Penny Stocks To Buy For Less Than A Cup Of Coffee; Are They Worth It?
What are penny stocks? According to the basic Securities & Exchange Commission definition, these are stocks that can be bought for under $5 a share. When you’re talking about low prices, there are a few things that come to mind. First, the money-making side of things.
The fact is that even the highest-priced penny stock only needs to move roughly 50 cents to record a considerable gain. In many cases, these small moves in price come quickly. One of the main attractions to penny stocks is their ability to produce big gains in short order. On the other hand, the downside can come just a swiftly. But it’s this kind of volatility that is such a big attraction. The fact is that if you can handle these wild swings, then penny stocks are a great way to make quick money in the market. You’ve also got another aspect to think about. That is the opportunity to invest in a company early in its development.
Thanks to the pandemic, countless biotech stocks have flourished. Just look at companies like Novavax (NASDAQ: NVAX), Vaxart Inc. (NASDAQ: VXRT), and even Ocugen Inc. (NASDAQ: OCGN). All were trading at penny stock levels early in 2020, but now, they’ve all clearly surged in price. NVAX stock, for example, has moved from under $5 to as high as $331.68.
Now, just because we’re talking about cheap stocks, it doesn’t mean to treat every trade like it’s going to the moon. All penny stocks don’t perform the same, obviously. So if you’re just getting started with these low-price stocks, it’s important to learn the ropes first. (See: Penny Stocks Trading for Beginners ). Once you’ve got the basics down, it’s time to look for stocks to add to your watch list.
In this article, we’ll take a closer look at a list of penny stocks that are trending right now. Will they be top names to buy, or are they better avoided for now?
Penny Stocks To Buy [or avoid]
- CASI Pharmaceuticals Inc. (NASDAQ: CASI)
- Xeris Pharmaceuticals Inc. (NASDAQ: XERS)
- SOS Limited (NYSE: SOS)
CASI Pharmaceuticals Inc. (NASDAQ: CASI)
If you take a look at the CASI stock chart over the last few days, you’ll see a nice uptick in trading momentum. Looking back to August 12th, trading volume started picking up thanks to a positive response to the company’s latest round of earnings. Not only did it give several updates on its current pipeline, but it also revised its guidance for revenue growth to exceed 80% above its 2020 figures.
CASI specializes in hematology-oncology therapeutics. Its aim is to advance its current pipeline of treatments to commercial stages. In particular, CASI has continued advancing its commercial EVOMELA® platform in treating patients with multiple myeloma. Furthermore, the company has also expanded its treatment pipeline to include other candidates. Its CID-103, for instance, is in a Phase 1 trial for relapsed or refractory multiple myeloma.
“We are thrilled with the progress we continue to see throughout our hematology-oncology pipeline. Our partner, Juventas, has completed CNCT19’s (CD19 CAR-T) Phase 1 studies of B-ALL and B-NHL in China. The Phase 2 B-NHL and B-ALL registration studies of CNCT19 are currently enrolling in China. Additionally, BioInvent recently announced that the China National Intellectual Property Administration (CNIPA) has issued a notice of allowance, informing the company that a patent application relating to the anti-FcγRllB antibody BI-1206 is expected to be granted.”Wei-Wu He, Ph.D., CASI’s Chairman and Chief Executive Officer
With this as the backdrop to CASI stock’s recent trading momentum, it will be interesting to see if the final days of August continue the trend.
Xeris Pharmaceuticals Inc. (NASDAQ: XERS)
Another one of the biotech penny stocks on this list is Xeris Pharmaceuticals. The company focuses on developing ready-to-use injectable treatments for things like hypoglycemia. This week, XERS stock bounced back to kick off the Monday session. This was thanks to new updates from the company on approval of a Supplemental New Drug Application from the FDA. This sNDA is for Xeris’ Gvoke Kit and is used by those suffering from hypoglycemia and diabetes.
Paul R. Edick, Chairman, and CEO of Xeris explained, “In particular for patients or caregivers who prefer to draw up their Gvoke rescue dose using a vial and syringe, Gvoke Kit reduces the number of steps by eliminating reconstitution – the most common mistake in correctly administering the conventional glucagon kit.”
This latest development marks a new milestone for the company. Xeris now plans on manufacturing at scale immediately and anticipates that its Gvoke Kit will be available early in Q1 of 2022. The biggest question now is that after weeks of selling pressure, will this new update help XERS stock recover back to its previous 2021 highs?
SOS Limited (NYSE: SOS)
If you were tracking some of the trends over the weekend, cryptocurrencies continued heating up. The price of Bitcoin, Dogecoin, Cardano, Ethereum, and many other digital currencies traded higher. With that, it may not be bad to have some cryptocurrency penny stocks on the watch list right now.
SOS has direct exposure to the volatility in the crypto space. While this can be a higher risk situation when crypto prices drop, it has clearly helped SOS stock in the market while prices have been on the rise. The company mines crypto and over the last few months has launched thousands of new mining rigs that mine both BTC and ETH. Thanks to the rise in prices of both, it’s clear as to how that would benefit a company that derives revenue from this type of operation.
Furthermore, SOS has also taken a step forward in addressing certain concerns about the cryptocurrency mining industry. Earlier this year, Bitcoin took a tumble due to negative sentiment surrounding how new coins were mined. High levels of power usage that may translate into higher emissions as a byproduct brought environmental concerns to the forefront. In the case of SOS, the company has also established partnerships with companies like Niagra Development to provide affordable power to sustain its mining operations. This move also further strengthened its foothold in the US market.
Are Penny Stocks On Your List Right Now?
Penny stocks are high-risk/high-reward but if you know how to trade them, the rewards can far outweigh the risks. Looking for trends, unusual volume, news headlines, insider activity, analyst sentiment, and, yes, even rumors can help you formulate a solid plan. At the end of the day, just don’t forget that you’re in this for one thing. That one thing is to make money with penny stocks.