Following a difficult month in which the Coronavirus outbreak threatens to derail the Chinese economy and drag down global equity markets, US stocks are resurgent this week with the Dow Jones up more than 400 points at the market open on Monday. So, as an investor, you’re probably looking for the best way to capitalize on this renewed optimism. Well, the penny stocks market could just be the best source of potential games.
Penny stocks trade for $5.00 or less, and they are often considered a good bellwether for the well-being of the domestic market due to the fact that this is where they generally tend to generate the majority of their revenue. However, they can be risky bets and, as such, divide opinion among investors. Let’s take a look at two that have caught our eye this week.
Trillium Therapeutics (NASDAQ:TRIL)
Trillium Therapeutics Inc is a clinical-stage immuno-oncology company developing innovative therapies for the treatment of cancer. After spending almost an entire year trading below the $1.00 mark, this penny stock rocketed up 1,400% in December after closing a C$117 million offering to raise money for its clinical and research pipeline.
The company has produced two potentially best-in-class treatments for hematologic malignancies, which have attracted the interest of several institutional investors. Should TRIL stock continue on its current momentum, it could break out of penny stock territory quite soon.
Callon Petroleum (NYSE:CPE)
Callon Petroleum is a mid-cap mining firm that we’ve covered heavily here on MicroSmallCap due to its long-delayed, high-profile acquisition of Carrizo Oil & Gas, which finally closed in December. That deal was hotly disputed by some shareholders, who felt the initial terms were way overvalued and due to the fact it lost Callon’s status as a Permian Basin pure-play. However, revised terms show real value in the deal, and a recent update from the company highlighted its strategy to become cash-flow positive in 2020, meaning there could be big gains ahead for this penny stock.
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