These Penny Stocks Can Be Bought For Under $2 But Are They A Buy Or Sell Right Now?
Over the years, thousands of investors have been able to make fortunes by backing penny stocks. Since it is possible to do so with a relatively small outlay, there is a great demand for these stocks. Cheap stocks like these generally trade below $5 by definition. So, investors can pick up a large number of shares for a small amount of money.
That being said, there are penny stocks that trade at even lower levels. So, investors could take a look at those stocks as well. Here is a look at a list of penny stocks that can be bought for less than $2 right now. But does that mean they are good to buy now or should you avoid them at all costs?
Penny Stocks To Buy For Under $2 #1 DPW Holdings
The first such penny stock to watch is that of DPW Holdings Inc (DPW Stock Report). It enjoyed a highly impressive rally on Thursday after the company made a major announcement. The company announced that it has decided to acquire two broker-dealers. The announcement resulted in a lot of positivity around the stock as investors piled on to it in a big way.
DPW stock soared by more than 100% on the back of the update. It also ran up over 200% since hitting 52-week lows in November. But it will be interesting to see how far the stock can go. That’s based on the fact that shared gapped down on Friday morning. Something to keep in mind here is that a proposed acquisition like this will need regulatory approval by FINRA. This in itself isn’t concerning. But what is concerning has everything to do with a direct statement from the company:
“The company has reason to believe that FINRA may not approve the acquisitions in the foreseeable future, if at all. The company is aware that FINRA has indicated that it has reservations about certain aspects of the proposed transaction.”
Penny Stocks To Buy For Under $2 #2 Pacific Ethanol
Another penny stock under $2 that has performed impressively over the course of the past two weeks is Pacific Ethanol (TRIL Stock Report). Back on December 17, the company announced that it had reached a deal with lenders and also managed to get short term extensions for some of its loans.
Neil Koehler, Pacific Ethanol’s president, and CEO stated, “We are pleased to announce that we have finalized agreements with all of our lenders to improve our liquidity and give us the runway to complete our strategic initiatives, the successful conclusion of which will result in an improved balance sheet and a stronger company.”
Since then the stock has climbed by as much as 70% over the course last two weeks and has shown excellent momentum. On Thursday, the PEIX stock soared by another 25%. Furthermore, the stock consolidated a bit on Friday but held levels above $0.75.
Penny Stocks To Buy For Under $2 #3 Guardion Health Sciences
One of the top performers in early Q4 last year was Guardion Health Sciences (GHSI Stock Report). But after reporting a capital raise, shares rapidly declined to 52-week lows of $0.165. However, following the fallout, GHSI has been in rally mode. Favorable earnings results in November along with adding new board members in December added to positive sentiment.
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There were also some options executions conducted by director Kelly Anderson to the tune of 250,000 shares. GHSI stock began rocketing right around 11 AM EST. Shares jumped from around $0.26 and reached highs of $0.37 just after 12:30 PM EST.
There were no additional announcements or fillings to note that could have triggered the move. Can this type of momentum continue and is it based on more than just market momentum? We’ll have to see what happens at the start of next week.
Penny Stocks To Buy For Under $2 #4 Trillium Therapeutics
The other penny stock under $2 that many are watching is Trillium Therapeutics (TRIL Stock Report). It has been on a roll since early December. During that period, the stock has gained as much as 461%. On Thursday, the Trillium stock gained further.
The company announced that it has been given an extension of 180 calendar days within which it will have to regain bid price compliance rules for NASDAQ. The news proved to be a major positive and TRIL stock soared by 45%. But what’s more, is that the devil is in the details. As we always discuss: look at the filings first to see the details of transactions. Filings will also show things that companies don’t typically announce. This includes large shareholder positions.
Morgan Stanley reported via a 13G filing, its larger stake in the company. In a December 31 filing, it showed the bank now holds a 5.9% stake in Trillium. As discussed in this article, institutional holders can become a big component of sentiment around a given stock. Now we see Morgan Stanley taking a meaningful position in such a penny stock.