The markets have gone back to the levels it had been at prior to the onset of the coronavirus pandemic, and there is a degree of positivity among market participants yet again. In such a situation, it could also be worthwhile for penny stock investors to start having a closer look at those stocks which have recorded gains recently. On that note, here is a quick look at 4 penny stocks.
Penny Stocks to Watch #1 Tetraphase Pharmaceuticals
One of the penny stocks that made major gains on Tuesday is that of Tetraphase Pharmaceuticals (TTPH). Yesterday it emerged that AcelRx Pharmaceuticals has finally reached an agreement to merge with Tetraphase after a bidding war with Melinta Therapeutics.
According to the terms of the agreement, AcelRx will pay $39 million in cash upfront and an additional $16 million, which is going to be paid under contingent value rights. The news sparked a rally in the Tetraphase stock in premarket trading yesterday, and it rallied by as much as 15%.
Penny Stocks to Watch #2 Exela Technologies
Exela Technologies (XELA) was another major gainer among penny stocks on Tuesday. The rally came about after the company released its financial results for the fourth fiscal quarter. The company reported earnings per share of $0.34, which reflected a drop of 41.67% year on year and also missed analysts’ estimates.
On the other hand, revenues dropped by 1.5% to hit $393,600,000. Investors seemed optimistic about Exela’s performance, and the stock rallied by as much as 88% yesterday.
Penny Stocks to Watch #3 Cemtrex
Cemtrex (CETX) made a major announcement this week on Monday, and since the stock has rallied substantially to emerge as one of the bigger penny stock gainers on the market. On Monday, the company announced that it is going to make a direct offering of 3,055,556 shares of its common stock at the rate of $1.80 each.
It is at the market offering under existing NASDAQ rules and is expected to raise $5.5 million in gross proceeds. The stock rallied by 53% on Tuesday, and it could be worthwhile for investors to keep a close eye on the Cemtrex stock this week.
Penny Stocks to Watch #4 MicroVision
MicroVision (MVIS) has been one of the biggest penny stock gainers for a sustained period of time, and since the end of April, the stock has gained as much as 400%. On Tuesday, it continued to soar and recorded gains to the tune of another 22%. Earlier on in May, the company had announced that it had become compliant again with regards to market value listing requirement rules on NASDAQ. That might have been another trigger for the rally in the stock.