Should You Buy $1 Penny Stocks Right Now?
This has been one of the wildest weeks for penny stocks and we’re not even half-way through January. Not only have we seen Tweets from Elon Musk trigger multi-thousand point gains, but we’ve also watched the Tiger King influence stocks under $1. While these weren’t the only notable headlines in January, they surely have been ones that’ve brought attention to small-cap stocks. Better yet is the fact that the benchmark ETFs like the Russell 2000 Small-Cap (IWM) has continued making record high after record high. Thursday’s premarket is no different
Trading in the IWM during premarket trading saw the ETF reach highs of $211.77. This edged out Wednesday’s record high by 4 cents. What’s more, is that the IWM pulled back significantly by the end of the session. So as of the 8 o’clock hour, small-caps are gapping up slightly. In any case, I think this justifies the point I’ve tried making for weeks which is retail traders are looking for penny stocks to buy. Even beyond price performance, if you look at some of the most active stocks in the market, in general, penny stocks take several seats in the top 10.
With this has come some euphoria from traders. Let’s face it, when most stocks and markets are going up, it’s easier to make money. But with there’s choppy action or a bearish trend, things become more difficult. In this case, I want to emphasize the importance of having a game plan going into trades. “Hoping” a stock goes higher or that it rebounds, isn’t a strategy. Set relevant profit targets, have stop losses planned out, and if you’re in a volatile trade, make sure you pay attention to that trade.
Penny Stocks to Buy [or avoid]
- Oragenics Inc. (NYSE: OGEN)
- Vertex Energy Inc. (NASDAQ: VTNR)
- Camber Energy Inc. (NYSE: CEI)
- Atossa Therapeutics Inc. (NASDAQ: ATOS)
When we’re talking about some of the cheapest penny stocks to buy – ones trading around $1 or less – volatility can play a huge role. But with that comes lots of opportunities to profit. Keeping this in mind, are these penny stocks to buy right now or should you avoid these higher-risk names?
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One of the penny stocks that we have been discussing for a few weeks now is Oragenics Inc. Since climbing over 50% in the past few weeks, OGEN may be worth taking a look at. Oragenics is a biopharmaceutical company working on a wide range of treatments. Its focus is on treating infectious diseases.
This includes treatments like OG716 and AG013 which work as an antibiotic and treatment of oral mucositis respectively. The company has a large range of products in its pipeline that are currently in various stages of the approval process. Recently, Oragenics has been working on a vaccine to fight against Covid-19. Its vaccine known as TQL1055 or Terra CoV-2, is a vaccine that could have lasting effects on preventing the coronavirus.
Last week, the company announced that it had entered into a material transfer agreement with Adjuvance Technologies to produce the Covid-19 vaccine. As a follow-up, this week the company issued a letter to shareholders. One of the highlights was explaining that the company’s drug could provide benefit against other coronaviruses.
Creation of the Master Cell Bank, required for later stage manufacturing will begin in the coming weeks. This work supports our expectation to file the IND mid-year with commencement of patient enrollment in Phase 1 clinical study immediately thereafter.President and Chief Executive Officer, Alan Joslyn, Ph.D.
Vertex Energy Inc.
Shares of Vertex Energy could also be in focus this week. Thanks to the surge in energy stocks, VRTX has experienced a stronger move during the last few months of 2020. Now, in 2021, the energy stock has continued higher. Much of the excitement has stemmed from the growth that Vertex saw late last year. For instance, during the third quarter, Vertex beat earnings estimates by a large margin. Furthermore, the company was able to do this amid both the pandemic and two hurricanes that brought severe flooding in areas of Vertex’s opperations.
Those who’re looking at Vertex right now should keep the company’s outlined operating strategy in mind. Specifically, in November, CEO Benjamin Cowart said, “Beginning in the first quarter 2021, we plan to begin supplying our Marrero refinery with pre-treated intermediates from Myrtle Grove, consistent with our continued focus on asset optimization…This project has the potential to be a significant catalyst for growth, further positioning our business as a leading supplier of renewable and alternative feedstocks.”
In light of restarting operations, the market seems to be waking up a bit. On Thursday, Vertex stock jumped big during premarket trading. With momentum behind the stock and tailwinds stemming from energy industry optimism, VRTX could be one of the penny stocks to watch during the second half of this week.
Camber Energy Inc.
Camber shares were also on the move Thursday. What’s more, is that similar to Vertex, Camber’s stock has also been climbing steadily for the better part of the last few months. The main point of focus has been on the company’s pending merger with Viking Energy Group. Toward the end of December, the company acquired 51%of Viking for $20.1 million, which was payable through canceling $9.2 million in Viking debt and a $10.9 million cash payment.
This week, Camber completed another deal with Viking purchasing $18.9 million in common Viking stock. This further extinguished $18.9 million in debt of Viking according to the company. James Doris, President & CEO of the two companies commented, “This transaction further strengthens the relationship between Camber and Viking and moves us one step closer toward a full combination of the two entities. Moreover, extinguishing the $18.9 million of debt improves the equity position of both companies.”
In light of the company’s latest deal and the bullishness in the energy sector, CEI stock could be in focus before next week. Camber operates out of Houston, Texas, and produces & explores crude oil, natural gas, and natural gas liquids.
Atossa Therapeutics Inc.
Atossa has been one of the biotech penny stocks we’ve discussed over the last few weeks. As of a month ago, the company was in a Phase I study to see the efficacy of its drug, AT-301. This is a nasal spray that can be taken at home by those suffering from the coronavirus. Currently, the FDA has yet to approve any therapies that patients can use to treat covid at home. This is one of the reasons that this has gained interest in the market. Back in November, the company stated that preliminary studies showed a high degree of safety in this product and that it was well tolerated by patients.
The company has been making strides to raise money for its advancements. While not much else has been announced, the company did list some milestones it’s aiming for. These include filing a pre-IND meeting request with FDA for AT-301 nasal spray for potential at-home treatment of COVID-19. The company also plans to commence a Phase 2 study in Sweden for its Endoxifen to reduce Mammographic Breast Density.
This week the company’s filings could have become an interesting potential catalyst. On Wednesday a Schedule 13G was filed. It showed Empery Asset Management has a 5.32% stake in the company. Given the excitement surrounding vaccine and virus-treatments, is Atossa on your list of penny stocks to watch right now?
Cheap Penny Stocks To Watch; Higher Risk
When it comes to stocks trading around $1, you can’t ignore the risks involved. Small price movements equate to larger percentage changes in stocks. Furthermore, these lower-priced stocks tend to be of companies in either early or developmental stages. This means that many of these businesses are either yet to report profitability or are having to raise significant funds to stay afloat. if you’re looking for penny stocks around $1 to buy, keep this risks in mind just as much as the potential rewards.