5 Penny Stocks That Can Be Traded For Under $3.50 Right Now; Are They On Your List?
What’s the definition of a penny stock? Every week this question comes up and every week we revisit the basics of penny stocks. According to the standard Securities and Exchange Commission’s definition of a penny stock, these are low priced equities trading in the public markets for under $5 per share. So with this in mind, we’ve got a whole list of penny stocks to choose from right now.
I’ve said it before and I’ll reiterate it again. Just because stocks under $5 might be considered “cheap” doesn’t mean all penny stocks are “ok” to trade. The biggest thing to understand is that risk & volatility play a big role when it comes to buying and selling these low-priced stocks. While broad sector headlines can influence penny stocks, individual news releases, filings, and other company-specific information may have a bigger effect in the short term.
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For this reason, it’s important to not only know what’s happening in the stock market today but also what is, has, and is expected to happen with certain penny stocks from a company perspective. Keeping this in mind, let’s take a look at some penny stocks under $3.50. Will they be the top penny stocks to trade right now?
Penny Stocks To Trade Under $3.50: Nano Dimension
Nano Dimension (NNDM Stock Report) has been actively trading for the last few weeks. The most recent surge came after the company announced that with another company called HENSOLDT it has achieved a major breakthrough on its way to utilizing 3D printing. This was in the development of electronic components with the first 3D printed 10-layer printed circuit board.
“Military sensor solutions require performance and reliability levels far above those of commercial components,” said HENSOLDT CEO, Thomas Müller. “To have high-density components quickly available with reduced effort by means of 3D printing gives us a competitive edge in the development process of such high-end electronic systems.”
This one piece of news saw NNDM stock rally from $1.24 to $4.89 in just 2 days. Of course, a pull-back was to be expected and shares settled at the 200-Day moving average around $2.25. This week the penny stock is back on the radar once again. While it’s still up significantly from where we first covered it, NNDM stock made another rebound. Unlike the last move, the company didn’t formally release news but I found something interesting. Nano Dimension one an aware and not anything to do with a trophy either.
The U.S. Army Contracting Command reported that it intends to award a “single firm-fixed-price contract for 1 each, Nano Dimension DragonFly 2020 Pro Lights-Out Digital Additive Manufacturing Upgrade as well as training on the system upgrade and twelve (12) months of preventative maintenance for the Nano Dimension DragonFly Pro System.”
Penny Stocks To Trade Under $3.50: Gridsum Holding Inc.
Gridsum Holding Inc. (GSUM Stock Report) is one of the more thinly traded penny stocks of the bunch right now. The company provides cloud-based big-data analytics and AI solutions for multinational and domestic enterprises and government agencies in China. In general, GSUM stock hasn’t been very exciting. There was one big day earlier this quarter that the penny stock broke out. But after that, it was business as usual.
On May 1st, the company announced receipt of a non-binding LOI proposing to acquire all of the outstanding shares of the Company that are not already owned by the Consortium Members in a going-private transaction. The Consortium members included CEO & Chairman, Guosheng Qi, Director and COO, Guofa Yu, and their respective affiliated entities. The proposed take-private acquisition was proposed at a price of $2 per share. But in light of recent events with Chinese companies, the market wasn’t having much of the same excitement that Gridsum seemed to hold at the time.
However, this week GSUM stock is back on the radar. This comes in light of its latest update. Gridsum announced late Tuesday its latest financial results. Keep in mind that these are “unaudited figures”. According to the company, net revenues increased 27% $19.8 million versus the comparable period of 2018.
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Furthermore, its E-Government and other revenues jumped 501% to $7.7 million compared to the period of 2018. Gridsum said that the significant increase was primarily due to the rapid growth of its IIoT business. Will this news manage to trigger a lasting move or will shares slide once again?
Penny Stocks To Trade Under $3.50: Oasis Petroleum
Oil and gas penny stocks have been crazy this year. We saw negative values, new lows, and massive volatility within the sector. Oil prices jumped on Tuesday, however. This came as OPEC and its allies are mulling over extended production cuts. Right now it would be for at least another month before they start to taper off.
OPEC+, which is the larger group of countries in the alliance, reduced production by more than 10 million barrels a day since the start of May. The group agreed to a 9.7-million barrel reduction in April. Saudi Arabia further cut by an additional 1 million barrels. Between 80 million and 90 million barrels a day make up total global production currently. In light of this, attention might be coming back to oil and gas penny stocks right now.
Oasis Petroleum (OAS Stock Report) was one of the previous winners from April. Early on, we caught OAS stock as it was trading around $0.40. Over the course of the month, we watched it climb as high as $0.958. Since then OAS stock has been meandering around $0.55-$0.60 for the most part. However, this latest surge of re-interest in the “oil trade” could be something to note. As we always say, broad sector news can have an impact on certain stocks. Oil and mining are well-known for instances like that. Since the penny stock saw a surge of momentum late in the afternoon on Tuesday, OAS stock could be one to watch if oil & gas continues to gain steam.
Penny Stocks To Trade Under $3.50: Zomedica Pharmaceuticals & Jaguar Health Inc.
Finally, Zomedica Pharmaceuticals (ZOM Stock Report) & Jaguar Health Inc. (JAGX Stock Report). Zomedica has been a wild trade over the last few months. Fortunately or unfortunately, that’s what it has come to become for now; a trade. If you look at the penny stock’s chart, ever since the middle of February, ZOM stock has been a short term winner.
Long-term, the trend has been relatively flat. Why do I say this? If you looked at this stock on Valentine’s Day and completely forgot about it, ZOM stock has really not changed as far as price is concerned. However, dissect the chart and you’ll see monster spikes and big dips along the way.
Have we discussed ZOM? You bet we have and we’ve seen some very impressive, short-term moves. Given this as a general trend, keep this in mind. The trend is your friend as they say. If the initial trend is short term spikes, don’t be surprised if that ends up being the case down the road. With this having been said, why is ZOM stock on a list of penny stocks again? It’s all got to do with COVID-19; yep, you read that right.
Sure, Zomedica deals with veterinary diagnostics. But believe it or not, an update came out from the USDA. The article is titled, “Confirmation of COVID-19 in Pet Dog in New York”. It specifically stated, “It appears that people with COVID-19 can spread the virus to animals during close contact. It is important for people with suspected or confirmed COVID-19 to avoid contact with pets and other animals to protect them from possible infection.”
This is why I put Jaguar Health into the mix too. Both companies deal with animal health. Neither of them had any new updates to speak of, from the companies themselves. But both are making late afternoon moves thanks to this recent information from the USDA. Will the trading momentum continue or is this just some short-term speculation?