Should These Be On Your Watch List Right Now?
When it comes to penny stocks, the extended hours can be some of the most important. Trading is limited depending on your account, however, it’s not completely shut off. What that means is that there’s a chance to identify potential trends early. Here’s what I mean. Companies will sometimes choose after or before the market to put out news, filings, etc.
There might also be larger companies reporting earnings or big developments. In all cases, these can act as major catalysts for penny stocks. It doesn’t matter if the market is technically closed, the early reaction from extended hours traders tends to signal what the market might look like during the following session. Now, is this always the case, of course, it isn’t. There are plenty of exceptions to this. However, more times than not, we’ll see aftermarket momentum building that generally continues into the premarket session to follow.
Penny Stocks To Watch
Monday saw another round of heavy selling pressure that took the SPY below its 50 Day Moving Average. The SPY also saw its highest single-day share volume of October. While the market ended up recovering a bit by the end of the day, the volatility has triggered some mixed sentiment heading into tomorrow. I don’t think this is a bad thing but it is something to keep in mind especially in light of the upcoming U.S. Presidential election.
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This leads us to a few of the penny stocks to watch heading into the rest of the week. Some of these experienced recent momentum while others have just begun turning heads. Aftermarket trading kicked things up a notch for a few companies. Sectors including biotech and communications have all seen more small cap activity. Will these be on your watch list this week?
Penny Stocks To Watch: GT Biopharma Inc. (GTBP)
While there wasn’t any post-market trading in GT Biopharma Inc. (GTBP Stock Report), there was a late afternoon surge. Over the last month or so, shares of GTBP stock have traded more actively. This hasn’t come without its share of company milestones, however. The immunotherapy company focuses on advancing its TriKE™ platform. It’s a combination protein that bridges an immune cell and a tumor cell to drive tumor cell killing power exponentially. It has also led to new first-in-human phase studies to treat leukemia. Specifically, its GTB-3550 is in a current Phase I/II trial targeting treatment for patients with acute myeloid leukemia.
In a recent Dose Level 3 update, GT said that the patient saw a favorable response to the treatment. There was an improvement in marrow cellularity as well as a decrease in AML blast levels from 18% to 12% in the bone marrow. Interim results were also chosen for presentation at the upcoming American Society of Hematology Annual Meeting.
But this hasn’t been the only development to take into consideration. GT has continued focusing on new opportunities for the TriKE™ platform. The company brought on new, scientific advisory board members with backgrounds in non-hematologic cancers such as prostate. Furthermore, recent news suggests the potential for further advancement following a publication in the journal, Cancers.
The findings presented indicate that a specific protein, B7H3, when targeted with TriKE™ showed potential to enhance natural killer cell immunotherapy in solid tumor settings further supporting its further clinical development. Shares have been trending above $0.20 for the last few weeks as GTBP stock continues testing the upper limit of its current channel at $0.25.
Penny Stocks To Watch: Aerpio Pharmaceuticals Inc. (ARPO)
Aerpio Pharmaceuticals Inc. (ARPO Stock Report) is another biotech penny stock to watch right now. In fact, it’s been on the move for most of the year. Only recently has ARPO stock seen a longer period of consolidation. Prior to this, the penny stock had managed to climb to highs of $1.90 from around $0.60 at the start of the year.
On Monday afternoon, ARPO stock traded heavily in the aftermarket session. This came after the company’s recent announcement. Aerpio reported the dosing of its first patient in the Phase 2 trial, with its razuprotafib treatment. This is targeting the prevention and treatment of ARDS in patients with moderate-to-severe COVID-19.
“Razuprotafib may also benefit COVID-19 patients who have not yet progressed to ARDS, and we hope that it may fill the need for effective therapeutics for this devastating disease while vaccine development advances. Additionally, therapeutics that can prevent or treat ARDS in COVID-19 may prove useful in other diseases where ARDS is the primary cause of morbidity and mortality.”
Joseph Gardner, President and Founder of Aerpio
The penny stock hit highs of $1.76 just after the news broke and ended up settling out around $1.37 before the final close. While this was a large pullback from the aftermarket high, it’s about 10% higher than the close during normal market hours on Monday.
Penny Stocks To Watch: SG Blocks Inc. (SGBX)
SG Blocks Inc. (SGBX Stock Report) is another one of the penny stocks recently catching some momentum thanks to headlines. There’ve been several clear trends in the stock market recently. COVID-19, for one and renewable energy for another. This has also wrapped in the expanding EV market as well. Earlier this month, SG Blocks inked a deal with another public company, Blink Charging (BLNK Stock Report), another penny stocks alumni, to expand its reach into the EV space.
Specifically, through the deal, SG will work with Blink to bring Blink’s EV charging stations together with SG Blocks’ container-based building structures. These EV charging containers will provide off-grid charging solutions through combined solar and battery components in multiple capacities. While this trend has persisted in recent weeks, I think the coronavirus side of the story has taken more of a front seat this week in light of new coronavirus case records being set in the U.S.
What does this have to do with SG? If you’ve followed the story, you’ll remember that the company was also deploying its container solution to address the need for more coronavirus testing. Along with architecture firm, Grimshaw, the two announced plans to build modular coronavirus testing centers for Los Angeles International Airport. The centers are expected to be delivered to LAX on or before November 1, 2020. As the date grows near, so too could some speculatively bullish sentiment.
Penny Stocks To Watch: Insignia Systems Inc.
If you’re an active trader, you likely came across this company a few days ago. Insignia Systems Inc. (ISIG Stock Report) broke out big last Wednesday moving from around $0.70 to closing highs of $1.75. Like many parabolic penny stocks, ISIG shares scored big points in a single day then gave back most of them during the course of the next few days. Now, we’re at the beginning of a brand new week and ISIG stock is back in motion. Furthermore, a strong move after hours could also be something that gets this onto watch lists for Tuesday morning.
Insignia is a marketing company and while there hasn’t been much news in the form of press releases, the filings have told more of the story. Not only has there been significant institutions buying, but a Schedule 13D on Monday also showed to what extent that buying has been.
Cable Car Capital LLC reported a 4.99% stake in the company. This comes just a few days after Funicular Fund, LP filed a FORM 4 showing it sold almost 1 million shares. This brought its total to just over 1.3 million. Despite the selling from Funicular, the fact remains that institutions continue holding sizable positions in the company.
The latest filing from Cable Car, however, seems to have gotten the market excited. The main focus now is whether or not there is more follow-through or if this momentum fizzles out before the end of the week. With an outstanding share count of fewer than 13 million shares, this low float penny stock was one to watch after the close on Monday.