Penny stocks are defined as shares of companies trading below $5. That may be the standard but it down not nearly explain the entire landscape of “cheap” stocks. Traders hunt for these lower-priced equities thanks to their inherent potential for quick gains. While Apple or Netflix might take months to see a 20%+ boost, you’re likely to find more than a few penny stocks doing that within minutes.
That type of trading activity is another reason why there’s so much risk in trading stocks under $5. Just as quickly as they climb, they can drop. What’s more, the cheaper the stock, the smaller the price movement necessary to realize a significant percentage change in either direction. This article dives deeper into some of today’s more popular penny stocks to watch under $1.
Penny Stocks To Watch Under $1
- Sesen Bio Inc. (NASDAQ: SESN)
- Athersys Inc. (NASDAQ: ATHX)
- LiveOne (NASDAQ: LVO)
How To Find The Best Penny Stocks To Buy
So, before we dive into the list, how does someone find penny stocks to buy? I’d suggest starting with a watch list and basing it on specific criteria. Whether it’s stocks with high volume, unusual options activity, insider trading, or something else, a “theme” is helpful. We’ve done this with plenty of watch lists, including stocks with high short interest, low floats, insider trading, and even senate & congress stock trades. In this article, we’re looking strictly at price and diving deeper into what’s moving 3 penny stocks under $1 today.
1. Sesen Bio Inc. (NASDAQ: SESN)
Those readers who’ve been trading penny stocks for over a year are likely familiar with Sesen Bio. The company was red hot during the first half of 2021, leading up to a significant FDA event regarding its Vicineum bladder cancer candidate. As you’ll see, things didn’t work out quite as well as speculators expected. But Sesen has pressed forward.
At the end of the first quarter, Sesen filed an 8-K showing it participated in a Type C meeting with the FDA. Further, the FDA agreed to most of Sesen’s proposed analysis and protocol plans and design elements. Late last month, the FDA granted the company a meeting request regarding an additional Phase 3 trial and the potential of a Biologics License Application. This meeting was designated as a Type B meeting scheduled for July 11.
With this milestone still one month away, SENS stock has begun steadily moving higher. Whether or not this is speculative activity is to be seen. However, with it still exploring strategic alternatives, including partnerships and licensing, there could be other things to monitor with Sesen.
2. Athersys Inc. (NASDAQ: ATHX)
Another one of the stocks under $1 to watch this week is Athersys Inc. Like SESN, but in a shorter-term period, ATHX stock gapped significantly and slid to new lows. The company’s missed its primary endpoint in a MultiStem study. The MultiStem platform is Athersys’ intravenous infusion platform targeting ischemic stroke.
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Even with this as the case, management appeared optimistic about the future prospects. In a late May PR, company CEO Dan Camardo explained, “The preliminary data analyses suggest a path forward for our partner, Healios, in Japan, and gives us further confidence in our MASTERS-2 Phase 3 ischemic stroke study being conducted in the United States, Europe, and the Asia-Pacific region.”
Now, traders could be watching for the next steps for the company. Last week, Athersys announced a restructuring plan that came with management changes. The changes included the departures of the company’s COO, EVP and Chief Scientific Officer, and the Athersys CFO. It also slashed its workforce by 70%. With a lean operational structure and focus on its HEALIOS partnership, ATHX stock could be one to watch this week.
3. LiveOne (NASDAQ: LVO)
A lower volume penny stock on this list has quietly gained momentum over the last few weeks. LiveOne is up nearly 100% since hitting May lows of $0.56. The company operates a creator-focused music and entertainment technology platform focused on content and events.
Following its presentations at the Needham Technology & Media & JP Morgan Global Technology, Media, & Communications conferences last month, LVO stock began jumping. This week the company presents at the LD Micro Invitations.
Other than hitting the presentation circuit, there’s also been a more significant level of bullishness in light of LiveOne’s current stock repurchase program. As of May 25th, the company said it had bought 500,000 shares. Meanwhile, a new partnership with Hyundai Motor America is turning some heads. The two companies will focus on podcast production and streaming on LiveOne’s PodcastOne. Although the lower volume compared to other names on this list, LVO stock could be one to watch as it continues its multi-week uptrend.
How To Buy Penny Stocks
If you’re newer to this world of cheap stocks, “how to buy” them is probably something you will want to learn. In practice, it’s very simple as long as you’ve opened a trading account. The first step is identifying the stock you’d like to buy. Next, navigate to the trade ticket screen and enter your specifics: share amount, limit, or market price, and confirm the correct symbol. Finally, tap or click the buy button and wait for your order to fill.
There are many more things to account for when it comes to active trading. Most of these aren’t something we’ll cover in this article. However, there are many other education-focused updates we’ve released, including a few below:
- Tips for Investing in Penny Stocks in 2022, 3 to Know
- How To Make Money With Penny Stocks
- How to Make Money With Penny Stocks in June, 3 Tips
If you are interested in learning more about penny stocks and the stock market as a whole, then you need to check out True Trading Group, the fastest growing & highest-rated online premium educational platform available today!
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