A new month arrives and with it comes new investment opportunities. We will not always need such a large capital to make our investments, for these penny stocks present us with good opportunities that we can take advantage of, with little capital but perhaps with great returns. This has led to the rise of the best penny stocks to buy.
Each of these companies in this article has strong value catalysts and strong growth prospects ahead of them.
For the month of September, I have these 3 best penny stocks that are definitely worth considering to have them in our portfolio. Let’s take a look.
Savara (SVRA)
Savara (NASDAQ:SVRA) is a clinical-stage biopharmaceutical company focused on treating rare respiratory diseases. It has recently made headlines in the penny stock world due to its unique approach to treating these diseases.
In terms of its financials, Savara posted a net loss of $0.07 per share in the most recent quarter, an improvement from a net loss of $0.06 per share in the same period last year. Its research and development expenses increased significantly, primarily due to its work on the molgramostim program, which includes expenses related to chemistry, manufacturing, clinical trials, and personnel.
In addition, general and administrative expenses increased due to the hiring of new personnel to support the company’s growth. As of June 30, 2023, they had approximately $105.2 million in cash and short-term investments, along with debt of about $26.2 million.
On July 13, 2023, they announced an offering of their pre-funded common stock and warrants, which generated approximately $80 million in gross proceeds. This makes it one of those best penny stocks to buy.
One of the company’s significant achievements is the completion of enrollment in the pivotal Phase 3 IMPALA-2 trial evaluating molgramostim as a treatment for a rare lung disease called aPAP. The trial enrolled 164 patients, exceeding the enrollment target of 160, even during the challenges of the COVID-19 pandemic.
Savara expects to publish the results of this trial by the end of the second quarter of 2024. This breakthrough marks a crucial milestone for the company and underscores both the urgent medical need in this patient population and the potential efficacy of molgramostim.
Canaan (CAN)
Canaan (NASDAQ:CAN) is a technology company that excels at creating tools for mining cryptocurrencies, such as Bitcoin. Imagine they are the experts in providing the high-performance hardware needed to do this.
In Q2 2023, they showed impressive growth in their processing power and revenue. They sold a significant amount of computing power, reaching 6.1 million Thash/s. This marked a 44.2% increase over the previous quarter and an 11.7% increase compared to the same period in 2022.
In terms of revenue, they reported $73.9 million, a notable increase from $55.2 million in Q1 2023. In addition, their revenue from mining activities was impressive, reaching $15.9 million in the second quarter. All in all, this helps make it one of those best penny stocks to buy.
However, it has not all been smooth sailing. Canaan had to temporarily halt some of its mining computing power in Kazakhstan due to regulatory changes. The country introduced rules requiring licenses for cryptocurrency mining, which led Canaan to pause about half of its computing power in Central Asia and North America.
Despite these challenges, they have secured a strategic partnership with Cipher Mining (NASDAQ:CIFR) which will further strengthen their presence in the industry. Cipher acquired 11,000 new mining machines from Canaan to expand its operations in Texas, adding to its impressive fleet of mining machines.
Ardelyx (ARDX)
Ardelyx (NASDAQ:ARDX) is a pharmaceutical company focused on creating innovative medicines for unmet medical needs. Recently, they have had continued success with their IBSRELA product, generating $18.3 million in sales in the second quarter and anticipating annual revenues of $72 to $77 million in 2023. Also, it has a strong financial position, with $127.6 million in cash and investments at the end of the second quarter.
Internationally, their new drug application for tenapanor for chronic kidney disease patients in China was accepted for review, securing them a $2 million payment. Approval in China is expected by the end of 2024.
In the United States, the FDA accepted the new drug application XPHOZAH, with a review scheduled within six months, with a target date of October 17, 2023. The expectation is that XPHOZAH will be commercially available in the fourth quarter of 2023 following approval.
These achievements highlight Ardelyx’s dedication to providing innovative medical solutions and its promising position in the pharmaceutical industry, making it an attractive option for investors interested in affordable shares.
As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
