The stock market was subdued on Friday following inflation data, but many hot NASDAQ penny stocks have shown great performance despite the correction of the main indexes.
On Thursday, the Labor Market data showed that US producer prices had increased more than expected in August, with the annual growth accelerating by the most in about 11 years. Previously, the Fed said that inflation was only temporary, but now it seems the central bank may have to think about reversing the accommodative monetary policy sooner than later.
Charlie Ripley, senior investment strategist for Allianz Investment Management, stated:
“Today’s data on wholesale prices should be eye-opening for the Federal Reserve, as inflation pressures still don’t appear to be easing and will likely continue to be felt by the consumer in the coming month.”
The investor sentiment turned bearish after Cleveland Federal Reserve Bank President Loretta Mester said that she would still like the central bank to begin tapering asset purchases this year despite the weak August jobs report.
Despite the market correction that sent NASDAQ lower by 0.87% on Friday, there are many penny stocks that are on the rise or bouncing back following long-term downtrends that sent prices into oversold territory.
FINDING OPPORTUNITIES IN HOT NASDAQ PENNY STOCKS
There are plenty of opportunities for investors if they follow us here at Insider Financial.
The key to trading stocks is finding the momentum BEFORE it happens and then be patient. Now, when we say that we find momentum BEFORE it happens, we are investors looking to position our subscribers BEFORE the move happens.
It’s also best to own a portfolio of hot stocks. For some that can be as many as 10 to 20 or more hot stocks that include both OTC stocks and NASDAQ penny stocks.
We alert our subscribers with our best ideas before our regular readers. This is the value of having a subscription to Insider Financial, which you can sign up for here.
The fact is that there is always a bull market somewhere. That’s why it’s important for penny stock investors to trade both OTC and NASDAQ stocks, and sometimes get exposure to larger companies that still seem to have massive growth potential. There are always opportunities if you give yourself the flexibility to trade all markets.
In this article, we take a look at 4 hot NASDAQ penny stocks. They are Arbutus Biopharma Corporation (NASDAQ: ABUS), Denison Mines Corp (NASDAQ: DNN), Endo International plc (NASDAQ: ENDP), and T2 Biosystems, Inc (NASDAQ: TTOO).
Hot NASDAQ Penny Stock #1 ABUS
Arbutus Biopharma Corporation has been on the rise, gaining over 27% since Monday and over 37% over the last month. On Friday, the share price of the Canadian pharmaceutical company hit the highest level since mid-February at $4.65.
Arbutus engages in the discovery, development, and commercialization of a cure for patients suffering from chronic Hepatitis B virus (HBV) infection in the US. Its HBV product pipeline consists of:
- AB-729 – a proprietary subcutaneously-delivered RNA interference product candidate, which is in an ongoing Phase Ia/Ib clinical trial targeted to hepatocytes that inhibits viral replication and reduces various HBV antigens using novel covalently conjugated GalNAc delivery technology;
- AB-836, an oral capsid inhibitor that suppresses HBV DNA replication.
The company’s research and development programs include:
- HBV RNA destabilizers, an orally active agent to destabilize HBV RNA, which leads to RNA degradation and to reduction in HBV proteins;
- Oral PD-L1 inhibitor to enable reawakening patients’ HBV-specific immune response;
- Small molecule antiviral medicines to treat coronaviruses, including COVID-19.
While much of the focus is on HBV treatment, the latest price surge has to do with the company’s coronavirus programs.
Specifically, on September 9, investors found out that the US Patent and Trademark Office (USPTO) had recently granted the company a notice of allowance for a patent related to new lipid formulations for nucleic acid delivery. Investors speculate that Arbutus may receive royalties from Moderna, which uses this type of delivery in its COVID-19 vaccine.
— Patent Pundit (@PunditPatent) September 8, 2021
Last month, a Forbes article noted that scientific papers indicate that both Moderna and Pfizer’s COVID vaccines employ a delivery system that is quite similar to what Ian McLachlan, who worked at Tekmira, which later changed its name to Arbutus, created. The article reads:
“Without Ian MacLachlan’s innovative delivery system, Moderna and Pfizer couldn’t safely get their mRNA vaccines into your cells. So why does hardly anyone acknowledge the Canadian biochemist’s seminal contributions—or pay a dime in royalties?”
Moderna disputes the idea that its mRNA vaccine uses MacLachlan’s delivery system. Legal proceedings are pending, and big money is at stake. Elsewhere, Pfizer/BioNTech also use the same approach, but none of these vaccine makers pay a dime to MacLachlan.
If Arbutus had monetized its patent, it would make billions, which is huge for a $400 million company. However, the irony is that President Joe Biden’s proposal to waive Covid-19 vaccine patents would make it unlikely that the patents related to MacLachlan’s advances could be monetized.
Still, there is a possibility that Arbutus get something out of its patent, and you should keep an eye on this penny stock because if ABUS succeeds, the sky is the limit for this company. In July, we theorized that Moderna could acquire ABUS to solve the potential patent problems.
Also, we like that a great portion of shareholders consists of institutional investors and even hedge funds, which do in-depth analysis before investing, and the latter are interested in short-term gains as well.
Hot NASDAQ Penny Stock #2 DNN
Another stock on the rise is Denison Mines Corp. It gained over 50% during the last month, which is significant for a $1.2 billion company. More importantly, volume keeps increasing, breaking above 40 million shares on Tuesday. DNN closed at $1.59 on Friday, peaking at $1.62, which is the highest level in almost a decade.
The Toronto-based company operates as a uranium exploration and development business in Canada. Its flagship project is the 95% interest-owned Wheeler River uranium project located in the Athabasca Basin region in northern Saskatchewan.
The project has probable mineral reserves of 109.4 million pounds U3O8. Exploration activities are ongoing, with a current focus on the discovery of additional high-grade uranium deposits following years of delineation drilling at both Phoenix and Gryphon.
DNN’s exploration and development portfolio consists of numerous projects covering approximately 280,000 hectares in the Athabasca Basin region, with a focus on the infrastructure-rich eastern portion of the Athabasca Basin, which is home to the largest and highest-grade uranium mining and milling operations.
Earlier this week, the Financial Times reported that nuclear power companies were facing competition for supplies of uranium from financial investors, who are betting on way higher prices and demand for the radioactive material used to fuel reactors. The price of uranium yellowcake surged to the highest since 2014, mainly driven by a recently launched investment trust run by Canadian asset manager Sprott.
Investors expect that nuclear power will play a key role in the move away from fossil fuels. The lack of new uranium mines means the price should move higher.
The Sprott Physical Uranium Trust amassed up about 6 million pounds of physical uranium, worth about $240m, while the global mine supply is expected to be about 125 million pounds in 2021. The aggressive buying puts pressure on utilities that need to secure supplies of the commodity for electricity generation. Meanwhile, China is planning to expand its nuclear power capacity over the next decade.
On top of that, other financial players have also been buying the commodity anticipating a price increase.
While demand for uranium is expected to surge by over 40% up until 2030, supply is set to decline by 50% during the same period due to a lack of investment in new mines.
Denison and other uranium companies have increased in price this month. We believe DNN is a great long-term bet.
Hot NASDAQ Penny Stock #3 ENDP
Endo International plc bottomed out on September 3 when it touched the lowest level on record at $2.05. The penny stock is now trading at 2.79, after surging 33% on Friday alone. It touched a swing high at $3.29 during the session, which is the highest since August 20. The share price hit the YTD high at over $10, and it used to trade over $80 in 2015. The company has great value and we think the stock remains undervalued. ENDP will eventually recover and probably hit the $10 again sooner than later.
Endo is a specialty pharmaceutical company that manufactures and sells generic and branded pharmaceuticals in the US and internationally. Its Branded Pharmaceuticals segment provides branded prescription products, including:
- XIAFLEX to treat adult patients with Dupuytren’s contracture;
- SUPPRELIN LA to treat central precocious puberty in children;
- NASCOBAL nasal spray to treat vitamin B12 deficiency;
- AVEED to treat hypogonadism;
- PERCOCET to treat moderate-to-moderately-severe pain;
- TESTOPEL, which is an implantable pellet indicated for TRT in conditions associated with a deficiency or absence of endogenous testosterone;
- EDEX to treat erectile dysfunction;
- LIDODERM a topical patch product containing lidocaine for the relief of pain;
The company’s Sterile Injectables segment manufactures three products:
- VASOSTRICT, a vasopressin injection;
- ADRENALIN, a non-selective adrenergic agonist;
- APLISOL, a sterile aqueous solution.
It also produces generic sterile injectable products, including ertapenem for injections and ephedrine sulfate injections.
Its Generic Pharmaceuticals segment offers solid oral extended-release, solid oral immediate-release, liquids, semi-solids, patches, powders, ophthalmic products, and sprays.
Endo’s International Pharmaceuticals segment offers specialty pharmaceutical products in various therapeutic areas comprising attention deficit hyperactivity disorder, pain, women’s health, oncology, and transplantation.
The company sells its branded pharmaceuticals and generics to specialty physicians, retailers, clinics, government agencies, doctors, retail and specialty pharmacies, and specialty distributors.
Endo has been around for a century, has over 3,300 employees, has generated over $2.5 billion every year, and there is no way it should be a $650 million company.
The stock has been dumped consistently as Endo has been dealing with over 3,300 legal cases related to its opioid operations. Also, the price crashed after the Wall Street Journal reported that the company had hired Alvarez & Marsal to look into a potential financial restructuring to reduce its litigation-related liabilities and debt load of more than $8 billion.
On Friday, the share price surged after the company agreed to pay $50 million to settle lawsuits by the New York state while not admitting any wrongdoing. The lawsuits allege that the opioid maker’s sales and marketing operations contributed to a public crisis over the highly addictive painkillers. Endo had been accused of adopting illegal tactics to turn its Opana painkiller into a blockbuster.
The company said:
“While litigation of the remaining opioid claims is ongoing, Endo is focused on its primary goal of achieving a global settlement. Endo is also currently exploring other strategic alternatives and may seek to implement one or more of those alternatives in the event it is unable to achieve a global settlement.”
While Endo has many troubles, it will gradually solve the situation and address its liabilities. This is a good stock to hold long-term.
Check out the absolutely bonkers volume on $ENDP. We might have seen an island reversal today. It even tried to fill that ugly downside gap from mid-Aug but it was too heavy a lift. My bet is that the transfer from plebs to pros is complete, and now this beauty is ready to run. pic.twitter.com/tFLu8hV5iP
— Panglossian Yield (@LevFinCynic) September 10, 2021
Hot NASDAQ Penny Stock #4 TTOO
T2 Biosystems, Inc is another company that is struggling to reverse the long-term bearish trend that sent its share price to the lowest level YTD earlier this week. After bottoming out on Thursday, TTOO jumped 23% on Friday to close at $1.07, which is the highest since mid-August.
TTOO is an in vitro diagnostics company that develops diagnostic products and product candidates in the US and internationally. It provides T2 Magnetic Resonance technology that enables detection of pathogens, biomarkers, and other abnormalities in various unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum, cerebral spinal fluid, and urine. The company also offers T2Dx Instrument, a bench-top instrument for detecting pathogens associated with sepsis and Lyme disease, and other applications, as well as T2Candida Panel that identifies the species of Candid.
In addition, it provides T2Bacteria Panel, a multiplex diagnostic panel that detects various bacterial pathogens associated with sepsis, T2SARS-CoV-2 Panel, a COVID-19 molecular diagnostic test, and T2Resistance Panel for the early and sensitive detection of carbapenemase-resistance markers.
The company has collaboration agreements with Canon U.S. Life Sciences, Inc. to develop a diagnostic test panel to detect Lyme disease.
The share of TTOO has consistently declined on concerns that its debt would force it to raise funds and dilute shares.
Still, the company provides great value and the latest news might hint at a bright future. On Friday, TTOO announced that its T2SARS-CoV-2™ Panel, a molecular diagnostic test that detects the coronavirus behind COVID-19, is capable of detecting the Mu (B.1.621) and Iota (B.1.526) variants, which were recently confirmed to be present in the US.
TTOO Chairman and CEO, John Sperzel, stated:
“We are proud to announce our technology is capable of detecting additional COVID-19 variants including Mu and Iota, enabling healthcare providers with the confidence to make more informed decisions about their patients’ health.”
The Mu variant is one of the latest COVID mutations and may be resistant against the current vaccines, which is why it’s important to detect it through accurate testing.
TTOO’s T2SARS-CoV-2 Panel, which has demonstrated clinical sensitivity of 95% and specificity of 100%, provides results in up to two hours utilizing an upper respiratory swab sample. The test runs on the Company’s FDA-cleared and fully-automated T2Dx Instrument, which is capable of performing seven tests simultaneously and up to sixty samples per day.
Meanwhile, the company plans to consolidate its existing facilities and expand into a newly leased facility in Billerica, Massachusetts, which is a sign that it’s confident in its future.
We think TTOO’s COVID tests are a big deal and you can get exposure to this penny stock at this bargain price.
THE FINAL NOTE
Now is a great time to invest in hot stocks with great potential during a reviving economy. Our job is to identify the best stock alerts with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio oriented at penny stocks.
The 4 NASDAQ penny stocks discussed today are on the rise and provide great value. Nevertheless, our best advice is to be patient and enter the market during corrections, which is the case of TTOO and ENDP. Buying dips and selling rips as swing trades remains the best strategy in the stock market. Still, whenever a hot stock is in the middle of a bull run, we recommend our subscribers to book profits.
It’s very important to eye penny stocks that have room for growth and have yet to make their explosive move. There are plenty of opportunities, and we take our time to monitor hundreds of penny stocks to buy each week, trying to find the best alerts for our subscribers.
Remember, all you need is one or two hot stocks to run in order to crush the market averages.
As always, good luck to all (except the shorts)!
WHEN INSIDER FINANCIAL HAS A STOCK ALERT, IT CAN PAY TO LISTEN. AFTER ALL, OUR FREE NEWSLETTER HAS FOUND MANY TRIPLE-DIGIT WINNERS FOR OUR SUBSCRIBERS. WE SPECIALIZE IN FINDING MOMENTUM BEFORE IT HAPPENS!
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.