Investing In Penny Stocks? These Gained Ground In July 2020
It doesn’t take a rocket scientist to understand why people are investing in penny stocks. Well, maybe I should rephrase. Trading versus investing in penny stocks is much different. What we’re seeing right now in my opinion is more trading than anything else. But that doesn’t mean people aren’t actually investing in penny stocks this month. There have been plenty of short-term, 1 or 2-day movers. But then we’ve also see penny stocks that have gone on to run for weeks on end.
Sometimes it takes nerves of steel to hold penny stocks for longer than a day or even a few hours. No one’s here to judge though. We preach the name of the game being simple: make money with penny stocks. But it is nice seeing that more than just a few of these companies have experienced sustained moves in July; many for even longer.
Industry and market events have helped along the way too. The sustained moves of some of the coronavirus vaccine stocks hasn’t gone unnoticed either. One of the articles from earlier today cited a few of these. See: Are Penny Stocks Worth Your Time? 4 To Watch In July.
Penny Stocks Trading Higher In July
Needless to say, whether or not you should be investing in penny stocks rather than trading them is based on your personal strategy. Some traders will hold a small core position and use it as a base to “trade around”.
The bulk of the short term gains comes from buying and selling short-term spikes. But in the even the longer-term trend continues, they’ve established a low enough price per share core position to potential ride the longer momentum wave higher.
Does it always happen that way? Of course not, but as I said, these traders will make the bulk of their profits on shorter-term price movement. The longer-term move ends up being “the gravy” or “cherry on the sundae”. That’s just one trading style. There are plenty of other ways people are making money with penny stocks right now. With this in mind, are any of these names on your list heading into the end of July?
Diffusion Pharmaceuticals Inc. (NASDAQ: DFFN)
Market Cap: $87.66 Million
Shares Outstanding: 59.63 Million
Diffusion Pharmaceuticals Inc. ( DFFN Stock Report) has seen strong move in 2020 so far. In January, DFFN stock began the year around $0.47. Since then it ran as high as $1.53 following its quarterly business update in May. Shares retested this level after Diffusion received an accelerated response from the FDA regarding its pre-investigational new drug meeting request for its COVID-19 trial program. For most of the time to follow, it’s been a bit of a slow slide with its 200 Day Moving Average being a relatively consistent level of support.
Over the last few sessions, DFFN stock is back to its former self. Shares have bounced from around $0.80 to highs of $1.50 on Monday. There hasn’t been any company specific news recently. In its last update from July 7th, Diffusion announced the filing of an Investigational New Drug application with FDA for trans sodium crocetinate in COVID-19 patients. Assuming positive results for the lead-in trial, Diffusion plans to begin two Phase 2b trials.
Obviously with so much attention on COVID-19 stocks, DFFN may have been caught in the surge. Positive preliminary reports from AstraZeneca and Moderna have recently sparked growing interest into related stocks. Big question now is more technical. This will be the 3rd time this year that DFFN tested the $1.50 level. Will it act as resistance again or can the biotech penny stock finally break new highs?
Oragenics Inc. (NYSEAMERICAN: OGEN)
Market Cap: $81.38 Million
Shares Outstanding: 55.36 Million
Oragenics Inc. ( OGEN Stock Report) is another one of the penny stocks having a strong month in July. OGEN stock reached highs of $1.84 on Monday. Considering it was trading around $0.75 at the beginning of the month, you could say things accelerated a bit during July. In a business update early on, Oragenics provided a progress report on its COVID-19 vaccine candidate. Simultaneously, the company terminated its oral mucositis program and reaffirmed a focus on the development of TerraCoV2.
“As we await Biomedical Advanced Research and Development Authority and other federal and state non-dilutive grant decisions, we expect to use our available cash to continue development of TerraCoV2, with the goal of bringing this COVID-19 vaccine candidate into human clinical trials by early 2021,” said Alan Joslyn, Ph.D., President and CEO of Oragenics.
One thing to keep in mind here is another small line of text from its July 10th release. Specifically, “The transfer to full-scale manufacture is expected to commence later this summer.” There are still unknowns here and “later this summer” is vague. But considering the recent uptick in attention around coronavirus vaccine stocks, could OGEN stock continue benefiting from sector momentum?
ADiTx Therapeutics Inc. (NASDAQ: ADTX)
Market Cap: $20.53 Million
Shares Outstanding: 5.17 Million
The smallest market cap company on this list is ADiTx Therapeutics Inc. ( ADTX Stock Report). The company IPOed at the end of June and was initially priced at $9 a share. On IPO day, the stock began trading at $5.50, saw a high of $7.08, and has been sliding since. After reaching a low of $2.83, ADTX stock has slowly headed back. On Monday, the penny stock saw its third-highest share volume day since it IPOed. Could this be something to warrant additional attention?
Let’s dig a bit into what ADiTx is, first. The company focuses on immune-related treatments. Specifically, ADiTx has two technology products for immune monitoring and what it calls immune reprogramming. Its Aditxt Immune Monitor™ (AiM™) provides a personalized profile of the immune system intended to be informative for individual immune responses to viruses, bacterial, solid organ transplants, and cancer among other things.
Its Apoptotic DNA Immunotherapy™ (ADi™) utilizes an approach that mimics the way the body naturally induces tolerance to its own tissues called therapeutically induced immune tolerance. ADi™ is a technology platform which we believe can be engineered to address a wide variety of indications. The company has already attracted institutional interest from the likes of Altium Capital Management. The firm holds a 9.9% stake in the company. Again, with growing interest in immunotherapy companies, does ADTX stand a chance at gaining more momentum before the end of July or is the general slide set to continue?
Northern Dynasty Minerals Ltd. (NYSEAMERICAN: NAK)
Market Cap: $956.33 Million
Shares Outstanding: 487.93 Million
Northern Dynasty Minerals Ltd. ( NAK Stock Report) has been in a strong uptrend since March. NAK stock reached new 52-week highs at the end of May and has continued to follow suit ever since. The biggest focus for the company has been on its principal asset, owned through its wholly-owned Alaska -based U.S. subsidiary, Pebble Limited Partnership. It is a 100% interest in a contiguous block of 2,402 mineral claims in southwest Alaska. This includes the Pebble deposit and an initiative to develop one of the world’s most important mineral resources.
This was one of the penny stocks we talked about over the weekend and it didn’t disappoint on Monday. NAK stock closed last week at $1.69. On Monday, shares hit a new 52-week high of $1.96 and continued trading higher after the market closed too. Being able to have watched this company since back in February has allowed traders to see progress in real time. The company had also just announced its preliminary form of the Final Environmental Impact Statement for southwest Alaska’s Pebble Project had been submitted by the US Army Corps of Engineers.
Last week, the company announced an update. CEO Tom Collier explained, “It is our understanding based on conversations with the U.S. Army Corps of Engineers that the final EIS will be published in the Federal Register on July 24th. This will mark one of the most significant milestones for the Pebble Project. Following the final EIS, the USACE will use this document as it prepares the Record of Decision for Pebble — a step expected to follow the publication of the final EIS.”
Considering that is days away, is this the driving force for the latest trend. Furthermore, will that continue to be the case leading up to the 24th?
Originally published at https://pennystocks.com on July 21, 2020.