These Penny Stocks Trade For Less Than A Cup Of Coffee But Are They Worth Your Time?
One of the main attractions of penny stocks is the fact that they are cheap. But they also have the potential of generating enormous returns if the company grows. Penny stocks generally trade below $5, but that being said there are some stocks that might be even cheaper. Therefore, stocks that trade for less than $1 are also of interest to investors.
However, you need to watch the market closely in order to identify such stocks that are worth tracking. You should also do some deeper research on less expensive stocks. Many of these companies tend to have more “start-up level” businesses, lack revenue, have little cash, and rack up expensive debt loads.
There’s not only market risk to think about but from a corporate perspective, these companies are extremely young. The likelihood of failure is usually much higher than compared to other companies. So, when you’re looking for penny stocks to buy for under $1, keep these risks in mind. Also, understand that a volatile move can also bring big rewards too.
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A jump of just $0.10 can equate to 10% or more depending on the price of the stock. This is why some investors like to look for cheap stocks to buy. Even with a small position, the exponential gains create a perfect storm to make more money on small moves. Here is a look at four penny stocks that can be bought for under $1 and have been moving this month.
Penny Stocks To Buy For Under $1 #1: Diffusion Pharmaceuticals
The first one to watch is Diffusion Pharmaceuticals Inc (DFFN Stock Report). We talked about this company earlier this week. In that article, we highlighted penny stocks that could be bought for under $2.75. But obviously DFFN stock trades for much less.
Diffusion had an impressive rally over the course of the past week. On November 19, the company released highly encouraging results from the Phase 3 INTACT clinical trial of its product Trans Sodium Crocetinate (TSC).
“Although final conclusions will depend on the completion of the randomized portion of the trial, we believe that TSC helps to eradicate the low oxygen status of cancerous tumors, and it appears this may also result in a survival benefit compared with the current standard therapy.”Dr. John Gainer, Diffusion’s Chief Scientific Officer
Since then the stock has rallied by as much as 120%. On Monday it enjoyed another rally as it went up by 51.60%. Will this remain on the list of penny stocks to watch before next month?
Penny Stocks To Buy For Under $1 #2: Ascena Retail Group
The other sub $1 penny stock that has made a significant move is Ascena Retail Group Inc (ASNA Stock Report). Back on November 22, the company made a significant announcement and since then the stock has made impressive gains. Ascena announced that it managed to raise as much as $6.2 million for the Breast Cancer Awareness month in October.
“As an organization, we are committed to our longstanding partnership with BCRF. Thanks to the generosity of our clients and the dedication of our associates, we are able to help fund meaningful research for those impacted by breast cancer.”Gary Muto , Chief Executive Officer of Ascena Retail Group, inc.
The development resulted in a significant rally in the stock and it has gained as much as 12.5% since then.
Penny Stocks To Buy For Under $1 #3: IsoRay
On the other hand, IsoRay, Inc. (ISR Stock Report) has made significant gains in November so far and has gained as much as 50%. This came after it announced its financial results for the third quarter. The company posted losses of $.01 a share, which managed to beat analysts’ estimates of losses of $.02 a share. IsoRay posted revenues of $2.32 million, which managed to surpass analysts’ estimates by 4.05%.
Shares of ISR stock have climbed by over 50% year to date. With these record figures, the market has remained upbeat. Isoray CEO Lori Woods said, “These are exciting times for Isoray. We are very pleased by the continued progress we have made and the accelerated growth we have achieved. These results speak to the momentum we are realizing from the strategic direction and changes we have implemented to chart a new course for Isoray. Clearly, the strategies we’ve employed and the steps we have taken to establish Isoray’s leadership role in the prostate brachytherapy industry over the past year are resulting in accelerated organic growth and market share gains. “
Penny Stocks To Buy For Under $1 #4 Oragenics
Last but not least, Oragenics Inc (OGEN Stock Report) is another sub $1 penny stock that made impressive gains over the past three weeks. Earlier in November, the company announced that chemical synthesis of its product Mutacin 1140, a lantibiotic compound, was published in a leading journal.
“We continue to advance our understanding of how to best manipulate and expand our lantibiotic library, particularly our new semi-synthetic homologs of Mutacin 1140, in order to create new ways of fighting antibiotic-resistant infections and expand to novel indications.”Alan Joslyn , Ph.D., president and CEO of Oragenics, Inc.
The journal in question is the Journal of Peptide Science. It resulted in a significant spike in the stock’s price. Since the announcement, the stock has jumped 32% over the course of the last 3 weeks.