Over the past year, biotech penny stocks have become favorites among investors. And, there are a few obvious reasons for that. First off, if we look at the pandemic, we see that it sparked a major focus on the biotech industry and corresponding penny stocks.
While this began over a year ago, it has left a lasting mark on the stock market to this day. The second reason is that biotech penny stocks can present a highly speculative and volatile opportunity.Buying Penny Stocks on Reddit, Worth it or Not?
When it comes to small caps, most investors tend to lean toward the swing trading method. This means buying low, selling high, and doing so during intraday price fluctuations. With biotech stocks, prices tend to move very quickly based on news, events, or industry-wide announcements. And as a result, many swing traders tend to lean toward biotech stocks.[Read More] These Penny Stocks Jumped Today, Here’s What You Need to Know
Now, if we throw in the variable of Reddit, we see that these stocks can be even more volatile. This is true due to the overwhelming amount of discussions on Reddit regarding penny stocks of all types. And as a result of Reddit discussions, we often can see major spikes (and drops) in price in a short time frame.
So, at the end of the day, the best course of action is to do all the proper research necessary to understand exactly what you’re investing in. This means knowing it’s financials, any speculative events relating to it, and so on. With all of this in mind, let’s take a look at three biotech penny stocks on Reddit to watch right now.4 Biotech Penny Stocks on Reddit to Watch Right Now
- Progenity Inc. (NASDAQ: PROG)
- Agile Therapeutics Inc. (NASDAQ: AGRX)
- Kintara Therapeutics Inc. (NASDAQ: KTRA)
- Sesen Bio Inc. (NASDAQ: SESN)
Before we go any further, it’s worth noting that we have been covering Progenity Inc. for quite some time. Since we last covered it on October 12th, in the article ‘5 Top Penny Stocks Analysts Say To Buy Now With 123%-733% Targets’, shares have jumped by another 13%. This brings its five-day and one month gains to over 70% and 155% respectively.[Read More] 5 Penny Stocks To Watch For October 2021 After Big News
Yesterday, Progenity announced that it secured a patent related to its device for treating gastrointestinal diseases. This patent concerns its SMAD7 inhibitor used for GI disorders. In addition, it is developing an ingestible device that is in the shape of a capsule that can deliver medicine right to the GI tract.
Only a few days before this, the company announced the closing of a $20 million registered direct offering of common stock priced at $1.50 per share. The company states that these proceeds will go toward R&D for its diagnostic technologies and its precision medical platform. Additionally, the proceeds will be used for working capital and corporate needs. All of this shows that Progenity is working hard to grow right now, and take advantage of its recent share price increases. Considering all of this, do you think that PROG stock deserves a spot on your list of penny stocks to watch?Agile Therapeutics Inc. (NASDAQ: AGRX)
Another decent gainer of the day so far is AGRX stock, pushing up by almost 4% by EOD. Despite a sizable drop in its YTD chart, shares of AGRX stock have witnessed a bullish turnaround in the last few trading sessions. And to understand why and what the company does, we have to take a closer look.[Read More] Hot Penny Stocks to Buy This Week? 3 For Your October Watchlist
For starters, Agile Therapeutics is a women-focused healthcare company that offers a variety of contraceptive products. This includes longer-acting birth control, non-daily contraceptives, and transdermal patches. Its Twirla product combines all of these and uses its proprietary transdermal patch known as the Skinfusion. Earlier in the trading day, the company announced that it applauded the Congressional Committee for enforcing the law that allows women to access contraceptive methods via the Affordable Care Act.
“We applaud the authors of the letter…for bringing this important issue to the forefront. Contraception is a personal choice – and one that all women, in consultation with their health care providers, should be empowered to make.”The CEO of Agile Therapeutics, Al Altomari
Only a few days before this, the company announced the pricing of its roughly $22.66 million underwritten public offering. The price of $0.85 per share, will go toward working capital and other company needs. So, with all of this exciting news in mind for AGRX, will it be on your penny stocks watchlist or not?Kintara Therapeutics Inc. (NASDAQ: KTRA)
Up by over 11% today are shares of KTRA stock. This brings its five-day gain to over 27% which is no small feat. Only a week or so ago, Kintara reported its financial results for the fiscal year, ended on June 30th, 2021. Among the results, the company announced that it entered into a securities purchase agreement to raise around $15 million in gross proceeds through a registered direct offering.
“As we embark on a new fiscal year with a strengthened cash position from our recent financing, I’m extremely pleased with where the Company is positioned on the clinical and corporate development fronts. Moving forward, our diversified, late-stage pipeline has multiple, significant near-term milestones, highlighted by the GCAR GBM AGILE study.”The President and CEO of Kintara, Saiid Zarrabian
Financially, the company ended the year with $10.5 million in cash and a net loss of roughly $38.3 million or $1.60 per share. The reason for this large loss comes as the company recognized roughly $16 million in non-cash expenses for the acquisition of Adgero Biopharmaceuticals Holdings Inc. While the financials leave a little to be desired, it looks like Kintara has a clear path for growth moving forward. Whether that makes it worth watching or not is up to you.Sesen Bio Inc. (NASDAQ: SESN)
Coming up next on the list of sizable biotech gainers today is Sesen Bio, pushing up by roughly 12% at EOD on October 12th. While many gains in the biotech industry go without news, today, Sesen made an exciting announcement. The company stated that it is expanding its chemistry, manufacturing, and control (CMC) and clinical development teams with the hiring of several new employees. With this, it plans to continue developing its flagship product, Vicineum for the treatment of BCG-unresponsive non-muscle invasive bladder cancer.
“I am delighted to welcome Eun and Chèrie to Sesen Bio to further strengthen our capabilities across our CMC and clinical teams. Their deep clinical and analytical expertise is the right match for our CMC and clinical needs as we chart our path forward in consultation with regulators.”Dr. Thomas Cannell, CEO of Sesen Bio
The goal with these hirings is to prepare for its Type A meetings with the U.S. FDA for Vicineum, which could occur by the end of October. With the end of October providing an interesting timeline for potential investors in SESN, Sesen Bio could be worth keeping an eye on moving forward.Are Biotech Penny Stocks Worth Buying or Not?
Finding the best biotech penny stocks to buy is all about understanding where to look. With so many different choices available, investors need to be discerning and specific with what they’re looking for.
But, given that there is a high amount of momentum in the stock market right now, there are plenty of opportunities to make money with penny stocks in 2021. Considering all of this, do you think that biotech penny stocks are worth buying or not?