Penny stocks can be hot or cold, depending on who you ask. But in the stock market today, there’s no shortage of big movers. Maybe they jump for a day or go on to rally for weeks; the potential for penny stocks to make you money is undeniable. Assuming you’ve got a stomach for volatility and a basis for understanding how to trade, these cheap stocks can be well-worth the time it takes to research them.
It’s not just retail traders who are looking for cheap stocks to buy either. Everyone from analysts to institutional investors is on the hunt. So, where should you start if you want to get your feet wet in these wild waters? How can you find the best penny stocks to buy? Begin by making a list by identifying underlying trends. Are energy stocks a good buy right now? Which insiders just picked up a position in their own company? Have certain stocks experienced unusual activity in the options market? Are there upcoming reports to know about?
These are just a few questions to ask to find trends before the retail masses. Today we look at a handful of penny stocks to watch heading into the final month of Q1, 2022.
Penny Stocks To Watch In March
- Globalstar Inc. (NYSE: GSAT)
- Akebia Therapeutics Inc. (NASDAQ: AKBA)
- NLS Pharmaceutics Ltd. (NASDAQ: NLSP)
Making Your List Of Penny Stocks
We went over some of the basics for putting together a good list of penny stocks. Asking questions is a great way to begin. Once you’ve got your answers, it’s time to identify stocks that fit the mold. If you’re looking for the most active penny stocks, chances are a stock trading of fewer than 1,000 shares per day would take a place on the list.
Then again, if you’re looking for penny stocks with news, the company that hasn’t announced something in years but is up 100% might not hit your radar either. The point is to research and understand why certain stocks are or could move the way they are. The final step is deciding if they’re the best penny stocks to buy based on your complete thesis on the trade. Today we look at a few names gaining momentum right now.
Globalstar Inc. (NYSE: GSAT)
Thanks to the Russia-Ukraine conflict, any company exposed to defense, surveillance, cybersecurity, government contracts, energy, etc., has been in the spotlight. Globalstar was on the list of “must watch penny stocks for February as Russia Invades Ukraine” for a good reason.
The company offers client services, including satellite intelligence platforms. A new contract helped bolster attention on Globalstar in this light as well. It signed a deal with Macdonald Dettwiler and Associates to acquire 17 new satellites and extend the life of its existing constellation. The agreement (valued at $327 million) also set terms for additional satellite acquisition at the company’s discretion. According to the Procurement Agreement, Rocket Lab USA, Inc. is the principal satellite bus subcontractor.
In the face of global unrest, GSAT stock has surged over the last week, and it appears sentiment remains bullish. If you were to look at the options market today, you might see what I’m talking about. As of this article, July 15, 2022, $1.50 strike Calls were of particular interest. Heading into the session, there were 2,952 contracts listed as Open Interest; however, the day’s volume was nearly 5x that figure, over 10,800 contracts. Given the speculative nature of penny stocks in general, this appears as an attractive out-of-the-money bet on GSAT stock.
Of note, this is the final expiration date for options before the October contracts come into focus (so nothing in August or September right now). Interestingly enough, according to the February 24th press release, “On August 16, 2022, all deferred payments will become due, by which time Globalstar expects to complete a senior secured financing.” Whether or not this carries weight in the matter is to be seen but an interesting coincidence all the same.
Akebia Therapeutics Inc. (NASDAQ: AKBA)
Thanks to options data, Akebia Therapeutics may also be one of the penny stocks to watch right now. The company specializes in developing treatment candidates for kidney disease. In particular, Akebia’s vadadustat is its anemia drug candidate for chronic kidney disease and has gained attention from several fronts, including an amended license agreement with Vifor Pharma. The two agreed to restate the terms of a license agreement for Vifor to sell vadadustat subject to approval by the FDA.
It so happens that this month is the Prescription Drug User Fee Act date, March 29th. With that date quickly approaching, it seems that, for now, the market and management are optimistic. Dell Faulkingham, Chief Commercial Officer of Akebia, explained in a recent PR, “Many of our on-going pre-commercialization activities, including amending the terms of our relationship with Vifor Pharma, are aimed at ensuring patient access for vadadustat,…If approved, we will immediately initiate the process to secure reimbursement for vadadustat under the Transitional Drug Add-on Payment Adjustment (TDAPA) period for dialysis organizations.”
Right now, options data could become a key tell for sentiment in the market. There are currently six expiration dates in the AKBA options chain. The April 14, 2022 options show an imbalance to the Call side of that chain. The $2.50 strike Calls saw the most volume today with more than 2,000 contracts, while the out-of-the-money $3 strike has the most open interest at more than 18,900 contracts. Since this is the first expiration date after Akebia’s PDUFA date, it will be interesting if these bets play out the way traders seem to expect.
NLS Pharmaceutics Ltd. (NASDAQ: NLSP)
Not all penny stocks to watch have unusual options activity. Some have upcoming events that were previously announced. NLS Pharmaceutics is of the latter, and this week could be an important one for the company. In particular, the central nervous system treatment company participates in several industry conferences. Not only has it already attended the SACHS European Life Sciences CEO Forum, but it will also participate in an interview with Maxin Group’s Senior Managing Director Jason McCarthy today (March 3).
This is also a lead-in to NLS Pharmaceutics’ upcoming interim top-line data results for its Quilience platform in treating narcolepsy. On March 16th, the company will present details at the World Sleep Congress. According to the company, to date, 36 patients have been enrolled in its Phase 2a trial, and it expects to complete the 60-patient trial in the second quarter of 2022.
In light of current and upcoming events for NLS, it could be one of the penny stocks to watch for March.
Best Penny Stocks To Buy Right Now
Should you buy penny stocks right now? That’s something only you can answer. But having a proper strategy and game plan in place can help you cut through the noise much easier than if you didn’t. Some of the companies on this list of penny stocks have a few things going on right now that could place them on retail traders’ radars but should warrant additional research moving forward.
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