3 Penny Stocks Gainers on May 17th
Finding the biggest gaining penny stocks of the morning is a great way to start making a watchlist. However, with penny stocks, it’s always important to consider every factor that goes into its pricing. This includes both speculative and fundamental aspects that could make your penny stocks watchlist go up or down.
In May 2021, there are plenty of things for investors to consider when forming a list of penny stocks. This includes the ongoing pandemic, expectations regarding inflation, and the effects of social media on both penny stocks and blue chips.
But as investors in stocks under $5, large events are always welcome. This is because they tend to have an equally large effect on the price of many leading stocks. And because of this, investors can find plenty of entrance and exit points. So, as May is past the halfway point, we are entering into the second half of 2021.
And as Covid cases in the U.S. continue to reach new lows, the public and investors alike are excited about the future. While other countries are still struggling to get the pandemic under control, massive vaccine efforts have made this more possible in others. With all of this in mind, let’s take a look at three penny stocks that shot up big in pre-market trading.
3 Pre-Market Gaining Penny Stocks to Watch
Aerpio Pharmaceuticals Inc. (NASDAQ: ARPO)
Up by around 17% in pre-market trading are shares of the biotech penny stock, Aerpio. While sometimes large gains cannot be attributed to anything, in particular, ARPO announced its Q1 financial results as well as some business updates during pre-market hours.
As far as business updates go, the company announces yesterday that it had entered into a merger agreement with Aadi Bioscience Inc. and Aspen Merger Subsidiary Inc. Aspen is a subsidiary of Aerpio that it uses for mergers so this makes all too much sense.
In connection with this, Aerpio will raise roughly $155 million in a private investment in public equity financing deal. Moving on to its financials, Aerpio reported having roughly $39 million in cash on hand.
Additionally, it posted a net loss of around $4.4 million or $0.09 for the quarter. This is slightly more than the $3.9 million it posted at the same period last year. For some context, Aerpio is working on the development of compounds that activate the Tie2 receptor which could have therapeutic potential.
It’s worth noting that today’s gain is most likely based on the merger mentioned above and the announcement of these financials. Although none of the numbers are shocking, often a balance sheet will be a large catalyst for intraday moves.
It’s worth noting that Aerpio also discontinued its RESCUE trial for the prevention of aRDS associated with Covid-19. It states that this is due to the difficulty associated with…