The 2022 crash has sent a shockwave of concern across markets. But one asset class continues to shine even as massive selling pressure takes large-cap stocks lower. You are correct if you guessed penny stocks are what I’m referring to. These low-priced, high-flying equities have brought excitement during a time when emotions have been tested, and portfolios have gotten ripped apart.
What are penny stocks? Penny stocks are shares of companies trading for less than $5 per share.
The thing to keep in mind is that these types of stocks typically represent smaller company shares. In most cases, these companies are in the early stages of development and, as a result, carry plenty of risks beyond general market volatility. That’s why they are favored by most day traders in the stock market today. You’ll see more than a handful of stocks under $5 trading at significant multiples of their previous closing prices daily.
The good and bad is that most of these moves last a day or two and then ultimately settle down. This doesn’t mean investing in penny stocks is a bad idea. But it does suggest that additional research and a stomach for high volatility are necessary. On the other side of the coin, the retail trading community flocked to these stocks during the 2022 crash. The day-to-day jumps have offered a bit of alpha at a time when things seem just to drift lower.
How To Find Penny Stocks To Buy
Where should you begin? If you’re looking for penny stocks to buy, catalysts are a good place to start when you’re putting together a watch list. These can be anything from insider trading activity or news headlines prompting market momentum. Once you’ve identified the catalyst, you can make your ultimate decision whether or not the trade set-up is right for you. Today we look at a handful of stocks with news that are turning heads early.
Penny Stocks To Watch
- Bionano Genomics Inc. (NASDAQ: BNGO)
- Qudian Inc. (NYSE: QD)
- View Inc. (NASDAQ: VIEW)
- Outlook Therapeutics Inc. (NASDAQ: OTLK)
Bionano Genomics Inc. (NASDAQ: BNGO)
Biotech stocks were hit hard this year, with sector index ETFs dumping to their lowest levels since the 2020 pandemic sell-off. But that doesn’t mean the opportunity is gone. In fact, day-to-day trends have shown strong potential in biotech penny stocks. For the most part, pipeline news, patents, industry presentations, conferences, etc. These are all sources of speculation and catalysts for moves in the stock market.
Today, Bionano Genomics came back into the spotlight after a few weeks of a slow move lower. The company offers genome analysis solutions for researchers. Following its participation at the European Society of Human Genetics, which wraps up today, patent news has sparked some attention on BNGO stock.
BNGO Stock News
The US PTO granted the company patent number 11,359,244. It’s titled “Characterization of molecules in nanofluidics.” Accordingly, the abstract for the patent shows that it relates to “detecting and quantitating molecules using fluidics. In preferred embodiments, the methods comprise analyzing blood to detect the presence of circulating DNA or cells from a fetus or tumor.”
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Qudian Inc. (NYSE: QD)
The consumer technology company Qudian Inc. has also gained some attention over the last few weeks. China-based company stocks haven’t gotten as much fanfare as they have in prior years. Concerns over listing on US exchanges have come to light, which caused some hesitation from investors.
Regardless, QD stock has come back into focus this quarter. Shares spiked in late May after wider-spread interest placed a spotlight on the overall Chinese stock niche. Companies like Alibaba, JD.com, Bidu, and others brought back some much-needed bullishness.
QD Stock News
This week, QD stock is on the watch list following its latest headline. Qudian announced an up to $200 million share buyback program. What’s more, the plan will be in place for the next 24 months.
View Inc. (NASDAQ: VIEW)
Qudian isn’t the only technology penny stock on the watch list either. Despite the broader bearish sentiment for the tech sector, companies like View Inc. have gone against the grain thanks to recent developments. In fact, since hitting 52-week lows last month, VIEW stock has bounced back strongly. Between May 11th and June 9th, the penny stock climbed from $0.37 to highs of $2.74. This 600%+ move came as the company released a series of milestones, including solid earnings.
View Inc. posted sales of $74 million, up more than 100% from its previous year’s first quarter. The company also issued sales guidance of $100 million to $110 million for the full year. Its core focus s on smart building technology. Its flagship View Smart Glass product uses artificial intelligence to manipulate natural light so people inside a building can see outdoor views but not have negative impacts of heat or extreme brightness.
VIEW Stock News
This week, View continued releasing milestone news. Its smart glass is being installed at the Dallas Fort Worth International Airport’s “High C gates. “View is on a mission to transform buildings to improve human health, address climate change, and create value for our customers,” said Kyle Smith, Vice President with View. “Airports across the country recognize the incredible value View’s smart building technology provides, and we are thrilled to deepen our partnership with DFW to define and deliver the airport of the future.”
Outlook Therapeutics Inc. (NASDAQ: OTLK)
Finally, Outlook Therapeutics has started regaining some interest after a significant drop in May. Shares of the biotech company’s stock fell from over $1.50 to under $0.70 after it announced the FDA wanted additional information on Outlook’s ONS-5010 to complete a Biologics License Application submission. This pause in the process and withdrawal of the BLA brought some concern to investors, and the response was a massive drop.
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Specifically, the company is looking to submit the BLA for ONS-5010/LYTENAVA for treating wet age-related macular degeneration. Despite the bad news, the application remains a core focus for the company as it said plans are to resubmit by September.
OTLK Stock News
This week, Outlook announced the status of its BLA submission. C. Russell Trenary, President and Chief Executive Officer of Outlook Therapeutics, commented, “The additional correspondence from the FDA confirms our commitment to our shareholders to re-submit a completed BLA to FDA by September of this year. As stated previously, we believe the results from our clinical trials demonstrated safety and efficacy, and we are on-track to re-submit this BLA and, if approved, to deliver the first FDA-approved ophthalmic formulation of bevacizumab to the retina community.”
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