When you’re investing in penny stocks, what’s your goal? Why are you buying the stock you’re looking at? You can be one of the “AMC Apes” that focus on “never” selling. While AMC Entertainment (NYSE:AMC) has taken on a life of its own, this idea of “never selling” boils down to becoming an investor or, at the very least, becoming a longer-term swing trader.
Needless to say, AMC stock isn’t the only former penny stock that has demonstrated the potential of buying early into stocks under $5. In fact, thanks to the 2020 pandemic, many experienced investors were introduced to this world of penny stocks. The reason for that has to do with many of the higher-priced names fell hard, and many ultimately reached levels below the $5 threshold.
Are Penny Stocks Worth It?
At this point, if you’ve been trading low-priced stocks for a few months, you know many penny stocks are worth it. Some require a bit more attention than others. For instance, NeuroMetrix Inc. (NASDAQ:NURO) has become one of the most followed companies in the stock market today.
That’s because NURO stock has climbed from under $4 to nearly $40 in 3 days. While “10-bag” moves are great, these parabolic breakouts tend to result in swift breakdowns as well. Case in point, after NURO stock reached its high of $38.67 on July 21st, it dropped 37% in mere minutes. Unless you were monitoring this former penny stock in real-time, you could easily see how you quickly run the risk of big losses.
Chembio Diagnostics (NASDAQ:CEMI) was another example of a parabolic move in the stock market today. Its early breakout move sent it to highs of $6.95.Following these highs, CEMI stock dropped over 15%. Again, this is one of the penny stocks to watch closely on a minute-by-minute basis.
Penny Stocks To Watch In 2021
Is this the case for all penny stocks? Absolutely not, and in this article, we’ll take a closer look at a few former penny stocks that have seen explosive gains since the early months of this year.
Keep in mind that these former penny stocks have left that $5 mark in the dust. But does the fact that they’ve continued higher this year mean they’re worth a closer look? Will that trend continue? I’ll let you read and decide for yourself.
Biotech Stocks To Watch #1: GT Biopharma Inc. (NASDAQ:GTBP)
Last year, GT Biopharma was considered a penny stock. Shares traded below $3 at times and as low as $2.38. Fast-forward to this year, and GTBP stock has already reached highs of $19.73. Not only did the company uplist to the Nasdaq, but it was also added to the Russell 2000. Following the last bout of the stock market selling off, GTBP stock has bounced back strong. Over the last few days, shares jumped from around $10.50 to over $12.60 on Wednesday.
The biggest draw from investors would seem to come from GT Biopharma’s novel oncology…