Penny Stocks Trading Under $1; Are They On Your List This Month?
If you’re new to penny stocks then you’re likely looking to learn a thing or two. Let’s start with the definition of penny stocks. According to the Securities & Exchange Commission, the definition of a penny stock is one trading below $5 per share.
While this is the technical definition, there are countless traders who disagree. They define penny stocks as ones that trade for pennies. It makes sense to me. If you have a stock trading at $4.99, can you really deem it a penny stock? Obviously, based on the definition you can but the price is nowhere close to a penny.
In the spirit of this, some investors only look for stocks trading below $1 when looking for penny stocks to buy. But, keep in mind that cheap stocks like these are some of the riskiest. You not only have to deal with the normal risks of penny stocks but also the extreme volatility can mean you have to glue yourself to your trading screen until you exit your trade.
Think about it. If you buy shares of a company trading at $0.50, a simple shift of 5 cents means a gain or loss of 10% on your investment. Are you prepared to deal with that rapid shift in value? If you can handle higher risk then keep reading. We’re taking a closer look at a list of penny stocks trading below $1 right now. One of them even IPO’d recently and could define an entirely new niche of stocks.
Penny Stocks To Watch Under $1: IMC International Mining
When it comes to the coronavirus, low-interest rates, economic risk and bond yields, gold stocks are typically part of the conversation. In this case, the latest round of coronavirus fears have sparked a flood of attention on gold stocks. These are generally thought of safe-haven stocks and used as a hedge against those risks listed above. However, when the price of gold is on the rise, some of the top-performing stocks are the junior gold stocks.
IMC International Mining (IMIMF – Free Report) (IMCX) managed to breakout over 100% this year already. This week, momentum has continued in the market as well. It came after the company reported that it would begin trading on the Frankfurt exchange. But that wasn’t’ the only potential catalyst. In addition, IMC revealed that it plans to close on a previously announced acquisition deal by March 15.
Earlier this year IMC entered into a letter of intent to purchase Thane Minerals. Thane’s 100% owned Cathedral property would add another mining asset with rich mineralization to its portfolio. In fact, according to reports, Cathedral is in an area known as the Quesnel Terrane, which hosts past and planned production. Will this be a game-changer for IMC as gold prices continue to skyrocket?
Rider: It is noted that the results of nearby or adjacent properties are not necessarily indicative of the potential of the Cathedral property and should not be understood or interpreted to mean that similar results will be obtained from the Cathedral property.
Penny Stocks To Watch Under $1: Mind Medicine Inc.
This is a new one on our list of penny stocks. Mind Medicine Inc. (MMEDF – Free Report)(MMED) just recently IPO’d. Not only that but it’s the first company to IPO focusing strictly on psychedelics. The company’s developing two categories of medicine based on psychedelics. These include hallucinogenic therapies and non-hallucinogenic products. The company raised some $24.2 million ahead of its IPO and has also attracted some interesting investors.
These include Blake Mycoskie, founder of Toms Shoes, Shark Tank’s Kevin O’Leary, as well as the former captain of the ship at Canopy Growth (CGC – Free Report), Bruce Linton. Many are comparing the first “mushroom IPO” to the early days of pot stocks. But it’s also worth noting that many also think this is the first of several psychedelic IPOs we’ll see. And where some may think this to be a novelty play, it could be more of a biotech penny stock than anything else.
Later this year, MindMed hopes to test 18-MC’s effectiveness on human patients suffering from opioid withdrawal in New York. The company says its Phase I trial demonstrated that 18-MC doesn’t have the negative cardiac effects that have been associated with ibogaine. “We plan to build the largest portfolio of clinical trials for psychedelics,” said JR Rahn, co-founder of MindMed. Since going public, shares have reached highs of nearly $0.75 for its U.S. listed symbol, unencumbered by the coronavirus concerns driving broader markets. But since there is no official bid/ask, it may be hard for some in the U.S. to actively trade the stock for now.
Penny Stocks To Watch Under $1: Correvio Pharma
Correvio Pharma (CORV – Free Report) is no stranger to big moves. The penny stock trades under $0.50 (for now) and has seen swings to highs of over $0.60 earlier this year. The company focuses on treating community- and hospital-acquired pneumonia. As a result, it has found itself among the list of coronavirus penny stocks this year. Since pneumonia is so closely related to upper respiratory viruses like COVID-19, there could be potential applications derived.
While there hasn’t been much news from the company in general, Correvio did release a PR this week. Was it necessary and did it reveal anything we didn’t know already? You be the judge: “Correvio Pharma Corp. wishes to confirm that it is not aware of any material, undisclosed information related to the Company that would account for the recent increase in the market price and level of trading volume of its common shares.”
While the company is in the process of exploring strategic options to rebuild value in the company, it’s no secret that the coronavirus has impacted most companies with any type of relationship to upper-respiratory viruses. That goes for the flu, SARS, MERS, etc. So while it’s a nice thought that the company “addressed” the market activity, its website was enough for some people to decide that this was a coronavirus penny stock to watch right now.
BUT…and a big but here…since the company didn’t say anything about coronavirus and reiterated its stance on a focus on other options, it’s important to note that Correvio may not even be considering the impact this coronavirus pandemic has had on the market right now. For now, however, it seems the market is still biting on the current pipeline of the company, which has helped boost momentum in the market.
Pursuant to an agreement between Midam Ventures LLC and IMC International Mining Corp. (CSE: IMCX) (IMIMF), Midam has been paid $200,000 for a period from January 7, 2020, to February 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to March 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to July 9, 2020. We may buy or sell additional shares of IMC International Mining Corp.(CSE: IMCX) (IMIMF) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about IMC International Mining Corp. (CSE: IMCX) (IMIMF). Full disclaimer here.