Should You Buy These Penny Stocks Today?
You can’t hate on people who trade penny stocks. I know it’s easy to think that newbie investors don’t know anything. But the clear fact of the matter is, there may be some method to the madness. It’s not just GameStop, and it isn’t only marijuana stocks. If you really dive in (and we do), you’ll see an entire culture spearheading the charge behind momentum in these cheap shares. Call them small-cap stocks, nano-caps, or “garbage,” at the end of the day; people are making plenty of money with them.
But I understand that penny stocks aren’t right for everyone. If you aren’t used to day trading or don’t know how, then you’re at a disadvantage during the latest market surge in low-priced stocks. Furthermore, if your strategy is more along the lines of investing, these stocks may just not fit your game plan; that’s ok.
For this article, however, I’m going to be talking about stocks under $5 and ones that have been trending recently. I’ll leave it up to you to decide if they’re worth your time. Just know that most of the time, regardless of what the broader markets do, penny stocks usually move on their own accord.
With 2020 and 2021 becoming the year of the retail trader, the entire market landscape has begun changing. This also has influenced the day-to-day market activity we’re seeing. It’s not just a few penny stocks that are jumping at any one time, but hundreds. To drown out the noise, you as a trader need to research why a stock’s moving, decide if the move is sustainable, and understand how/when to take the profit off the table. With this in mind, are any of these on your list of penny stocks to buy, or should they be avoided entirely?
Penny Stocks To Buy [or avoid]
- LAIX Inc. (NYSE: LAIX)
- Safe-T Group Ltd (NASDAQ: SFET)
- Artelo Biosciences Inc. (NASDAQ: ARTL)
- Meten EdtechX (NASDAQ: METX)
Penny Stocks To Buy [or avoid] #1: LAIX Inc.
Tech has become a big focus in the market. Everything from green energy technology to artificial intelligence has garnered significant interest from traders and investors alike. The latter, AI, is where LAIX comes into play. The company focuses on artificial intelligence and is based in China. One of the things that we’ve seen trending recently is digital learning platforms. As part of LAIX’s platform, the company offers English learning products.
While not much news has surfaced this year from LAIX, the penny stock has managed to see some explosive moves. Earlier this month, shares rallied from around $1 to highs of over $11.60 in a matter of 24 hours. They’ve obviously since come back down to where they are today. But that jump turned a lot of heads, and the market has begun paying attention.
Whether it’s the Chinese New Year or sympathy sentiment in the niche, in general, Friday saw several China-based names jump. LAIX is among the list of penny stocks doing so. Will the trend continue into the week next week?
Penny Stocks To Buy [or avoid] #2: Safe-T Group Ltd.
Unlike LAIX, Safe-T Group Ltd. has released a few recent headlines that’ve acted as catalysts this month. The most recent came Friday with news on the launch of a breakthrough residential proxies network. The network is designed to support the sneaker resale market, believe it or not. Let me explain a bit more. The platform uses Safe-T’s business internet protocol proxy and consumer IP proxy solutions.
“We are excited to launch the first product that implements synergies between these two different IP proxy solutions. Our IP proxy platform is used by various business verticals, one of which is the sneaker resale market. We believe that the new residential network product is one of many possible offerings that can open our unique platform for additional business segments,” said Shachar Daniel, CEO of Safe-T.
This news just came a day after the company presented at the CYBERSEC 2021 conference. Eitan Bremler, Co-Founder & VP Corporate Development of Safe-T Group, presented Safe-T’s ZoneZero™ technology. This is the company’s Virtual Private Network security enhancement technology. With this latest tech advancement announced Friday, the company’s portfolio continues expanding.
Penny Stocks To Buy [or avoid] #3: Artelo Biosciences Inc.
Shares of Artelo Biosciences were also off to a running start on Friday. The company received coverage from Ladenburg Thalmann, with the firm giving a Buy rating on the stock. Ladenburg also issued a price target of $7 a share. This rating comes just a few days after the company brought in $3 million in net proceeds from the exercise of warrants.
“The proceeds from the exercise of these warrants strengthen our balance sheet and, based on our most recently reported financial results as of November 30, 2020, bring our Pro-forma cash balance to approximately $10.4 million,” stated Gregory Gorgas, Artelo’s President, and Chief Executive Officer. “We intend to utilize this capital towards achieving milestones we believe have the potential to generate significant value for our shareholders.”
Artelo recently launched a research collaboration with Trinity College Dublin to investigate its ART27.13 treatment of cancer cachexia. This is a wasting syndrome that affects up to 80% of all cancer patients. The company has begun advancing its ART27.13 program with the Cancer Appetite Recovery Study, a Phase 1b/2a study in patients with cancer-related anorexia.
Penny Stocks To Buy [or avoid] #4: Meten EdtechX
Similar to LAIX, Meten is a Chinese, English language training service provider. It recently announced that it was presented with the Annual Influential Brand and Outstanding Live Broadcast Enterprise award by Taobao Education. Taobao is an online classroom platform of Alibaba Group’s.
While industry acclaim is great, executing on initiatives is something the market looks for. This month Meten invested over $3 million in live-streamed English-language training. The investment comes as the company recently reported gross billing of its junior ELT services. Billings increased by 200% in January 2021 compared to the same period last year. The company also said it received significant growth in renewal and referral rates of its existing student body. So with Chinese education stocks taking off this week, METX could be one to have on that watch list.