2 "Strong Buy" Penny Stocks That Could Rally to $10 (or More)

Let’s take a moment to talk about opportunity, share price, and risk/reward considerations. These are some of the factors investors must consider when moving into penny stocks – and we Read More... The post 2 "Strong Buy" Penny Stocks That Could Rally to $10 (or More) appeared first on TipRanks Financial Blog.

2 "Strong Buy" Penny Stocks That Could Rally to $10 (or More)

Let’s take a moment to talk about opportunity, share price, and risk/reward considerations. These are some of the factors investors must consider when moving into penny stocks – and we haven’t even touched on the fundamental soundness of the company or its business model.

Penny stocks – as their name suggests, they once traded for just a pennies per share, but these days are considered those equities trading at less than $5 – are a challenging market niche. The penny stock critics make valid points when defending their stance. Sure, the price tag may look like a steal, but the fact that shares are trading at such low levels could reflect overwhelming headwinds or weak fundamentals.

That being said, the fans offer up a solid argument as well. Not only does the low price mean you get more shares for your money, but hefty returns are also on the table. Even seemingly insignificant share price appreciation can result in colossal percentage gains that other more well-known or expensive names aren’t as likely to deliver.

The nature of these investments presents somewhat of a dilemma. How are investors supposed to separate the penny stocks that are ready to take off on an upward trajectory from those set to remain down in the dumps?

To help with the due diligence process, we used TipRanks’ database to zero in on only the penny stocks that have received bullish support from the analyst community. We found two that are backed by enough analysts to earn a “Strong Buy” consensus rating. Not to mention each offers up massive upside potential, as some analysts see them climbing to $10, or more. 

Aptinyx, Inc. (APTX)

We’ll start with Aptinyx, a company in the biopharma industry. Aptinyx works on the treatments for brain and nervous system disorders, developing new synthetic small molecule medications for commercialization. The company has a proprietary NMDA receptor modulator discovery platform, which enables a novel approach to the targeted disorders. 

Aptinyx’s research pipeline currently has three compounds in the clinical stages, all in Phase 2 trials. NYX-458 is a potential treatment for Parkinson’s disease and Lewy body dementia, two serious central nervous conditions of aging. Preclinical and Phase 1 studies showed robust activity in rodent models and favorable safety tolerance in human patients; the Phase 2 clinical trial will focus on patients with mild levels of cognitive impairment and dementia.

NYX-783, the second compound in the pipeline, is being studied for its efficacy in treating post-traumatic stress disorder. A Phase 2 exploratory study showed positive results in symptom reduction in just 4 weeks of treatment, and the FDA has granted this drug a Fast Track designation.

Finally, NYX-2925, the lead drug candidate in the pipeline, is under study as a treatment for two conditions: fibromyalgia, and diabetic peripheral neuropathy (DPN). These are both chronic, painful, conditions, and NYX-2925 has demonstrated reduced pain levels in patients during earlier stage testing. The DPN study, like NYX-783 above, has FDA Fast Track designation.

Based on the potential of the company's drug candidates, and its $2.84 share price, several members of the Street believe that now is the time to get in on the action.

Among the bulls is Leerink Analyst Mark Goodman who sees a string of catalysts ahead to boost the stock.

“The stock has been trending lower during the past several months mainly due to the lack of near-term catalysts, but we believe that investors will start to get much more focused on the name moving into 2H21 ahead of the multiple data points in 2022. We continue to have a positive view of Aptinyx's focus on NMDA receptor modulators and its pipeline opportunities… Aptinyx has a strong drug discovery platform plus a library of >1,000 identified compounds, which should enable continued pipeline expansion and sustain long-term growth,” Goodman explained.

To this end, Goodman rates APTX an Outperform (i.e. Buy) along with a $12 price target. Investors could be pocketing gains of 324%, should Goodman's thesis play out as expected. (To watch Goodman’s track record, )

It’s not often that the analysts all agree on a stock, so when it does happen, take note. APTX’s Strong Buy consensus rating is based on a unanimous 7 Buys. On top of this, the average price target is $10.67, suggesting robust growth of ~277% from current levels. (See APTX stock analysis on TipRanks)

Axcella Health (AXLA)

The next penny stock we’re looking at, Axcella, is another biotech company. Axcella is using endogenous metabolic modulators (EMMs) as a jump-off to approach new treatments for complex diseases, including non-alcoholic steatohepatitis (NASH, or fatty liver disease), along with overt hepatic encephalopathy (OHE). These are both serious liver conditions, and can have cascading consequences on the whole body.

For both tracks, Axcella has completed early clinical studies and is beginning Phase 2 trials. AXA1125, the drug candidate under development to treat NASH, started the EMMPACt Phase 2b clinical trial in May of this year. The study will enroll a total of 270 patients, and will stratify them by the presence or absence of type 2 diabetes, and important complicating factor.

Also in May, Axcella announced positive clinical data on AXA1665, the drug being studied as a treatment for OHE. The data showed that two different drug doses proved safe and well-tolerated, and showed positive results when compared to placebo. Both AXA1665 and AXA1125 have had their IND application cleared by the FDA.

AXLA's strong pipeline has scored it substantial praise from Chardan analyst Keay Nakae.

“We view Axcella's leading asset, AXA1665, as likely to exceed the benefits provided by the current standard of care therapies lactulose and rifaximin in HE, due to its clean safety/tolerability profile and ability to target more aspects of HE than simply blocking ammonia absorption in the gut. Beyond AXA1665, we also anticipate success for AXA1125 in NASH; the NASH market is crowded with potential therapeutics but is also a very large commercial opportunity that we anticipate will allow for the success of multiple market entrants. We expect AXA1125 to thrive as a base-level therapy due to its impressive safety/tolerability profile as a result of its mechanisms of action, with potential to move forward in pediatric NASH sooner than competitors due to this safety profile,” the 5-star analyst noted. 

In line with his optimistic approach, Nakae gives AXLA shares a Buy rating and his $10 price target suggests ~186% potential upside for the coming year. (To watch Nakae’s track record, .)

Other analysts are on the same page. With 3 additional Buy ratings, the word on the Street is that AXLA is a Strong Buy. The shares are priced at $3.50, and the $11.25 average price target suggests it has ~222% upside ahead of it. (See AXLA stock analysis at TipRanks)

To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post 2 "Strong Buy" Penny Stocks That Could Rally to $10 (or More) appeared first on TipRanks Financial Blog.

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How To Retire Early: 19 Tips from People Who Really Know!

How to retire early? Find out with real world advice from 3 retirement experts who took the leap in their 40s and 50s. You can do it! The post How To Retire Early: 19 Tips from People Who Really Know! appeared first on NewRetirement.

How To Retire Early: 19 Tips from People Who Really Know!

Do you want to know how to retire early? How about how to retire early at 55? How to retire early at 60? What about how to retire early at 45 or earlier? It IS possible.

Don’t believe me? Get advice from three guys who really know:

1. Chris Mamula writes for Can I Retire Yet. He retired at 41 after working 16 years as a physical therapist.

2. Karsten Jeske writes Early Retirement Now and is the “go-to” guy if you want to know about safe withdrawal rates. He retired at 44. His last ten years were spent working for a large asset manager.

3. Fritz Gilbert is the author of The Retirement Manifesto. He spent 30 years at a single company building a successful career before retiring at age 55.

They have all been featured on the NewRetirement Podcast and recently got together to discuss their first year in early retirement.

So, here is their advice — 19 tips — for how to retire early:

1. Know the Basic Formula, But Beware

The basic formula for an early retirement is to build up 25 times your annual salary and then plan on drawing down no more than 4 percent of that value, every year. If you can afford to live on that, you should be good.

However, there are so many variables that can throw a wrench into or even improve that formula.

To get a more nuanced (and reliable) answer about retiring early, try different scenarios with the NewRetirement Planner. Input as much detail as possible and keep playing with your information until you come up with a plan that really works for you.

Rules of thumb are okay as a starting point, but a reliable retirement plan needs to be customized to you.

2. Focus on Defining the Lifestyle You Desire

A lot of people could retire early if they were willing to dramatically curb their spending. Mamula wasn’t necessarily interested in that.

His approach was: “We just focused more on lifestyle design and how can we get everything we want without actually having all the stress that comes with traditional retirement. And that’s been our approach.”

3. How to Retire Early? Budget!

Knowing what you spend now and what you might spend in the future is critical for retirement and especially if you want to know how to retire early.

Gilbert recommended this: “We’ve never really been big budgeters. For a year, we tracked every single penny we spent because we wanted to know as realistically as we could, what our spending was. And then we adjusted it for how we thought things would change in retirement, etc…”

The NewRetirement Planner allows you to create a really detailed budget now and document how those numbers will change in the future. The system even enables you to enter necessary spending as well as nice to spend amounts. It is fun and easy to think through how your spending will change over the rest of your life in over 70 different categories.

4. Sandbag Your Numbers

You don’t want to get your numbers wrong and end up not having the retirement you want to have.

Gilbert recommends sandbagging your numbers. He says: “Be conservative in your estimates. I decided to use $2,500 for my healthcare expense, Karsten is at $2000. So I tended to sandbag a lot of my numbers to the high side just to be safe.”

“I would just encourage people to focus on the numbers and really take some time to look at your spending.”

Interested in reliable healthcare estimates? Use the NewRetirement Planner. It will take your age, location, and health status into account and apply healthcare spending as predicted over your lifetime.

5. Give Yourself At Least 5–10 Years to Prepare

While there is no hard and fast rule, Jeske suggests that you should prepare for an early retirement for at least five or ten years.

An early retirement can not usually be had overnight. (But, even that could be possible if you know your numbers.)

6. Work One Extra Year for Extra Cushion but Not Another and Another and Another Year

Jeske felt like he could retire a year or two before he actually did. However, it is such a massive decision that he decided to work a little longer to give himself an extra cushion.

Gilbert also worked an extra year. “I talked to my uncle, he retired early and he said, let me just give you one piece of advice. He said, ‘If you’re not quite sure on the numbers, put in one more year.’ But, then he added: ‘Don’t put in one more year, and then one more year and then one more year.’ Right? Just put in one more year, pad the numbers because you’ll never make the kind of money you’re making now, right in the peak year career.”

However, Mamula likens the idea of working one more year to playing a game of chicken. He said, “Are you going to run out of money or are you going to run out of life first? So you’re trading in this lifestyle that we didn’t like working all the time, for a different undesirable lifestyle where you’re constantly worried about money.”

Read this if you want to know what one more year might really mean to your future.

7. Make Trade-Offs

So, do you want to work? Or, do you want to live?

The two options are not diametrically opposed for many of us. Lots of people enjoy their work. However, others are in the grind for the paycheck. (Explore 14 reasons why working a long time is a great idea.)

Fritz makes the point that earning money at work has risks too. He says: “If you stay working, you’re risking giving up one more year of healthy life when you could be out living life instead of stuck in the cubicle or whatever. So just because you decided to work isn’t risk-free.”

Just be aware of your trade-offs.

8. How to Retire Early: Know Which Dials to Turn

According to Jeske when it comes to figuring out if and when you can retire, there are two specific metrics to analyze. He says: “So, in my personal view, obviously there are two dials that you can play with. One is what is your retirement budget? The other is what is your withdrawal rate?”

“Say you have a $50,000 budget and you have a 4% withdrawal rate, then you multiply your $50,000 budget by 25, and that’s how much you need to have. So at some point, I looked at the numbers and the numbers became so ridiculous where I said, ‘Well, even with a 3% withdrawal rate and $100,000 budget, I can retire, what exactly am I waiting for?'”

The NewRetirement Planner enables you to play with both your budget as well as your withdrawal rate. See your maximum withdrawal rate or specify a specific percentage over your lifetime and compare either of those scenarios to your withdrawals based on spending needs.

9. Save 50% of Your Income

Most people who want to retire early are saving at least 50 percent of their income. It is difficult but possible.

Here are over 20 ideas for boosting savings — big!

10. Beware Lifestyle Inflation: It is Hard to Go Back

Mamula feels like there is no way he could ever go back to a regular grind. He is so happy with the freedom his retired life gives him.

He says: “So my original plan was to just work, as a physical therapist, it’s pretty easy to get part-time work or to do a travel assignment. So that was my original approach. I was going to maybe work five, 10 hours a week just to keep my toes in it and have some income or work like one rotation a year.”

“And then these opportunities to write came up. And I have to say now that I’ve had the freedom and I’ve left my career completely, it would be extremely hard to go back. I equate it to lifestyle inflation, it’s the ultimate lifestyle inflation once you experience this freedom. And yeah, I’m allergic to anything that’s a commitment to my time now. And I’ve always considered myself a hard worker, but it’d be really hard to go back to a regular job in a regular office.”

11. You Might Not Go Back to the Grind, But You Might Work

Like Mamula, both Jeske and Gilbert are also maintaining side gigs or work that they enjoy.

As Gilbert said, “It’s interesting that even if you didn’t plan on earning any money, let’s face it, a lot of us that are in this F.I.R.E. community are pretty driven people who’re pretty successful. And there’s going to be opportunities, the difference is, the opportunities are doing something that you love. So, I think you’ll find that there is income even if you’re not planning for it. So don’t sacrifice all your life to continue working to get that withdrawal rate down to 3%, 2.5%.”

Learn about How to Make Money in Retirement: 14 Real and Really Easy Ways to Boost Income. Or, explore these passive income ideas.

12. The Early Retirement Mindset Is Different for Everyone

Retiring early takes some sacrifice. The will to spend less and save a lot more can come from many different places.

Gilbert came from a family culture that was very anti-debt and frugal. His wife’s family had to file for bankruptcy while she was in college and she didn’t like that feeling of scarcity.

Mamula and his wife just started saving 50% of their salaries as a security blanket, they were not specifically trying to figure out how to retire early.

Your financial personality — developed over your lifetime — will play a part in determining whether or not you can retire early. Figuring out what motivates you and what is behind your money habits can be a useful part of figuring out how to retire early.

What is your money personality type?

13. The Courage to Leap into Retirement is Part Math, Part Overcoming the Fear of the Unknown

Figuring out when you can retire can be a mathematical calculation, very much rooted in facts and figures. (Get started now with the NewRetirement Planner.)

However, actually deciding to quit work and live a different kind of life is a more difficult and very qualitative decision.

Gilbert described it this way, “In that last year that I was working, I was like, okay, the math is fine, the numbers are great. I quit worrying about money. I didn’t have the angst about the financial side, it was more like almost an obsessive curiosity about what is this life going to be like in retirement? And what am I going to do with myself? What’s my purpose going to be?”

Not sure about your purpose? Explore 4 ways to find meaning in retirement.

14. Prepare for the Soft Side of Retirement

Gilbert emphasized that it is really important for people to prepare for their life after early retirement, not just their financial life after early retirement.

He said, “It’s really important for people as they’re getting close to what I call the starting line, that they do really spend some introspective time talking about that or thinking about it, talking with their spouse. Because the research says, it’s the people that do the most amount of time planning for the soft side that have the best transitions into retirement.”

“It’s been proven and the risk of depression goes up 40% in retirement, big numbers. But the way you avoid that is by increasing the amount of time that you prepare for it before retirement. And that’s really all the soft stuff. So that’s where our focus was and it worked out well for us.”

Learn more about retirement and depression.

15. Be Prepared to Change Your Mind About Goals and Interests

While Mamula agrees that preparing for the soft side of retirement is important, he has also found that interests are likely to change and that you should be open to that change!

He said, “I put in a lot of thought on the softer side. But what I’ve found is, I don’t think I’m very good at predicting what I’m going to want and what’s going to make me happy. And I think like research shows that’s a pretty common thing actually, that the things that we think are going to make us happy once you achieve them, oftentimes they don’t.”

“And so I think that’s just something to be aware of and to think about. And I think there’s a lot of value in planning and thinking about these things. But also you have to understand that, as things change, your perspectives change and you might be surprised by what you find on the other side.”

16. Have a Positive Attitude!

Want to know how to retire early? A positive attitude is key! A positive attitude can get you through a lot of difficulties you might experience.

Gilbert noticed that almost everyone he knows who has retired early is positive. He talked about this positivity, “I think it’s really important to focus on your attitude. Jeske’s like, ‘Hey, I’m fine winging it. I’m good with that.’ He has an attitude of positivity. And, Chris, I think you’ve got the attitude, where you’re receptive to try new things, ‘Hey, let’s move to Utah and climb mountains.'”

“I think having a positive attitude and having a curious mindset is really the key.”

17. Take the Leap

“At some point, you just got to say, ‘I’ve gotten enough, I’ve run all the different retirement calculators, including that awesome one over at NewRetirement. I know I can make it,’ and pull the plug and go. And life is going to work out okay,” said Gilbert.

He continued, “Once you know the numbers are good, don’t waste your life working. Get the courage to make the jump because it really is a numbers game. And once the numbers say that it’s okay to go, it becomes a mental game, not a numbers game. And there’s no reason to let the mental side of it block you from experiencing life post-F.I. because it’s really an enjoyable life. And I would encourage people to spend as much of their life in that environment as they possibly can. So that’s my recommendation.”

How to overcome the terror of spending your nest egg.

18. Be Ready for Freedom, Travel, and Time

When asked about the best thing about their first year of an early retirement, everyone has answers related to freedom and travel.

“Freedom,” Said Mamula. “Just having freedom with my time, I don’t think I’ve had freedom with my time since I was probably in the 11th grade. I don’t think I’ve ever had more than two weeks in a row where I didn’t either have school or work or most of the time for me it was both. And so just having that freedom, it’s unbelievable.”

Travel was what Gilbert and Jeske have been enjoying.

Fritz responded, “I think you instinctively go to travel, I don’t know why. But I think when most people think, “Oh, what are you doing in retirement?” Your initial thoughts are travel. And I would say a year and a couple of months from now, probably one of our biggest enjoyments was, we did what I called the great American road trip, we did 10,000 miles with our RV, and took our time going cross country…”

And, Karsten really reveled in the relaxed nature of retirement travel. He spent seven months touring the world and enjoyed the open-ended, low-stress nature of his retirement journeys.

Here are 20 great retirement travel tips.

19. Retire Early and Find Happiness

All three early retirees mention that they are happy with their decision with very few regrets.

Are you ready? Find out how to retire early: Explore your plans now!

The post How To Retire Early: 19 Tips from People Who Really Know! appeared first on NewRetirement.

Source : New Retirement More   

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