Currently, global markets are experiencing a lot of volatility, which is triggering the massive sell-off we are witnessing as investors rush for cash to minimize losses. Various central bank governments have introduced stimulus measures to cushion the economy from the fallout caused by the spread of the coronavirus. Broader markets are fluctuating significantly in the wake of uncertainty caused by cOVID-19. However, amidst this chaos, there are significant opportunities for investors to cash in on several hot penny stocks.
Penny stocks usually trade below $5 per share, and although they are cheap, they nonetheless come with considerable risk. Any slight movement in the market can tip the scales for penny stocks, and investors will either make profits or lose their investment.
During these volatile times, various penny stocks have been raking in gains, while other stocks dropped into penny stock territory. Penny stocks tend to perform well during volatile times, with substantial breakouts over a short time period. Here are 4 hot penny stocks with significant gains in March:
4 Hot Penny Stocks: TOP Ships Inc. (NASDAQ:TOPS)
The first hot penny stock to watch is TOP Ships, which has surged more than 575% in the last three trading sessions. At the end of last week, the stock jumped over 200%, then continued gaining this week with another 130% leap. The trigger for the stock came after the company announced that it had converted 5,640 units of Series E Convertible Preferred stock from Family Trading Inc.
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The company said that it converted shares worth around $6.4 million. After the transaction, there are currently around 10,364 outstanding shares of Series E Convertible Preferred Stock.
4 Hot Penny Stocks: CytoDyn Inc. (OTCQB:CYDY)
Since last Thursday, CytoDyn stock is up 200% after the FDA gave its emergency Investigation New Drug a nod towards treating COVID-19 patients. On Monday, the company stated that three more critically ill COVID-19 patients had received treatment with its leronlimab drug, which now brings the number of patients treated to around ten.
Leronlimab is being administered under the emergency Investigation New Drug Application that the FDA issued recently. The drug can also be used for other indications, such as certain breast cancers and HIV. The company said the treatment is being carried at a New York hospital.
The stock is up another 12% on Tuesday.
4 Hot Penny Stocks: Tetraphase Pharmaceuticals (NASDAQ:TTPH)
Tetraphase Pharmaceuticals has surged more than 178% in the last two weeks after it hit a new low of $0.58 on March 18. This came following the announcement that AcelRx Pharmaceuticals (NASDAQ:ACRX) will acquire Tetraphase in an all-stock deal of around $14.4 million. Tetraphase shareholders will receive 0.6303 of AcelRx share for each Tetraphase share.
Recently, the company announced a $11.4 million loss or $2.75 per share in the fourth quarter. Revenue came in at $1.7 million in the quarter. For the full-year, the company reported revenue of $7.4 million and a loss of $70.1 million or $22.85 per share.
4 Hot Penny Stocks: Athersys Inc. (NASDAQ:ATHX)
In the last two weeks, Athersys stock has jumped over 130%, and the gains continued into the this week. The company has announced that its partner in Japan, Healios KK, has exercised its warrant to acquire 4 million Athersys shares at $1.76. This represents a cash infusion of around $7.04 million to the company.
The company’s Fast-Tracked clinical program for the treatment of Acute Respiratory Distress Syndrome (ARDS) reported positive data in the second phase exploratory study employing MultiStem. Patients with ARDS who develop coronavirus are more likely to die than those without ARDS.
At the beginning of the year, BARDA reached out to Athersys and has labeled the MultiStem ADS Therapy as “highly relevant.” Talks are ongoing to bring the therapy to patients soon.
ATHX stock is now up by 7% at $2.78 and made a new 52-week high of $2.80.
Key Takeaway
As the spread of the coronavirus continues, markets are expected to remain volatile. Despite central banks announcing measures to cushion the economy, the sell-off experienced will likely continue. Will these 4 hot penny stocks remain hot? Or are things about to cool down? We can only wait and see.
Featured image: Pixabay
