With major blue-chip stocks pushing up by big numbers on Tuesday, which penny stocks are investors watching? Now this question comes with multiple parts as it truly depends on a few factors. Overall, we have to consider the current state of the market.
This week, investors are focused on the $1.9 trillion stimulus package that could be passed by the House as soon as Wednesday. Also, Covid cases are continuing to decline, hitting the lowest levels in the past several months. While long-term fears of inflation are at bay, for now, investors are focused on finding high-growth stocks, with penny stocks prevailing.
These companies could be in a range of industries as many aspects of the stock market are attempting to recover. With the NASDAQ up by over 3.6% as of March 9th, it looks like the bulls are making a run. Now, how long this will last and its overall impact may remain to be seen. But right now, tech and biotech penny stocks are heavily in focus.
The last thing on the table remains vaccine distribution. If the numbers can continue to go up, we could soon see the light at the end of the tunnel. For now, however, it is a waiting game for the public and investors alike. With all these factors considered, here are four penny stocks to watch as March turns positive.
Penny Stocks To Watch
- Obalon Therapeutics Inc. (NASDAQ: OBLN)
- Atossa Therapeutics Inc. (NASDAQ: ATOS)
- Tyme Technologies Inc. (NASDAQ: TYME)
- Novan Inc. (NASDAQ: NOVN)
Obalon Therapeutics Inc.
One of the biggest gainers during the second week of March is Obalon Therapeutics. On Tuesday, shares of OBLN skyrocketed. While no news came out on Tuesday to spark this gain, we saw several similar biotech penny stocks jump during the day. Obalon is a producer of medical devices that help treat obesity in the U.S. While it does have operations worldwide, its primary market is in America. Only a month or so ago, the company announced a merger with the weight loss solutions company, ReShape Lifesciences Inc. Upon the announcement, shares of OBLN skyrocketed by over 500%.
CEO of ReShape, Bart Bandy, stated that “we are excited with this opportunity to add Obalon’s FDA approved Balloon System to ReShape’s line of minimally invasive weight-loss solutions while also expanding our market reach.”
Since December of last year, shares of OBLN are up by more than 270%, almost pushing out of penny stock territory. Obalon claims to have the first and only FDA-approved swallowable, gas-filled intragastric balloon system for treating obesity. This is a big deal and could give Obalon an advantageous market position.
Atossa Therapeutics Inc.
As far as big gaining biotech penny stocks go, on March 9th, ATOS stock shot up by over 50%. Similar to OBLN, ATOS did not make any major announcements on Tuesday. However, it seems as though it could be due to its larger correlation with the biotech industry. Additionally, Atossa has a large connection with Covid-19, which has been more than fruitful in the past few months. More broadly, Atossa is a clinical-stage biopharmaceutical company working on treatments for unmet medical needs.
The company currently has two treatments in its pipeline related to Covid-19. The first one, COVID-19 HOPE, is used to treat very severe Covid infections. This includes those who are hospitalized and often put on ventilators. Second, the company is working on a drug combination titled AT-H201 to form antibodies in the body, blocking Covid reproduction.
However, these two drugs already have FDA indications for a variety of other ailments with over “a dozen clinical studies in close to 800 patients.” This means that the track to gaining approval could be shorter than with a novel compound. Also, the company is working on a nasal spray, AT-301. This spray could be used at home as a first line of defense once Covid has been detected in patients. It is the first of its kind and could be a game-changer for the company.
As you can see, Atossa is working on the treatment of both minor and severe Covid-19 cases. With the virus continuing to make headlines, stocks in this niche could be on the watch list during the month.
Tyme Technologies Inc.
Tyme Technologies is another biotech company, but one that made an exciting announcement a few weeks ago. The company stated that it had closed on a $100 million funding round. While capital-raising efforts are common, they often help to support a company’s pipeline. In this regard, Tyme is currently working on its TYME-19 therapy. This is an experimental drug that could have indications for preventing Covid-19 infections in patients. The company states that it plans to move TYME-19 into clinical trials as quickly as it can. And with this fundraising on hand, the company should have the capital to do so.
In a business update provided early in February, Tyme released the information that it is was granted patent claims to cover TYME-19 for the treatment of Covid infections. Additionally, the company has confident leadership with the announcement of Richie Cunningham as the new CEO of the company. Cunningham stated in the announcement that “TYME is at an exciting juncture in its history. As I am getting acquainted with the many facets of the Company, I am deeply impressed with the spirit of innovation and dedication towards the development of products that improve the lives of people.”
Similar to Atossa, TYME could also be one of the virus stocks to watch right now.
Novan Inc. is another penny stock that we’ve been covering for several months now. On Monday, March 8th, the company announced the completion of enrollment in its B-SIMPLE4 trial. This came only a few weeks after the announcement of its full-year 2020 financial results.
For the full year, NOVN brought in roughly $5 million in revenue. Much of this came from licensing and collaboration revenue, with the other parts coming from upfront and milestone payments on its Sato agreement. For some context, the B-SIMPLE4 study is working on gaining toppling results by the second quarter of this year. The study will be done via a randomized, double-blind trial across 55 sites in the U.S.
The goal is to see if it can prevent or lessen the severity of molluscum contagiosum, a common infection seen worldwide. Because there are little to no approved treatments for it, Novan sees a large market opportunity here. Additionally, a few weeks ago, the company regained compliance with the NASDAQ minimum bid price requirement. The last thing of note is the company’s substance known as SB109.
This is an oral, topical, or nasal treatment that can be used to stop viral reproduction with Covid cases. Because it is still in the preclinical stages, not much has been announced in the past few weeks except for posting a corporate presentation on Tuesday. Whether or not this ended up becoming a catalyst on its own is to be seen. For now, NOVN stock has gained some steam heading into the middle of the week.