Billionaire Ken Griffin pulls the trigger on these 2 penny stocks
Risk and reward are the yin and yang of stock trading, there are two opposing but essential components to success in each market. And there are no stocks that embody both sides – risk factors and reward prospects – better than penny stocks. Priced below $ 5 per share, these equities generally offer high business opportunities. Even a slight gain in share price – just a few cents – quickly translates into a higher yield return. Of course, the risk is also real; Not every penny stock is going to show these kinds of benefits, some of them are cheap for a reason, and not every one is a good one. So, how will investors show the difference between long-term winners and short-term incoming sets? Following the activity of the investment Titans is a strategy. Ken Griffin, chief hedge fund manager at investment firm Citadel, is one of the Titans who turned his college trading into a multi-million dollar market giant – from his dorm room PC. A look at Griffin’s performance during a coronavirus crisis shows just how successful he can be. In March last year, when the Corona reached the bottom outside the markets, Griffin Citadel still brought a net positive return of 1.7%. And for the full year, Citadel’s total revenue is 6. 7 6.7 billion, almost double the previous high of 2018. Turning to Griffin for inspiration, we took a closer look at Griffin’s Citadel two penny stocks recently. Using Tiparenx’s database to find out what the analyst community is saying, we learned that each ticker ratings and a large uptick potential bye. Abena Therapeutics (ABEO) We will start with Abona Therapeutics, a clinical-stage biopharma pharmaceutical company focused on genes and cell therapy. This is an advanced field that uses the latest genome technology to treat genetic diseases by inserting modified copies of DNA directly into effective cells. Abe has seven drug candidates in the pipeline, with EB-111 and ABO-2016 being the most distant, and the most interested for investors. EC-1111 is set to begin Phase III trials as a treatment for recessive dystrophic epidermolysis bullosa (RDDB). This is a disorder of the connective tissue, causing the victim to suffer severe skin lesions and wounds. The cause is a genetic defect that makes patients unable to produce the collagen needed to protect skin layers. If approved, EB-101 would be the first – and only available – treatment for RDDEB. In therapy the drug is used to transplant the affected genes into the patient’s skin cells, after which they are transplanted into the affected skin areas. In early-stage tests, the drug was well tolerated by patients who showed distinct improvement for 2 years after treatment. The Phase III trial is now enrolling patients. ABO-2018, the next drug candidate, as a treatment for early childhood malignant disease, Sanfilipo syndrome, is in Phase I / II study. Without supportive care, the syndrome is currently incurable, and affected children usually survive until the age of 15. ABO-102 is a gene therapy drug administered by simultaneous IV induction. It delivers copies of the affected gene to the child’s central nervous system, allowing the body to naturally correct the enzyme deficiency behind the disease. Both of these drug candidates are U.S. And orphans have received drug designation in Europe, providing government assistance for their development. In addition, they have received the FDA’s Rare Pediatric Disease designation. Be Benani’s drug pipeline and $ 2.22 worth of shares have been lauded by seekers on Wall Street. This is the attitude Griffin has taken. Citadel raised its stake in the company by a whopping 181% to 1.846 million shares in Q4, valued at હવે 6.06 million. Ram Selvaraju, a 5-star analyst at HC WineRight, also considers himself a fan. Selvaraju has recently published two notes on ABEO, focusing on the possibility of both EB-101 and ABO-102. Regarding the first, the analyst noted that, “After the successful conclusion of the FDA meeting, Ebo continues with all necessary steps to enroll the next patient in the VITL study and expects registration to be completed in 2021 … In our view, the FDA meeting and the resulting feedback for Ebena Encourages well, as the agency appears to be on board with the company’s study design and statistical analysis plan for VITL. [Phase III] Trial… ”Turning to ABO-303, Selverju said,” In our view, this data is very interesting and we will see if it can be confirmed in support of a larger patient. Sustaining growth is likely to be the main effectiveness measure that resonates with regulators. ” If his thesis runs, the cards could have a twelve-month potential jump of twelve 264%. (To view Selver’s track record, click here) Overall, 2 byes and no holdings or sales have been assigned in the last three months Therefore, the consent of the analyst is a moderate purchase. At $ 6.50, the average price puts side 188% of the target side upside potential. (See ABEO Stock Analysis on Tipranx) Mereo Biopharma (MREO) Another stock we are looking for is Mario, another biopharma company focusing on rare diseases. Mereo has a huge and diverse pipeline with six candidates for the drug at different stages of development. The company’s research programs are focusing on other serious conditions in the treatment of hard tumor cancer, ovarian cancer and chronic obstructive pulmonary disease. Griffin is one of the people who has high hopes for this healthcare name. Griffin’s Citadel made 4.097 million shares in Q4, now valued at .3 16.3 million. The biggest news for Mereo is the December 17 announcement of a collaboration and licensing agreement with the California company UltraGenix, a candidate to test for further development of cetrusumb, os steogenesis insufficiency, or treatment of brittle bone disease. This incurable condition is usually caused by lifestyle changes and exercise. Cetrusumbe, however, has shown in phase 2b studies that it may increase dose-dependent increase in bone formation in affected adults. Lynch analyst Joseph Schwartz wrote about the MAREO / UltraGenix partnership: “Although the RARE / MREO deal was unexpected, we are not surprised by the news that MREO is looking for a partner. [the] Advertising as a win-win for both Rare and MREO, as both can complement each other’s power to bring Cetrusumb to market. In light of these comments, Schwartz rates MREO’s stock as a buy, and its $ 8 price target indicates a one-year reversal of 103%. (To see Schwartz’s track record, click here) Some stocks fly under the radar, and MREO is one of them. MREO is the latest analyst review of this company, and it is definitely positive. (See MROO Stock Analysis on Tipranx) To find good ideas for trading penny stocks on attractive valuations, visit Tipranx’s Best Stocks to Buy, which unites all of Tipranx’s equity insights. Disclaimer: The opinions expressed in this article are those of specific analysts only. Content is intended for informational purposes only. It is very important to do your own analysis before making any investment.