If you’ve followed penny stocks, you know they can move in phases. Earlier in June, for instance, we saw a mad-dash by retail traders looking for penny stocks to buy. Then at the start of July, things cooled off a bit. This doesn’t mean there weren’t opportunities in the stocks market, obviously.
However, with this in mind, it is important to pick and choose your opportunities wisely. If we know that small-caps are going through a bit of a short-term shift, the breakouts could be shorter, in general. For that reason, it’s likely a prudent thing to analyze your trading style and see if its “tuned” for the current market conditions.How To Buy Penny Stocks
When it comes to these types of stocks, just like blue-chips, they can go through cycles. While it’s always important to have a trading strategy, there are other things to consider. One of these, as I said above, is revisiting your strategy.
Make sure your trading plan is optimized for the broader market conditions as we whole. On the other hand, maybe your strategy is sound and no changes are needed. But the main point is that when you see shifting market trends, step back, analyze your current strategy and make sure it’s applicable.
So where do analysts play a role? Penny stocks and analyst ratings tend to have a different type of impact on new traders. While these firms are understood to have a keen understanding of the market, they’re people too. Just because an analyst has a “sell rating” on a stock it doesn’t mean it’s a bad company or not worth a closer look. Similarly, just because an analyst has a “buy rating” on a stock it doesn’t mean you should throw caution to the wind and YOLO a trade.
It all comes down to researching penny stocks to buy. Obviously you can take things like analyst ratings under consideration but these shouldn’t be the only thing you look at. With this in mind, are these penny stocks to buy or ignore right now?Penny Stocks To Hold According To Analysts
What does a hold rating mean in penny stocks? Different analysts may have different names for it but a “hold” recommendation is a middle ground for analysts. Essentially, they think a stock will move with the market or in line with current trends. This rating falls between “buy” and “sell”.Tonix Pharmaceuticals Holding Corp.
Shares of Tonix Pharmaceuticals Holding Corp. (TNXP Stock Report) have picked up in activity recently. We discussed this company a few days ago after Tonix announced its intent to purchase an approximately 40,000 square foot facility in Massachusetts to use as laboratories. Tonix’s Advanced Development Center is expected to expand and strengthen the Company’s capabilities in process and analytical development.
At the end of the week, the company announced that it has met its target enrollment of approximately 470 participants in its Phase 3 RELIEF trial of TNX-102 SL (cyclobenzaprine HCl sublingual tablets) 5.6 mg. The treatment is in development as a non-opioid, centrally acting analgesic, taken daily at bedtime for the management of fibromyalgia.
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Tonix also explained an optional interim analysis is expected in September 2020 of the first 50% of randomized participants. Topline data is expected in the fourth quarter of 2020 based on the current sample size. Therefore, this could be something to keep in mind later in the year as well. Right now, analysts have a “hold rating” on TNXP stock. Do you think that this is a reasonable rating?Oragenics Inc.
Oragenics Inc. (OGEN Stock Report) is another one of the penny stocks we’ve watched for a while. Amid the COVID-19 outbreak, OGEN stock saw several breakout periods. But up until recently, it hadn’t established a true trend. Over the last few weeks, Oragenics reported several key updates that have seen the stock break away from its sideways trend. In May its Noakis Terra subsidiary signed a deal with Aragen Bioscience. The arrangement will see the two companies work to advance the SARS CoV-2 vaccine candidate, TerraCov2.
Following a presentation in June, attention was on the company’s current pipeline. But that was really the last we saw from the company until recently. However, in July Oragencis reported its latest milestone. The company provided an update on progress with its SARS-CoV-2 (COVID-19) vaccine candidate. It also announced the termination of its clinical development program with AG013 for the treatment of severe oral mucositis in cancer patients.
“As we await Biomedical Advanced Research and Development Authority and other federal and state non-dilutive grant decisions, we expect to use our available cash to continue development of TerraCoV2, with the goal of bringing this COVID-19 vaccine candidate into human clinical trials by early 2021,” said Alan Joslyn, Ph.D., President and CEO of Oragenics. Right now, the analyst profile shows a “hold rating” on OGEN stock. Considering this news, the termination of its AG013 program, and the 83% move since May 20th, will OGEN stock continue this recent uptrend?Penny Stocks To Buy According To Analysts
What does a buy rating mean in penny stocks? Similar to “hold”, different analysts may have different names for it but a “buy” recommendation is a top-end for analysts. Essentially, they think a stock may be undervalued.Aytu BioSciences, Inc.
Another one of the big coronavirus penny stocks to watch this year was Aytu BioScience, Inc. (AYTU Stock Report). In late-February, this penny stock first hit the radar. At the time AYTU stock was trading around $0.75 and the company had just closed on an acquisition of Innovus Pharmaceuticals. Fast-forward a bit and Aytu had managed to jump to highs of $2.99 about 2 weeks later. Aytu BioScience Inc is a specialty pharmaceutical company commercializing novel products addressing patient needs.
Last month the company announced that it would be joining the Russell 3000® Index. Membership in the Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index as well as the appropriate growth and value style indexes.
This week Aytu followed up on its COVID-19 test distribution efforts. The company signed a distribution agreement with Apollo Med Innovations, Inc. to distribute the COVID-19 IgG/IgM Rapid Test Cassette. Apollo’s network consists of over 1,000 practices across the United States. This distribution relationship expands Aytu’s coverage of clinician and professional customers to a large network of medical clinics, clinical laboratories, and wellness centers. As far as analyst ratings show, currently AYTU stock carries with it a “Strong Buy” rating.Anixa Biosciences
Anixa Biosciences (ANIX Stock Report) is a biotechnology company developing a number of programs addressing certain diseases including cancer. The first quarter of the year wasn’t the greatest for ANIX stock. Shares dropped from over $4 to under $1.40. However, since then Anixa stock has been steadily moving back. At the end of June, ANIX stock reached highs of $3.84 just before its first big update on July 2.
At the time, the company announced it strategically realigned its business focus and redirected resources to exclusively focus on the development of therapeutics and vaccines in high-need patient populations. As part of this realignment, Anixa said it suspended the development of the Cchek™ liquid biopsy technology. The focus shifted to the development and expansion of its therapeutics and vaccine portfolio. This includes a cancer immunotherapy program being developed in partnership with the Moffitt Cancer Center. Anixa’s treatment technology has been licensed from The Wistar Institute and is being developed at the Moffitt Cancer Center.
Last week the company reported the completion of its initial screening process and identified an additional compound that could inhibit COVID-causing enzymes. It didn’t seem to have a dramatic impact on the market. However, its latest update could be something to keep in mind. On July 10, Anixa announced that the European Patent Office issued an Intention to Grant notice. This was for the first European patent covering Anixa’s CAR-T cancer treatment technology. As far as analysts ratings, these show a “Strong Buy” rating for ANIX stock right now. Do you agree with that rating? Leave a comment below.