Why These Penny Stocks to Watch Are Climbing Right Now
Retail traders have become some of the largest influencers of penny stocks in the past year and a half. While this phenomenon only began last year with GME stock and AMC stock, now, these investors have realized the power that they have to influence the market. The result of this is a high degree of volatility, especially in the penny stocks mentioned on this list.
This volatility is seen with penny stocks on Reddit, and as a result of trading small-caps on Robinhood among other modern platforms. While it may seem difficult at first to keep track of all the trending penny stocks online, research can make this much easier.
As mentioned previously, when penny stocks are discussed online, they tend to be highly speculative, and therefore, highly volatile as well. This means that prices can shift quickly with little to no notice. While this shouldn’t serve to scare you, it should help to give an idea of how to trade penny stocks that are trending online. And, it should also illustrate the importance of research and understanding what makes a company move. Considering all of this, let’s take a look at three penny stocks that shot up big today, and why.
3 Hot Penny Stocks to Watch Right Now
- Allied Healthcare Products Inc. (NASDAQ: AHPI)
- Xenetic Biosciences Inc. (NASDAQ: XBIO)
- Star Equity Holdings Inc. (NASDAQ: STRR)
Allied Healthcare Products Inc. (NASDAQ: AHPI)
One of the biggest gainers of the day so far is AHPI stock. By midday, shares of AHPI had shot up by over 170% to north of $10.80 per share. This is a staggering gain and took AHPI stock well out of penny stocks territory. Before we go any further, it’s worth noting that gains like this are usually indicative of high volatility and speculation. So, investors should beware and invest accordingly.
And, if we consider that AHPI has no news that is pushing this gain, we see an even greater degree of speculation. So, what exactly does Allied Healthcare Products do? Well, the company is a producer of, as its name suggests, healthcare products. This includes offerings such as respiratory care, facemasks, oxygen tubing products, and more.
While the obvious reason for this gain could be due to the pandemic, it seems to be mostly influenced by retail traders. It makes sense that shares of AHPI may have increased over a longer-term period due to Covid, however, a one-day, triple-digit gain for this would not occur as a result of this without any news. So, consider this when looking at AHPI stock, and consider its high volatility as well. But, if that is something you’re interested in, Allied Healthcare Products could be worth watching.
Xenetic Biosciences Inc. (NASDAQ: XBIO)
At midday, shares of XBIO stock had shot up by a more than respectable 30% or so. In the past five days, that number jumps up to over 39%, and in the past 12 months, by over 165%. Similar to AHPI stock, there is no company-specific news resulting in this uptick. This again puts it in a highly volatile and speculative category.
To try and comprehend this gain outside of the influence of retail traders, we can a look at its financials. Back in May, XBIO announced its first-quarter 2021 financial results. In the results, the company focused on its XCART Car T platform technology. This technology is aimed at targeting patient-specific neoantigens for tumors.
“During the first quarter our focus remained on advancing the development of our XCART platform, which we believe has the potential to provide a personalized CAR T therapy targeting cancers with a patent-and tumor-specific approach.”CEO of Xenetic, Jeffrey Eisenberg
Financially, the company ended the quarter with around $10 million in cash and a $1.3 million net loss. So, while these financials do not tell us why XBIO stock shot up today, they do give some background into the company. With all of this in mind, XBIO stock could be worth watching if your threshold for volatility is high.
Star Equity Holdings Inc. (NASDAQ: STRR)
Shares of STRR stock shot up by around 15% by midday on July 13th. In the past month, that number jumps up to around 25%. As is thematic with the other penny stocks on this list, there is no major news that is causing this sizable uptick. So, let’s take a look at what STRR does to see if we can deduce a reason.
Star Equity Holdings is a diversified company with a variety of holdings. It operates in three distinct divisions: healthcare, construction, and investments. In terms of healthcare, STRR designs, manufactures, and distributes several products used in the diagnostic and imaging sector.
This includes solid-state gamma cameras and others. In terms of construction, Star Equity builds modular housing for both commercial and residential purposes. And lastly, its investment sector manages the large range of real estate and commercial assets that the company holds.
All three of these divisions have benefited from the pandemic in one way or another. And while it isn’t clear why STRR shot up in value today, this could explain some of its longer-term gains. At the beginning of June, the company adopted a rights agreement to lower its taxes and protect its net pirating loss carryforwards.
This is a common business strategy and one that we have seen frequently among similar companies. So, considering just how volatile STRR stock is alongside its market potential, is it worth adding to your penny stocks watchlist right now?
Which Penny Stocks Are You Watching Right Now?
Finding the best penny stocks to buy comes down to two things; information and strategy. On one hand, having proper information will set you aside from the beginning investors. This means researching and committing to finding all of the info you can about a given penny stock.
On the other hand, knowing what type of trader you are and building a strategy around that, will help to make sure that your portfolio aligns with your goals. These two insights are paramount to making a profit with penny stocks. Considering this, which companies are you watching right now?