The Hottest Penny Stocks to Buy Could Be the Same Price As a Cup of Coffee
Are penny stocks under $2 worth it? This is a question that many investors ask themselves regularly. Because the term penny stock means any stock trading under $5, there are thousands to choose from. Even if we narrow the search down to under $2, there are still hundreds of options.
One thing to keep in mind is that the lower the price, more times than not, the higher the volatility. This is not necessarily a bad thing, but it is something to keep in mind when compiling a list of penny stocks to watch. While it’s tempting to invest in penny stocks just because they’re cheap, investors should do the proper due diligence to make sure that it is worth it.
This means looking at balance sheets, corporate filings, press releases, and any other information that the company has put out. With this information, investors can put together a complete picture of what a business looks like. In addition, there are a few questions that you might want to ask yourself before pressing buy.
These questions include; how is the company staying competitive in the short and long term? What does it do differently than the competition? What does the competition look like? These are valuable insights that can be used to determine the length that an investor might want to hold for. Taking all of this into account, are these three penny stocks under $2 worth it?
3 Penny Stocks to Watch Under $2
- Pintec Technology Holdings Ltd. (NASDAQ: PT)
- Atari SA (OTC: PONGF)
- Regulus Therapeutics Inc. (NASDAQ: RGLS)
Pintec Technology Holdings Ltd.
Pintec Technology is an independent tech platform offering financial services in China. If this sounds broad, that’s because Pintec works in numerous areas of the Chinese fintech market. To understand the company better, let’s take a closer look at the range of operations it is engaged in.
Pintec offers a full suite of financial services such as digital retail lending, business lending, robotic process automation, wealth management, insurance products, and much more. It works across a variety of industries including travel, e-commerce, telecom, online education, banking, consumer finance, and more.
In the past several decades, China has transitioned from heavily agrarian to highly industrialized. Because this has occurred in a relatively short period, the growing wealthy generation in China has a high demand for financial services. This is where companies like Pintec come in.
On April 12th, PT made headlines after announcing the acquisition of Jishengtai Technology Co. (JST) and Broker Supplied System (BSS). The goal of this acquisition is to offer a fully digitized securities brokerage and wealth management platform. The two acquisitions will allow for automatic order matching and the execution of securities trading. After the news of this acquisition was announced, the CFO of Pintec offered a statement.
“These acquisitions of JST and RB will accelerate Pintec’s plan in transforming our business by broadening our wealth management services to include fully digitized securities brokerage, which is more critical than ever in today’s environment as we see increasing appetite from corporate clients and investors for a full-service online securities platform…
From a financial perspective, we expect the acquisition of JST and RB to be neutral to accretive to Pintec’s non-GAAP earnings per share in the first full fiscal year after the transaction closes.”
Mr. Steven Sim, CFO of Pintec
Considering this acquisition, Pintec aims to be one of the leaders in securities trading in China. While this is a lofty goal, this news helps to show that Pintec is working hard to make it happen. With this in mind, PT stock remains an interesting penny stock under $2.
Atari SA
If you played video games before the 2000s, you’ve most likely heard of Atari. For those who don’t know, Atari is the famed producer of games such as Asteroids, Missile Command, and everyone’s favorite, Pong. While Atari may seem like a thing of the past, the company has worked to modernize its business model. This includes the creation of two new divisions known as Atari Gaming and Atari Blockchain. Additionally, the company recently announced new leadership, to help with this technological transition.
The exciting news comes with the announcement of these new divisions. On one hand, Atari Gaming will offer gaming applications as well as Atari VCS and any licensing pertaining to it. This includes the recent popularization of “retro-gaming”. Atari will offer modernized versions of its classic gaming applications.
On the other hand, Atari Blockchain will operate the Atari Token, as well as any opportunities related to blockchain, NFTs, and online worlds. While the gaming division is relatively self-explanatory, investors may want to focus on the Atari Blockchain part of its business. In the past few months, blockchain and anything relating to cryptocurrency have both become extremely popular.
While the role of blockchain and NFTs are still being explored, this is an exciting update for the age-old video game company. It is also a perfect example of how a company can innovate to stay relevant. With these updates in mind, Atari SA could be a penny stock to watch moving forward.
Regulus Therapeutics Inc.
If we switch gears to biotech, Regulus Therapeutics has encountered a lot of bullish movement in the past six months. Since December, shares of RGLS stock are up by almost 100%. So why the major momentum with RGLS? Ahead of its upcoming presentation at the Needham Virtual Healthcare Conference next week, let’s take a look at what Regulus is working on.
Regulus operates as a biopharmaceutical company, developing innovative medicines that target microRNAs. It utilizes its expertise in oligonucleotide drug discovery to grow its sizable pipeline of microRNA-related intellectual property. In its fourth-quarter and year-end 2020 results, Regulus made some exciting announcements about the present state of its business and the near future.
Jay Hagan, CEO of Regulus, stated that the company “finished the year on a high note. We advanced RGLS4326 into a Phase 1b study in ADPKD patients, achieved an enrollment milestone for RG-012 with Sanofi and its Phase 2 clinical study for the treatment of patients with Alport syndrome, and completed a private financing deal. With the recent progress, we believe we are well-positioned to advance the ADPKD program through Phase 1b while also advancing our next generation ADPKD compound toward the clinic.”
RGLS4326 is a compound that could have efficacy in treating Sanofi syndrome, and RG-012 could be used to treat Sanofi syndrome. After completing the $19 million private financing deal, Regulus should have plenty of capital to continue operations and the R&D of the compounds mentioned above. As a pure-play biotech penny stock, Regulus Therapeutics could be worth giving a first or second look.
