Microcaps stocks are having a moment. The publicly traded companies that are classified with a market cap of $50 million to $300 million tend to be more volatile than larger-capped stocks. The lack of information on the company’s history, assets, and operations as well as any ties to foreign investors have made them risky. While there is a certain level of risk associated with microcaps, there are also some serious benefits including a potentially higher return on investment. Here are 3 microcaps returning over 1,000% YTD in 2020 thus far.
Genprex, Inc. (NASDAQ: GNPX) an Austin-based biotech company develops therapies for cancer and diabetes in the last year has had some big wins. Genprex started 2020 announcing that they had been granted Fast Track Designation by the Food and Drug Administration for their immunogene therapy in combination with AstraZeneca’s Tagrisso for gene therapy targeting lung cancer. Fast Track Designation is given to drugs that “treat serious conditions and fill an unmet medical need”, according to the FDA. In addition to AstraZeneca’s Tagrisso for cell lung cancer treatment, Genprex’s relationship with Merck’s immunotherapy drug, Keytruda has caught the eye of investors.
Timothy Collins of Real Money speculates that the pricing for the company may be low based on the expected performances of Tagrisso and Keytruda. He writes “Tagrisso sales are expected to reach $6 billion to $8 billion by 2030, possibly $4 billion this year. Keytruda won’t be far behind those numbers. If Oncoprex proves a boost to either or both treatments, treatments to what patients eventually build a tolerance, then a large segment of the late-stage lung cancer patients may benefit from the combination therapy Genprex brings to the table. It could literally become part of the standard of care.”
Bit Digital, Inc.
Bit Digital, Inc. (NASDAQ: BTBT), a New York-based microcap is making waves. The company that officially changed its name from Golden Bull Limited to “Bit Digital, Inc.” on September 14, 2020, “connects individual lenders with individual and small business borrowers for short-term loans.” according to Yahoo! finance.
In addition to the name change, the company has undergone some other changes in recent days including electing two new independent directors in the AGM and eliminating their peer-to-peer lending business. September has been a busy month for the company. Bit Digital Inc. recently announced that it had “entered right into a sure service settlement with Compute North LLC. Compute North is the world’s main bitcoin colocation firm headquartered in Nebraska U.S.” according to a statement released by the company. This move will help Bit Digital Inc. with operating costs.
VivoPower International PLC
VivoPower International PLC (NASDAQ: VVPR) is a London-based solar company that “operates through the following segments: Critical Power Services, Solar Development, and Corporate Office,” according to MarketWatch. MarketWatch also reports that Vivo Power International, “managed to achieve record revenues of $48.7 million, despite COVID-19 lockdowns” and “a strong turnaround in adjusted EBITDA with an increase of $7.7 million to $3.9 million.”
The company released preliminary results on its plans to enter the commercial electric vehicle (“EV”) market where they will “initially focus on providing light electric vehicles (“LEV”) to customers in the mining and infrastructure sectors in Australia, before expanding globally in these sectors”, according to the report. The expansion to the EV market is poised to be profitable for the company. VivoPower estimates the Australian market could be worth an estimated $12 billion.
Article By: Ayanna Rutherford