Stock To Buy Under $1 But Are They Worth The Risk
When you talk about penny stocks, what price comes to mind? The standard definition from the Securities & Exchange Commission places the highest price for penny stocks at $5. But what about actual stocks that trade for pennies, do they exist? Yes, and they are some of the most volatile stocks in the market. Even the slightest 1 cent move can mean big gains. Consider any of the stocks under 10 cents, for instance. A move of $0.01 is a change in position value of 10% or more.
So it makes sense that traders with small sums of money want to find the cheapest penny stocks possible. What’s more, is even traders with larger cash positions look for cheap penny stocks that have lots of volume. Highly liquid stocks are attractive especially if we’re talking about stocks under $1. But keep in mind, the lower the price, the higher the risk due to the exact reason that there could be such a big reward potential.
The name of the game is learning how to effectively and efficiently day trade and make money quickly. It’s easier said than done. The fact that price moves so quickly opens the door for emotions to start playing a role. What if it keeps going higher? It went up this quick, what if I wait a little longer? Should I wait for a pullback and buy more?
All of these questions are likely to come up at one time or another. But remember, nobody goes broke taking a profit. Furthermore, if a trend is truly strong, even after selling, there will likely be more opportunities to re-enter later on. At the end of the day, people look for penny stocks under $1 for 1 reason: make money quickly on small price movements. With this is in mind, here’s a list of 4 but just because they’re “cheap” are they worth the risk?
Penny Stocks To Buy Under $1: ATIF Holdings Ltd.
ATIF Holdings Ltd. (ATIF Stock Report) is on fire on Monday. The penny stock shot up early after news from a related company was released. The company holds a 6.56% stake in AeroCentury Corp. (ACY Stock Report). AeroCentury itself was a penny stock at the end of the week last week. Shares of ACY stock closed the Thursday half-day session at $2.69.
Today, AeroCentury broke above $25 after reporting in an 8-K that the NYSE accepted its plan for continued listing on the exchange. The filing showed, “On November 25, 2020, the Company received a letter from the NYSE American notifying the Company of its acceptance of the Company’s plan and continuing the Company’s listing pursuant to an extension with a target completion date of March 11, 2022.”
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This news seems to have triggered a move in ATIF shares as well. The biggest ting to focus on right now is trading momentum. Can this continue or is this just going to be a short-term breakout move for the penny stock?
Penny Stocks To Buy Under $1: Zomedica Corp.
Zomedica Corp. (ZOM Stock Report) is another one of the penny stocks that can be bought under $1. It’s also been on our watch list for the last few months. The company focuses on veterinary health. Zomedica created point-of-care diagnostics products for dogs and cats.
In particular, much of the recent excitement has come from the upcoming commercial launch of the company’s TRUFORMA product. It was developed by Qorvo (QRVO Stock Report), to provide a non-optical and fluorescence-free detection system for use at the point-of-care. Official commercial sales are expected to begin by the end of Q1 2021. So this comes milestone for traders.
There weren’t any headlines to go along with the move on Monday. However, it was a continuation of the recent trend that we’ve seen in ZOM stock this quarter. The most recent analyst rating comes from HC Wainwright giving a Buy. Despite lowering its price target from $0.50 to $0.30, ZOM stock has likely outperformed the firm’s expectations. This week, shares have come within 3 cents of reaching that target.
Penny Stocks To Buy Under $1: Denison Mines Corporation
Denison Mines Corporation (DNN Stock Report) is another one of the penny stocks we’ve talked about for weeks. In fact, it’s been one of the top alternative energy penny stocks to watch this month. The company is part of the nuclear energy production ecosystem. One of the main ingredients is obviously uranium, which Denison mines.
One of the biggest things we pointed out this month was the company’s potential use of the in-situ recovery mining method. This would allow Denison to implement a more streamlined process for uranium recovery. This includes avoiding the development of massive-scale uranium mines. The mining method has the potential of generating optimal output by other means. So it is planning on deploying this strategy at its current Tthe Heldeth Tú é deposit.
The incoming 46th President of the US, Joe Biden has shown support for nuclear power. Instead of focusing on nuclear as a means of detaching from global energy dependence, Biden’s idea may focus more on “green energy”. A Forbes article pointed out that the “Biden administration is likely to use climate change and the President-elect’s clean energy goals as the rationale.”
Penny Stocks To Buy Under $1: Brickell Biotech
Finally, Brickell Biotech (BBI Stock Report) has been in recovery mode for the better part of the last few months. The biotech penny stock dropped hard, back in October thanks to financing news. However, since then BBI stock managed to actually fill that gap down and is approaching its 200-day moving average. For those focused on technical trading, the 200-day moving average hasn’t been tested since June. At that time BBI stock made a parabolic move to highs of $2.61 but quickly came back down during the days following.
Brickell and those watching it are in an interesting situation. For one, this is a very low priced stock. However, the company is in Phase 3 clinical studies. When we discuss advanced trial phase companies, we’re usually talking about higher-priced penny stocks. Furthermore, Brickell has just dosed the first patient in its second US Phase 3 study evaluating its sofpironium bromide gel. Subjects tested have primary axillary hyperhidrosis. While top-line results aren’t expected until Q4 2021, we’ve seen plenty of biotechs that give updates along the way.
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The Phase 3 program itself is made up of two trials: Cardigan I and Cardigan II. “This marks another important milestone for the Company, and we continue to be encouraged by the progress we are making with our Phase 3 program, particularly in light of the current environment. We look forward to providing enrollment updates for the Cardigan I and II studies in the coming months,” explained Deepak Chadha in a press release this month. He is Brickell’s Chief Research and Development Officer.
