2020 was such a banner year that folks like us and our subscribers that have big gains waited until the first trading day of January to book profits. This allows us to pay the taxes on those profits next year.
The good news thou is that there are always runners. As we have said repeatedly, it’s important to have a diversified portfolio of 10 to 20 penny stocks to offset red days like Monday. It’s also important to own more of what’s moving and less of what’s not.
3 NASDAQ penny stocks still on the move are Bionano Genomics (NASDAQ: BNGO), Jaguar Health (NASDAQ: JAGX), and Ocugen (NASDAQ: OCGN).
In this article, we take a look at what’s happening with NASDAQ penny stocks BNGO, JAGX, and OCGN. We also give some insight on how to trade penny stocks and what investors should look for when it comes to NASDAQ penny stocks.
HOW TO TRADE PENNY STOCKS
First up, it’s important to understand that trading penny stocks are not the same as trading blue chips. As we have stressed repeatedly to our subscribers, the key to trading penny stocks is finding momentum BEFORE it happens and then be patient.
Now, when we say that we find momentum BEFORE it happens, we are swing traders looking to position our subscribers BEFORE the move happens. This is where the big money is made and why so many of our subscribers are sitting on gains of over 7750% in ENZC and over 18,650% in TSNP.
If you want to day trade, this is not the place for you. If you want to make a few hundred bucks and then lose a thousand dollars the next day, we hear Tim Sykes has plenty of openings.
We always alert our subscribers first before we publish for our regular readers. This is the value of having a subscription to Insider Financial, which you can sign up for here. We alert our subscribers with our best ideas before our regular readers.
OTC Penny Stocks vs NASDAQ Penny Stocks
We are not a big fan of Jim Cramer, but when he says there’s always a bull market somewhere, he’s right. That’ why we hate when we see penny stock traders get pigeonholed into just trading OTC or only NASDAQ. Trade both!!
We are all about trading the easy money and I have been doing this now for almost 25 years. I can’t say for sure the reason why, but there are times when it’s much easier to trade OTC than NASDAQ and vice versa.
Last year, for the first half of 2020, it was much more profitable to trade NASDAQ penny stocks than OTC. That is where we and our subscribers were positioned. We captured the runs in SRNE, NIO, INO, IBIO, and many others. Then once the summer came, many of the COVID runners had failed to find momentum. We then pivoted to OTC and caught the runs in TSNP, ENZC, MMEDF, and many others.
Now that 2021 has begun, it’s too early to tell after just one day, but we are liking what we are seeing on the NASDAQ to start the New Year.
NASDAQ Penny Stock #1: BNGO
Shares of BNGO are up over 1000% in the past 7 trading days. Investors have been buying into the cytogenetics specialist’s steady stream of positive developments.
The rally started after the company disclosed that its genome mapping platform Saphyr has been accredited in the US by the College of American Pathologists. The platform will be used by Bionano’s customer Praxis Genomics, marking it as the first company to offer a laboratory-developed test (LDT) utilizing whole-genome analysis. Saphyr’s optical genome mapping is an alternative to traditional cytogenetic methods.
Additionally, the company recently received a 180-day delisting extension from the NASDAQ.
The excitement surrounding BNGO is that genomics is a multi-billion-dollar opportunity. In a comparison test, PacBio’s HiFi chemistry was only able to detect 72% of the large SVs (structural variants) detected by Saphyr. PACB has a market cap of $5 billion compared to BNGO at $752 million. While an equity raise is likely at these prices, BNGO has significant long-term potential. Look to buy the dips if the stock sells off on an equity raise.
NASDAQ Penny Stock #2: OCGN
OCGN is another 10-bagger on the NASDAQ over just the past 7 or so trading days. OCGN is a COVID vaccine play that has partnered with Bharat Biotech.
Bharat Biotech received emergency approval for its COVID-19 shot, COVAXIN from the Indian government on Monday. OCGN has signed a binding letter of intent with Bharat Biotech to co-develop COVAXIN for the U.S. market.
The approval for COVAXIN is not without critics, who allege that the authorization was given despite the lack of efficacy data.
“On what basis was this approval given when Bharat Biotech has NOT shown enough data proving safety & efficacy?” transparency activist, Saket Gokhale, wrote on Twitter. Adar Poonawalla, CEO of Serum Institute, the local partner for the AstraZeneca shot, has said, “Until we get the efficacy result, how do we know that anything works?”
However, according to the NY Times, Bharat Biotech’s vaccine kills the coronavirus. Covaxin works by teaching the immune system to make antibodies against the SARS-CoV-2 coronavirus.
Once the researchers produced large stocks of the coronaviruses, they doused them with a chemical called beta-propiolactone. The compound disabled the coronaviruses by bonding with their genes. The inactivated coronaviruses could no longer replicate. But their proteins, including spike, remained intact.
The researchers then drew off the inactivated viruses and mixed them with a tiny amount of an aluminum-based compound called an adjuvant. Adjuvants stimulate the immune system to boost its response to a vaccine.
Inactivated viruses have been used for over a century. Jonas Salk used them to create his polio vaccine in the 1950s, and they’re the basis for vaccines against other diseases including rabies and hepatitis A.
Bottom line – all COVID-19 vaccines have their skeptics, just like Tesla and Elon Musk. Bet against OCGN at your own peril!
NASDAQ Penny Stock #3: JAGX
We finally got some vindication on our bullish call on JAGX from September when we said that it was heading back over $1, which you can read here. JAGX is just the latest 10-bagger in the past month.
JAGX is running on merging one of its operating subsidiaries with a SPAC. Jaguar Health is in preliminary discussions with Swiss Growth Forum, a sponsor of a European SPAC for its potential merger with the company’s operational subsidiary to be established in Europe with an exclusive license to crofelemer and Mytesi for the indications of inflammatory diarrhea and HIV-related diarrhea.
The terms include an upfront cash license fee to Napo ranging from ~$2M to $10M; funding European operation of minimum $20M for clinical development of crofelemer; Napo’s equity ownership in the European subsidiary ranging from 30% to 49.9% post-acquisition by the SPAC.
“With infection rates growing the way they are, we believe it’s possible that 10% to 15% of the global population is at risk of experiencing long-hauler syndrome,” says Lisa Conte, Jaguar’s president, and CEO.
These 3 NASDAQ penny stocks are hot right now. There are always opportunities in penny stocks and it’s our job to find the bull markets. Huge gains can be made in such a short amount of time.
For those that missed out on the recent run in these three NASDAQ penny stocks, our best advice is to be patient and throw bids in below the market. Buying dips and selling rips as swing trades remains the best strategy in these markets.
Remember, all it takes is one or two to become a BNGO, OCGN, or JAGX and you’ve crushed the market indexes for the year. Whoever said to avoid penny stocks has no clue what they’re doing.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.