Is Aphria Stock (TSX:APHA) (NYSE:APHA) A Solid Value Buying in May?

The cannabis sector has gone through its fair share of difficulties over the past year, but some stocks have managed to garner interest among investors all the same in recent days. The stock in question is Aphria Inc (TSX:APHA) (NYSE:APHA). There had been a lot of optimism around the sector in the past, but over the past year or so, a range of issues damage the cannabis space significantly.

Key Analysis

Oversupply, slow rollout of stores and the continued presence of the black market are some of the factors. However, over the past month, Aphria has enjoyed a rally, and it is important to figure out if it is the top cannabis stock at this point.

While the Aphria stock is down 54% this year up until April 23, it should be noted that it has gained 28% over the past month and remains one of the five major cannabis producer stocks on the TSX. Its performances in the fiscal third quarter are possibly the reason behind the rally in recent weeks.

Revenues for the quarter soared to as much as $144.4 million, and that reflected a year on year rise of 96%. The sequential rise stood at 20%. While it made a loss of $9.6 million in the prior-year period, Aphria generated a net income of $8.7 million in Q3 2020.

Last but not least, investors should also consider the fact that at the end of the third quarter, the company had $551.1 million in cash and cash equivalents. It will help Aphria in navigating the current period of uncertainty effectively and also allow it to make strategic acquisitions if the opportunity arises.

While the present state of affairs at Aphria is promising for the stock, investors might be looking for a bump in the whole sector. However, the sale of cannabis has soared since March due to the lockdowns, and that is a major positive for Aphria. Many markets in Europe are also set to open, and that is another positive for the company.

4 Hot Biotech Penny Stocks to Watch (GERN), (SRNE), (SEEL), (AFRM)

Investments in biotech penny stocks can pay off handsomely, and that is possibly the reason why these stocks are tracked closely by thousands of people every day. The markets have been quite volatile in recent weeks, but despite that, some penny stocks have managed to record significant gains, and it is important for investors to keep an eye on such stocks. On Friday, some biotech penny stocks recorded gains, and here is a quick look at four of those.

Hot Biotech Penny stocks to Watch #1 Geron

One of the penny stocks that recorded significant gains this past Friday was that of Geron (GERN). The stock soared on Friday after the company released abstracts with regards to the latest data about imetelstat, its lead product candidate.

Johnson & Johnson, which had been the co-developer, had refused to conduct a Phase 3 study due to poor show in the middle stages. However, Geron bought back the rights to the medicine, and the latest data has created a lot of optimism among investors. GERN stock rallied by as much as 24% on Friday.

Hot Biotech Penny stocks to Watch #2 Sorrento Therapeutics

Sorrento Therapeutics (SRNE) emerged as another penny stock that skyrocketed on Friday, and it could be worthwhile for investors to keep an eye on this stock today. On Friday, the Chief Executive Officer of the company, Dr. Henry Ji, stated that there is a cure for the coronavirus, and it is the company’s product STI 1499.

It was a significant announcement from the company under the circumstances, and soon enough, investors piled on to the stock. SRNE stock soared by as much 158% on Friday.

Hot Biotech Penny stocks to Watch #3 Seelos Therapeutics

Seelos Therapeutics (SEEL) was another notable penny stock gainer this past Friday. Although there was no material news with regards to the company, the rally could be traced back to a development that materialized earlier on in May.

The company announced on May 4 that it received a Notice of Allowance from the United States Patent and Trademark Office for its product SLS 005. It was a significant development for the company. SEEL stock rallied by 31% on Friday, and it remains to be seen if it can extend its gains.

Hot Biotech Penny stocks to Watch #4 Affirmed

On May 15, Affirmed N.V.  (AFMD) made a major announcement. The company announced that abstracts from the innate cell engagers from its ROCK platform are going to be presented at a key industry event. The event in question is the American Association for Cancer Research (AACR) Virtual Annual Meeting II, and it is going to be held from June 22 to June 24 this year. The announcement proved to be a significant positive for the company, and AFMD stock rallied by as much as 19%. 

Is Cronos Stock (TSX:CRON) (NASDAQ:CRON) Ready to Jump in June?

The cannabis industry had been struggling with regards to growth even before the coronavirus pandemic had hit and currently, there are only a few companies that have the capability of still generating growth. Cronos Group (TSX:CRON) (NASDAQ:CRON) is one of the bigger cannabis companies in the industry, and it is one of the firms that could survive the current crisis.

What to Expect Now?

Hence, it could be worthwhile to have a closer look at the company, and the best place to start is by looking through the company’s fiscal first-quarter results. One of the things that need to be mentioned is the fact that the coronavirus crisis has proven to be positive for the cannabis sector.

The product was included among essential items in the U.S. states where cannabis is legal and also in Canada. This particular move resulted in a rise in sales, and consequently, Cronos Group enjoyed a bump in revenues as well. In Q1 2020, the company generated CA$11.3 million worth of revenues, and that reflected a growth of as much as 75.1% year on year. The rise in revenues is a welcome development, but the company continues to report losses. In Q1 2020, its losses stood at CA$45.1 million, and in addition to that, there was an inventory write-down worth CA$8 million as well.

Another major opportunity for the company is the cannabis market in Israel, where the authorities have become far more receptive to the regulatory front. The number of medical cannabis users in Israel has grown rapidly, and Cronos expects approvals to come through for oil products as well as pre-rolls at some point in 2020. At the end of the first quarter, Cronos reported a cash balance of CA$1.3 billion, and that reflected a decline of CA$171 million from the previous quarter.

Much of the decline was due to exchange rate issues, and Cronos asked investors not to worry. It invested CA$7.5 million in its campus meant for Peace Naturals. The company also revealed that it produced CBD through biosynthesis thanks to its partnership with Gingko Bioworks, and this could give Cronos an important competitive edge in the derivatives market. The partnership with Altria remains one of the company’s biggest advantages.

5 Penny stocks to be in Limelight in May

The coronavirus pandemic has sent the markets into complete turmoil over the past few weeks, and stocks have recorded steep declines across the board. However, despite all that, there have been some penny stocks that have managed to deliver gains even during these tough times.

This past Friday, some penny stocks rallied, and it could be worthwhile for investors to take a closer look at some of these stocks. Here is a look at 5 penny stocks that recorded gains on Friday.

Penny stocks to be in Limelight in May #1 Superior Drilling

One of the penny stocks that managed to record significant gains on Friday was that of Superior Drilling (SDPI). The company successfully executed an amendment to its Hard Rock Note by way of which payments to the tune of $1.5 million has been deferred to 2021 and 2022. Superior is going to continue to make the interest payments on schedule.

The company also reported that its revenues for the 1st quarter grew by as much as 6.4% year on year to hit $5.4 million. The two developments resulted in a lot of positivity around SDPI stock, and it rallied by as much as 56% on Friday.

Penny stocks to be in Limelight in May #2 Ocwen Financial

Investors who are looking for promising penny stocks could also consider having a closer look at Ocwen Financial (OCN), which soared by as much as 70% on Friday. The company reported its financial results for the 1st quarter, and its performance impressed the market. Earnings per share soared by as much as 42.42% and managed to beat analysts’ estimates of $0.40.

However, revenues declined year on year by 16.47% to hit $253,842,000. Investors piled on to the stock on the back of the announcement, and OCN stock soared by as much as 70%.

Penny stocks to be in Limelight in May #3 Peabody Energy

Shares of Peabody Energy (BTU) gained as much as 35.50% on Friday in reaction to the rising price of seaborne metallurgical coal. Peabody is involved in the production of that type of coal, which is better known as coking coal in industrial circles.

During the course of the week, the price of coking coal rose to $110.43 per metric ton, which reflects a rise of as much as $2.80 per metric ton. Such a rise in price triggered a rally in BTU stock, and it could be worthwhile for investors to keep an eye on this stock this morning.

Penny stocks to be in Limelight in May #4 Kitov Pharma

There are two more penny stocks that made major moves on Friday, and one of those is Kitov Pharma Ltd (KTOV). This past Friday, the company announced that it successfully completed a registered direct offering of 25000002 shares at the rate of $0.40 each. The shares in question were represented by American Depository Shares.

The gross proceeds for the same stood at around $10 million. It is a significant development for the company at a time when raising capital may have proven challenging. After the announcement, the stock rose by as much as 25.60%. Investors could do well to add KTOV stock on to their watch lists this week.

Penny stocks to be in Limelight in May #5 Carrols Restaurant

It has not been a particularly great time for restaurants over the past few weeks, and hence, it came as a pleasant surprise for many when the Carrols Restaurant (TAST) rose by 23.50% on Friday. While the company’s earnings per share dropped by as much as 31.03% year on year to $0.38, revenues rose by much as 20.88%. Carrols generated revenues of $351518000. That might have been the trigger behind the rally in TAST stock.