Link to video version: https://youtu.be/lzkY9EVsy5w
Biotech are well-known as the penny stock segment that can make the biggest short-term gains on good news. We all want to take advantage of these price spikes that can make us quick profits. Today, I’m talking about 5 Penny stocks with phase 3 results expected in early 2022 that you will want to watch closely. Today, I’m sharing the potential profits you can make from trading the news on these 5 stocks, and what to look for. So, stick around as I’m saving my top pick for last.
This is Lynn and welcome back! Remember that penny stocks are very risky and volatile, and I only invest money in them that I can afford to lose. Also, this video is not financial advice but for entertainment only.
So, let’s go and look at BioPharma catalysts.
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Our first BioPharms stock we are discussing today is Jaguar Health, ticker JAGX. This is a $1 penny stock with a Phase 4 full enrollment that was reached by the end of 2020, and the study results are expected in 1Q 2022. The FDA defines Phase 4 as post-marketing studies that are imposed upon a pharmaceutical firm as a condition for drug approval.
Jaguar Heath is a tiny company with a 47 million market cap, with 46 million shares outstanding. And, per Yahoo finance, JAGX also has a float of 46 Million shares. This tiny float means that catalysts can really send these stock’s prices up, and provide an opportunity to make a quick profit. JAGX also has a low short float of 6% showing that short sellers have little confidence in shorting this stock.
To realize the potential gains you could receive from trading on Jaguar’s Phase 4 good news, let’s look at last year. You can see here the Motley Fool reported on January 8th, 2021 that shares of Jaguar Health soared 49.3% on the previous Friday, extending the pharmaceutical company’s staggering gains since mid-November. You can see here the gains the stock made from a low of $1.05 on December 22, 2020 to a high of $13.41 on January 8th, 2021. That’s a whopping 1277% Percent gain!
Even better, Motley Fool revealed that Jaguar Health’s stock price was up 2,062% since its lows on Nov. 16. Investors had bid up JAGX after management announced plans to develop a drug named Crofelemer aimed at helping people with inflammatory diarrhea, including COVID-19 recovered patients still experiencing symptoms.
Watching for these catalysts are a great way to make some quick day-trade gains in your investment account. What I do is buy one share of the stock as a market to watch for the catalyst. Often traders in the know will start buying stock a few days before the announcement. So you’ll want to watch for that as well.
You can see on this longer-term chart that JAGX has been on a long slide down since early 2021, with price spike indicated by the red arrows due to positive drug development progress announcements.
Jaguar Health, Inc. focuses on developing medications for people and animals with GI distress. What’s really fascinating is that the company, through its subsidiary, Napo Pharmaceuticals, Inc., focuses on developing plant-based human gastrointestinal pharmaceuticals from plants harvested responsibly from rainforest areas. Jaguar Health, Inc. has been around for a while, and was incorporated in 2013 and is headquartered in San Francisco, California.
The company’s revenues are low, but have been increasing: from 4.4 million in 2018 to 9.3 million in 2020. But, they are losing money though due to significant research costs. Currently, I am sticking with watching this stock or news and related day-trades or short swing trades.
Our second stock is Clovis Oncology, Ticker CLVS. This is an impressive BioPharma company with revenues growing fast over the past 3 years from 95 million in 2018 to 164 million in 2021. Per this stock chart, CLVS is currently $3, down from a high of $95 in 2017.
Clovis is expecting results in Phase 3 top-line monotherapy data due in 1Q 2022. What’s great for you is that the company has a second catalyst or combo data due in the second half of 2022, making it a really great one to watch. Clovis has a 352 million market cap, and only 129 million outstanding shares. As the float is only 128 million this company also can easily be moved on good news.
Clovis Oncology, Inc., a pharmaceutical company, focuses on acquiring, developing, and commercializing anti-cancer agents. The company also has significant partners due to license agreements with Pfizer Inc., AstraZeneca and Advenchen Laboratories. Clovis also has a clinical collaboration with Bristol Myers Squibb Company. The company was incorporated in 2009 and is headquartered in Boulder, Colorado.
Our third penny BioPharma stock is Citius Pharma, ticker CTXR. Citius Pharma is a $1 penny stock, late-stage specialty pharmaceutical company. They focus on anti-infectives and cancer care. Mino-Lok is the company’s therapy that has a Phase 3 clinical trial currently underway, for Catheter related blood stream infections. Citius is planning to announce this premier drug Mino-Lok’s Phase 3 result early in 2022. So, keep a look out for that!
CTXR stock can also make big runs ups on good news. Per this chart, CTXR opened at low of $1.05 per share on April 19th, 2021 and ran to a high of $4.56 on July 21st. This was a 434 gain, which would have been a great one for your portfolio!
Here you will see the security details for CTXR, showing a low number of shares which is again why this stock can move so quickly. The stock’s Market cap is 224 million with 146 million outstanding shares. Per Yahoo Finance, CTXR has a small float of 133 shares. The stock also has only 200 million shares authorized. The authorized share limit makes us feel more secure about lack of dilution of our share ownership in the future. But, the short percentage of float is high at 20%, putting downward pressure on this stock.
What’s great though is that Tipranks is looking at CTXR as a long-term bet for the next 12-month. Analysts are giving CTXR a $4.00 one-year target price which would be a 159% gain from the current price!
Citius was founded in 2010 and went public in 2014, and is headquartered in Cranford, N.J.
Our 4th penny stock we are reviewing for big catalysts has one coming up this month! Optinose, ticker OPTN is also a $1 penny stock. They received FDA tentative approval on December 8, 2020 for their Chronic Sinusitis drug Xhance. OPTN will be resubmitting their NDA needed for full FDA approval due on January 28, 2022. So mark your calendars for this one!
In looking at OPTN’s stock chart we see that the stock went from a low of $3.95 on 4/27/2020 to a high of $10 on June 29th, that was a 253% gain! But you’ll notice that this stock has been on a downtrend since, with little positive news.
Optinose has an 86 million market cap and only 53 million outstanding shares. Yahoo finance shows the stock as having a small 33-million-dollar float, making it easy to move on good news. Plus the stock has a small 4.21 short percentage of float, showing that few short sellers are shorting this one!
OptiNose focuses on the development of products for patients treated by ear, nose, throat, and allergy specialists in the United States. The company offers XHANCE, a therapeutic product utilizing its proprietary exhalation delivery system, or EDS, that delivers a topically-acting corticosteroid for the treatment of chronic rhinosinusitis with nasal polyps. XHANCE is also in Phase 3b clinical trials for the treatment of chronic sinusitis. OptiNose, Inc. was founded in 2000 and is headquartered in Yardley, Pennsylvania.
TipRanks analysts rate OPTN as a strong buy, with a one-year target price of $9. This would be a a 455% increase from the stock’s current price. Of course, keep in mind that analysts tend to be optimistic! But these types of potential gain leaves lots of room for error.
Our final, and fifth penny stock is Lipocine, ticker LPCN. Lipocine is a $1 penny stock with a big catalyst for their drug TLANDO, coming up this month.
Lipocine Inc., a clinical-stage biopharmaceutical company developing pharmaceuticals for the treatment of metabolic and endocrine disorders. Its primary development programs are based on oral delivery solutions for poorly bioavailable drugs.
The company products are designed to facilitate lower dosing requirements, and reduce side effects, and gastrointestinal interactions that limit bioavailability. Its lead product candidate is TLANDO, an oral testosterone replacement therapy. The company is headquartered in Salt Lake City, Utah.
LPCN has a market cap of 87 million with 88 million outstanding shares. Yahoo Finance lists LPCN’s float as 86 million shares, which is an amount that can also be easily moved on good news. The stock has a small short float of 4.28%, meaning that short sellers have little confidence in shorting this stock.
I’d love to hear hour about your thoughts and experiences with these 5 stocks in the comments below. And while you’re there sign up for our newsletter so that you can be notified about more videos like this one! Next, go here to view our video on 5 Signs a Penny Stock is worth Millions.