Caladrius Biosciences [CLBS]
Biotech penny stocks and pharmaceutical stocks are among the most popular and the most volatile.
Caladrius Biosciences is a biopharmaceutical stock that concentrates on stem cell therapy and regenerative medicine.
It used to be known as the Corniche Group and was originally founded in 1980. These days, the company focuses on cardiovascular disease, cancer therapies, and diabetes therapies.
It may very well be a high flier but it’s so small that it’s probably only a fit for speculative traders.
Another clinical-stage biotech penny stock is Asteria Biotherapeutics, which develops cell-based therapeutics to treat neurological conditions.
The Fremont, California-based company also develops treatments for spinal cord injuries, lung cancer, and cancer immunotherapy.
TravelCenters of America [TA]
TravelCenters of America operates convenience stores and travel centers across the United States.
At travel centers, it sells gasoline and diesel fuel in addition to truck repair and maintenance services plus quick service restaurants and full service restaurants.
It operates multiple brand names, including Petro Shopping Centers, Petro Brand, and TravelCenters of America TA.
At convenience stores, it sells coffee, groceries, fresh foods, and non-fuel products and services.
Customers include truck drivers and trucking fleets as well as highway motorists and casual diners.
With hundreds of convenience stores, the Ohio based company has longevity on its side having got its start in 1992.
Penny Stocks For Dummies
Purchasing good penny stocks is no mean feat. Unlike companies that feature in the S&P 500 or Dow Jones Industrial Average, penny stock companies are notoriously volatile and unpredictable.
Often these companies have unproven business models and so share prices can be wild.
To move the odds of success in your favor, consider companies that have weathered economic storms over many decades and have growing revenues and profits.
If you want to pick a biotech penny stock, brace yourself for a rollercoaster ride that may end up feeling like a lottery victory or a punch in the gut!
Another key factor to pay attention to when trading all penny stocks is liquidity, meaning how easily can you enter and exit your position.
Investing In Penny Stocks Tips
Traders looking for penny stocks are usually trying to make a lot of money so these tips are designed to keep you safe from some of the pitfalls.
First, avoid pump and dump promotions whereby a stock price is bid up with a view to attracting a lot of retail trader interest and then, at the top, the promoter sells large quantities of stock, which drives the stock lower.
In the process, the promoter makes a fortune but at the expense of the retail trader who gets duped.
Stocks with very little trading volume and low liquidity levels are ripe for manipulation so you will need to develop an eagle-eye for strange price movements.
Ideally, stick with penny stocks trading on the NASDAQ versus those trading on the pink sheets or over-the-counter market, which is subject to lower regulatory standards.
If you are not sure about whether penny stocks are right for you, consider these stocks to buy now.
For more investment strategies, visit the Portfolio Construction Channel.