5 Cheap Penny Stocks to Buy According to Analysts

4. MEI Pharma Inc (NASDA:MEIP)

Average Analyst Price Estimate: $23

Upside Potential: 603%

Of the 933 hedge funds in Insider Monkey’s database, 23 hedge funds reported owning stakes in MEI Pharma Inc (NASDA:MEIP). The biggest stake in MEI Pharma Inc (NASDA:MEIP) is owned by Amin Nathoo and Moez Kassam’s Anson Investments which owns a $6.3 million stake in MEI Pharma Inc (NASDA:MEIP).

GreenWood Investors stated the following regarding MEI Pharma, Inc. (NASDAQ:MEIP) in its fourth quarter 2023 investor letter:

“Good governance is a daily action for those with skin in the game. Working on behalf of the company’s customers, employees, shareholders and other stakeholders is a team effort and a constant effort. We love being a part of it. It’s reinforced by the small moments that speak volumes about the validity of our approach. I’d like to share a few moments from the past year that particularly stuck out to me, and are very telling. We’ll start with our three largest positions, where we sit on the boards, which also coincidentally drove the lion’s share of our returns for the year, with Leonardo contributing 17.7%, CTT contributing 5.5%, and MEI Pharma, Inc. (NASDAQ:MEIP) contributing 3.8%.

MEI Pharma is developing two compelling assets that could help large bio-pharma companies to refill their clinical pipelines. After years of under-investing in these pipelines, large pharmaceutical and biotech companies are getting very assertive in their M&A activity. The fact that shares trade for half of the cash on the balance sheet, gives us even more capital allocation opportunities than those companies with richer valuations. It also focuses the company’s capital spending to only the most value-added efforts. The bar is very high for any capital commitments when our stock is so attractively-priced.”