Tech & Biotech Stocks To Watch Right Now
This is the last full week of trading before the end of the year and penny stocks are finishing out 2020 just like they brought it in. These high-volatility, small-, micro-, and nano-cap names remain at the forefront of the day trading community. While 2019 was great for stocks under $5, 2020 is a very different animal. It’s also a year that we saw plenty of traders get first-hand exposure to these cheap stocks.
In general, the average trader thinks of penny stocks as worthless, speculative “bets”. But, as we’ve seen this year, no company is immune to falling on hard times. Then again, not all penny stocks represent companies down on their luck. This year, coincidentally, that was not really the case, though. We watched countless captains of industry plummet in March due to the coronavirus fallout. While some have recovered, others are still sitting well-below the $5 threshold. Considering the fact that many of these companies were trading above $10 or even $20 at the end of 2019, this was a significant blow for many.
One of the sectors that didn’t necessarily fall apart, however, was biotechnology. In fact, biotech penny stocks have been some of the top performers in 2020. Due to the added excitement coming from COVID-19 advancements, the millions of new traders this year gained exposure to the potential of health sciences companies. In addition to that, what began as a focus on only COVID stocks has bloomed into broader attention on biotech stocks, in general. With that, we’re seeing several of these small cap stocks make bigger moves at the beginning of the week. Will these be on your watch list before 2021?
Biotech Penny Stocks To Watch: Havn Life Sciences
Havn Life Sciences (HAVLF Stock Report) has been one of the mushroom stocks to watch this year. The company is part of the emerging movement behind psychedelic research lead by some of the top brass who originally carved out the early cannabis industry. Executive Chairman, Vic Neufeld was the CEO of Aphria from 2014 to 2019, which was the period of dramatic growth Aphria saw early on. It hasn’t seen that same growth since. However, Neufeld has now taken a seat at the table (literally) of Havn to hopefully leave a lasting impact on the early psychedelic industry.
This morning, Havn announced the first preclinical study to focus on the effects of psilocybin on the immune system. The study is in partnership with Dr. Geoffrey Bove, Dr. David Mokler and Susan Chapelle, eMBA. Havn will start this preclinical study next quarter. This study is the first step required to file an application for the development of psilocybin delivery methods that could address inflammatory and immune diseases such as arthritis.
“We intend to pursue the filing of an FDA application for psilocybin-based delivery methods, which may ultimately lead to new drug discovery. To date, minimal research has been done on psilocybin and its effects on human immunity, which is an area that has become more and more important.”
Vic Neufeld, Executive Chairman of Havn Life
Biotech Penny Stocks To Watch: Teligent Inc.
Teligent Inc. (TLGT Stock Report) isn’t one of the big breakout penny stocks with major COVID headlines. However, since mid-November, traders have been focused on one key event that could become a catalyst of its own. This is the company’s Special Shareholder meeting. The purpose of the Meeting was to ask stockholders to approve removing a restriction on the number of shares a holder or group of holders of the company’s 9.5% Series C Senior Secured Convertible Notes due 2023 may own at any one time.
Why that’s important right now is that will be reconvened at 10:00 a.m. Eastern on Wednesday. The purpose is to allow more opportunity for stockholders to vote on the proposals described in the company’s proxy statement filed in September.
While this is speculative momentum we’re seeing right now, it’s going to be interesting to watch TLGT stock this week. Will this bullishness continue heading into Wednesday?
Biotech Penny Stocks To Watch: 22nd Century Group Inc.
We’ve discussed 22nd Century Group Inc. (XXII Stock Report) for months and it’s more of a “bio-tech” company in my opinion. The company’s initial focus is on its nicotine tobacco cigarettes. Last week the company announced a purchase order from the FDA for 3.6 million of its Spectrum research cigarettes. These are set to be used in a government-backed study on certain health benefits of low-nicotine cigarettes.
“Zeller confirmed that the FDA remains ‘absolutely committed to everything that was in that plan.’ The continuation of studies to validate the role of reduced nicotine content cigarettes in public health and their potential to reduce and even eliminate tobacco-related diseases and death demonstrate the FDA’s continued commitment to tobacco harm reduction.”
James A. Mish, CEO of 22nd Century
The potential of this could open doors for 22nd Century, obviously. Aside from its low nicotine cigarette technology, 22nd Century has also begun working on different opportunities in cannabis and hemp. 22nd Century is in the process of securing IP around this franchise. With this, it seems as though the company has a unique and advantageous place in the tobacco and cannabis industries. What’s more is that the company presents at this week’s LD Micro Main Event Conference, Monday morning.
Tech Penny Stocks To Watch: Marathon Patent Group Inc.
Marathon Patent Group Inc. (MARA Stock Report) is another one of the tech penny stocks to watch before 2021. It may also be one to keep an eye on at the start of the new year as well. The company mines cryptocurrencies and as bitcoin prices rise, so does the value of the company’s assets. Over the last few months, Marathon has been expanding its mining footprint, acquiring new mining rigs. Last week, this trend continued with the company’s purchase of another 10,000miners from Bitmain. There’s also a plan to open a second data center.
Here’s the exciting part and something to consider heading into 2021. Upon delivery and full deployment, the company’s operations will include over 33,500 miners. But that isn’t the main point of attention. Even before this latest buy, the company said that it aims to generate $8.8 million in revenue per month producing 15-20 bitcoins per day. That was made public in November. Now that the company has brought on another 10,000 planned miners, it will be interesting to see how the company executes on this deployment strategy.
Something else to consider is the price of bitcoin itself. If you remember in 2018, the crypto bubble burst. That sent prices of bitcoin down to under $4,000. Will that be the case is 2021? Time will tell, but right now, analysts at HC Wainwright have turned more bullish on Marathon this week contributing to the upbeat sentiment so far. The firm raised its price target to $9 from $7.50.