From time to time, it would appear that penny stocks can materialize out of thin air. It’s important, almost integral, to be able to follow a chart and see which way momentum is carrying a stock. In 2020, especially the previous month, many penny stocks have shown the ability to climb, then consolidate only to begin the climb all over again. Swings like these display volatility at its finest and give profit hunters a chance to score.
Timing. It’s the key. It’s easy to say you were in a winning trade, but if you held past the breakout and got out on the way down, did you really win? Several stocks from this month have provided significant breakouts only to give it all back. Does it hurt to take some profit during the breakout even if it keeps going up higher? I don’t think so. Do you need to swing for the fence when a sharp-laced single gets the job done too?
Read More: 3 Top Clean Energy Penny Stocks For 2020
Are you new to the penny stock game? If you are, there are important things to keep in mind. Inexpensive stocks can be a thrill to track. They exhibit volatility and can be seriously risky. That said, if you know how to read charts and track momentum, you can stay a step ahead of the competition. Knowing this, I’ve put together a list of a few stocks trending in the right direction based on recent news.
Your Top Penny Stock To Watch No. 1: Aurora Cannabis, Inc.
Aurora (NYSE | TSX: ACB) is a global leader in the cannabis industry serving both the medical and consumer markets. Headquartered in Edmonton, Alberta , Aurora is a pioneer in global cannabis dedicated to helping people improve their lives. The Company’s brand portfolio includes Aurora, Aurora Drift, San Rafael ’71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, and ROAR Sports. Providing customers with innovative, high-quality cannabis products, Aurora’s brands continue to break through as industry leaders in the medical, performance, wellness and recreational markets wherever they are launched.
Aurora Cannabis Inc. and Reliva, LLC (“Reliva”) a leader in the sale of hemp-derived CBD products in the United States, are pleased to announce that they have entered into an agreement pursuant to which Aurora will acquire all of the issued and outstanding membership interests of Reliva. Under the terms of the agreement, members of Reliva will receive approximately US$40 million of Aurora common shares.
The transaction also includes a potential earn-out of up to a maximum of US$45 million payable in Aurora shares, cash or a combination thereof, over the next two years contingent upon Reliva achieving certain financial targets. The structure of the earn-out isdesigned to align risk and reward between Aurora shareholders and Reliva management to focus on continued strong operational and financial execution.
The transaction is expected to close, subject to customary closing conditions, in June 2020.
Your Top Penny Stock To Watch No. 2: Atossa Therapeutics, Inc.
Atossa Therapeutics, Inc. (Nasdaq: ATOS) is a clinical-stage biopharmaceutical company seeking to discover and develop innovative medicines in areas of significant unmet medical need with a current focus on breast cancer and COVID-19.
Atossa Therapeutics, Inc. announced the successful results from in vitro testing of AT-H201, Atossa’s proprietary COVID-19 drug candidate. The preliminary study results show that AT-H201 inhibits SARS-CoV-2 infectivity of VERO cells in a laboratory culture, which are the standard cell types being used to study infectivity of the coronavirus. SARS-CoV-2, sometimes called the coronavirus, is the COVID-19 infectious agent.
AT-H201 is designed to act as a “chemical vaccine” by binding to the surface of the coronavirus and inhibiting the ability of the virus to enter a cell (“viral infectivity”).
Your Top Penny Stock To Watch No. 3: Hepion Pharmaceuticals, Inc.
Hepion Pharmaceuticals, Inc. (Nasdaq: HEPA) is a clinical stage biopharmaceutical company focused on the development of targeted therapies for liver disease arising from non-alcoholic steatohepatitis (NASH) and other types of hepatitis.
The Company’s lead drug candidate, CRV431, reduces liver fibrosis and hepatocellular carcinoma tumor burden in experimental models of NASH. Preclinical studies also have demonstrated antiviral activities towards HBV, HCV, and HDV through several mechanisms. These diverse therapeutic activities result from CRV431’s potent inhibition of cyclophilins, which are involved in many disease processes. Currently in clinical phase development, CRV431 shows potential to play an important role in the overall treatment of liver disease – from triggering events through to end-stage disease.
Hepion Pharmaceuticals, Inc. announced the advancement to the fourth dose level in its ongoing clinical trial of CRV431, a Phase 1b multiple ascending dose (“MAD”) study.
“This ongoing MAD study continues to demonstrate CRV431’s safety and tolerability with no indications of any dose-limiting toxicities,” said Dr. Patrick Mayo, Hepion’s Senior Vice-President, Clinical Pharmacology. “An additional dose escalation beyond 300 mg may be warranted to fully characterize CRV431’s safety and maximum tolerated dose, but we will make that determination once the 300 mg cohort has been completed.”