Best penny stock to buy right now 2016
Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. This article was originally published on Nov. Of course, there are other criteria such as trade volume and market cap that some will check before labeling something as an official penny stock, but for the purposes of this article, we'll stick to just share price.
These "cheap" stocks are typically exciting but far too risky to be worthy of any serious consideration by traditional investors. However, the biotech space is arguably one intriguing exception to this general rule of thumb. Biotech stocks, after all, can fall hard and fast on a single clinical or regulatory setback. And on rare occasions, these beaten-down stocks can mount monumental comebacks, creating jaw-dropping gains in the process.
With this in mind, let's take a deeper look at why Amarin Corp. AMRN and Geron Corp. MNKD and Novavax NASDAQ: NVAX should probably be avoided. Amarin has been growing by leaps and bounds lately because of the blockbuster potential of its highly refined fish oil pill Vascepa.
The keystone issue is that Vascepa's large cardiovascular outcomes trial known as REDUCE-IT is tracking as predicted and should produce top-line results in early Now, the big ticket item here is that REDUCE-IT could provide the first empirical evidence that an omega3-based therapy does lower the risk of serious cardiovascular events in patients with high triglycerides who are already taking statins.
If that proves true, Vascepa's sales should jump from the hundreds of millions into the multibillion-dollar range, based on the enormous size of the lipid-lowering drug market. Beyond this sizable payoff, though, Amarin's stock is a compelling buy simply because the risk of failure with REDUCE-IT is arguably baked in to a large degree. The two companies are planning to continue the development of imetelstat with only a handful of minor modifications to its clinical program moving forward.
The big "catch" with Geron -- and perhaps a good reason not to buy this speculative stock -- is that the company is entirely dependent on imetelstat's fate. MannKind is simply too risky to own because of the low probability that the sales of its inhaled insulin product Afrezza will surge high enough for the company to avoid bankruptcy. To do so, MannKind will either have to find a new partner or somehow figure out a way to get Afrezza's commercial launch back on track.
Neither of those scenarios is likely, unfortunately. To be fair, Novavax could pull a rabbit out of its hat with a win in its late-stage RSV trial for maternal immunization, but that possibility looks like an extremely long shot based on its modest mid-stage results and the vaccine's complete wipeout in its trial for elderly patients.
5 Penny Stocks to Buy Now! | InvestorPlace
The moral of the story is that share price means relatively little on its own. Some "cheap" penny stocks may be great speculative buys, but many more are a trap best avoided. George Budwell has no position in any stocks mentioned. The Motley Fool has a disclosure policy. George Budwell has been writing about healthcare and biotechnology companies at the Motley Fool since His primary interests are novel small molecule drugs, next generation vaccines, and cell therapies.
Top 10 Penny Stocks to Watch (Best Picks to Buy in May) | Stacked Bid
Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login. Latest Stock Picks Stocks Premium Services. Stock Advisor Flagship service. Rule Breakers High-growth stocks.
Income Investor Dividend stocks. Hidden Gems Small-cap stocks.
Inside Value Undervalued stocks. Learn How to Invest. Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards.
Mortgages Compare Mortgage Rates Get Pre-Approved How Much House Can I Afford? Taxes How to Reduce Your Taxes Deductions Even Pros Overlook Audit-Proof Your Tax Return What Info Should I Keep? Helping the World Invest — Better.
How to Invest Learn How to Invest. Personal Finance Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards. Nov 20, at 7: Prev 1 2 3 4 Next.
Motley Fool push notifications are finally here Allow push notifications to help you stay on top of Breaking investing news Earnings coverage Market movers Special offers and more Subscribe to notifications You can unsubscribe at any time.