One thing is undeniable when it comes to penny stocks: volatility. Since we’re talking about stocks under $5, slight movements can make a large difference in percentage returns (or loss). If these penny stocks are so volatile, why are investors interested when there are “safer” options?
High-volatility can often result in positives rather than negatives for investors who put in proper research. Obviously, there is no way to “predict” the stock market. The point is that having the proper knowledge can help mitigate some risks when investing. This can be as simple as looking at the latest sector news or company filings. Different industry trends and charts are also useful tools when it’s time to put together your list.Biotech Penny Stocks Gaining Ground In 2021
In the last year, one fast-growing sector has been biotech. When the pandemic started, the world was initially confused. A lot of pressure was then placed on biotech companies to find a vaccine or a treatment for the COVID-19 virus. This ultimately became the introduction to the biotech sector for many of the new traders that had come into the market.
What are the best biotech penny stocks to buy right now? To figure this out, we should look at why some are moving the way they are right now. A few potential reasons can explain the positive performance of certain penny stocks. The first is the pandemic raising more awareness for vaccine stocks.
The second is that simply many healthcare companies are making good progress and advancements in novel treatments. This could be from trials, financials, public offerings, or simply new milestones being reached. Let’s take a look at 6 that have grabbed attention in March.Biotech Penny Stocks To Watch
- Havn Life Sciences Inc. (OTC: HAVLF)
- Oncolytics Biotech Inc. (NASDAQ: ONCY)
- Evofem Biosciences Inc. (NASDAQ: EVFM)
- CASI Pharmaceuticals Inc. (NASDAQ: CASI)
- Assertio Holdings Inc. (NASDAQ: ASRT)
Havn Life is one of the more unique biotech stocks on this list. The company focuses on psychedelics. Specific indications for psychedelics include anxiety, ADHD, depression, PTSD, and even substance abuse. Quite possibly, no other time than the present has mental health become such a focus. The COVID-19 pandemic has cut off physical contact across the globe. While virtual options are available, the future ramifications are still yet to be seen as this pandemic continues.
Havn Life Sciences Inc. could stand to rival its competitors. The company’s board is lead by the same CEO that took Aphria Inc. from an unknown penny stock in 2014 to a household name in cannabis just a few years later. Havn Executive Chairman Vic Neufeld was the CEO of Aphria for 5 years, from 2014 to 2019.
Earlier this week Havn signed a letter of intent to research and develop medical psilocybin with Hypha Wellness Jamaica Psilocybin. Hypha is focused on the cultivation, extraction, and manufacturing of nutraceuticals and, through this deal, is expected to further Havn’s development platform for a regulated medical psilocybin supply chain.
“Havn Life’s work in Jamaica is aimed at furthering our mandate of supplying safe, quality controlled, psilocybin medicine to researchers and patients around the globe. We want to supply as many researchers as we can with naturally derived compounds and this partnership will bring us one step closer to our goal of building an international psychedelic supply chain framework.”Dr. Ivan Casselman, Chief Psychedelic Officer of Havn Life
With the novel psychedelic industry just beginning to bloom, Havn has gained interest from the market for its notable leadership and advancements like this. Of course, now traders wait to see if the company goes from LOI to a formal agreement.Oncolytics Biotech Inc. (NASDAQ: ONCY)
Regardless of a pullback that was moving down the price of ONCY stock, it seems to be back on the move this week. In the last 5 days, this biotech penny stock has gone up nearly 25%. The developmental stage biotech company focuses on developing cancer treatments.
There are a few potential reasons that ONCY stock price is on the rise. On March 10th, Oncolytics announced that it would be presenting at the American Association for Cancer Research (AACR) Annual Meeting 2021. This conference takes place from April 10th through April 15th. Oncolytics will be releasing new clinical information from its AWARE-1 window of opportunity study. This study focuses on patients with early-stage breast cancer. It will also present preclinical results for evaluating pelareorep based combination therapies.
In addition to this recent news, Oncolytics announced an at-the-market equity offering sales agreement with Canaccord Genuity LLC. The ATM will let Oncolytics issue common shares from treasury at market prices for up to $80 million. This press release was sent out the same day as its financial results and corporate highlights from 2020. These recent advancements can explain why ONCY stock has climbed.
What should be kept in mind right now is next month’s presentation. Since Oncolytics is approaching a potentially pivotal date, speculation could be starting to play a role in the market.Evofem Biosciences Inc. (NASDAQ: EVFM)
This next biotech penny stock has not been performing too well lately, yet March 26th could very well be the turnaround point for EVFM stock. This is another biotech company, but instead of cancer treatments, it’s specializing in women’s sexual and reproductive health.
Despite making some advancements in 2020, its year-end financial results were not what investors were looking for. During the year, its total operating expenses more than doubled. Its general and administrative costs also rose by $600,000. This was as a result of legal and audit professional fees. Its selling and marketing costs fell below expectations as well. This all resulted in a net loss of $142.3 million compared to a net loss of $80 million the previous year. This contributed to the huge slide that EVFM stock saw this year.
The company recently announced a $30 million public offering of common stock with net proceeds to be used to commercialize its Phexxi contraceptive gel in the United States. Since this was done at such a steep discount, the drop continued. But it’s also important to consider the timing of this raise. The company expects it to close by Monday. With cash in hand and a focus on commercialization (and a potential revenue driver), EVFM could be one of the biotech penny stocks to watch in light of this recent drop.CASI Pharmaceuticals Inc. (NASDAQ: CASI)
This biotech penny stock’s recent announcements have increased investor interest. When looking for hot penny stocks, this is the type of momentum investors want to see. This biotech company has a focus on developing and commercializing therapeutics and pharmaceutical products. So what happened, and why is the CASI stock price increasing in the market?
On March 24th, CASI Pharmaceuticals announced a public offering of common stock. This offering is valued at $32.5 million, has the company will offer 15,853,658 shares of common stock at $2.05 per share. With any offering, it’s important to consider the use of proceeds. Are there specific directives that the company will initiate, or is it just for paying management? In this case, CASI said it plans to use proceeds to advance its product portfolio and acquire the rights to new product candidates, among other things.
Friday, CASI stock has seen much higher volume than its average, which may have something to do with the financing deal. The company expected it to close by March 26th. In light of this, now armed with cash to advance its portfolio, are traders viewing this as a green light to begin following CASI in Q2?Assertio Holdings Inc. (NASDAQ: ASRT)
Could the latest from Assertio Holdings Inc. be game-changing for the biotech penny stock? In the last month, ASRT stock has had its fair share of ups and downs in the market but is down overall. The company provides treatments for neurology, pain, and inflammation. Assertio has released two key updates that could show the direction it is headed.
Earlier this month, Assertio Holdings presented at the Virtual Roth Conference. This potentially brought some new eyes to the company. Furthermore, Assertio also reported its fourth-quarter and full-year financial results for 2020. Pro-Forma revenue was in line with guidance, but not all of its performance was positive.
COVID-19 did not help this biotech penny stock, as the company had to change many of its usual strategies. The President and CEO Dan Peisert said, “As we close the chapter on 2020, we reflect on several strategic shifts, including a move toward digital marketing, enhanced patient services, an increasing shift to our hub model, and a leaner operational profile with increased cash.”
However, Assertio’s “strategic shifts” could be the sticking point for the market right now. In early February, ASRT stock pushed above $1 per share, showing it isn’t incapable of larger moves in stock price. This came as the company went on a capital-raising spree via a $34.3 million and a $14 million registered direct offering. Now we wait to see where ASRT stock could head as biotech stocks have begun to rebound at the end of the month.Biotech Penny Stocks List For April
When you’re putting together your list of penny stocks to watch for April, make sure to look at more than “what’s happening right now.” The beauty of biotech stocks is that many of the companies will announce important dates much further in advance. At the very least, it will give you a basic timeline to follow leading up to the date. With this in mind, with the biotech sector attempting to turn around, it might not hurt to have a few related stocks on your watch list.