Are These Cheap Penny Stocks On Your List To Buy In March?
Penny stocks are some of the cheapest stocks in the market. I feel like this is a given. But if you’ve been trading these cheap stocks for a while, you likely know that there are sub-sets of stocks under $5, and these are initially broken up into price tiers, in my opinion. You’ve got your traders that prefer higher-priced penny stocks. Then, you’ve got traders who hunt for the cheapest names in the stock market today.
I’m never one to stand in the way of progress. But I will say that keeping all things constant & focusing on price alone, the lower it is, the higher the relative volatility. I’m sure anyone experienced in trading understands this.
But if you don’t, let me give a quick breakdown. Let’s say you’ve got a stock trading at $4. If it were to move up 5 cents, that position’s value has only increased a little over 1%. Now, let’s say you’ve got a position in certain penny stocks under 10 cents. That same 5-cent move is equal to 50% or more depending on how far below 10 cents the stock is trading at. You’ve also got things like sub-penny stocks, which, as the name suggests, trade below $0.01. These can trade as low as $0.0001. Again, the lower the price, the higher the volatility.
Hot Penny Stocks To Buy Under $1
Something else to consider when looking at stocks under $1 is the exchange it’s listed on. Since major exchanges like the Nasdaq and NYSE require companies to meet minimum bid price levels before de-listing them, it may be harder to find penny stocks to buy under $1 on Robinhood and Webull; two popular apps younger traders have begun using.
Needless to say, there is a window of time for these companies to regain compliance. In this case, here are 5 penny stocks that can be bought under $1 right now. Will they end up bouncing back above this important threshold in March?
- Advaxis Inc. (NASDAQ: ADXS)
- Castor Maritime (NASDAQ: CTRM)
- Luokung Technology Corp. (NASDAQ: LKCO)
- IT Tech Packaging Inc. (NYSE: ITP)
- Northern Dynasty Minerals, Ltd. (NYSE: NAK)
Penny Stocks To Buy Under $1: Advaxis Inc.
Like most stocks, ADXS has pulled back over the last few weeks. But Tuesday marked a strong rebound for the biotech penny stock. Advaxis continued bouncing back from its Friday lows of $0.575, reaching highs of $0.80 during Tuesday’s morning session. While no news came along with the boost in price, there are a few things to keep in mind this month.
The company has an ongoing Phase 1/2 trial of its ADXS-503 as a monotherapy and in combination with KEYTRUDA(R) (pembrolizumab). This is Merck’s anti-PD-1 therapy, and the combination is being studied in non-small cell lung cancer. In a presentation last year, the treatment demonstrated disease control at a rate of 67% and an overall response rate of 17% in the first 6 patients with immediate prior progression on KEYTRUDA.
Advaxis also received the first milestone payment related to its licensing agreement for ADXS31-164 earlier this year. Now known as OST-HER2, licensed to OS Therapies for evaluation in the treatment of osteosarcoma in humans, this has created another revenue stream for the company. “As Advaxis is currently focused on developing our ADXS-HOT neoantigen-directed off-the-shelf therapeutics, with recent encouraging data in non-small cell lung cancer, we hope that OS Therapies can successfully explore the clinical potential of OST-HER2 in osteosarcoma, building on an earlier Phase 1 clinical trial performed by us where ADXS31-164 was safe and tolerable in humans,” explained Kenneth A. Berlin, President and Chief Executive Officer of Advaxis in a January PR.
#2: Castor Maritime
Shares of CTRM stock continued pressing higher on Tuesday. This continued a 3-day rebound after Castor shares tested the 50-day moving average last Friday. One of the hot niches in the stock market right now is energy stocks and, of course, the “reopening” trade. In this light, shipping stocks have gotten a lot of the focus from retail traders recently.
In headlines last week, Castor announced the delivery of its newest vessel, the M/V Magic Venus. it also came with a new charter agreement. According to Castor, “The M/V Magic Venus is expected to commence employment under a time charter agreement on or about March 5, 2021, with a daily gross charter rate of $18,500 and an expected term of between minimum five to about seven months.”
The company said that it expects to generate roughly $2.8 million of gross incremental revenues for its charter’s minimum scheduled period. Should employment extend to the maximum period, Castor estimates roughly $4.2 million in revenues.
#3: Luokung Technology Corp.
China-based companies haven’t had the easiest time attracting U.S. investors over the last few months. Due in part to government mandates essentially threatening a ban on certain stocks, many have shied away from them entirely. However, with the new administration, things seem to have calmed down a bit.
This is where we’ve seen stocks like LKCO surge this year. If you look back at the start of 2021, the penny stock was trading around $0.70 and ended up rallying as high as $3.86 last month. Similar to many stocks, Luokung shares slid during the second half of February. This was mainly in response to a $100 million financing round the company formally closed on February 22nd.
Luokong is a big data processing company designing location-based services for customers in China. Its Luokuang and Superengine brands provide spatial-temporal big data via PaaS, SaaS, and DaaS services. While things like the “Internet Of Things” has captivated tech traders, there’s something else going on with LKCO that has traders’ attention right now.
The company, together with two U.S. shareholders, filed a complaint in the U.S. Federal District Court for the District of Columbia. The complaint alleges that Luokung’s designation as a “Communist Chinese military company” by the Department of Defense, and the restrictions associated with that designation under Executive Order 13959 (or “EO 13959”) signed by former President Trump, are unlawful. As part of that case, Luokung filed a motion for temporary emergency relief asking the Court to enter a TRO and enjoin the application or enforcement of the prohibitions in EO 13959 as they apply to Luokung. No further updates have come about yet, however, LKCO stock has begun climbing this week.
#4: IT Tech Packaging Inc
The pandemic has brought so many different companies to light thanks to certain theses about which could benefit from different aspects of things like lockdowns. In this case, IT Tech was actually one of the early benefactors of the great toilet paper shortage of 2020.
If you remember, back to last year, store shelves were clear of most paper products for quite some time. Many grocery chains and suppliers enacted certain restrictions on how much a customer could purchase at one time. This brought attention to companies that either sold, distributed, or provided raw materials to manufacture these paper products. This is where IT Tech Packaging began grabbing attention.
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The company manufactures and distributes paper products in North China. It primarily uses recycled paper as its source of raw material. This includes corrugated paper, printer paper, and tissue paper. The company most recently announced a $22 million financing round which triggered a sell-off in ITP stock. However, over the last few days, shares of IT have begun climbing back. The biggest question now is that after raising fresh capital, will the company begin capitalizing on new opportunities to turn things around in the market?
#5: Northern Dynasty Minerals, Ltd.
Northern Dynasty has been a frequent name discussed on our list of penny stocks to watch. The company has gone through its share of topsy-turvy trading and corporate developments. This included a major ethical dilemma that ultimately resulted in new management stepping in and taking the helm. Needless to say, aside from the executive drama, Northern has been focused on starting its Pebble Project in Alaska.
Pushback from the U.S. Army Corps of Engineers put a pause on this. But the market is now focused on what happens next. Northern Dynasty filed an appeal with the Corps, which was accepted last month. The Appeal alleges that the initial decision was incorrect based on several factors outlined in a 56-page request for appeal. Now that the Corps has received the appeal, USACE guidelines indicate the administrative appeal process should conclude within 90 days, although it may be extended under certain circumstances.
With things like rare earth elements and energy metals taking a larger focus in the stock market recently, the Pebble Project could present an interesting asset for Northern Dynasty if it can actually begin operations. For now, however, it appears to be a waiting game with speculation driving momentum in the market.