Penny stocks offer investors the chance to get in on the ground floor of small companies with growth potential. They also offer high-volatility trading opportunities daily that can see huge moves of 100% or more. Penny stocks do carry higher risk. However, some investors are drawn to these cheap stocks in hopes of securing massive returns. This article explores penny stocks currently trading under $1 and had a recent spike in market action.
As a cheap, speculative investment, penny stocks under $1 can be tempting with the possibility of doubling, tripling, or more. However, the vastly lower share price also indicates higher volatility and uncertainty around the company’s financial health and future viability. Weighting both the upside potential and downside risks of penny stocks is crucial.
When evaluating sub-$1 penny stocks, you might want to analyze different aspects like the stock’s trading activity. These are typically seen as prime trades rather than investments, but you can decide for yourself. Typically, fundamentals like price-to-earnings ratio, debt levels, revenue growth, and institutional ownership may not play a prominent role. Of course, that is from a short-term perspective.
Penny Stocks Under $1
Trading penny stocks does require caution due to higher volatility, potential dilution, and prevalence of pump and dumps. Risk management through position sizing and stop losses allows participation in penny stock upside while limiting overall portfolio drawdowns. Consistently applying screening criteria to filter out concerning penny stocks also helps highlight higher-probability setups.
In this article, we will explore some penny stocks under $1 that present potential opportunities worth further investigation. The penny stocks meeting certain base criteria around the market cap, volume, volatility, business fundamentals, institutional ownership, etc., can then be analyzed more closely through individual due diligence.
Please note this article does NOT constitute definitive financial advice or stock recommendations. The penny stocks below simply meet initial screening criteria that MAY indicate upside potential worth additional research. All investments carry risk, and decisions should be made on an individual basis after personal assessment.
Now let’s explore a few of the popular penny stocks under $1 gaining momentum in the stock market today. We will look at key data points for each penny stock and see what catalysts could be in play.
Penny Stocks To Watch
- Seelos Therapeutics, Inc. (NASDAQ:SEEL)
- Oblong, Inc. (NASDAQ:OBLG)
- Atara Biotherapeutics, Inc. (NASDAQ:ATRA)
Seelos Therapeutics, Inc. (SEEL)
Seelos is a clinical-stage biopharmaceutical company focused on developing therapies for central nervous system disorders and rare diseases. This month the company presented at an industry event and has gained ground since. Last month, Seelos Therapeutics announced its participation in Neuroscience 2023. They presented a poster on SLS-005 in a model of Alzheimer’s disease. SLS-005 induces autophagy to reduce mutant protein aggregates.
It is being studied in Alzheimer’s disease, Huntington’s disease, Amyotrophic Lateral Sclerosis, and Spinocerebellar Ataxia. In the Alzheimer’s model, the drug showed a significant reduction in tau and NfL proteins in non-human primates.
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While shares of SEEL stock sit well below $1, it hasn’t stopped traders from looking into analyst sentiment. Benchmark actually lowered its SEEL stock forecast price to $1 and has a Speculative Buy rating. However, since shares are trading around $0.16 that target is significantly higher at the moment. Whether or not that means Benchmark’s target is reached in the future is to be seen.
Oblong, Inc. (OBLG)
This technology company known for innovative solutions that enhance collaborative work environments. Their flagship product, Mezzanine™, is a remote meeting technology platform.
Earlier this month, the market got a glimpse of Oblong’s progress and performance. It announced the financial results for the third quarter of 2023. Oblong reported $6.8 million in cash and no debt as of September 30, 2023. Total revenue for the quarter was $0.9 million, a decrease from $1.2 million in the same period in 2022. The net loss was significantly reduced to $0.9 million from $7.2 million in the third quarter of 2022.
Its Adjusted EBITDA loss was $0.8 million, improved from a loss of $1.4 million in the previous year. Oblong has focused on strategic shifts to optimize operations and enhance efficiency, including raising $6.0 million in funding and extending financial stability through mid-2025. The company aims to partner with early-stage technology companies, demonstrating its commitment to innovation and market transformation.
Atara Biotherapeutics, Inc. (ATRA)
Shares of ATRA stock have been bouncing back after taking a big blow earlier in November. Atara Biotherapeutics specializes in T-cell immunotherapy. They focus on developing treatments for cancer and autoimmune diseases. Their approach leverages a novel allogeneic Epstein-Barr virus (EBV) T-cell platform.
What happened earlier this month that sent ATRA stock for a loop? The company announced results from the Phase 2 EMBOLD study of ATA188 in non-active progressive multiple sclerosis (PMS). Unfortunately, the study didn’t meet its primary endpoint of confirmed disability improvement at 12 months compared to placebo.
Fluid and imaging biomarkers also didn’t provide supportive evidence. Despite these results, Atara’s CEO expressed commitment to understanding EBV’s role in MS pathogenesis. Preliminary safety data indicated no new safety signals, maintaining ATA188’s favorable safety profile.
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Atara is reviewing the data, particularly the 6% disability improvement in the treatment arm versus 33% in the Phase 1 study and the unexpected 16% placebo rate. They plan to reduce spending on ATA188, shifting focus to their allogeneic CAR-T pipeline and tab-cel partnership with Pierre Fabre. This strategic shift is expected to extend their cash runway beyond Q3 of 2025.
Since the news hit and the dust settled, shares have been on the move. ATRA stock has bounced from $0.1986 to back over $0.50 within just a few weeks.
