Are These Penny Stocks Worth It After The Stock Market Crash?
With the Dow down by over 900 points, investors were searching for penny stocks that could still have growth potential. But, to understand how to make money with penny stocks today, we have to understand why the market dropped. While there are several reasons attributed to the stock market crash today, there is one in particular. The Delta variant has been a constant reminder that the pandemic is far from over.
In the U.K., cases have been soaring for the past few weeks, and many experts feared that the U.S. could be on a similar trajectory. And with cases shooting up by over 50% across the country, these fears are becoming real. So today’s major tumble is a direct result of the increasing Covid cases from the Delta variant.
And while we don’t yet know just how steeply cases will rise, the market always responds to fear. So despite today’s major drop in value, it is nowhere near the almost 3,000 point drop that occurred on March 16th. But, with any large bearish move, there is always an opportunity to be had. And with penny stocks, this opportunity can be quite large at times. With all of this considered, let’s take a look at four penny stocks to watch with the stock market down today.
4 Penny Stocks to Watch With After Today’s Market Crash
Enzolytics Inc. (OTCMKTS: ENZC)
Over the past year, biotech stocks have come into focus as a result of the pandemic. With Delta-related cases rising again, many companies in the biotech sector are seeing newfound attention. Enzolytics Inc. is a biotech company that has been on a tear in the past few months. This company specializes in the development of monoclonal antibodies and novel proteins for the treatment of infectious diseases. One of its staple clinically tested compounds is its Immune Therapeutic Vaccine-1 (ITV-1).
Recently, ENZC announced plans to advance the line of ITV-1 anti-HIV therapeutics to clinical trials and for further distribution in Europe. This will hopefully grant the company a significant revenue stream for later pipeline therapeutic projects and the continued testing of ITV-1. Positive clinical trials in the past have given ENZC investors a great deal of confidence future trials may also have a similar success rate.
And with monoclonal antibody therapies as one of the most common treatments for Covid, ENZC stock continues to be a popular penny stock to watch. Today, shares of ENZC stock shot up by around 11% and in the past six months, that number jumps to over 78%. Considering this solid rise in value, will ENZC stock be on your watchlist this month?
Aquestive Therapeutics Inc. (NASDAQ: AQST)
Another biotech penny stock in focus right now is Aquestive Therapeutics. For some context, AQST is an innovative business that focuses on creating solutions for patients with therapeutic problems. As a company, AQST has a strong commercial product pipeline for diseases relating to the central nervous system.
It develops orally administered complex molecules, which is viewed as a preferred alternative to more invasive methods of therapies. Today AQST announced that the FDA has accepted its resubmission of Libervant, a drug in use for seizure cluster management.
“We are pleased with the FDA’s decision to accept for review the Libervant NDA. We believe this underscores the unmet need in the underserved population of refractory epilepsy patients for a non-invasive and innovative product for the management of seizure clusters.[The company] is preparing for the commercial launch of Libervant, if approved for U.S. market access, in the first half of 2022 and remain committed to fill this unmet need and improve the quality of life for patients suffering from this disease with this first of its kind treatment option.” CEO of Aquestive, Keith Kendall
Any news related to FDA approvals is always exciting for the companies involved and investors alike. And while this is not a full approval, it does put AQST one step closer to seeing Libervant become FDA-approved. With this exciting news in mind and its over 7% gain today, AQST stock could be worth adding to your list of penny stocks to watch.
Jaguar Health Inc. (NASDAQ: JAGX)
Another biotech penny stock to watch right now is Jaguar Health. As an alternative company in the biotech industry, Jaguar is focused primarily on the development of novel, plant-derived, non-opioid prescription therapeutic medications. Specifically, JAGX develops medicines for both human and animal patients with GI distress. JAGX is also the parent company of Napo Pharmaceuticals, which develops and commercializes plant-based human GI pharmaceuticals as well.
Today, Napo and Dragon SPAC announced that the two will form a merger, which will become effective within the next three months or so. And, it should bring in future SBS license and milestone fees of over $12.5 million. These proceeds will be used to fund the merger with Napo EU and the development of its primary drug candidate, crofelemer.
“We believe crofelemer will be eligible for the EMA’s conditional marketing authorization pathway for short bowel syndrome, which provides a fast-track clinical review process. We believe Jaguar’s shareholders will benefit from the anticipated revenue that Jaguar expects to earn from the license fees, royalty payments, and product transfer pricing requirements outlined in the license agreement between Napo Pharmaceuticals and Napo EU.”Lisa Conte, President, and CEO of JAGX
Considering this big update, JAGX stock could be an interesting penny stock to keep an eye on.
Support.com Inc. (NASDAQ: SPRT)
Moving away from biotech, Support.com is a tech penny stock that has climbed in value by almost 100% in the past six months. This company is a leading provider of both customer and technical support solutions for its clients. These solutions are delivered by employees that are personalized to each business involved, resulting in a highly individualized operation.
Over the past twenty years, SPRT has earned a glowing reputation through its global clientele and the ability to increase scalability. It does this via its expansive network and commitment to high-quality service. This past month, SPRT joined the Russell Microcap Index, which should bring in a great deal of investor attention.
“Our inclusion in the Russell Microcap Index represents an important milestone for the continued evolution of the company. We appreciate the added visibility this recognition brings within the broader investment community.”Lance Rosenzweig, CEO of Support.com
In the past few months, many penny stocks have joined the Russell Index as a result of the large bullish runs we’ve seen with some companies. Considering SPRT new listing on the index and its overall potential, will it be on your penny stocks watchlist this month?
Are These Penny Stocks Worth Watching After the Market Crash Today?
While the stock market crash today is disheartening, it ultimately could provide a great deal of opportunity for investors. In the short term, it does show how fragile the market is right now. However, in the long term it could lead to greater resiliency.
Right now, investors should try to stay up to date with all the latest news and events going on. Specifically, this includes announcements as they relate to Covid. As we see, the pandemic continues to have a sizable effect on the trajectory of the stock market. So, with all of this in mind, are these penny stocks worth watching after the market crash today?