When it comes to investing, penny stocks hold a unique allure. These stocks represent shares of small companies that typically trade below $5 per share, with some finding their place on major exchanges like the NYSE and Nasdaq. However, others trade in the over-the-counter market via platforms such as the OTC Bulletin Board. Remarkably, penny stock prices can drop as low as a fraction of a cent, offering a unique opportunity for investors seeking high-risk, high-reward scenarios.
Why Trade Penny Stocks? Unveiling the Potential for Explosive Growth
Penny stocks have a distinctive quality that sets them apart in the vast sea of investment options. Established blue-chip stocks tend to experience gradual price movements. But cheap stocks possess the potential to skyrocket in value within a short period. These small companies, often in their early stages of development, can undergo significant market shifts. They’re usually fueled by things like news, technological breakthroughs, or disruptive forces in their respective industries.
The Power of News: Catalyst for Penny Stock Market Movements
News has the power to ignite momentum in these stocks. It comes in various forms, from positive developments like contract wins, successful clinical trials, or partnership announcements to adverse events like regulatory issues or unfavorable financial results. Investors closely monitor penny stock news, as it offers vital insights into a company’s prospects, growth potential, and overall market sentiment.
How News Influences Penny Stock Investors
News can generate excitement and influence investor behavior. Positive news can attract a surge of buying interest, driving up demand and ultimately leading to an increase in the stock price. The opposite, negative news, can trigger panic selling and cause a sharp decline in the stock’s value. Therefore, staying updated and keeping a finger on the pulse of the latest news and developments surrounding penny stocks is essential for making informed investment decisions.
Navigating the Risks: Thorough Research and Risk Management in Penny Stock Trading
Trading penny stocks comes with its fair share of risks. These stocks are highly volatile, susceptible to market manipulation, and often lack the extensive regulatory oversight. Navigating this realm requires thorough research, careful analysis, and effective risk management strategies. Diligence is key when maximizing the potential rewards while mitigating the inherent risks associated with penny stock investments.
This article looks at a handful of popular low-priced stocks with big news this week.
Penny Stocks To Watch
OncoSec Medical (ONCS)
Shares of OncoSec caught a surge of trading momentum on Tuesday after the latest milestone update. The company develops immunotherapies that target cancer cells. Its lead candidate, TAVO, delivers DNA-based interleukin 12 protein as a potential treatment for multiple cancer indications alone and combined with other drugs.
ONCS Stock News
This week the company reported FDA-related news. Specifically, OncoSec commented on an FDA meeting to discuss a proposed neoadjuvant melanoma clinical program. Robert Arch, Ph.D., Chief Executive Officer of OncoSec, said, “The single-arm run-in stage of the trial is intended to generate additional data in a cost-effective manner to inform a ‘GO/NO-GO’ decision and validate the appropriate dosing schedule for the randomized phase in the first year of the planned trial.”
The meeting was the next step on OncoSec’s path to progress with clinical development for TAVO-EP combined with KEYTRUDA, Merck’s (NYSE: MRK) anti-PD-1 therapy.
Amneal Pharmaceuticals Inc. (AMRX)
Another one of the biotech penny stocks to watch with news is Amneal Pharmaceuticals. The company’s share prices have been climbing consistently over the last few months thanks to continued advancements. In its preliminary first-quarter update last month, Amneal highlighted expectations for more robust growth in the first quarter. It also reaffirmed its 2023 guidance of full-year net revenue to come between $2.25 billion and $2.35 billion. Fast-forward a few weeks, and Amneal just posted another milestoned update.
AMRX Stock News
This week the company announced launching FYLNETRA, used to treat neutropenia. Chemotherapy patients typically experience this phenomenon.
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“FYLNETRA marks our third U.S. biosimilar launch since late last year. We are excited to be contributing to this next wave of affordable medicines, and we are well positioned to drive access across patients, providers, and payors. Although it’s only the early innings for the growing biosimilars market, we are focused on becoming a key player over the long-term. These first three launches are just the start for Amneal in biosimilars,” said Harsher Singh, SVP of Amneal Biosciences division.
Fortuna Silver Mines Inc. (FSM)
Thanks to uncertainty in the stock market today regarding the future of a recession and pending stock market crash, safe-haven stocks are gaining attention. Safe-haven stocks encompass various industries; one notable category is metals and mining stocks.
These stocks are often considered safe-haven investments during market uncertainty or economic instability. As global economies experience fluctuations, metals, and mining companies tend to retain their value due to the enduring demand for precious metals such as gold, silver, and platinum.
These commodities are sought after as stores of value and hedges against inflation. Consequently, investors turn to metals and mining stocks to protect their portfolios and preserve capital. The stability and resilience of metals and mining stocks make them appealing safe-haven assets, offering a reliable option for investors seeking security amidst market volatility.
Fortuna Silver, a precious metals mining company, has four operating mines in Argentina, Mexico, and Peru, with a fifth mine under construction in West Africa.
FSM Stock News
This week the company reported Q1 earnings which have prompted bullishness in the market. It posted an EPS beat ($0.14 compared to $0.01 expected) and a sales beat of $175.7 million vs $160.6 million expected).
CEO Jorge A. Ganoza explained, “Production and total cost per ounce for the first quarter were overall on plan, resulting in net earnings per share of $0.04 and free cash flow from operations of $8.5 million. Commissioning activities at Séguéla are well advanced and tracking according to plan for first gold pour in May, giving us a higher level of confidence in a smooth ramp-up process towards design capacity.”
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List Of Penny Stocks With News
- OncoSec Medical (NASDAQ: ONCS)
- Amneal Pharmaceuticals Inc. (NASDAQ: AMRX)
- Fortuna Silver Mines Inc. (NYSE: FSM)