The simple definition of penny stocks includes stocks under $5. Some traders might say they are limited to only the Over-The-Counter or “OTC exchange.” But in reality, plenty of cheap stocks are trading on larger exchanges. In the stock market today, you’ve got a large moat of stocks under $5 to choose from. That’s partly thanks to the more significant sell-off that has continued this year.
Inflationary fears, speculation on a 2023 recession, and a stock market crash, there are many driving forces weighing on investors’ minds. However, things are a little different when it comes to penny stocks. That’s because speculation tends to take a more forefront position with low-priced equities.
Who doesn’t want to “be in on the ground floor” or buy at the absolute low before a rebound higher? The important thing to remember is that these are great ideas but are a rarity in practice. Your ability to remove emotion and focus on “the trade” tends to work far more frequently than trying to time a trade or the stock market. In this article, we look at a handful of some of the lowest-priced penny stocks grabbing attention in the stock market today.
Penny Stocks to Watch
Novo Integrated Sciences (NVOS)
Anyone looking at technical levels and indications of support and resistance will likely see that the 50-day moving average has been a sticky level for NVOS stock. For the most part, it has failed to break and hold above this level all year. But recently, Novo shares have held higher prices for over a week.
One of the more significant catalysts for the health & wellness company was news of non-dilutive debt financing for a lump sum of $57 million in April. Commenting on the fresh cash, CEO Robert Mattacchione said, “The non-dilutive and progressively structured facility will also allow the Company the time required to properly commercialize many of its unique assets. As we continue on our path to profitability, structured debt of this nature eases the burden of capital pursuit and allows the focus of market growth to be primary in management’s objectives. Patient, non-dilutive capital greatly increases the Company’s potential for true market difference.”
Novo is coming off a stronger start to the year after hitting several key developments. It acquired a majority stake in Terragenx and its IP, which includes methods for producing an FDA and Health Canada-approved iodine micronutrient. It also completed the acquisition of Clinical Consultants LLC and two multi-disciplinary clinics in Canada. What could be a focus right now is the company’s NovoConnect. It’s in limited commercialization in specific clinics. But expanded commercialization is intended to launch this year.
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Spectrum Pharmaceuticals (SPPI)
Even though shares of Spectrum are barely above $1, the penny stock has mounted a strong recovery over the last few weeks. It broke below its 200-day moving average at the end of March, which remained resistance until late April. New developments have come to light, which has struck a chord with retail traders. Mainly, there is news that Assertio Holdings Inc. (NASDAQ: ASRT) would acquire Spectrum in an all-stock and contingent value rights transaction.
“The addition of Spectrum’s commercial capabilities and ROLVEDON, a novel long-acting G-CSF product recently launched into a blockbuster market in October 2022, exemplifies Assertio’s attractiveness as an acquirer of new, accretive assets across diverse therapeutic categories, and ability to continue their growth and achieve profitable contributions faster and more efficiently than could be achieved on a standalone basis,” said Dan Peisert, President and Chief Executive Officer of Assertio in a related update.
While this transaction is expected to close in the third quarter of 2023, momentum continues in SPPI stock. Since the news was released, shares have rallied significantly.
Aditxt Inc. (ADTX)
We spoke about key levels with the stocks mentioned earlier. Aditxt is another, which has a few established levels of resistance that have been tested recently. In this case, it’s ADTX stock’s 50-day moving average. This level is one that the penny stock hasn’t been able to break and hold above all year. Friday is the most recent session, where shares tested the 50-DMA area for the first time in May.
Aditxt has been preparing to launch its first immune modulation product candidate, ADI™-100. It is targeting several clinical trials to demonstrate its safety and indications of efficacy. ADI-100 is designed to tolerize against an antigen known as glutamic acid decarboxylase implicated in type-1 diabetes, psoriasis, and autoimmune diseases of the central nervous system. A new update from the company helped fuel renewed interest in the company’s shares.
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Aditxt’s subsidiary Adimune signed a clinical trial agreement with the Mayo Clinic to study stiff person syndrome and other central nervous system diseases. “We believe that the pre-clinical studies will help us to expand on the understanding of the technology, specifically the mechanism of action which induces antigen-specific immune tolerance without impairing the responsiveness of the immune system to fight infections and cancers,” said Dr. Joachim Friedrich Kapp, the co-CEO of Adimune.
Since the clinical trial is expected to begin this year, timing is coming into focus. Aditxt plans to enroll approximately 10-15 patients, some of whom may also have type-1 diabetes.
Tuya Inc. (TUYA)
The company has a bit of a lower volume profile than the others on this list of penny stocks. However, that doesn’t mean traders are ignoring Tuya. Shares popped over 5% on Friday as the company’s stock continues rallying after its annual report was released.
The IoT cloud technology company has businesses and developers across 200 countries and over 700,000 IoT device and software developers, according to its latest ESG report. Last year Tuya officially launched its Cube Smart Private Cloud Solution, further enhancing its offering. Its solutions cast a wide net from Hospitality and Real Estate to Lighting, Building, & Residential. Its IoT platform empowered roughly 3,900 brands to develop smart devices.
These brands included leading Calex, Philips, Schneider Electric, Danfoss, Sharp, Telkom Indonesia, and Honeywell. Among its services, Tuya also offers AI-powered virtual voice assistance, which may have come into focus recently thanks to the surge of interest in AI stocks. Other than its recent financial highlights, speculation regarding China-based company stocks and machine learning companies may be playing a larger catalyst to keep in mind.
List Of Penny Stocks
- Novo Integrated Sciences (NASDAQ: NVOS)
- Spectrum Pharmaceuticals (NASDAQ: SPPI)
- Aditxt Inc. (NASDAQ: ADTX)
- Tuya Inc. (NYSE: TUYA)
