Are These Cheap Penny Stocks On Your “Buy” List Today?
When someone says the words “penny stocks,” what comes to mind? Are you thinking of shares of a company trading for pennies, or do you think about something else? According to the Securities & Exchange Commission, penny stocks are defined as shares of a company trading for less than $5. It may seem arbitrary, but that is the definition that the Commission has given. For this article, we’ve got a short list of penny stocks, all trading for less than $5. The biggest question right now is, are they worth the risk?
That last question I will leave up to you to answer. But keeping certain market trends in mind, they could be popular stocks to watch this week. While it’s a quiet week for economic data, we do have a few events to note. Mainly Federal Reserve Chair Jerome Powell is set to give testimony in front of the Senate Banking Committee on Tuesday and House of Representatives Financial Services Committee on Wednesday. This could shed more light on what the Federal Reserve is thinking about the future of the economy and could give insight into the prospects of any inflationary measures that could come into play.
Meanwhile, starting the week, broader markets have sold off before the Monday morning opening bell. The S&P and Nasdaq benchmark ETFs, SPY & QQQ, were both down considerably from their Friday closes. One ETF, however, stood out among the group, which was the Russell 2000 Small-Cap ETF (NYSE: IWM).
While it had closed the week at $225.19, premarket trading had the ETF barely off that level, hovering around $224 before the bell. Given the focus on stimulus helping smaller companies and the push for Biden’s Administration to lend a hand, smaller stocks have gotten a nice boost. That trend appears to remain consistent heading into the final week of February.
Penny Stocks To Buy [or avoid] Under $5
Citius Pharmaceuticals Inc.
Shares of Citius Pharmaceuticals continued higher on Friday, and that trend has remained in play during Monday’s pre-market session. Last week the company announced the closing of a $76.5 financing round to put to work in pre-clinical and clinical development of its product candidates, among other things.
The company has taken up a developmental strategy hinged on 3 product platforms. These include Mino-Lok®, which is expected to be analyzed and reviewed by the Data Monitoring Committee next quarter. Its Halo-Lido IND is expected next quarter with a Phase 2b protocol to be filed thereafter.
Finally, its Mino-Wrap is in pre-clinical development with plans to submit an IND to the FDA by the end of the year. All of these are being advanced for their antibiotic or inflammatory applications. Obviously, with many milestones set for the next several months, CTXR could be one of the biotech penny stocks to watch.
We can’t ignore the growing trend that marijuana stocks are experiencing…