Are These The Best Penny Stocks Under $4 To Buy?
A wise person once told me just because something’s inexpensive, doesn’t mean it’s a good buy. Where many penny stocks tend to run for a day or two, others can actually spread their wings and fly for months. As we’ve seen in 2020, a number of these cheap stocks have left the range of stocks under $5.
Even today, if you look at many of the active names in the stock market today, you’ll see some penny stock alumni. Take GenMark Diagnostics (GNMK Stock Report) for instance. In March, GNMK was one of the stocks under $5 that actually reached 52-week lows of $3.36. This week, the former penny stock reached highs of $13.49. Are skeptics still calling it “just a penny stock”? At this point, probably not as the company has reached new milestones.
So when it comes to figure out whether or not penny stocks are worth it, that would have more to do with a company. In the mean time, is it bad to buy penny stocks based on momentum?
Are These Penny Stocks To Buy Under $4 Right Now Or Should You Wait?
In my opinion, not really but you should make sure that you understand why you’re buying the stock in the first place and how you plan to make money with penny stocks trading with unusual momentum. They typically have fast breakouts and while the break down may be just as quick, you need to make sure you keep your strategy in mind.
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Even you sell penny stocks and they continue higher, you can always buy more if you think the trend will hold. On the flip side, you might “miss out” on the daily high, but you could also avoid trading on the downside. That’s if penny stocks reach daily highs then immediately consolidate below your entry price.
By trading “on the way up”, you have a better chance of securing profits than trading “on the way down”. So when it comes to penny stocks that can be bought for under $4 keep this in the back of your head. Just because they’ve got a low price, does it mean they’re the best penny stocks to buy right now?
Penny Stocks Under $4: Eros International
Since hitting 52-week lows in March, Eros International (EROS Stock Report) has been trying to recover. There was a big spike in mid-April that saw shares rise to highs of $4.36 but a recent pullback took EROS stock back to around $2.30 a share. This week, the company has gained attention once again after announcing its latest progress.
First, Eros announced an expansion of its existing partnership with Freecharge. It is one of India’s leading digital marketplaces for financial services and products. The partnership will allow Freecharge customers to experience Eros Now’s massive content library at a 35% discount to the annual subscription price. Then on May 7th, Eros followed up with even more. The company announced its partnership with Visa (V Stock Report).
This partnership will offer Visa cardholders a discount of 50% on their annual subscription to Eros Now. They can also gain access to a large entertainment portfolio from the Eros Now library. This helped EROS stock remain in its 2-day uptrend reaching highs of $2.96 before the opening bell on May 7. Ali Hussein, CEO, Eros Now said, “Eros Now is known to entertain audience, since generations and an association such as this with Visa helps in further strengthening our promise of offering consumers with the best of entertainment.” See Analyst Ratings On EROS stock.
Penny Stocks Under $4: Tetraphase Pharmaceuticals
Another one of the penny stocks making moves this week was Tetraphase Pharmaceuticals (TTPH Stock Report). This was one of the more frequently discussed penny stocks over the last few months especially at the end of March. Now, if you are just focusing on companies’ news feeds, you could be missing a lot of information. This goes for both good and bad penny stock news. Earlier this month, we talked about this exact point in order to avoid potential dilution from a certain penny stock that announced positive COVID-related news in tandem with a discounted share offering.
However, in the case of TTPH stock, shares are moving higher on Thursday. Without any news, let’s take a closer look at the filings. Sure enough, we see a Form 8K filing that reveals some potentially big events for Tetraphase. On May 6, 2020, Tetraphase Pharmaceuticals received an unsolicited proposal from La Jolla Pharmaceutical Company to acquire Tetraphase for $22 million in cash, plus an additional $12.5 million in cash potentially payable under contingent value rights to be issued in the transaction.
The company has a few things to weight now, after this latest development. As you can see, AcelRx entered a merger agreement with Tetraphase dated March 15. Which deal, if either, do you think Tetraphase should take? Feel free to leave a comment below. See recent analyst ratings on TTPH stock.
Penny Stocks Under $4: Zomedica
Zomedica Pharmaceuticals (ZOM Stock Report) has been one of the good penny stocks to watch the last few weeks. Back in April, we discussed the company and at the time ZOM stock traded around $0.17. This was one of the penny stocks to trade earlier in the year as it saw a huge run in February. that was when Zomedica reported it had filed a U.S.patent application. This covered methods for five fecal parasite detection assays detecting infections in cats and dogs. It’s designed for use alongside the ZM-020 pathogen detection device.
Fast-forward to the second quarter and attention has been on the company ever since its April 21 update. Zomedica announced that it has completed the verification of TRUFORMA™, its point-of-care diagnostic biosensor platform, and the first assay, Canine total T4 thyroxine. Upon completion of verification testing, the company expects to begin the validation of each assay. Zomedica also plans to initiate a parallel pilot program focused on optimizing the customer experience.
As the company stated in its PR, assuming “successful completion of this verification and development work,” Zomedica intends to begin the commercialization of all five initial assays in select strategic markets. Without any more news, filings, or apparent rumors it will be important to monitor the trading activity in the market closely. See recent analyst ratings on ZOM stock.
Penny Stocks Under $4: BioCryst
Another one of the penny stocks with a strong trend lately has been BioCryst Pharmaceuticals (BCRX Stock Report). In fact, it’s been talked about frequently since last November when it was still under $2. Needless to say, since then BCRX stock has gone through its share of ebbs and flows in the market. It reached highs of $4.35 earlier this year, pulled back to $1.58 and has since been on the move back up. For most of April and May, BCRX stock found itself in a much more consistent uptrend.
Over the course of the last 30 days, we’ve seen the biotech penny stock rally as much as 122%. On Thursday, BCRX stock continued to uphold this move. This week the company reported its first quarter financials. BioCryst beat on EPS and sales. It also sees forward guidance for 2020 regarding net operating cash between $125m and $159m.
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“This is a transformational year for BioCryst as we prepare to launch berotralstat in multiple territories to bring our oral, once-daily prophylactic medicine to HAE patients, and begin generating significant revenue,” said Jon Stonehouse , president and chief executive officer of BioCryst. Furthermore, the company will be attending a number of investor conferences this month. These include the BOA Healthcare Conference on May 14th and the RBC Capital Global Healthcare Conference on May 20th. See recent analyst ratings on BCRX stock.