Investors love penny stocks because of their inherently high volatility. This volatility can result in massive percent-gains compared to blue-chip stocks in a short period of time. However, this volatility can play against those penny stock trading and result in heavy losses. This is why you should have a plan when investing in penny stocks, to mitigate your losses.
One of the hardest steps when attempting to look for penny stocks to buy is filtering out all of the bad stocks. Finding the best cheap stocks isn’t as easy as snapping your fingers. You actually have to do work; believe it or not.
Where some treat low-priced stocks as lottery tickets, those who make money with penny stocks make it a real career. There’s planning, studying, and constant analysis that goes into trading, in general. So, without further ado, here is a list of penny stocks to watch trading at levels under $1.70 right now:
Penny Stocks To Buy For Under $1.70: Aclaris Therapeutics Inc. (ACRS)
To start this list off, we have Aclaris Therapeutics Inc. (ACRS Stock Report). Aclaris Therapeutics is primarily focused on serving the unmet medical needs of patients with dermatologic conditions. This includes treatments for skin and hair disorders. The company’s pipeline contains 12 different treatments and its lead candidate is A-101 for common warts.
Aclaris’ stock has had a very strong October overall, rising from $1.02 all the way to $1.706. This was thanks to several news catalysts. First, the company announced the divestiture of RHOFADE in order to refocus on immune-inflammatory treatments.
In addition, the company started a files patent infringement lawsuit against Taro Pharmaceuticals. On October 22nd, the company is gapping up 10.5% after taking a heavy hit on the 21st.
Penny Stocks To Buy For Under $1.70: Bionano Genomics Inc. (BNGO)
Not every healthcare company is focused on the same thing, a prime example of this is Bionano Genomics Inc. (BNGO Stock Report). Bionano Genomics is in a niche market committed to developing genome mapping technology to improve the quality of life. The company currently offers 4 different products ranging from Bionano Chips to Bionanao Data Solutions.
Like we addressed in our article “Penny Stocks To Trade Or Avoid Right Now; 2 Rallied 123% in October”, Bionano’s stock has been a “sweetheart” intra-day mover. On October 16th the stock rose nearly 720% and on October 18th it had another impressive 185% move. In addition to the massive swings this penny stock has, it also has plenty of news backing it.
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For instance, recently the company announced the pricing of an $18 million underwritten public offering. Thought this could be good for corporate expansion, the discounted offering price hurt the stock a bit. Now that it has recovered slightly, is BNGO stock setting up for another move or is more sliding coming?
Penny Stocks To Buy For Under $1.70: Moleculin Biotech Inc. (MBRX)
The next company on this list is Moleculin Biotech Inc. (MBRX Stock Report). Moleculin Biotech is a biotechnology company seeking to develop treatments for highly resistant cancers. In order to tackle ineffective cancer methods, the company utilizes its Anthracycline platform. At the moment, the company has 10 different treatments undergoing clinical trials.
The company recently announced that it is increasing Annamycin production thanks to positive clinical trial activity and expanded potential indications.
“Our clinical trials of Annamycin in relapsed and refractory acute myeloid leukemia (“AML”) have been going better than expected, as it now appears we will be able to reach a higher maximum tolerable dose than what was established in previous clinical trials.”Walter Klemp, Moleculin’s Chairman and CEO
This penny stock news created a large surge of volume and a 4.5% gain ensued on October 22nd. In terms of the bigger picture, the company’s stock has rallied since October 14th and hopes to keep that momentum.
Penny Stocks To Buy For Under $1.70: Titan Pharmaceuticals Inc. (TTNP)
To wrap this article up, we are talking about Titan Pharmaceuticals Inc. (TTNP Stock Report) again. We have previously mentioned that this company has a distinct advantage over its competition. In our article, “Top Penny Stocks To Watch At The End Of The Week,” we explained that Titan already has a product on the market called PROBUPHINE. It was created to stop the increasing epidemic of opioid addiction.
Unlike the other companies on this list, it’s stock price has been very stagnant due to a recent public offering. Titan Pharmaceuticals announced a $9 million public offering at $0.225 per share which is why the stock has been trading near this price point. However, there is a very important thing that is happening thanks to this offering. It has brought in an insane amount of volume, the most it has had the entire year.
The company also has two poster presentations on Probuphine (buprenorphine) implant. This is Titan’s 6-month maintenance treatment for Opioid Use Disorder in eligible patients. The presentations are being held this week and come to a close on October 23rd. Obviously we’ll have eyes peeled as to the results of these presentations.
Is It Better To Invest Or Trade Penny Stocks?
This is a good question to ask and it depends on a few things. First, if you’re looking to trade penny stocks, you’ll obviously want to have a good handle on trading itself. If you can afford to stay on your computer for the duration of your trade, then you’re at an advantage.
If you work a full-time job, trading penny stocks may not be a good strategy. Sure, you can set a stop-loss for times that you’re not in front of your computer. But to actively trade, it may be best to stay in front of your screen.
If you’re new to penny stocks, however, I would suggest learning how to trade first. What you see in the movies and what you read online about pro traders isn’t the same for novices.
Movies are obviously just movies, but pro traders have been doing this for a while and it’s likely their full-time job. You won’t likely find any of these guys or girls treating penny stocks like lottery tickets. They’ve got a plan and stick to it. When it comes to this action, learn how to trade penny stocks first, before you attempt to become a “pro.”
What About Investing In Penny Stocks?
Investing in penny stocks takes other things into account and time has a lot to do with it. You’re most likely looking at fundamentals and market trends more than short-term volatility and momentum. However, this too has its own level of risk, especially when considering penny stocks.
Because these cheap stocks are volatile, long-term holding can be just as risky. If you take your eye off the ball or look away from the market for any period of time, a stock can take a sharp turn.
This can be due to countless factors. Market risk, headline risk, and general insider selling all play a factor. A stock can be in a sustained uptrend for weeks and one bad piece of news or stock warrant execution can send stocks in a bearish direction.
However, there are those occurrences where penny stocks go big and actually rally for months; even years. So there are two sides of the coin and that can make things confusing. However, the main thing here is to always have a plan and always prepare to manage risk accordingly.