Penny Stocks With News: Time To Buy?
One of the quickest ways to find what’s behind a move in penny stocks is to look at the newsfeeds. While it shouldn’t be the only thing you look at, news can be the reason stocks move aggressively in the short term. Just look at any of the companies reporting earnings this month.
Things can change for the better (or worse) overnight, depending on what a company discusses in an update. Whether it’s the latest financial results or a new regulatory agency development, news plays a significant role even with small stocks. Today we look at a handful of penny stocks with news that has helped move share prices in the stock market.
Penny Stocks To Buy For Under $3
The definition of penny stocks involves companies with share prices below $5. But today, we look at some that are even less expensive. Here are three that can be purchased for under $3. Are they worth the risk, or should they be avoided entirely? That’s something you can decide for yourself.
Canopy Growth (NASDAQ: CGC)
Marijuana stocks have (finally) started getting some attention. Earlier this year, U.S. President Joe Biden randomly sent out tweets related to the industry. Biden said, “Sending people to jail for possessing marijuana has upended too many lives – for conduct that is legal in many states. That’s before you address the clear racial disparities around prosecution and conviction. Today, we begin to right these wrongs.”
With this optimism, momentum has continued to reignite interest in the industry. Canopy Growth is one of the “OGs” in the industry that has made the journey from OTC penny stock to a NASDAQ-listed company. This week’s news has helped give shares of the marijuana stock a boost.
CGC Stock News
What was the CGC stock news today? The company announced a strategy to speed up its entry into the U.S. cannabis industry. Canopy is creating a new U.S. -domiciled holding company, Canopy USA, LLC. Canopy USA will hold the company’s U.S. cannabis investments. It said this process would allow the company to exercise rights to acquire other cannabis companies, including Acreage, Wana, and Jetty.
CEO David Klein said, “We expect to unleash the full power of Canopy’s scalable and ideally-positioned U.S. cannabis ecosystem to unlock potential expansion opportunities. This strategy and positioning are true differentiators, which we expect to enable our investors and brands to realize value in the near term while positioning Canopy for profitable growth and a fast start upon U.S. federal permissibility.”
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In tandem, Canopy’s most notable public company shareholder, Constellation Brands (NYSE: STZ), reported that its indirect, wholly-owned subsidiaries, Greenstar Canada Investment and CBG Holdings, entered into a consent agreement with Canopy. The plan is to transition existing shares of ownership in Canopy, surrender their warrants, and build additional value for Constellation shareholders.
Ginkgo Bioworks (NYSE: DNA)
A popular Cathie Wood penny stock, Ginkgo Bioworks, has caught some attention in the stock market today. The cell reprogramming technology company continued its three-day bounce that began on Friday. The news that Ginkgo completed its Zymergen Inc acquisition was part of the move.
Specifically, the acquisition is expected to enhance Ginkgo’s platform and integrate automation software for use in biological engineering processes. That update also came shortly after news of its collaboration with Merck to help improve an active pharmaceutical ingredient manufacturing process. Specifically, Ginkgo’s fungal strains are in focus. SVP of Biopharma Manufacturing & Life Sciences Tools at Ginkgo explained in an October update, “Ginkgo’s fungal strains present a major opportunity for improving biocatalysis. E. coli is currently the mainstay host for expressing enzymes, but a large number of enzymes will not express properly in E. coli, and those that do express in E. coli may have better homologs that only express in fungal strains.”
DNA Stock News
What was the DNA stock news today? Ginkgo continued its active October of updates with news that it signed a memorandum of understanding with the Ministry of Investment of Saudi Arabia. The goal is to create biotechnology and biosecurity deployment of new public health initiatives.
Revelation Biosciences (NASDAQ: REVB)
Biotech penny stocks have certainly built steam this week. Yesterday we discussed a few cheap names to watch this week. In the article, we said, ” Biotech penny stocks are some of the most active in the stock market today. These small companies tend to move unrelated to broader markets because of their speculative nature and potential to make significant jumps on any type of news or corporate event.”
Revelation Biosciences is a clear example of how news can play a quick but significant role in the market. Looking back at the action from summer and you’ll see a period of substantial but swift bullish action. That was thanks to headlines related to its Phase 1 study data. The company reported encouraging topline data from its intranasal REVTx-99b allergic rhinitis study. Since then, shares of REVB stock have slowly and steadily dipped back and reached 52-week lows of $0.205 earlier this month.
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REVB Stock News
What was the REVB stock news today? Revelation announced more data. It reported positive results in its preclinical model of acute and chronic kidney disease with its REVTx-300 platform.
Lakhmir Chawla, M.D. at the Jennifer Moreno Department of Veterans Affairs Medical Center, San Diego, CA, commented that “These promising preclinical results offer hope of new prophylactic option for preventing the deleterious effects of AKI following multiple types of surgery…as well as potential new treatment options for active acute kidney injury and chronic kidney disease. I look forward to collaborating with Revelation as REVTx-300 moves through the development process.”
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