I like fairly a number of of the 100 hottest shares on Robinhood. My funding portfolio even contains over a dozen of them — all of that are large-cap shares or large exchange-traded funds (ETFs).
Though a number of penny shares are extensively held by traders on the buying and selling platform, I sometimes keep away from such shares as a result of they’re normally too speculative. Nonetheless, that does not imply that there aren’t some intriguing alternatives with actually low share costs. Here is a well-liked Robinhood penny inventory you will need to have in your radar.
Picture supply: Getty Pictures.
The most effective sort of clinical-stage biotech
Tonix Prescription drugs Holding (NASDAQ: TNXP) barely makes Robinhood’s most-popular listing, presently rating within the final spot within the prime 100. Most traders have in all probability by no means heard of Tonix, however the firm has an attention-grabbing story.
There are three broad classes of biotechs: commercial-stage, clinical-stage, and preclinical-stage. Tonix belongs to the center group. And it is arguably the very best sort of clinical-stage biotech.
The sooner a clinical-stage biotech’s pipeline candidates are in growth, the riskier it’s. Tonix already has a program in late-stage testing with non-opioid painkiller TNX-102 SL. Even higher, the corporate introduced constructive outcomes from one part 3 examine for the experimental remedy in treating fibromyalgia in December 2020.
Tonix expects to report interim outcomes from a second late-stage examine of TNX-102 SL in treating fibromyalgia in Q3 of this 12 months and top-line leads to the fourth quarter. Assuming all goes nicely, the corporate will probably file for U.S. regulatory approval in 2022.
Many biotechs with promising late-stage applications have valuations which might be sky-high. Nonetheless, Tonix’s market cap continues to be beneath $400 million. Some clinical-stage biotechs are additionally one-trick ponies with a single candidate in scientific testing. Tonix’s pipeline contains one different experimental drug in scientific testing with plans to advance one other program into scientific testing this 12 months. It is also concentrating on a number of different neurological indications for TNX-102 SL.
A few intriguing “lottery tickets”
Tonix’s candidates targeted on central nervous system problems can be sufficient on their very own to advantage consideration from traders. Nonetheless, the corporate additionally has a few intriguing “lottery tickets” that simply may repay in a spectacular trend.
In March, Tonix introduced constructive preliminary outcomes from a preclinical trial evaluating COVID-19 vaccine candidate TNX-1800 in nonhuman primates. To make certain, there is a lengthy option to go from preclinical testing to doubtlessly getting a brand new COVID-19 vaccine in the marketplace. And that market is already getting considerably crowded.
What’s attention-grabbing about TNX-1800, although, is that it is a single-dose vaccine that might present long-term immunity. It makes use of a reside modified horsepox virus vaccine that is designed to specific the spike protein discovered on the floor of SARS-CoV-2, the coronavirus that causes COVID-19.
Sure, Tonix can be late to the celebration at finest even when all goes nicely with its growth of TNX-1800. Nonetheless, it is at the least attainable that the corporate might carve out a place for itself within the international COVID-19 vaccine market if TNX-1800 meets expectations.
As well as, Tonix not too long ago struck a take care of OyaGen to license TNX-3500, an experimental antiviral drug that might deal with COVID-19 and different viral infections. The information triggered Tonix’s share worth to leap due to traders’ pleasure concerning the potential for TNX-3500. In a head-to-head comparability with Gilead Sciences‘ Veklury (remdesivir), TNX-3500 was discovered to be round 65 occasions more practical at inhibiting the SARS-CoV-2 virus.
Though I feel that Tonix displays a number of of the traits present in the very best clinical-stage biotech shares, it is nonetheless fairly dangerous. There is no assure that its lead candidate will win regulatory approval or be a business success even when it does. The chances are even higher in opposition to Tonix’s COVID-19 applications enabling traders to win the biotech jackpot.
I do not assume Tonix is the sort of inventory that the majority traders can be comfy shopping for at this level. But when there is a penny inventory to have in your radar, I feel Tonix is it.
10 shares we like higher than Tonix Prescription drugs Holding
When investing geniuses David and Tom Gardner have a inventory tip, it will possibly pay to hear. In any case, the e-newsletter they’ve run for over a decade, Motley Idiot Inventory Advisor, has tripled the market.*
David and Tom simply revealed what they imagine are the ten finest shares for traders to purchase proper now… and Tonix Prescription drugs Holding wasn’t one among them! That is proper — they assume these 10 shares are even higher buys.
*Inventory Advisor returns as of February 24, 2021
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.