2 Small Cap Stocks To Watch Before Friday
Like it or not, small-cap stocks have emerged as a popular asset class to watch this quarter. More specifically, small-cap biotech stocks are making big moves like never before. For this reason, it is gathering a lot of gamblers and crypto traders to find the next big thing to bet. Sports bettors have been looking for a new avenue to satisfy their thirst for gambling as many live sports events are currently still on hold. Whereas for blockchain enthusiasts, their industry has been generally quite quiet for some time now. Either way, the increased participation in the small-cap stocks space is increasingly evident.
It is no biggie that small-cap stocks can produce a few hundred percent returns. Some have even returned more than a thousand percent. If you look at some of the most active biotech stocks in the space, chances of you seeing overnight breakout is common. That said, if you do the research and studies, with excellent timing, you might gain a thousand percentage gains in a few days’ time. But in most cases, something so speculative might be another pump and dump scheme, where gains quickly become losses.
While looking for biotech small-cap stocks, you’ll want to keep track of filings and dates of clinical trials. These will essentially give you the upper hand in trading before the press release. So if you find some biotech stocks you want to add to your watchlist, doing some research could help. That said, let us see if these are the best biotech stocks to buy in June 2020.
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Small Cap Biotech Stocks To Buy [Or Avoid]: Milendo Therapeutics
First, upon the list, Milendo Therapeutics (MLND Stock Report) primarily focuses on developing new treatments for endocrine diseases. Unlike many of the small-cap stocks in the space, MLND stock has been on a consistent uptrend for the past one month. The stock hit a new low on 7 April, where the stock was trading at $1.4 per stock. Since then, MLND stock has been slowly climbing back to $2.38 as of Tuesday’s closing.
At the beginning of May, MLND announced that it expected to have interim data in Q3 2020 from currently enrolled patients in the Phase 2b study evaluating nevanimibe (ATR-101), its ACAT1 inhibitor, in classic congenital adrenal hyperplasia (CAH), which was halted due to Covid-19. This development is gathering the attention of analysts. Many of them are highly optimistic that it will be a successful one.
What are the analysts speculating? Wall Street is debating whether the treatment provided by MLND can alleviate the serious health risks associated with cortisol deficiency and excessive androgen levels in CAH. Many analysts gave MLND stock a strong buy rating. The average price target is $4.5, meaning there’s a potential upside of 90% from the existing valuation. That said, would MLND stock be a good risk-reward play?
[Read More] These Top Software Stocks Are Making Big Moves This Week
Small Cap Biotech Stocks To Buy [Or Avoid]: Kezar Life Sciences
Next on the list, small-cap biotech stocks Kezar Life Sciences (KZR Stock Report) announced updated phase 1/2 results from a clinical study evaluating KZR-616 for the treatment of patients with systemic lupus erythematosus (SLE) with and without lupus nephritis (LN).
Investors seem to like the improvements observed in patients. Patients with lupus nephritis experienced more than 50% reduction in proteinuria. The KZR-616 seems to deliver the broad anti-inflammatory response and has shown potential efficacy in reducing the severity of certain autoimmune diseases. Meanwhile, 16 evaluable patients with SLE did demonstrate significant reduction in seven metrics: disease activity, disease severity, tender joint count, swollen joint count, and three assessments of disease progression. It is certainly encouraging that the drug has shown some encouraging progress. But, whether or not KZR-616 can match or beat the efficacy of current standards of care remains to be seen.
KZR stock appears volatile, swinging in both ways that could either break your bank or make you rich. Yet, shares of KZR have been on a consistent uptrend year to date, climbing 45% thus far. Overall, analysts seem to be cautiously optimistic on the potential treatment. Since the results from the phase 1/2 results are still pending, investors that could stomach higher risks may wish to buy KZR stock in anticipation of positive results from that clinical trial.
