We’ve got a whole new month and plenty of penny stocks to watch for potential in November. Regardless of where you stand on the matter, you understand that there’s always money to be made with stocks under $5. How you make money is the biggest focus as a trader or investor.
Are you taking the approach of “buy and hold” or are you in and out before the closing bell? No one can perfectly time the market but understanding how to read charts, monitor momentum, and identify potential catalysts also helps. This week is obviously a much different week compared to others. Care to guess why?
If you said the U.S. Presidential Election, you’re right. But even more than that, we’ve got to take into consideration that COVID is still driving headlines too. Parts of Europe are going back into lockdown. Over the weekend, UK Prime Minister Boris Johnson said England is going to go into a 1-month lockdown. He went as far as saying that there could be “twice as many deaths over the winter as we saw in the first wave.”
“I make absolutely no apology whatever for doing my level best — our level best as a government — to avoid going back into a national lockdown.”Prime Minister Boris Johnson
Given the fragile state of the European economy already, many are uneasy about this decision. However, Johnson continued defending his stance on this measure.
Pair this with the uncertainty of the election and we’re likely to see a very volatile scenario play out. With that, especially if you’re trading penny stocks, we know that it’s this volatility that has helped generate some of the biggest momentum swings in the market. Will some of these names be on your list before next week?Penny Stocks To Watch: GT Biopharma Inc.
Shares of GT Biopharma Inc. (GTBP Stock Report) held the line on Monday straddling its 50-day moving average once again. Since the start of October, the 50 DMA has acted as a relatively consistent level of support. This is based on how GTBP stock has tested but not broken below the line so far. Meanwhile, daily volume remains heightened as cancer stocks have gotten much more attention in the fourth quarter.
Specifically, GT Biopharma has developed an immunotherapy platform designed to act as a true, off-the-shelf option for multiple types of cancers. Its TriKE technology has shown an innate ability to enhance tumor cell killing by increasing the amount of specific NK cells within the tumor’s own microenvironment. In this light, TriKE has been evaluated in ovarian, breast, prostate, pancreatic ductal adenocarcinoma, and lung cancer models.
The initial focus on GT’s lead candidate for acute myeloid leukemia, GTB-3550 continues demonstrating considerable progress in its current Phase I/II trials. Not only has it returned favorable Dose Level data, but interim results were also chosen for presentation at the upcoming ASH Conference.
What’s more, is that GT hasn’t solely focused on one pipeline treatment. The obvious goal has been expanding TriKE as a gold standard in cancer treatment. A recent publication in the journal Cancers suggested a TriKE targeted treatment could justify the advancement for treating certain tumor cells.Penny Stocks To Watch: JAKKS Pacific, Inc.
JAKKS Pacific, Inc. (JAKK Stock Report) has seen a steady yet subtle uptrend since mid-October. The toymaker has been dealing with the struggle that COVID-19 had wrought on many product-based companies. JAKKS brands include Fly Wheels, Kitten Catfe, ReDo Skateboard Co, Kids Only, and others.JAKK stock has hung out in penny stock territory for the better part of the last few months.
We saw JAKKS turn some heads last month after Ryan Seacrest sent out a tweet that highlighted the company’s products. But like most tweet-fueled breakouts, JAKK stock wasn’t able to maintain that activity. This week could be an important one to have JAKK on your watch list. The company was set to report earnings Monday afternoon and based on early results, 3rd quarter results have definitely come in strong.
Analysts expected the company to report an earnings per share of $3.09. JAKKS beat this by more than 50% with an EPS of $4.76. Sales also beat estimates with JAKKS recording over $242 million during the quarter compared to estimates of $230.1 million. Management’s outlook was also bullish.
“Looking ahead to next year, we believe sales will be buoyed by a more robust entertainment slate by our licensing partners compared to 2020, and what we hope will be a return to more normal consumer shopping patterns and gift giving, as well as a return to more normal Halloween activities. We believe our continued emphasis on margin improvement and cash preservation will lead to improved results in 2021.”Stephen Berman , JAKKS Pacific’s Chairman and CEOPenny Stocks To Watch: Trevena Inc.
Trevena Inc. (TRVN Stock Report) was one our list of penny stocks to watch over the weekend. One of the highlights we actually were able to preview before a formal update was the company’s DEA scheduling for its OLINVYNK. The Federal Register site showed an “unpublished document” referencing “Schedules of Controlled Substances: Placement of Oliceridine in Schedule II”. The next day the company confirmed the information, formally. It pays to research.
This week, TRVN stock is on the radar in anticipation of its earnings. While there hasn’t been any official press release, the 10Q filing has been released so let’s look at some figures. For starters, license revenue came in at $3 million thanks to a milestone payment received in August. This was based on its license agreement with Jiangsu Nhwa Pharmaceutical Co. Ltd for the development and commercialization of OLINVYK for pain management in China.
This was obviously higher than $0 in revenue for the same period in 2019. Furthermore, Trevena was able to record a decrease in its loss per share, year-over-year. In Q3 2019, the company reported a loss per share of $0.09. This year, Trevena’s Q3 net loss per share was $0.04. What’s more, is that the company said it believes it has enough cash and cash equivalents as of September 30th to be sufficient to fund operating requirements through Q4 of 2022.
The big focus heading into November will likely be on OLINVYK, initially. With the recent DEA putting it as a Schedule II substance, the company expects the treatment to become commercially available by the end of this month. We’ll have to see what, if anything, comes from the company to expand on the figures from these earnings. Year-to-date, TRVN stock is up 220% so far.Penny Stocks To Watch: Muscle Maker Inc.
Another one of the penny stocks we discussed this weekend was Muscle Maker Inc. (GRIL Stock Report). Shares moved in unison with several other food & food delivery-related names amid caution of another lockdown. Regardless, we haven’t gone the route that Europe has so far but GRIL stock didn’t experience any downbeat sentiment on Monday. In fact, the penny stock continued extending its now 3-day move that began late last week.
What helped give another extra boost was some aftermarket acquisition news. As you may or may not know, the company has been in roll-up mode, buying up locations. This week the company announced that in addition to its recent location purchases in Manhattan, Muscle Maker acquired one of its previously franchise-owned locations in the Northeast neighborhood of Philadelphia.
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Michael Roper, CEO of Muscle Maker Grill commented, “Similar to our recent Chelsea NYC purchase, this location already has brand awareness which should help with the rollout of our ghost kitchens over the balance of this year. The company will continue to look for opportunities to grow our corporately owned location portfolio including individual locations and potentially larger acquisitions. This acquisition made a lot of sense given its proximity to a large fitness facility and stable history of providing “healthier for you” options to the local market.”Penny Stocks To Watch: Acorda Therapeutics Inc.
Another trending biotech penny stock Monday was Acorda Therapeutics Inc. (ACOR Stock Report). Speculation has begun surging amid upcoming earnings from the company. The third quarter didn’t appear to be particularly active by just looking at some headlines. However, there were a few milestones to note. During the early part of Q3, Acorda received that income tax refund for around $12.7 million. Much of the attention recently for Acorda has focused on developments that happened in October.
However, if you take a look in late September, you’ll see that there was an update on a Government Contract with the Department of Veterans Affairs* signed on Sam. gov on the 24th for “pharmaceutical preparation manufacturing”. This was the initial catalyst that sparked the initial momentum heading into October. Fast forward a few weeks, and Acorda has reached several key milestones with the market waiting for updates. Specifically, last month, the company announced that it was entitled to receive $15 million in the form of a milestone payment from Biogen (BIIB Stock Report). This has to do with a license agreement for Fampyra used for improvement in walking in adults with MS.
The company said that it expects to receive the payment by the end of October 2020. So far there haven’t been any new updates on this. Furthermore, with earnings coming up, you’ve got to weigh the risk/reward here. While momentum has been strong, that can quickly change if earnings aren’t what traders expect. In its second quarter, Acorda was able to beat estimates on both EPS and sales. Will that be the case again this time around?