Welcome to our latest additions of Best Penny Stocks to Trade Today. Without further ado, let’s look at the penny stocks that are on the market’s radar today.
Penny Stocks to Trade Today: Top Picks
General Nutrition Corp. (NYSE: GNC)
GNC’s stock rallied big time yesterday after news broke that a Chinese firm was considering an acquisition of the nutrition retailer. The stock opened the session up significantly 17% but slid back to close the day up 10%. GNC’s trading volume was also up significantly.
Harbin Pharmaceutical Group is already an investor in GNC, but the Chinese company is interested in taking a larger, controlling stake in the company in order to take it private. As of now, this is effectively a rumor. When they broke the story, Bloomberg cited an anonymous insider as the source of the information, but the company has not made any official statement expressing interest.
For its part, GNC has lost over half its market cap this year. The company is valued at $176 million as of Monday’s close so, technically, it’s a micro-cap stock at this point.
According to Bloomberg, Representatives from both companies declined to offer an official statement.
Athenex Inc. (NASD: ATNX)
There has been a lot of trading activity in this mid-cap biotech firm over the past few weeks. Yesterday, the stock spiked nearly 20% without any major news hitting the wires. However, company executives loaded up on stock over the past few weeks and it could be a sign that something big is coming down the pipeline. Whatever the reason, there was some major buying in this stock yesterday.
Athenex primarily focuses on developing cancer therapies. The firm is reporting earnings on November 19, so maybe traders are expecting a beat. CFO Sze Randall made only a small purchase of about $11,000 worth of company stock last week, and another insider made a larger, $557,000 purchase around the same time as Randall. CEO Lau Johnson Yiu Nam acquired over $100,000 worth of stock yesterday, though those shares came via stock options.
It’s not clear what Athenex has in the works, but there has certainly been some unusual activity in this biotech stock. Insiders own roughly 25% of the $900 million company, and that shows that they have a lot of skin in the game. Keep an eye on this one for more unusual volume and, possibly, more upside gains.
CVD Equipment Corp. (NASDAQ: CVV)
This stock jumped over 15% yesterday after the company reported $7.9 million in new orders. That may not seem like much but, for a company worth only
CVD press releases call the company “a leading provider of chemical vapor deposition systems and materials”, but you can look at this company as an industrial stock. Product sales appear to be growing at a decent clip. The firm sold $7.9 million worth of goods in the third quarter. Last quarter it sold $6.5 million, that’s a pretty impressive growth rate of 21%, quarter over quarter. Sales are up over 139% since the first quarter.
Mallinckrodt PLC (NYSE: MNK)
This generic drug manufacturer is at the forefront of the opioid controversy. It wasn’t too long ago that this penny stock was worth over $20 per share. Now it’s trading for only a fraction of that amount. Multiple state governments are using the opioid epidemic as an excuse to shakedown generic drug manufacturers for damages, and several states have Mallinckrodt in their crosshairs.
Opioid litigation has not been kind to MNK shareholders, but share prices could be nearing a bottom. The firm already settled a few of the most major cases against it. Yesterday, MNK rallied over 12% after more companies reached settlements in lawsuits stemming from their distribution of opioids. The sentiment boost gave some momentum to Mallinckrodt’s upside move.
Negative sentiment contributed to a lot of Mallinckrodt’s misfortune but, depending on the terms of its settlements, it could be okay in the long-run. Generic drugs are a pretty stable business and the stock is currently trading for only 0.07 times sales. That’s amazingly cheap if the company can survive, but it doesn’t make a difference if the company is headed towards bankruptcy. This stock could be a great swing trade candidate, but traders should do all their homework and proceed with caution.
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