When you’re looking for penny stocks to buy, there is plenty to consider. The risk and reward factor is one of these things, of course. But you’ve also got to account for each company’s fundamental and technical aspects. Remember that we’re also mainly talking about retail traders buying penny stocks. With that, sentiment will also likely play its part.
In the stock market today, Ensysce Biosciences (NASDAQ: ENSC) has become the latest penny stock to spark a wave of speculative momentum in the small- and micro-cap arena. The company develops pain management treatments via “tamper-proof” opioids designed to prevent abuse and overdose.
While there weren’t any news headlines from the company, recent interest in analyst research has circulated among traders. Ultimately, this led to a volatile breakout to highs of over $3 on a move of more than 100% during the Tuesday session.
With this move has come a slew of sympathy momentum. Simply put, traders are searching for penny stocks to buy that are similar to ENSC stock. For example, micro-cap biotech stocks have started generating some attention. We’ve also seen an uptick in attention on stocks with higher short interest. This article looks at yet another offshoot of sentiment originating from ENSC stock: low float penny stocks.
Low Float Penny Stocks To Watch
Why do traders like low-float penny stocks? In simple terms, the lower the float, the fewer the shares actively trading in public hands. It’s a simple scenario of supply and demand. Higher demand and lower supply lend themselves to higher prices.
ENSC stock was a perfect example of this phenomenon. Just remember that as quickly as these low float penny stocks jump, they can come back even quicker. Keep this in mind when looking through this list today.
- Biofrontera Inc. (NASDAQ: BFRI)
- Tivic Health Systems Inc. (NASDAQ: TIVC)
- Sphere 3D Corp. (NASDAQ: ANY)
Penny Stocks To Watch #1: Biofrontera Inc. (NASDAQ: BFRI)
Biofrontera is no stranger to extensive breakouts. A few weeks ago, we discussed the company after analysts at Roth Capital issued a Buy rating and gave a $20 price target. This came just a few weeks after Biofrontera announced the launch of its clinical study program aimed at optimizing and expanding its market position for its Ameluz treatment. This is Biofrontera’s in-licensed FDA-approved prescription for photodynamic therapy in the US.
Fast-forward to this week and Biofrontera has begun enrolling subjects in its Phase 1 study of the safety and tolerability of photodynamic therapy in treating actinic keratosis using Ameluz with the company’s BF-RhodoLED XL lamp. The study will ultimately enroll 100 subjects with mild-to-severe actinic keratosis on their face and scalp.
“The use of three tubes of Ameluz® enables treatment of larger surface areas such as for mild-to-severe AK on the face and scalp. Success with this study could significantly improve the competitiveness of Ameluz® in the U.S. and advance Biofrontera’s goal of gaining market share for PDT as standard of care for treatment of AK.”Erica Monaco, Chief Executive Officer of Biofrontera Inc.
The actual “true float” of a stock tends to change depending on new shares deposited in the market. However, the outstanding share count usually fluctuates much less. When referencing both, the float will never be larger than the OS. So chances are stocks with a lower OS generally has a lower float. In this case, BFRI stock’s outstanding share count sits below 20 million shares right now, a level usually considered a threshold for “low float” stocks.
2. Tivic Health Systems Inc. (NASDAQ: TIVC)
Shares of Tivic Health have enjoyed a strong and consistent uptrend since the end of November. The commercial stage medical device companydevelps systems for clearing up sinus and nasal inflammation. Its ClearUP product is an FDA Class II and EU Class IIa device cleared to do just that.
Last month, the company made its NASDAQ debut via a $15 million IPO. Despite its initial sell-off, this week TIVC stock has come within $2 of reclaiming its IPO highs. Proceeds from the initial public offering are set to be used for advertising, PR, social media, e-commerce infrastructure, and increasing the awareness of the ClearUP device. There are also plans to support the launch of its ClearUP Gen 2 platform.
While not much more has been discussed, the comapny is giving a presentation at the upcoming Sidoti Micro Cap Virtual Conference this week. Tivic CEO Jennifer Ernst speaks on Wednesday afternoon. So keep this in mind if TIVC stock is on your list right now. Additionally, you’ll also want to consider that this is another one of the lower float penny stocks to watch right now. If you look at the TIVC stock profile page, you’ll see the OS sits under 10 million shares right now. Not to mention, the IPO itself had only 3 million shares offered.
3. Sphere 3D Corp. (NASDAQ: ANY)
Thanks to a turn around in crypotcurrency prices, the digital asset niche of the market has regained some of what it has lost over the last few weeks. In particular, Bitcoin, Ethereum, and many other cryptos bounced back this week following a huge drop over the weekend. Now, attention has focused on related stocks.
Sphere 3D is one of the popular penny stocks to watch lately thanks to its position in the crypto ecosystem. In particular, its merger partner, Gryphon Digital Mining specialize in the mining of cryptocurrency including Bitcoin. The last few months have seen this relationship stengthen as Gryphon has expanded its mining platform.
In fact, last week it tweeted out “More BitMaintech S19j Pros racked at our upstate New York facitlity that uses hydro power. Bitcoin mining the environmentally responsible way!”
Further to this, Gryphon jokingly tweeted out a picture of Daffy Duck going back to bed. The accompanying text read “When your bitcoin mining break even is ~$7k.”
With a seemingly bullish outlook from the comapny and renewed mometum in the crypto space, ANY stock has come back into focus.
Are Low Float Penny Stocks On Your Watch List Right Now?
When it comes to low float penny stocks, there’s plenty of exciting opporutnities you can take advantage of. Then again, there are plenty of hidden pitfalls to keep in mind. The biggest of these is volaitlity. Where many of these stocks can experience explosive gains quickly, the downside is that they can just as quickly fall apart. For that reason, if you’re looking for low float penny stocks to buy, make sure you understand that a plan is necessary even before hitting the “buy” or “sell” button.
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