Investing in penny stocks is an art. It’s not for everyone, and it’s definitely not for the faint of heart. However, if you can master it, the potential is unlimited. So, when it comes to making a list of penny stocks, there are a few keys that will allow you to stay in the know. And, outside of the fundamentals that a company offers, investors should always know the present and future events that could impact your penny stock watchlist.
In 2021, we’ve already been a part of an extraordinary year; and not for the right reasons. With the pandemic still around and economic inflation in swing, investors are considering what the best options are for penny stocks to buy.[Read More] Trending Penny Stocks To Watch in 2021? Take a Look At These
Now, there are two strategies to consider; short and long term. And, with those comes an emphasis on what events are coming up both in the market and outside. Now, this year we have three factors that are impacting the market. Covid, economic reopening, the impact of retail traders, and penny stocks on Robinhood.
While one of these aspects is not more important than the other, there’s no doubting that Covid has had an extremely large effect on the market already. And, the pandemic also plays into the opening of the economy and what investors are aptly naming, ‘reopening penny stocks’. These are companies that will benefit from the effects of economic restrictions being lifted and increased retail sales. So with that in mind, here are three penny stocks that could benefit from events this year.3 Penny Stocks That Could See Momentum in 2021
- Assertio Holdings Inc. (NASDAQ: ASRT)
- Acasti Pharma Inc. (NASDAQ: ACST)
- T2 Biosystems Inc. (NASDAQ: TTOO)
Up over 34% in pre-market is the pharmaceutical company, Assertio Holdings. The company offers a large range of different products in its pipeline. This includes branded prescriptions for use in neurology, hospital, pain, and inflammation management. Additionally, Assertio engaged in licensing deals, mergers, and acquisitions to promote further growth. While gains like the one we saw today often occur without news, Assertio announced its Q1 2021 financial results during after-hours only a day earlier.
“This quarter provides our first data point in demonstrating the strength of our diversified portfolio and non-personal promotional model, which showed resiliency in the face of the continued effects of Covid-19, the impact of payor pressure, and our shift to a leaner operational profile.
As we continue to execute on our transformation and gain increasing confidence that our model is transferable across a number of therapeutic areas, we are actively seeking additional assets that will address unmet needs for patients, benefit from our commercial platform, and increase value to Assertio.”CEO of Assertio Holdings Inc., Dan Peisert
During the quarter, ASRT managed to raise roughly $45.3 million in cash through a series of offerings. In addition, restructuring led to more than $45 million in annualized cost savings. This quarter also showed a great amount of growth for the company, increasing its net product sales from $9.3 million in Q1 2020 to $26.4 million in Q1 2021. Additionally, its adjusted EBITDA rose from $3.9 million in Q1 2020 to $15.7 million in Q1 2021. So with all of this growth in mind, is ASRT a penny stock to watch?Acasti Pharma Inc. (NASDAQ: ACST)
Another big pre-market gainer is Acasti Pharma, pulling in roughly 36% by early morning on Friday, May 7th. Similarly to Assertio, this major gain comes on the back of a large announcement made early in the day. Before we get into it, let’s take a closer look at ACST stock. Acasti is a biopharmaceutical company working on the development and commercialization of a broad range of drugs.[Read More] 4 Penny Stocks On Robinhood To Buy Under $1; 50%-270% Price Targets
Its focus has remained on compounds that use OM3 fatty acids, which have a high clinical safety profile and extensive research at this point. The company utilizes these to attempt to lower triglycerides in patients with hypertriglyceridemia or HTG. Its flagship compound known as CaPre, is an OM3 phospholipid therapeutic and is in development for its use in patients with severe HTG.
Ok, so why the big gain on May 7th? Early in the morning, Acasti announced a definitive agreement to acquire Grace Therapeutics Inc. Grace is a pharmaceutical company with a large pipeline of programs for treating both rare and orphan diseases. This includes several Stage 3 clinical assets that have received Orphan Drug Designation from the FDA.
At the closing of this deal, the pair expect to have roughly $64 million in cash that will be used to complete these Phase 3 clinical trials. Both boards of directors from the two companies have approved this transaction, meaning that things can move forward very quickly.
“We have diligently pursued a thorough strategic process to evaluate a range of value-creating alternatives. We believe that combining Grace’s innovative research programs and scientific talent with Acasti’s financial resources and drug development and commercialization expertise position us to build a portfolio of innovative therapeutics that will address unmet medical needs.”The chairman of Acasti, Roddy Carter
Considering this big news, it looks like ACST could have a lot to offer investors in the coming months. Whether it will be on your watchlist, however, is up to you.T2 Biosystems Inc. (NASDAQ: TTOO)
T2 Biosystems Inc. also happens to be another pre-market gainer on May 7th. While we are in the middle of earnings season, it usually is hit or miss as to what will happen with share prices when earnings are announced.
However, as is the case with Assertio and T2 Biosystems, share are pushing up. T2 for some context is a producer of rapid detection products that can identify sepsis-causing pathogens in the body. In its first-quarter results released during after-hours yesterday, the company posted some incredibly solid numbers.
During the period ended on March 31st, T2 managed to achieve revenue of $7 million, which includes product revenue of $4.7 million. This is a massive climb of 173% and 345% respectively, over the same period of the previous year.
Additionally, the company managed to expand its salesforce in the U.S. to 9 Regional Account Managers, which helped to back the sale of 4 T2Dx Instruments during the first quarter both in and out of the U.S. Lastly, the company stated that its T2SARS-CoV-2 Panel is capable of detecting the new India-variant of Covid as well as other major and concerning variants.[Read More] 3 Penny Stocks to Watch Right Now, One Up Over 105% in 2021
CEO and President of T2 Biosystems, John Sperzel, stated that “Entering 2021, we set three corporate priorities: accelerating our sales, improving our operations, and advancing our pipeline. We are very pleased with our progress during the first quarter, which included 173% total revenue growth, 345% product revenue growth, and 85% sepsis test revenue growth.”
This is an exciting time for T2 as it is in several burgeoning markets. Its products are showing increased adoption, and it is working hard to get a head start on the future. With all of this in mind, is TTOO a penny stock to watch?Are These Penny Stocks Worth It?
Now, coincidentally all of the companies on this list are biotech penny stocks. However, the biotech industry has seen tremendous growth over the past year or so. While other areas such as tech stocks and entertainment stocks are also seeing major growth right now, it all comes down to what type of company you are looking for.
To understand this, one should first identify what type of investor they are, and what investing goals one has. This is the best way to feel confident when it comes to making a penny stock watchlist. Considering all of this, are these penny stocks worth it?