One of the hot trends in the stock market today relates to cheap stocks to buy. They might be some of the short-squeeze stocks like we’ve seen with Vinco Ventures (NASDAQ:BBIG) and AMC Entertainment (NYSE:AMC). But recently, more attention has been placed on some of the cheapest stocks in the market trading for less than a dollar menu shake.
Thanks to companies like Camber Energy (NYSE:CEI), traders are beginning to realize that even the lowest-priced stocks can go on to multiple dollars. Case in point, CEI stock has made a move from just 33 cents to highs of $4.85 this week. Those of you keeping score at home, that’s a move of 1,369% in 29 days. While this might not be the norm, it isn’t uncommon to see penny stocks under $1 experience market-beating gains. The thing to remember is that with the higher potential reward, there are much higher risks.
Penny Stocks To Watch Under $1
The attractive part of cheap stocks under $1 is that a move of only a few cents can equate to serious gains. With CEI stock, for example, within 5 days of hitting those $0.33 lows, shares bounced back to $0.52, a move of only 19 cents. But if you look at the percentage increase, we’re talking a jump of over 50%.
You’ve also got other stocks still trading under $1 like Farmmi (NASDAQ:FAMI) that we’ve discussed over the last week. Amid a slew of speculative trading and company milestones, FAMI stock has jumped from $0.1955 last week to highs of $0.52 this week equating to a move of 165%. Understanding how to trade penny stocks is a valuable skill set and well worth the time. Today’s article will discuss 5 of these stocks under $1.
- Alpha Esports Tech (OTC:APETF)(CSE:ALPA)
- High Wire Networks (OTC:SGSI)
- Borqs Technologies (NASDAQ:BRQS)
- Enzolytics Inc. (OTC:ENZC)
- Eros STX Global Corporation (NYSE:ESGC)
1. Alpha Esports Tech (OTC:APETF)(CSE:ALPA)
The better part of the last few days has seen action pick up in Alpha Esports’ stock. Last week APETF was trading around $0.19 and this week it has already reached highs of $0.34. Furthermore, since the company initially went public in Canada first, there is a much longer trading history in looking at its CSE symbol, ALPA. As you might come to find, trading momentum has picked up in September.
Heading into October, the world of online gaming, including esports has gotten a lot more attention. The latest groundbreaking deal between Electronic Arts (NASDAQ:EA) and NVIDIA Corp (NASDAQ:NVDA) has sparked a lot more attention in this arena. The two partnered to bring more of EA’s games to the NVIDIA GeForce NOW cloud gaming service. This couples with Electronic Art’s recent news that the company and FIFA will launch a soccer esports program soon. So, you could say sentiment is bullish right now.
What To Watch With Alpha Esports
Obviously, sympathy sentiment may have played a smaller role recently. However, Alpha’s core focus on rapidly expanding its userbase through partnerships of its own has become a cornerstone to its model since going public this year. According to Alpha, it has already partnered & worked with HUGE names in sports, entertainment, and education, including Barstool Sports, ESPN Radio, Devil Child, Oxygen Esports, Notre Dame, Syracuse University, Penn State, University of British Columbia, University of Rochester, Western Michigan University, among others. It’s also the Official Online Gaming Portal of Nets Gaming Crew, the NBA 2K League affiliate of the Brooklyn Nets, providing Alpha the opportunity to directly connect with NetsGC’s network of fans and the NBA 2K League community.
Led by experienced names from companies like Red Bull, Reel One Entertainment, The Golden State Warriors, Mount Sinai, Victory Square Technologies, Activision, and Atari, Alpha is emerging as one of the esports stocks to watch in 2021. Now that APETF stock has obtained DTC eligibility, its exposure to US online brokerages is much bigger. And with the latest uptick in interest surrounding esports stocks, could be one of the things to keep in mind heading into October.
2. High Wire Networks (OTC:SGSI)
This is one of the companies discussed earlier this week. High Wire Networks also recently went public. But instead of listing as a stand-alone, it merged with Spectrum Global Solutions. High Wire develops communications networks including wireless, cabling, infrastructure, and electrical systems. They also provide security services aimed at address today’s growing need for new cybersecurity offerings.
Obviously, the growing virtual workforce has brought about a need for additional cybersecurity services. In fact, HP pointed out the situation that IT teams face when trying to improve cybersecurity for the world’s remote workforce. The study found that IT workers feel that there is no choice but to compromise cybersecurity to appease workers complaining about slower business processes. In essence, these cybersecurity methods are believed to “get in the way” of deadlines and time-sensitive projects.
The reports showed that more than 75% of IT teams said cybersecurity took a “backseat to business continuity during the pandemic,” and 91% reported feeling pressured into compromising security for business practices.
What To Watch With High Wire Networks
This week two developments were announced that could be something traders are watching right now. The first is news that High Wire launched its Overwatch Ransomware Kill Switch product. It’s the company’s solution for giving business clients protection from the threat of ransomware attacks.
However, the company’s news of a new hire may have become a sticking point for some. Earlier this week, High Wire announced that it is bringing on a new Executive VP of Finance. The reason for this, according to the company, is to accelerate its uplist to the NASDAQ. In instances of OTC-to-Nasdaq uplistings, excitement tends to build. In this case, SGSI stock has experienced a bit more momentum leading up to these latest updates.
3. Borqs Technologies (NASDAQ:BRQS)
Aside from cybersecurity and esports, another area of tech attracting interest is telecom and 5G. Borqs Technologies specializes in offering telecommunications services centered around 5G. However, more recent developments have the company diversifying its technology portfolio.
What To Watch With Borqs
The last few months have seen this diversification plan materialize. In August, the company made a strategic investment and collaboration with Zippie, a blockchain application, and payment platform. The two plan on jointly developing solutions for the Internet of Things (IoT) related to autonomous payments. The goal is to service the increased demand coming from digital currency transactions. By the end of 2021, the Zippie payment system is expected to be connected to 1.3 billion mobile wallets and 3 billion bank accounts globally.
Further expanding on its technology diversification, Borqs announced this month that it signed a binding term sheet to acquire a solar energy and storage company, Holu Hou Energy. According to Borqs, this will add approximately $48M of Revenue in 2022 and $8.2M of EBITDA with projected 2025 revenue of $145 million.
4. Enzolytics Inc. (OTC:ENZC)
When you’re talking about cheap penny stocks, you can’t ignore some OTC names. Enzolytics specializes in drug development for treating infectious diseases. In particular, its platform includes potential treatments for HIV/AIDS, as well as the coronavirus.
The last few weeks have been some of the most active for ENZC stock. Since the 13th, the penny stock has climbed from around 12 cents to highs of over $0.20 this week. Again, this is a tiny move in price but just 8 cents, in this case, equated to over 60%.
What To Watch With Enzolytics
There haven’t been many updates since July. However, details from its last update, Enzolytics revealed something that may have caught attention. The company announced the completion of its agreements with Danhson and Clinic Design for advancing its ITV-1 anti-HIV therapeutic to production and clinical trials.
In this deal, Danhson is responsible for producing the therapeutic. Clinic Design will conduct clinical trials. At the time, the company explained that “Production of the therapeutics is expected to be completed in the next few months followed by clinical trials to be conducted immediately thereafter.”
Considering this update is several months in the past, could this be what has sparked the recent bout of speculative momentum?
5. Eros STX Global Corporation (NYSE: ESGC)
Since mid-August, Eros STX has been climbing. Shares have jumped from lows of roughly 50 cents to highs this week of nearly $1. This move has come on the heels of industry momentum helping five entertainment and streaming stocks a boost. ErosSTX specializes in entertainment production, including its films, as well as acquiring other brands. Its partners include Universal Pictures Home Entertainment and Showtime.
What To Watch With Eros STX
Aside from the excitement stemming from streaming entertainment stocks, Eros has also made progress on its growth initiatives. The company recently teamed up with Reel One Entertainment. The two will develop and produce an English language adaptation of Team Chocolate. Eros’ STXtelevision and Reel One secured the format rights from French independent distributor Wild Bunch TV.
The deal also follows STXFilms’ closure of a deal for Peacock and The Roku Channel to premier its missing-person film, My Son headlined by James McAvoy and Claire Foy. As content continues to get eaten up by larger streaming services, content providers have remained ones to watch in the new digital entertainment ecosystem.
Are Penny Stocks Worth It?
As you’ll see, when it comes to penny stocks under $1, small moves in price can equate to significant percentage changes. With that, you should know exactly how to trade when volatility is so abundant. Understanding that can show you exactly why penny stocks can be worth it especially now that traders are on the hunt for the next round of cheap stocks to buy.
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