It appears that the essential reason most retail speculators appear to be pulled in to putting resources into penny stocks is that the offer costs of these organizations have a tendency to vacillate frantically in a brief timeframe. For example, the offer cost of a low-valued stock may increment from $0.25 to $1.50 inside a five-day time span, so the gullible kind of investors may figure they could have earned $6,000 by contributing an insignificant $1,000. Regardless of the possibility that you purchase 4,000 offers at $0.25 and the offer cost goes to $1.50, you may experience considerable difficulties dumping your position due to a predetermined number of purchasers. Regardless of that, there may be a few deals in the penny stock space, so Insider Monkey might want to exhibit a rundown of five penny stocks supported by the flexible investments firms took after by our group. If you are looking for some information on this we can tell you which penny stocks are poised to explode according to hedge funds.
Threshold Pharmaceuticals Inc. (NASDAQ: THLD) received some love from the hedge fund industry monitored by Insider Monkey during the second quarter, as the number of funds invested in the company rose to 12 from nine quarter-on-quarter. Similarly, the aggregate value of those funds’ equity investments in Threshold Pharmaceuticals jumped by 62% quarter-over-quarter to $8.38 million, partially due to a 38% spike in the value of Threshold’s shares. The clinical-stage biopharmaceutical company, which focuses on developing therapeutic and diagnostic agents that selectively target tumor cells for the treatment of patients suffering from cancer, has seen the value of its stock skyrocket by 154% since the start of the year. Threshold Pharmaceuticals is currently evaluating two therapeutic product candidates based on hypoxia-activated prodrug technology: evofosfamide and tarloxotinib. James E. Flynn’s Deerfield Management acquired a new stake of 2.58 million shares in Threshold Pharmaceuticals Inc. (NASDAQ: THLD) during the April-June quarter.
Cumulus Media Inc. (NASDAQ: CMLS) was the favorite penny stock among the hedge funds followed by Insider Monkey at the end of the second quarter. The number of smart money investors with stakes in the company increased to 15 from 13 quarter-on-quarter, while the overall value of those stakes rose by 78% quarter-over-quarter to $29.36 million despite a drop of 33% in the value of Cumulus Media’s shares. The 15 hedge funds stockpiled 40% of the company’s outstanding shares. Cumulus Media, a leading player in the radio broadcasting industry, has seen its shares advance by 9% so far in 2016. The Atlanta-based radio giant reported net revenue of $287.2 million for the second quarter, down from $299.3 million recorded in the same period of the prior year.
If you like this list you’ll surely love our more extended version of this list of Hedge Funds Think These Penny Stocks Are Poised to Explode
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