Penny stocks, you either love them or you hate them. One of the obvious draws of these stocks trading for under $5 per share is the ability to get more bang for your buck. And should these bargain priced stocks see their share prices rise by only a small amount, the rewards can be staggering.However, before jumping right into an investment in a penny stock, Wall Street pros advise looking at the bigger picture and considering other factors beyond just the price tag. For some names that fall into this category, you really do get what you pay for, offering little in the way of long-term growth prospects thanks to weak fundamentals, recent headwinds or even large outstanding share counts.Taking the risk into consideration, we used TipRanks’ database to see if we could find compelling penny stocks with bargain price tags. The platform steered us towards three tickers sporting share prices under $5 and “Strong Buy” consensus ratings from the analyst community. Not to mention colossal upside potential is on the table. We’re talking about over 100% here.Veru Inc. (VERU)Operating as an oncology and urology company, Veru develops cutting-edge medicines for the prostate cancer continuum of care and urology specialty pharmaceuticals. At $3.20, several members of the Street believe that its share price presents investors with a unique buying opportunity.Among Veru’s fans is Oppenheimer’s Leland Gershell. The 5-star analyst notes that its VERU-111 candidate is a major component of his bullish thesis, highlighting the fact that it has already demonstrated “compelling efficacy signal in advanced prostate cancer as well as reasonable safety.”Expounding on this, Gershell stated, “As we highlighted last week, biomarker declines, tumor responses, interim durability of benefit, and manageable systemic toxicity seen in dose-escalating study in chemo-naïve metastatic castration-resistant prostate cancer (mCRPC) patients continue to pique our interest in this novel anti-tubulin with a urologist-friendly profile.” The enrollment for Phase 2 is up and running, and the company is planning a Phase 3 trial of the candidate in novel androgen blocker failures.That being said, VERU-111's potential goes even further. Management announced that it would be kicking off a Phase 2 study of the therapy in COVID-19 patients with a high risk of ARDS. Citing the “precedent of anti-viral and anti-inflammatory activity seen with compounds that target the microtubule colchicine binding site”, Gershell is optimistic about VERU-111's use in this indication.Adding to the good news, Gershell sees even more potential catalysts ahead. Veru is gearing up for the Phase 2 program evaluating differentiated GnRH antagonist, VERU-100, in hormone-sensitive prostate cancer next quarter, as well as zuclomiphene's Phase 3 trial for hot flashes in androgen deprivation therapy, which is set to begin late this year. The TADFIN NDA submission could also come at the end of 2020 or early 2021.“With a ~$260 million enterprise value, an intriguing prostate cancer pipeline offering multiple shots on goal, and a growing commercial business supporting R&D, we view VERU as attractive," Gershell concluded.As a result, Gershell rates VERU an Outperform (i.e. Buy) along with a $9 price target. This target conveys his confidence in Veru’s ability to soar 180% in the next year. (To watch Gershell’s track record, click here) All in all, other analysts echo Gershell’s sentiment. 3 Buys and no Holds or Sells add up to a Strong Buy consensus rating. Given the $7 average price target, the upside potential comes in at 118%. (See Veru stock analysis on TipRanks)Surface Oncology (SURF)Up next, we have Surface Oncology, which is developing next generation immunotherapies that target the immune-suppressive tumor microenvironment to attack cancer. Combine a key collaboration, strong cash position and $3.88 share price, and you get the analyst community’s praise.Standing squarely in the bull camp, JonesTrading's Soumit Roy cites several reasons to support his optimistic stance. The company broke the news of its collaboration with Merck on a combination study of Keytruda and SURF’s SRF617 (targeting CD39), with the initial focus being placed on gastric cancer and data set to come in 1H21.“We believe a Merck collaboration positions Surface well as peer’s data start to come out using adenosine pathway inhibitor with IO combo in non-small-cell lung carcinoma (NSCLC),” the 5-star analyst explained. In addition, data looking at the therapy’s efficacy as a single agent and in combination with gemcitabine/Abraxane in pancreatic cancer is slated for release in YE20.Some investors have expressed concern ahead of Arcus’ presentation of data for AB928 combined with carboplatin + pemetrexed + a PD-1 antibody in NSCLC at ASCO. However, Roy believes any positive data should be seen as a good thing for SURF. He added, “We expect early data from Tizona’s CD39i by YE20 and potentially meaningful data from partner Novartis in 3Q/4Q20 (ESMO or Triple meeting) with anti-CD73 antibody to likely to validate Surface’s technology platform – and could put Novartis ahead of AstraZeneca and BMS.”It should be noted that Roy’s focus also remains on SURF’s wholly owned asset, SRF388 (targeting IL-27). Early data evaluating its use in liver and kidney cancer could come in YE20 and 1H21, respectively.“We remain confident in Surface’s differentiated approach — targeting the first enzyme in the ATP/adenosine pathway, CD39, and a novel target, IL-27, to block overexpression of CD39 and T cell inhibiting receptors,” Roy commented. Based on all of the above, it’s no wonder Roy reiterated his Buy recommendation. With a $12 price target, shares could climb 209% higher in the next twelve months. (To watch Roy’s track record, click here) Turning now to the rest of the Street, other analysts are on the same page. With only Buys assigned in the last three months, 3 to be exact, the word on the Street is that SURF is a Strong Buy. Additionally, the $10.50 average price target brings the upside potential to 170%. (See Surface Oncology stock analysis on TipRanks)Anavex Life Sciences (AVXL)Using precision genetic medicine, Anavex Life Sciences wants to develop treatments for severe and devastating neurological disorders. Currently going for $3.61 apiece, some analysts argue that shares appear undervalued.At the beginning of May, the company announced that COVID-19 has had a relatively limited impact on its ongoing clinical trials, with all programs progressing right on track. Top-line data from the Phase 2 study in Parkinson's disease dementia (PDD) is set to be reported in mid-2020. In addition, patient enrollment in both Phase 2 studies in Rett syndrome has already surpassed the 50% mark.Weighing in for Janney Montgomery, analyst Yun Zhong said, “Management plans to make an announcement once the studies complete patient enrollment, and based on our previous discussions with management, we believe the top-line from the Rett syndrome studies could be available in 2020, potentially around the PDD data readout.”On top of this, the genome-wide search for biomarkers in the Phase 2a Alzheimer's disease (AD) study found promising candidates, with four biomarkers that potentially have a significant effect on clinical outcomes, as determined by two efficacy endpoints, MMSE and ADCS-ADL, being identified.“The identification of genomic biomarkers in the Phase 2a study in Alzheimer's disease (AD) was recently published and we believe the biomarkers should benefit the evaluation of ANAVEX 2-73 and other Sigma-1 receptor agonists in many additional CNS indications… These biomarkers can be used to pre-specify patients that are most likely to respond to ANAVEX 2-73 treatment, thereby reducing heterogeneity in AD patients and increasing the probably of success of clinical studies,” Zhong commented.“We remain optimistic that the upcoming clinical catalysts could have a positive impact on the stock and we continue to see strong potential in the company's pipeline,” Zhong concluded.In line with his bullish take, Zhong rates AVXL a Buy along with a $10 price target. Should the target be met, a twelve-month gain of 177% could be in store. (To watch Zhong’s track record, click here) What does the rest of the Street think about AVXL? It turns out that other analysts also have high hopes. 4 Buys and no Holds or Sells have been received in the last three months, so the consensus rating is a Strong Buy. The $11.50 average price target suggests 184% upside potential. (See AVXL stock-price forecast on TipRanks)To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
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Indian drugmaker Zydus Cadila said on Friday it signed a non-exclusive licensing pact with Gilead Sciences Inc to manufacture and market antiviral drug remdesivir, the first treatment to show improvement in COVID-19 trials. Zydus, listed as Cadila Healthcare, joins other Indian pharmaceutical companies Cipla Ltd, Jubilant Sciences Ltd and privately held Hetero Labs Ltd in signing non-exclusive pacts with Gilead for the drug. The drug, intravenously administered in hospitals, has already been approved for emergency use in severely-ill patients in the United States, India and South Korea.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]
Nela Richardson, Edward Jones Investment Strategist, joins Yahoo Finance to discuss the market sell-off. She also weighs in on what investors can expect in the coming months as fears of a second wave of COVID-19 continue. (Bloomberg) — A Taiwanese court ruled Friday that current and former engineers from United Microelectronics Corp. stole trade secrets from U.S. chipmaker Micron Technology Inc. and shared them with a government-backed mainland Chinese company, closing one chapter of a global dispute that’s stoked U.S.-Chinese tensions.The district court of Taichung fined UMC NT$100 million ($3.4 million) after finding three engineers guilty of theft or assisting in the alleged theft. The trio was jailed for periods ranging from 4.5 to 6.5 years and fined between NT$4 million and NT$6 million.The case is part of a years-long dispute spanning two continents that’s deepened divisions between Beijing and Washington. Intellectual property theft is among the Trump administration’s chief complaints as it wages a campaign to contain China that’s rattled global markets. China, which is trying to become a major player in semiconductors, has repeatedly denied that its companies poach trade secrets.UMC said it will appeal the ruling, saying it has mechanisms to protect its customers’ intellectual property rights and it did not violate trade secrets laws. “In its appeal against the ruling and the excessively disproportionate penalty, UMC will cite many irregularities in both the investigation and the case itself,” the Taiwanese company said in a statement.Micron welcomed the verdict in a statement and said justice had been served. “The misappropriation of trade secrets and their transfer outside of Taiwan is detrimental to the country’s entire semiconductor industry and threatens future competitiveness. This judgment further reinforces the importance of intellectual property protection in Taiwan, demonstrating that criminal misappropriation will be appropriately addressed,” the company said.Micron first sued UMC and its Chinese partner — Fujian Jinhua Integrated Circuit Co., which is said to have benefited — in 2017 in the U.S. for stealing trade secrets, setting off the dispute between the top U.S. memory chipmaker and one of Asia’s largest manufacturers of made-to-order semiconductors. In January of the following year, UMC counter-sued in mainland China and that July, a Chinese court banned sales of some Micron chip sales in the country. In November 2018, UMC and Jinhua, along with the three individuals, were indicted in California, charged with conspiring to steal trade secrets from Micron.Friday’s decision coincides with growing scrutiny of the role that Taiwanese companies play as global leaders in chipmaking and electronics assembly. In May, the U.S. slapped a ban on the sale without approval of silicon made with American gear to Huawei Technologies Co., a move regarded as an attempt to prevent industry giant Taiwan Semiconductor Manufacturing Co. from supplying its top Chinese customer.“The U.S. is intensifying its scrutiny of Chinese investors and companies and it will not allow Taiwan to become a loophole,” said Carol Lin, a law professor at National Chiao Tung University, speaking before the verdict was announced. She said that Taiwan’s legal process for IP theft cases is long and there is no knowing when this UMC case will be finalized. “This actually may undermine foreign companies’ confidence in Taiwan,” said Lin.Taichung prosecutors had indicted UMC employees J.T. Ho and Kenny Wang in 2017 on charges of breaching Micron’s trade secrets. Both are former employees of the U.S. chipmaker. Ho and Wang replicated Micron’s DRAM data onto their own devices and used the material for their work at UMC including a partnership project with China’s Fujian Jinhua, prosecutors said in an indictment document reviewed by Bloomberg News.Wang is no longer with UMC, according to a company spokesman. A third UMC staffer, Rong Leh-tian, instructed Wang to incorporate Micron’s design information into UMC’s own, according to the indictment. The intent of that was to shorten chip development times the court said in Friday’s statement.In reaching its verdict, the court cited evidence including how Ho was on both UMC’s and Jinhua’s payroll at the same time and it was clear the allegedly stolen technology was intended for use in China.“J.T. Ho earned two salaries respectively from UMC and Jinhua, so it is very clear he intended to use [Micron data] on mainland China,” the court said in a statement. “Kenny Wang and Rong Leh-Tian both leaked Micron’s trade secrets to UMC for the use of UMC’s relevant business units … and the final research was to be transferred to Jinhua for mass production, so they had the intention to use [Micron’s data] in mainland China.”Rong, a senior manager, instructed the other two defendants to wipe any Micron data on their computers before Taiwanese prosecutors raided their workstations, but investigators found a large volume of material from the U.S. company on the devices regardless, according to the court.The court said Ho had received some NT$5 million from both UMC and Jinhua, while Wang got NT$1.5 million and Rong NT$1.6 million from UMC.“The defendants’ conduct have led to Micron’s loss of advantage and competitiveness in the market of products connected to the leaked trade secrets and undermined Micron’s interests. This damage is difficult to remedy due to the leak,” the court said in a statement.(Updates with response from Micron in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial […]
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2020. […]
Regulus Therapeutics Inc. (NASDAQ:RGLS) shareholders will have a reason to smile today, with the analysts making…
Miller Value Partners recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Miller Value Partners Opportunity Equity Fund posted a return of -38.4% for the quarter (net of fees), underperforming its benchmark, the S&P 500 Index which returned -19.6% in the same quarter. You should check out Miller […]