4 Penny Stocks Trading Under $2.50 Right Now
What are penny stocks? This is a great question if you’re new to trade small-cap and micro-cap stocks. Based on the traditional definition of penny stocks, these are shares of public companies trading for less than $5. While there may be other definitions out there, we’re going by the formal, SEC definition of penny stocks.
Regardless of your personal outlook on “price definitions,” you can’t argue with the fact that penny stocks have created some incredible potential this year. Not only are we seeing stocks under $5 rally to the teens and $20 per share range, we’re actually seeing a focus on volatility instead of fundamentals in several cases. For instance, one of the biggest arguments between fundamentalists and traders of penny stocks on Reddit has centered around stocks like Hertz (HTZ Stock Report).
- It’s Simple Math: Penny Stocks * Options + Robinhood – Accountability = Loss & Tragedy
- How To Trade Penny Stocks: A Beginner’s Guide For 2020
The fact that a bankrupt company’s stock could rise hundreds of percentage points after declaring bankruptcy fundamentally doesn’t make sense. However, for popular trading forums like reddit, penny stocks have been more about the “YOLO” and less about the “meat and potatoes” of a company. But herein lies the the unique balance of momentum and stock market basics.
Penny Stock News: Is It Important?
Many times with penny stocks, traders will look for catalysts. This can come in the form of news, filings, rumors, you name it. As traders, it’s your job to determine if it’s a viable catalyst and understand the lasting (if any) potential. For instance, a company announces FDA approval.
That could be an update that continues to resonate with traders for more than just a day. On the flip side, what about a corporate update referencing a slight change to a previous update? That “catalyst” might be more of a short-term impact for a penny stock. Needless to say, there are other factors that go into the recipe for a breakout. This can include share structure (i.e. retail float), debt, share price, and the like. But all of this information is easily found online and on places like PennyStocks.com.
Regardless of where you get your information, all I’m saying is do your research. Just because you find inexpensive stocks to buy, it doesn’t mean their “cheap stocks to buy”. A stock trading at $2 a share could be considered “expensive” especially if there are no fundamentals to back up a $2 valuation. At the end of the day, it’s up to you to decide if there are good penny stocks to buy or if you should wait and watch what happens first.
Penny Stocks To Buy For Under $2.50: Ideanomics Inc.
Market Cap: $372.73M
Closing Price 6/19/2020: $2.22
It’s crazy to think but ever since June 5th Ideanomics Inc. (IDEX Stock Report) has been on our list of penny stocks to watch. At the time, shares of IDEX stock traded around $0.40. The company had just entered into a 50/50 joint venture with Business Big Data PTE, Ltd./Seasail Ventures. The venture aimed to create an investment company focused on new infrastructure projects in China. Over the last few weeks, we’ve seen this plan unfold in real-time.
A lot of the latest momentum has originated from Ideanomics auto dealers operating in its subsidiary, Mobile Energy Global. First, the company reported that Mobile Energy sold 2,139 vehicles for a total value of $33 Million. This was quickly followed up with news that its subsidiary selected several manufacturers to fulfill its EV taxi sales orders. This included BYD, Dong Feng Nissan, Chery, Kia, Geely, and Tesla (TSLA Stock Report).
After announcing a 300 unit order from Didi City CPon worth some $4.2 million, the company had even more good news on a 400 unit EV order from Jiudao Group. This second order was valued at $5.1 million. On top of that, delivery is expected by the end of this month. Last Friday, Mobile Energy Global Qingdao EV Hub said it secured an order from Tianjin Zhongcheng Jiaye Automobile Trading Co., Ltd. The order was for a total of 42 vehicles valued at $4.4 Million
In light of these latest developments, IDEX stock has climbed to fresh 2020 highs of $2.56 on June 18th. Now, can that same momentum continue into the final days of the month?
Penny Stocks To Buy For Under $2.50: MicroVision Inc.
Market Cap: $212.4M
Closing Price 6/19/2020: $1.49
MicroVision Inc. (MVIS Stock Report) has been one of the top penny stocks to watch amid higher levels of speculation. We first starting covering this company back in mid-April. At the time, MVIS stock traded around $0.25. But if you’re looking at an MVIS stock chart right now, you can clearly see things have dramatically changed. Toward the start of May, shares of this penny stock rallied as high as $1.82. They quickly pulled back to a new, higher support level around $0.80 and have continued higher ever since.
Last week, the penny stock closed out the week at $1.49. However, if you look at after-hours trading from Friday, you can clearly see it didn’t end there. The momentum continued into the early evening session. Was there news, filings, etc.? No, and the last update came at the start of the month. So what could be at play to put MVIS stock in such a bullish trend right now? That’s a great question.
This month, MicroVision elected Dr. Mark B. Spitzer to its board of directors. “Mark has an extensive background in leading technology innovation and development from startups to large Fortune 100 companies and we are fortunate to have him join our board,” said Brian Turner, Chairman and Lead Independent Director at MicroVision.
Since the company has been working on advancing its means of “creating shareholder value,” does Spitzer have something up his sleeve to help the cause? In any event, since April 14th, MVIS stock has been in a strong uptrend. Will that be able to continue into the end of the second quarter? Leave a comment with your thoughts on MVIS stock.
Penny Stocks To Buy For Under $2.50: NeuroMetrix Inc.
Market Cap: $6.7M
Closing Price 6/19/2020: $1.93
NeuroMetrix Inc. (NURO Stock Report) saw a huge uptick in trading momentum in April. But since then, NURO stock has been sliding. From highs of $6.20 on April 14 to Friday’s closing bell, shares slid nearly 70%. What would compel anyone to put NURO on their list of penny stock to watch right now?
Great question, but considering that NURO could fall into the low float penny stocks category, unusual volume Friday could be a reason people put this on their list this week. After hitting lows of $1.63 on Thursday, the penny stock bounced back to highs of $2.15 on Friday. This month the company launched a marketing initiative focusing on chronic knee pain. NeuroMetrix said the effort includes “direct-to-consumer digital marketing as well as informing physicians and other health care providers about the use of Quell for their patients with knee pain.”
The Company has three FDA cleared commercial products, one being Quell Wearable Pain Relief for Chronic Knee Pain. Furthermore, Quell has been commercially available over-the-counter since 2015. About 10 days ago, there was a small bit of insider buying with NeuroMetrix CEO Shai Gozani picking up around 1,000 shares at an average price of $1.84. Will this coming week see a similar surge continue after the June 19th rally?
Penny Stocks To Buy For Under $2.50: HTG Molecular Diagnostics Inc.
Market Cap: $48.53M
Closing Price 6/19/2020: $0.78
If you’ve been following our coverage on HTG Molecular Diagnostics (HTGM Stock Report), you’ve seen this from late-March. At the time, the HTGM stock price was around $0.30. HTG reported its full-year 2019 results. Its product-related services revenue was $14.6 million. Compared to the $9.1 million for 2018, HTG saw an increase of 60%. However, the company reported a decrease in revenue to $19.2 million from $21.5 million in 2018. However, HTG was able to narrow its loss per share to (0.51) compared to an EPS loss of (0.60) in 2018.
This month, the company announced the signing of three new European distributor agreements. These are to promote HTG products and services in Nordic and Eastern European Countries. Following this HTG Molecular announced the pre-launch introduction of its new HTG EdgeSeq Pan B-Cell Lymphoma Panel. It’s expected to be commercially available for purchase in kit form or as a service in HTG’s VERI/O laboratory starting in July 2020. Keep in mind that HTGM stock hasn’t seen a crazy parabolic move like other penny stocks. The jump has been relatively consistent and steady with HTGM stock climbing over 160% (so far).
“HTG has focused on lymphoma for several years, specifically diffuse large B-cell lymphoma (DLBCL) with the HTG EdgeSeq DLBCL Cell of Origin Assay EU, which obtained a CE Mark in 2016. This new panel is an extension of our DLBCL assay, developed in partnership with HTG’s Lymphoma Advisory Board, and includes approximately 300 genes focused on molecular subtyping aggressive lymphomas.”Byron Lawson , Senior Vice President and Chief Commercial Officer