If January and February are a sign of things to come in 2021, traders and investors are going to make a lot of money this year. 4 penny stocks on the run are Aeterna Zentaris (NASDAQ: AEZS), Alpine 4 Technologies (OTCMKTS: ALPP), Enzolytics (OTCMKTS: ENZC), and Ocugen (NASDAQ: OCGN).
HOW TO TRADE PENNY STOCKS
First up, it’s important to understand that trading penny stocks is 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 investors looking to position our subscribers BEFORE the move happens. We got our subscribers in early on TSNP, which you can read our first article here, and ALPP, which you can read about here. This is where the big money is made and why so many of our subscribers are sitting on gains of over 9633% in ALPP and over 19,900% in TSNP.
It’s also best to own a portfolio of quality penny stocks. For some that can be as many as 10 to 20 or more penny stocks.
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.
Now we know many prefer to day trade, but we are not day traders here at Insider Financial. It doesn’t suit our personality and we don’t like the intraday moves markets make. We have found we made more money being patient and ignoring the day to day noise of the markets.
If you want to day trade, Insider Financial is not the place for you. When it comes to day trading, and if that’s what you are after, we recommend the folks at True Trading Group, which you can check out their live streams here.
OTC PENNY STOCKS VS NASDAQ/NYSE PENNY STOCKS
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/NYSE penny stocks. There are always opportunities if you give yourself the flexibility to trade all markets.
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, WKHS, 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.
So far this year, it’s best to play both OTC and NASDAQ/NYSE penny stocks. There is no shortage of multi-baggers in both markets at the moment. As we have said repeatedly, there’s no better time to be a penny stock trader and traders need to be aggressive. It’s like being at the casino. When you have a hot hand and the house keeps losing (hedge funds and institutions), take advantage of it while you can.
In this article, we take a look at 4 penny stocks on the run, AEZS, ALPP, ENZC, and OCGN to find out what’s behind the move and our outlook for each.
Penny Stock On The Run #1 AEZS
AEZS opened the New Year at $.42 a share and hasn’t looked back. AEZS is running as an emerging COVID-19 vaccine player with only 62 million shares in the float.
AEZS has an exclusive option agreement to evaluate a potential COVID-19 vaccine developed at the Julius-Maximilians-University Wuerzburg, one of Germany’s leading research and teaching universities.
The vaccine technology developed at the University uses a typhoid fever vaccine as a carrier strain and has the potential to be an orally active SARS-CoV-2 live-attenuated bacterial vaccine.
Under the option agreement, Aeterna has the right to negotiate an exclusive worldwide license to develop this technology for the prevention of coronavirus diseases, including COVID-19.
If sufficient data to advance into human clinical trials is determined, the development program for this particular COVID-19 vaccine is expected to be abbreviated because extensive data is already available for the underlying vaccine strain, Salmonella Typhi Ty21a.
Aeterna expects to make a decision whether to exercise its option to negotiate a license for that technology by mid-2021. In addition, the use of dual antigens in one vaccine strain may lower the likelihood of the evolution of resistant viral mutants.
“While vaccines for COVID-19 have been developed, we believe there is opportunity for improvement. That includes the potential to develop a more cost-effective oral alternative with less onerous storage requirements than the currently approved COVID-19 vaccines,” commented Dr. Klaus Paulini, Chief Executive Officer of Aeterna Zentaris. “We are optimistic that results from further studies of this new vaccination approach may offer a much needed, safe and effective immunization alternative against COVID-19. Aeterna will contribute its expertise and experience in preclinical development and GMP-compliant manufacturing to the project.”
Further helping to drive the price higher is the fact that 8.37% of the float has been shorted. With a market cap of just $200 million, AEZS remains a cheap COVID-19 vaccine play.
Penny Stock On The Run #2 ALPP
ALPP is a huge winner for our subscribers after we profiled the company last year, which you can read here. ALPP was trading at just $.075 at the time. This is what we mean when we say find the momentum BEFORE it happens and then be patient!!
ALPP is running as the company prepares to uplist to the NASDAQ. OTC to NASDAQ plays are some of the best plays in the market as once the company hits the NASDAQ, institutions can more easily purchase shares.
— Alpine 4 Holdings, Inc. (@alpine4holdings) January 25, 2021
ALPP had even dipped to $3, giving investors an opportunity to load up before the latest big run. As we have said repeatedly, if you missed the move, don’t chase. Wait for the dip on red days to load up. ALPP gave you that opportunity.
What’s been driving the rally in ALPP has been the acquisition of Impossible Aerospace in December. The acquisition also brought Impossible Aerospace founder Spencer Gore into the ALPP family.
He previously served as a battery design engineer at Tesla Motors, where he developed the world’s longest-range electric vehicle battery for the Model S. His time spent with Tesla and Space X will help Impossible Aerospace execute on the growing demand from the US Air Force for domestically made electric aircraft.
We said back in December to look for further highs in ALPP, which you can read here. Here are a few reasons why the rally can keep going.
- ALPP now has over 24,000 shareholders throughout Europe and a growing number of shareholders in Asia and beyond.
- ALPP forecasts $42 million to $55 million in revenues this year.
- NASDAQ bound
- ALPP is looking at acquisitions that can add $25 million to $40 million in annual revenue.
- A bet on ALPP is also a bet on founder and CEO Kent Wilson. He is an expert on DMAIC / Six Sigma and Lean proficiencies. These are the strategies Jack Welch used to build GE.
Penny Stock On The Run #3 ENZC
ENZC has been another incredible winner for Insider Financial subscribers, which you can read our initial coverage from October here when the stock was around a penny.
The reason we like ENZC so much and what we laid out as our bullish thesis back in October centered around monoclonal antibodies. Monoclonal antibodies are what Dr. Anthony Fauci is so focused on when it comes to COVID-19 as he told Facebook CEO Mark Zuckerberg in this video.
ENZC just announced that it has identified seven additional conserved, expectedly immutable sites on the HIV virus against which it plans to produce targeted anti-HIV monoclonal antibodies.
The Company’s primary anti-HIV monoclonal antibody targets one conserved site on the HIV virus, which site is 98% conserved (either directly or by way of conservative amino acid substitutions) over all 87,336 HIV isolates which have now been curated (analyzed) by the Company using Artificial Intelligence (AI).
Additional conserved target sites (some with 98% conserved sequences) have now been identified against which fully human anti-HIV monoclonal antibodies will be produced in its lab on the campus of Texas A&M University in the University’s Institute for Preclinical Studies.
The significance of producing multiple monoclonal antibodies targeting multiple conserved sites is recognized by experts as a critical approach to effective therapy. This allows the administration of a “cocktail” of antibodies, all targeting conserved and expectedly immutable sites.
Additionally, the Company’s Genetics and Molecular Biology data science team is now screening (using computer analysis/Artificial Intelligence [AI]) more than 275,000 CoronaVirus isolates now known, to also identify conserved sites which expectedly are immutable.
From this information, anti-SARS-CoV-2 (CoronaVirus) monoclonal antibodies will be produced. The significance of producing monoclonal antibodies against conserved target sites on targeted viruses is made evident by the mutant strains of the CoronaVirus currently surfacing in the U.S, South Africa, Brazil, the United Kingdom, and around the world.
The same virus mutation exists with HIV, as well as other well-known viruses. As a virus mutates, a therapeutic becomes ineffective when it neutralizes by attacking a site that changes.
By targeting an immutable site, a therapeutic is not affected by the mutation. This is well understood by the necessity to produce a new flu vaccine with each flu season, namely because the flu virus mutates.
Producing therapeutics that target a conserved site on viruses makes possible the production of a therapeutic that is not rendered ineffective by virus mutation, and therefore can be applied successfully both universally around the world and durably over time.
The Company is also applying Artificial Intelligence [AI] to scan the hundreds of thousands of isolates that exist in 14 other prevalent viruses, ranging from influenza to Rabies to Ebola.
Using the Company’s proprietary technique for producing fully human monoclonal antibodies directed against these infectious diseases, the Company will produce multiple neutralizing monoclonal antibodies against these viruses.
The significance of this approach is well recognized by experts in virology due to the ability of all viruses to mutate and render ineffective initially developed therapeutics.
We helped sparked the last rally with our update on January 30 when ENZC closed at just $.17 a share, which you can read here. We rebutted the recent Seeking Alpha hit piece and said that ENZC was undervalued. Most notably, ENZC is running despite setbacks in Bulgaria and having to redo the permit process.
CEO Charles Cotropia stated, “The Company is making significant progress on both of its therapeutic platforms: first, on the identification of prime target sites on both the CoronaVirus and the HIV virus and the creation of neutralizing antibodies directed against these sites, and second, on advancing its ITV-1 peptide therapeutic for patient application in the EU.”
CSO Harry Zhabilov stated, “With the Bulgarian Drug Administration joining the European Medicine Agency and being recognized under the Mutual Recognition Agreement with the FDA, once we have successfully finished the permitting process the Company will be able to pursue FDA approval for ITV-1. We are currently investigating the required steps but feel confident that this is a viable option for the ITV-1 patented therapy.”
Bulgaria is a cheaper option for testing and as a member of the European Medicines Agency (EMA), Bulgaria is recognized under the Mutual Recognition Agreement (MRA) between the FDA and European Union for medicinal products for human use subject to limitations. This allows drug inspectors to rely upon information from drug inspections conducted within countries recognized under the Treaty. By doing the testing in Bulgaria, it’s a backdoor and a faster pathway to FDA approval.
Penny Stock On The Run #4 OCGN
We issued this report on OCGN when the stock had closed at just $2.77 and which you can read here.
We knew back in January about OCGN and Bharat Biotech. It took investors a month to wake up to the potential. It was all there for everyone to research.
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.
OCGN has an exclusive deal with Bharat Biotech for the US. Under the terms of the agreement, Ocugen will have US rights to the vaccine and will be responsible for clinical development, regulatory approval (including EUA) and commercialization for the US market.
Bharat Biotech will supply initial doses to be used in the US upon Ocugen’s receipt of an EUA. Ocugen will share the profits from the sale of COVAXIN in the US with Bharat Biotech, with Ocugen retaining 45% of the profits.
We still like OCGN as it has just a $1.59 billion market cap and 9.5% of the float is short. We expect the shorts to keep getting squeezed.
These 4 penny stocks are on the run right now. There are always opportunities in the markets and it’s our job to find winning stocks. Huge gains can be made in such a short amount of time.
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 an AEZS, ALPP, ENZC, or OCGN and you’ve crushed the market indices 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.