Author: Craig Adeyanju
Estimated read time: 3 minutes
Publication date: 28th Oct 2019 16:04 GMT+1
Penny stocks, on the surface, look attractive because they generally have prices under $5. However, many penny stocks belong in that category for a reason and one of them is that they typically lack the trading volume required for them to be attractive to traders.
Low trading volumes almost always mean that the stock is hard to sell. So when you find stocks in this category with high volumes, it may be worthy of an effort to take a deeper look. Here, we look at some high volume penny stocks that you should have on your watchlist.
Note: We used Finscreener's stock screener to find the penny stocks we're looking at below.
Market Capitalization: $141 million
Average Daily Volume: 2,068,421)
Year-to-Date Stock Performance: -2.11%
Sesen Bio (NASDAQ: SESN) is a late-stage clinical company involved in the development of targeted fusion protein therapeutics (TFPTs) for the treatment of cancer. The excitement around this company is on its lead product candidate Vicinium for the treatment of high-risk non-muscle invasive bladder cancer. In recent months, the company has announced positive results from its various trials and says it's closer to FDA approval.
Market Capitalization: $210 million
Average Daily Volume: 5,005,431
Year-to-Date Stock Performance: -48.27%
New Age Beverages Corp. (NASDAQ: NBEV) develops and sells Ready-to-Drink (RTD) beverages, with a primary focus on health-conscious consumers. The company's recent move to start producing cannabidiol (CBD) infused drinks provides one of the biggest upside potentials for the company. New Age won approval to sell CBD-infused drinks in Japan, the first company to obtains approval in this regard. The CBD market is still considerably small at present, but if you're optimistic about the growth potentials for CBD, New Age might be worth a buy for the long haul.
Three of four analysts currently rate NBEV stock a "Strong Buy," with the fourth holding out a "Hold" rating.
Market Capitalization: $258 million
Average Daily Volume: 2,068,421
Year-to-Date Stock Performance: -56.84%
ViewRay Inc. (NASDAQ: VRAY) is involved in the manufacturing and marketing of radiation therapy systems. Its systems provide real-time imaging during radiation treatments. The company currently has a "Strong Buy" rating from seven of eight analysts. The other one analyst rates VRAY stock a hold.
Market Capitalization: $290 million
Average Daily Volume: 2,232,399
Year-to-Date Stock Performance: 54%
Geron Corp. (NASDAQ: GERN), a clinical-stage biopharmaceutical company, is focused on the development and possible commercialization of telomerase inhibitor, imetelstat. The treatment, developed for hematologic myeloid malignancies, has shown positive signs of being able to suppress the proliferation of malignant cells. In August, Geron started a pivotal phase 3 clinical study to evaluate using imetelstat in the treatment of lower-risk myelodysplastic syndromes (MDS).
In September, the U.S. Food and Drug Administration (FDA) granted imetelstat a Fast Track designation for the treatment of relapsed/refractory myelofibrosis.
Granted, Geron still has a long way to go, especially considering its previous crises like a time the FDA placed its trials on full and partial holds because of adverse events. However, the upside potential could be massive if the drug makes it to the market. Analysts believe imetelstat is potentially a blockbuster treatment.
Three out of four analysts currently rate GERN stock a "Strong Buy," with the other analysts holding out a "Moderate Buy" rating on the stock.
Disclaimer: Craig Adeyanju is an experienced financial consultant who writes for Finscreener.com. The observations he makes are his own and are not intended as investment or trading advice.
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