Penny Stocks to Watch (NASDAQ:CTIC and NASDAQ:PTX)
Penny stocks to watch in this volatile market can be hard to find. The bio-tech sector has some of the fastest-growing companies with the greatest potential for upside gain. Often, these companies can skyrocket to massive highs if a new clinical trial goes well, or if the company undergoes a major reorganization that brings in fresh investor capital. There are two biotech penny stocks – CTI BioPharma Corp (NASDAQ:CTIC) and Pernix Therapeutics (NASDAQ:PTX) that appear to have exactly that kind of upside potential.
The first on our list of penny stocks to watch, CTI BioPharma Corp (CTIC), offers targeted therapies for a wide range of blood-related cancers and other serious blood conditions. The stock is currently trading at $0.403, and over a 52-week period, has traded in a relatively narrow range of $0.25 to $1.75. However, right now, Piper Jaffray currently has a $0.75 price target for the stock, which has a market capitalization of over $120 million.
There appear to be at least three primary catalysts for the stock to move nearly 50 percent higher. One is the recent release of data about PERSIST-2, a Phase 3 clinical trial from the company to develop a treatment for patients suffering from myelofibrosis, a debilitating blood condition that leads to lower quality of life and shortened survival time.
Another primary catalyst is the improved earnings picture for the company. On August 4, the company reported earnings per share of $0.07, topping analysts’ consensus estimates of $0.10. Finally, the third primary catalyst is the changing ownership structure of the company, with several major hedge funds and institutional investors – including BlackRock Fund Advisors and State Street Corp – increasing their equity stake in the company.
The second company our penny stocks to watch list is, Pernix Therapeutics, is a specialty pharmaceutical company that creates pharmaceutical products for under-served therapeutic areas, including those related to the central nervous system. The company currently is working on pharmaceutical products for acute migraines, insomnia and major depressive disorders. It’s easy to see the huge market potential for these cures within the wider consumer market.
Shares of Pernix Therapeutics are currently trading at $0.602, and over a 52-week period, have traded within a range of $0.39 and $4.89, so the potential definitely exists for a breakout to the upper part of that range. Right now, technical factors appear to be holding back the stock’s full potential.
The one big catalyst for Pernix is the huge institutional shareholder base. Right now, according to Yahoo! Finance, 124 major institutional investors hold a combined 59% of the company’s shares. One of the most prominent investors in the company is billionaire Steve Cohen, who holds 3.77 million shares of the company. Other big names that are behind Pernix include Morgan Stanley and Vanguard.
That big buy-in from institutional investors should give smaller investors a measure of confidence that the downside risk is limited, especially after the company named a new CEO earlier this year. On August 3, rumors even circulated that the company was going to be bought out as part of an overall restructuring. That could be good news for investors looking to cash out of their positions sooner rather than later, so keep eye on potential moves in Pernix Therapeutics.
Get the hottest penny stocks to watch from the industry leader megapennystocks.com.