How Do I Find Penny Stocks?
Penny stocks are some of the most volatile stocks you could buy. One of the biggest reasons is that lower prices tend to lead the way for big swings in percentage change. Think about it, if a 50 cent stock moves just 10 cents, that’s equal to a 20% increase or decrease in price.
If a blue-chip stock like Apple were to move just 10 cents, you wouldn’t notice much, if anything at all in terms of position value. You’ve also got to consider the share structures of some of these companies as well and what that means for market cap. Fewer shares outstanding, lower public floats, or even different levels of insider holdings can create unique situations for quick breakouts or swift breakdowns.
That’s why, when it comes to finding penny stocks to buy, you should do your research. It’s not just about finding a trending penny stock or a chart that simply shows percentage change. I’ve seen novice traders online reference penny stock charts and say, “See, this stock changed 5,000,000% overnight” failing to address the fact that it was a no-volume stock with a very wide “spread,” and lacked any interest whatsoever. My point is that just looking at 1 thing can give a very narrow glimpse into the full picture.
Along these lines, another one of those “things” is the price. Obviously we’re talking about stocks under $5. But just because they’re lower in price, are they worth the risk? I’ll leave that up to you to decide with this list of penny stocks that can be bought for under $4 right now.
Top Penny Stocks To Buy Under $4: Opgen Inc.
We talked about Opgen Inc. (OPGN Stock Report) at the beginning of the month, which has continued coverage on OPGN stock that began at the end of January this year. You can how wild of a year it has been already for this penny stock. Shares are up, overall from January to this week. But as the chart shows, there’s been some big spikes during this period.
What got things going this month, initially was a company tweet. This tweet stated that Opgen would offer COVID IgG/IgM rapid test kits with a 10-minute turn around time for results. The test was granted Emergency Use Authorization by the FDA according to the company. However, following that update, OPGN stock slid back to around $2. During the slide, the company reported earnings, which were worse than expected.
This week, however, things are off to a strong start during the second half. This came after one of the company’s bigger updates of the quarter. OpGen announced that its subsidiary Curetis GmbH has obtained the CE mark certification in the European Union. It was for its own SARS-CoV-2 Kit with PULB for the detection of SARS-CoV-2.
“By launching this new product in Europe , we are committed to helping our distributors and customers to expand the availability of SARS-CoV-2 diagnostic testing, and our own-developed CE-IVD marked SARS-CoV-2 Kit with PULB is expected to help increase availability of these much-needed tests,” said Oliver Schacht, PhD, CEO of OpGen.
Top Penny Stocks To Buy Under $4: EyePoint Pharmaceuticals
EyePoint Pharmaceuticals Inc. (EYPT Stock Report) is another one of the penny stocks on watch right now. Shares traded higher during premarket hours on Thursday. This came after EyePoint announced its own, key update. The company announced the expansion of its exclusive license agreements. This was for the development and commercialization of YUTIQ® and DEXYCU® in certain Asian markets.
Under the expanded agreements, Ocumension made a one-time $9.5 million payment to EyePoint. This was for rights to commercialize both products under their own brand names. It was specific to South Korea and other jurisdictions across Southeast Asia.
“EyePoint’s YUTIQ and DEXYCU are important programs in our portfolio of ocular disease treatments that have the potential to replace current standards of care that lack long-term activity, especially given the impact of COVID-19 on patient desire to visit the doctor,” said Ye Liu, Chief Executive Officer of Ocumension.
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If you’ve read some of our recent articles, EyePoint was featured among penny stocks at 52-week levels. In this case, EYPT stock reached fresh, 52-week lows just last week. That trend didn’t stop either as it’s persisted into this week. However, following this recent update, will it mark a turn-around point for the penny stock?
Top Penny Stocks To Buy Under $4: Gevo Inc.
Gevo Inc. (GEVO Stock Report) saw its shares surge during premarket hours on Thursday. This company has been off and on different lists of penny stocks as volatility remained a key point of focus for traders this year. Overall, however, similar to EYPT, GEVO stock hasn’t had the best luck in establishing a strong uptrend during the 3rd quarter. At the end of June, shares fell after the company announced an upsized offering for $18 million at a price of $0.60 per share.
Since then, GEVO stock has been in this general sideways trend between $0.50 and $0.60 for the most part. This week, things started to get active. That came after Gevo announced a binding Renewable Hydrocarbons Purchase and Sale Agreement,with Trafigura Trading LLC. It’s a wholly-owned subsidiary of Trafigura Group Pte Ltd. The Agreement is a long term, take or pay contract and is the largest contract in Gevo’s history.
Trafigura is one of the world’s leading independent commodity trading companies with over $171B and over $54B in revenue and assets, respectively. Under this contract Trafigura is expected to take delivery of 25MPGY of renewable hydrocarbons, the majority of which is expected to be low-carbon premium gasoline with a smaller portion of the volume for sustainable aviation fuel, starting in 2023.
“This is our largest single contract to date, and with it, brings Gevo to over $1.5B of revenue in long term contracts when added to the other contracts we have in place,” said CEO Patrick Gruber. Considering that GEVO stock was trading around $0.50 when we first started watching in Q3, it’s a considerable move so far. Will that continue through the end of the month?