Penny stock news is somewhat of a “go-to” for traders. What I mean by that is those searching for momentum often look for catalysts. One of the easiest catalysts to search for are headlines.
While large-cap stocks might spike slightly on certain headlines, more times than not, penny stocks tend to experience a compound effect. I think the main reason for that is based on the “early” or “development” stages of these companies. Each “small” step forward may be seen as a “big” advancement.
So, as they aren’t the only thing to search for when looking for catalysts, they are easier to spot sometimes than information buried in a company filing, for instance. However, it’s also important to actually read the news and not just the headline. Sometimes companies will put additional information in the news release not clearly indicated by just the title.
This is especially true when it comes to earnings and things like trial or project results. Even with seemingly bad news, reading management’s discussion on the matter can be the difference between taking advantage of a “dip” or “cutting your losses” instead.
Heading into the final days of July, we’ve seen plenty of headlines fly around the market. Some of them are industry and sector-related, some are more globally centered, and others are specific to companies themselves. No matter the case, knowing how to use penny stock news to your advantage is yet another tool to have in your trading tool box. Keeping this in mind, here are a few companies releasing penny stock news this week. Will they be on your list?Penny Stock News Movers #1: Bionano Genomics Inc.
Bionano Genomics (BNGO Stock Report) has been on the list of penny stocks to watch quite frequently. Since hitting $0.25 in April, BNGO stock has been on the move. Earlier this week we talked about the company as volume continues to grow to above-average levels.
The initial momentum came from Bionano’s launch of its largest study at the time. It targeted identifying certain substances related to resistance or sensitivity to COVID-19. Bionano’s main focus is its Saphyr system. This is a platform for ultra-sensitive and ultra-specific structural variation detection. It allows researchers and clinicians to speed up the search for new diagnostics and therapeutic targets.
This week has already been active for the company as far as headlines and trading are concerned. Bionano announced that a European consortium published the first paper on Bionano’s Saphyr genome imaging instrument. This was to investigate the performance of Bionano’s data in comparison to cytogenetic standard of care in constitutional or inherited genetic disorders. On July 24th the company released more news.What Was The BNGO Stock News?
Bionano announced that a recently formed international consortium of clinical and research sites is using its Saphyr genome imaging system to identify genomic variants that influence resistance or sensitivity to the SARS-CoV2 virus progression and drug response. The consortium is comparing the genome structures of those patients who show no or mild symptoms and those who show severe illness.
The team plans to analyze at least 1,000 patient genomes with Saphyr. Furthermore, the company said initial unpublished findings from the first 30 patients have been analyzed. These showed that Saphyr detects large amounts of structural variation in many putatively relevant genes, demonstrating that point mutations alone are unlikely to explain disease differences between patients. Following the announcement, BNGO stock began trading higher during premarket hours. Will this momentum carry it through to the end of the month?Penny Stock News Movers #2: Medigus Ltd.
Medigus Ltd. (MDGS Stock Report) had a monster start to its second quarter. It dropped to lows of $0.83 toward the end of March. Then from April until mid-May, MDGS stock shot up as high as $5.15. What was the catalyst behind that move? Coronavirus headlines were a big catalyst for the move. The company signed a binding letter of intent with Polyrizon Ltd. for biological gels. It also signed a deal with a company for medical products related to COVID-19.
Despite the big surge in early Q2, MDGS stock slid back down during the last few months. In fact, earlier this month, the penny stock hit a low of $1.43. So why is MDGS even mentioned on this list? Its dealings with ScoutCam (SCTC Stock Report) has become a larger focus recently. It is now one of Medigus’ subsidiaries. The company develops customized visual solutions and supplementary technologies.
- Making A List Of Penny Stocks Right Now? 4 Spiking This Week
- 3 Penny Stocks To Buy For Under $3 Right Now; Are They Worth It?
ScoutCam devices are used across the medical, aerospace, industrial, research, and defense industries. This week, Medigus came out with a new development from its subsidiary that seems to have sparked some interest in the stock market today.What Was The MDGS Stock News?
The company announced that it was informed by ScoutCam that ScoutCam Ltd. , ScoutCam’s wholly-owned subsidiary, accepted a quote of $2.4 million for its single-use miniature video cameras. Though specifics weren’t fully revealed, the company said the quote was from “a Fortune 500 multinational healthcare corporation”.
According to the terms of the deal, the two companies will work together to develop a complete visualization solution that incorporates ScoutCam’s single-use miniature video cameras for a minimally invasive surgical end-user product. Something else to keep in mind is the MDGS is also a low-float penny stock.
With less than 10 million shares outstanding, it’s important to note that there might not be a whole lot of supply in the market as a result. Why is this important to note? When it comes to low-float penny stocks, the above-average activity can turn into very volatile action. So if MDGS is on your list of penny stocks, keep this in mind.Penny Stock News Movers #3: PolarityTE, Inc.
PolarityTE, Inc. (PTE Stock Report) is another one of the penny stocks making an early move on Friday. What’s more, is that PTE stock has experienced a similar multi-week uptrend as well. Shares hit a low of $0.78 in May and have climbed ever since. This month has been one of the higher volume periods for the penny stock.
Most of the momentum may have been based on underlying speculation. In June, the company reported the publication of two peer-reviewed manuscripts involving the application of its SkinTE in a pilot study of diabetic foot ulcers and a 15-patient case series evaluating multiple wound types. That lead up to developments from this month concerning PolarityTE’s randomized controlled trial entitled “SkinTE™ in the Treatment of Diabetic Foot Wounds”.
Earlier this week the company announced data from a protocol-specified interim analysis of the first 50 patients enrolled in the trial would get inclusion in a poster presentation. What’s more, is that PolarityTE also included that it would announce top-line data later this week. This leads us to July 24th.What Was The PTE Stock News?
In line with its July 20th update, PolarityTE delivered “the goods” on Friday. The company reported positive results from its trial. These data will be presented by the Study Chair, David Armstrong , DPM, MD, PhD, Professor of Clinical Surgery at the Keck School of Medicine, at the SAWC Spring 2020 Virtual Conference held July 24-26, 2020.
In the press release, Dr. Armstrong explained that he was very encouraged by the positive results from this interim analysis. Furthermore, “The data show a statistically significant difference favoring PolarityTE’s autologous skin construct, SkinTE, in the primary endpoint of wounds closed at 12 weeks, and in percent area reduction of wounds at each time point measured. We look forward to completing the trial and reading out the full data set in due course.”