What a wild week this has been as we’ve been closely monitoring several penny stocks. Even several blue-chip stocks have been red hot as they have taken strides to earn back what they might have lost over the past few months. That said, I’m under the impression that small-cap stocks were the champs of the week. I can say that as I personally saw a multitude of stocks in the $1.00 range climb all the way to $4.00 or beyond.
When investors see stats like these, there is no wonder why they are drawn to penny stocks. They might not all rocket like the ones I monitored this week, but they have a better chance for a short-term or even intraday move of over 100% than the big boys like an Alphabet Inc. or an Amazon.com, Inc.
When it comes down to it, you need to have your own strategy for watching and trading penny stocks. For the most part, every penny stock will not be a short-term vertical mover. Actually, if you go back and study the first several months of 2020, many penny stocks have been on a slow grind up the charts and not the quickest of runners. But, as I’ve been talking about recently, it’s all about having a game plan, knowing when to strike, and doing your due diligence. Here are a handful of stocks to watch in the short-term.
Your Top No. 1 Penny Stock To Monitor Short-term: Sonoma Pharmaceuticals, Inc.
Sonoma Pharmaceuticals, Inc. (Nasdaq: SNOA is a global healthcare leader for developing and producing stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound care, animal health care, eye care, oral care and dermatological conditions. The company’s products reduce infections, itch, pain, scarring and harmful inflammatory responses in a safe and effective manner. In-vitro and clinical studies of hypochlorous acid (HOCl) show it to have impressive antipruritic, antimicrobial, antiviral and anti-inflammatory properties. Sonoma’s stabilized HOCl immediately relieves itch and pain, kills pathogens and breaks down biofilm, does not sting or irritate skin and oxygenates the cells in the area treated assisting the body in its natural healing process. The company’s products are sold either directly or via partners in 53 countries worldwide and the company actively seeks new distribution partners.
Sonoma Pharmaceuticals, Inc. and its partner, the MicroSafe Group, Dubai, announced an important break-through in the fight of the global coronavirus pandemic. MicroSafe Care Australia received approval for their patented and trademarked Nanocyn® Disinfectant & Sanitizer, which is manufactured by Sonoma using its patented Microcyn® Technology, to be entered into the Australian Register of Therapeutic Goods (ARTG) for use against SARS-CoV-2 (COVID-19). Claims that a disinfectant has a virucidal effect must be expressly permitted by the Australian Therapeutic Goods Administration before being used in consumer advertising (including on the label) in Australia.
Recently, Sonoma announced that it had successfully closed an Asset Purchase Agreement with MicroSafe Group, for the exclusive rights of the Microcyn® technology-based disinfectant for sale in the Australian market under the brand name Nanocyn® and the European and Middle Eastern markets under the brand name MicroSafe®.
“We have been fighting global pandemics for nearly 20 years with our safe and non-toxic Microcyn® based disinfectant and we are very pleased with the test results and subsequent approval of the SARS-CoV-2 (COVID-19) label claim for our Nanocyn® disinfectant in Australia. The label claim comes with a 30 second virucidal kill time on hard surfaces, a landmark kill time for a non-toxic disinfectant,” Mrs. Safa Qadumi, Founder and CEO of the MicroSafe Group Dubai, said.
Your Top No. 2 Penny Stock To Monitor Short-term: Summit Midstream Partners, LP
Summit Midstream Partners, LP (NYSE: SMLP) is a value-driven limited partnership focused on developing, owning and operating midstream energy infrastructure assets that are strategically located in unconventional resource basins, primarily shale formations, in the continental United States. SMLP provides natural gas, crude oil and produced water gathering services pursuant to primarily long-term and fee-based gathering and processing agreements with customers and counterparties in six unconventional resource basins.
Summit Midstream Partners, LP (“SMLP” or the “Partnership”) announced (the “Closing Date”) that it has closed the previously announced acquisition from Energy Capital Partners II LLC (“ECP”), of (i) Summit Midstream Partners, LLC (“Summit Investments”), the privately held company that indirectly owns SMLP’s general partner, Summit Midstream GP, LLC (the “GP”), and (ii) 5.9 million SMLP common units owned directly by an affiliate of ECP, for $35 million in cash plus warrants covering up to 10 million SMLP common units (the “GP Buy-in Transaction”). Concurrent with the closing of the GP Buy-in Transaction, ECP loaned the full $35 million of cash proceeds to SMLP under a first-lien senior secured credit agreement, which will bear interest at 8.0% per annum and mature on March 31, 2021 (the “ECP Loan”).
SMLP intends to utilize the proceeds of the ECP Loan to enhance its liquidity position and for general corporate purposes. The acquisition results in a more simplified corporate structure whereby Summit Investments, and all of its subsidiaries, became wholly owned subsidiaries of SMLP, and SMLP will be governed by a board consisting of a majority of independent directors.
Your Top No. 3 Penny Stock To Monitor Short-term: AVEO Pharmaceuticals, Inc.
AVEO Pharmaceuticals, Inc. (Nasdaq: AVEO) is developing an oncology pipeline designed to provide a better life for patients with cancer. AVEO’s strategy is to focus its resources toward development and commercialization of its product candidates in North America, while leveraging partnerships to support development and commercialization in other geographies. AVEO’s lead candidate, tivozanib (FOTIVDA®), is approved in the European Union, the United Kingdom, Norway, New Zealand and Iceland for the treatment of adult patients with advanced renal cell carcinoma. AVEO is working to develop and commercialize tivozanib in North America as a treatment for renal cell carcinoma, hepatocellular carcinoma and other cancers.
AVEO Oncology today announced the presentation of results from the final analysis of overall survival (OS) in its pivotal Phase 3 TIVO-3 trial comparing tivozanib, the Company’s next-generation vascular endothelial growth factor (VEGF) receptor tyrosine kinase inhibitor (TKI), to sorafenib in 3rd and 4th line renal cell carcinoma (RCC). The results, which have been submitted to the U.S. Food and Drug Administration (FDA) as part of the Company’s New Drug Application (NDA) submitted in March, are being featured today at the ASCO 2020 Virtual Scientific Program in a poster titled, “TIVO-3: Final OS analysis of a phase III, randomized, controlled, multicenter, open-label study to compare tivozanib to sorafenib in subjects with metastatic renal cell carcinoma (RCC)” (abstract 5062). A copy of the poster will be available at the ASCO virtual meeting beginning today, May 29, 2020, at 8:00 AM ET.
As previously announced, the TIVO-3 trial met the primary endpoint of progression free survival (PFS) (HR=0.73; p=0.02) and the secondary endpoint of overall response rate (ORR) (18% vs. 8%; p=0.02). The final OS hazard ratio (HR), which assesses the overall relative risk of death, was 0.97 (95% CI: 0.75-1.25; p=0.82), favoring tivozanib and improving from the previously reported interim HR of 0.99. Updated median OS, representing a single point in time in the OS curve, was 16.4 months for tivozanib (95% CI: 13.4-22.2) and 19.2 months for sorafenib (95% CI: 15.0-24.2). These OS HR results are similar to those of prior VEGFR TKI vs. VEGFR TKI studies in RCC.1-4.
Tivozanib was found to be generally well-tolerated, with grade 3 or higher adverse events (AEs) consistent with those observed in previous tivozanib trials. The most common AE in patients receiving tivozanib was hypertension (38% vs. 25% for sorafenib, of treated patients), an AE known to reflect effective VEGF pathway inhibition. Infrequent but severe AEs reported in greater number in the tivozanib arm were thrombotic events (5% vs. 4% for sorafenib, of treated patients) similar to those observed in previous tivozanib studies. Dose reductions and interruptions due to AEs were significantly lower for tivozanib vs. sorafenib, despite nearly double the average number of cycles initiated for the tivozanib arm (11.9 months vs. 6.7 months for sorafenib), treatment related AEs leading to permanent discontinuation were 8% for tivozanib vs. 15% for sorafenib.
“We believe the TIVO-3 data demonstrate a favorable risk/benefit profile for tivozanib in the growing population of patients who have relapsed or become refractory to multiple lines of therapy, including checkpoint inhibitors,” said Dr. Pal. “The lack of clinical data to guide treatment decisions in a robust, evidence-based manner in this setting is a serious and growing unmet medical need, particularly as this population continues to grow thanks to improved treatment in earlier lines. TIVO-3 provides the first positive superiority study to help guide this important treatment decision and, furthermore, offers this highly refractory patient population a favorable tolerability profile as indicated by fewer dose reductions, interruptions and discontinuations over a less selective VEGFR TKI in sorafenib.”