protecting against serious illness from COVID-19. These studies will provide us with a blueprint for interpreting the results of planned animal and human studies with TNX-1800.”
Raj Kalkeri, Ph.D., from Southern Research and technical lead for this study, said, “This is groundbreaking research with regards to COVID-19. As scientists, we know that the most successful vaccines mimic and potentiate how the immune system responds to an invader. This additional work we are doing with Tonix will add focus to that objective. We are looking forward to a timely completion of this study, utilizing readouts from a variety of assays that can provide information about TH1 or other types of immunity.”