As New Year’s Eve comes and goes, a new year for penny stocks is upon us. In 2021, there are several factors that could change the trajectory of certain stocks. As investors, we always have to think critically and be ahead of the game. This means finding the most current events and utilizing them to pick a strategy. When putting your list of penny stocks together, investors should first consider their timeline. While day traders like to be in and out of positions quickly, other types of traders may want to hold longer. The first of those is known as a swing trader.
This strategy usually focuses on holding for a few days in order to see gains. The second, which is simply about holding positions for a long time, is known as investing, obviously. With this, you should consider both news and the fundamentals of a company. These two aspects can help determine if a penny stock may have the potential for longer-term bullish interest.
However one goes about trading or investing in penny stocks, the most important step is research; and of course, making sure to take profits afterward. Always find out as much information as you can about a given company, and use it to your advantage. With these tips in mind, here are three penny stocks that gained on New Year’s Eve. Will this trend continue for 2021?
Penny Stocks To WatchAmpio Pharmaceuticals Inc.
Ampio Pharmaceuticals Inc. is a biotech company that we have covered since the start of the second quarter. The company is based in the U.S. and produces novel drugs for its pipeline. This includes its Ampion therapy, which is currently in Phase III trials. These trials are testing its efficacy in treating osteoarthritis and other ailments. While the company does have a focus on inflammatory conditions, it has been working on a clinical study to help fight COVID. The goal is to utilize Ampion as a way to combat inflammation in the lungs caused by the coronavirus.
Michael Macaluso, CEO of the company, stated that “Ampion is being administered to patients by inhalation, allowing the drug to directly target and attenuate inflammation in the lungs, using a hand-held nebulizer for COVID-19 patients early in the disease and non-invasive ventilation and mechanical ventilation if their disease state is more severe.”
Because it is working on fighting COVID, AMPE stock has seen heightened popularity in the past few months. This also is one of the main reasons that AMPE stock is also seeing a high amount of volatility. Right now, the company is working on finding out the efficacy of this drug for treating COVID and how safe it is. With a solid 7% gain taken in on December 31st, is AMPE one of the names on your list of penny stocks to watch for 2021?
Atossa Therapeutics Inc.
Atossa Therapeutics Inc. is another penny stock that shot up by around 8% on December 31st. Similar to AMPE, Atossa is a biopharmaceutical company specializing in unmet needs in the medical field. This includes a focus on both breast cancer and COVID-19. Atossa recently announced preliminary results from a Phase 1 study regarding its drug AT-301. This is a nasal spray used in fighting COVID.
The drug can be administered at home which is a major breakthrough for COVID patients and hospitals alike. Steven Quay, CEO of the company stated that “we have completed all dosing in this study and we have no evaluated the blinded safety and tolerability data from all participants. There were no serious adverse events, no discontinuations, and only one subject of the 32 subjects in the study experienced adverse effects that were considered moderate in severity.”
Again, its position in the COVID niche means that Atossa has experienced a heightened amount of popularity in the past few months. The company went on to mention that it is working to find partners who are also developing COVID-related products. With these partnerships, it should be able to offer its therapy at the time a patient tests positive for the virus. We have to also consider that because this treatment is still in Phase I trials, it may take a while to see results. In the meantime, ATOS could be another one of the biotech penny stocks to watch for early 2021.
Thermogenesis Holdings Inc.
Thermogenesis Holdings Inc. is another biotech company, but one that works differently than the other two mentioned. The company develops and commercializes several unique technologies for use in cell-based therapies. This includes therapies that target the chimeric antigen receptor or CAR-T. Thermogenesis Holdings states that it is currently operating through two different segments.
On one hand, the company works by producing devices that can be used in a clinical setting. These devices are manufactured and marketed for a wide range of uses. This includes cryopreservation. In addition to this, the company is working on producing new technologies that can be utilized in cell-processing operations. These are typical in medical and research labs and have a stark and unmet need from the biotech community.
[Read More] Hot Penny Stocks To Watch For January 2021
During trading on New Year’s Eve, shares of THMO stock shot up by around 16.5%. In the past six months, however, shares of THMO have clearly slid. After hitting a high of around $11 in May, shares have since slipped to around $2 where it has stayed for the past few months. One thing to keep in mind is that THMO stock has traded highly off of speculation. Thursday’s move wasn’t accompanied by any news or filings. However, the clearly higher than average volume suggested that the market was excited about something. This is mostly just something to keep in mind heading into the new year.