Let me ask you a question. What’s one of the reasons to consider penny stocks as a way to make money in the stock market? If you’re like most, your answer probably has something to do with capturing quick profits. These cheap stocks are well known for their innate ability to experience explosive moves.
Penny Stocks TL;DR 30-Second Overview:
- There are different ways to find penny stocks to buy
- Breakout moves from companies like Society Pass (NASDAQ: SOPA) help breed interest in penny stocks
- Sympathy sentiment can play a role in short-term moves for stocks under $5
- Today we look at a handful of penny stocks moving higher thanks to optimism resulting from SOPA stock’s explosive move. Will they follow suit? See some of the catalysts and you can determine that for yourself.
When retail traders see companies like Society Pass rallying from under $4 to highs of over $22, appetites for gains tend to grow. How can you not want to find “the next SOPA” after seeing such a move? As this is the case for many traders, you begin seeing “sympathy sentiment” step in. This is the idea that stocks with similar business models, share structures, filings, or other factors have a shot at a big move. I’ll be the first to say that that isn’t the case most of the time. However, it only takes one to prove the point, and speculation has a hand in the strategy of retail traders.
In Society Pass’ case, most looked at the company’s recent addition to the Russell 2000 Index this month. Upbeat sentiment paired with a low float penny stock helped propel momentum to epic levels.
Today we’ll take a look at a few more penny stocks that have started turning heads. These are also stocks with lower floats. The appeal to traders is the potential for “SOPA-like” moves. Lower floats mean fewer shares in the public’s hands. Generally speaking, low supply and high demand can present a classic economic situation that favors higher prices. Will that be the case for these penny stocks today?
Low Float Penny Stocks To Watch
- Energy Focus Inc. (NASDAQ: EFOI)
- ReTo Eco-Solutions Inc. (NASDAQ: RETO)
- X4 Pharmaceuticals (NASDAQ: XFOR)
- Qualigen Therapeutics (NASDAQ: QLGN)
1. Energy Focus Inc. (NASDAQ: EFOI)
Shares of Energy Focus have been in a strong uptrend this month. Ever since the company announced the launch of its nUVo line of air disinfectors, attention has been on EFOI stock. According to the company, this is Energy Focus’ platform designed to destroy 99.9% of airborne pathogens.
Obviously, with the latest virus strain captivating headlines, platforms like this have gained interest. In a December press release, CEO James Tu even mentioned, “As people and countries worldwide continue to battle SARS-CoV-2 and its unpredictable mutations and constantly evolving variants, we believe our patent-pending nUVo™ TRAVELER and nUVo™ TOWER provide uniquely powerful, filter-free and chemical-free air disinfection solutions to help create safer spaces—whether at home, in the office or as they travel.”
With the holiday travel season upon us, Energy Focus has…come into focus recently.
2. ReTo Eco-Solutions Inc. (NASDAQ: RETO)
ReTo Eco isn’t a stranger to low-float volatility. It’s always important to remember that these are high-risk equities we’re talking about. Penny stocks alone are highly volatile. But if you throw in fewer shares available to trade, that can easily amplify things in the market.
Read more: Best Penny Stocks to Buy in January 2022? Check These 3 Out
Case in point, RETO stock saw an incredible breakout move earlier this quarter. Shares ran from under $1 to highs of over $3.30. But just as quickly as it rose, the penny stock came tumbling back to earth. The most recent sessions have seen things recover significantly, however. RETO stock has managed to jump from lows of $0.67 to highs this week back above the $1 level.
One of the core drivers of market momentum stems from ReTo’s business model. The company specializes in environmentally friendly construction materials and equipment used in producing these materials. With a global push toward eco-friendly and ESG-first operations, RETO stock has been in the spotlight during the end of the year. With fewer than 30 million shares outstanding, the biggest now is will it sustain this latest uptrend, or is another drop coming?
3. X4 Pharmaceuticals (NASDAQ: XFOR)
Another one of the low float penny stocks to watch is X4 Pharmaceuticals. Earlier this month, we discussed the company ahead of a presentation at the December American Society of Hematology Meeting. The company also hosted a virtual seminar, “Understanding Primary Immunodeficiencies,” on December 16th.
Since that seminar, the biotech company’s shares have been on the move. XFOR stock has climbed from around $2 to highs of over $2.50 this week. X4 develops treatments for diseases involving the dysfunction of the CXCR4 pathway. These include primary immunodeficiencies and certain types of cancer, according to X4. The company’s lead candidate, mavorixafor, has already seen progress in a Phase 2 trial in people with WHIM syndrome.
There’s also a global Phase 3 clinical trial in WHIM and two Phase 1b clinical trials – one as monotherapy in people with Severe Congenital Neutropenia and other chronic neutropenia conditions. The other is in combination with ibrutinib in people with Waldenström’s macroglobulinemia. The latter of these trials was the topic of the recent ASH conference presentation. The company reported positive efficacy and safety data from mavorixafor combined with ibrutinib for patients with Waldenström’s macroglobulinemia and confirmed MYD88 and CXCR4 mutations.
4. Qualigen Therapeutics (NASDAQ: QLGN)
With fewer than 35 million shares outstanding and some sources citing a float of less than 30 million, Qualigen is on this list of low float penny stocks to watch. The company specializes in treatment development for adult and pediatric cancers. It’s also no stranger to high-volatility trading.
Read more: Are These Top Penny Stocks Worth Buying Right Now?
Earlier this quarter, QLGN stock surged on the back earnings. Qualigen reported year-to-date revenue growth of 30%. Quarterly revenues also jumped 38% compared to the same quarter last year.
“We are very encouraged by what we believe to be a strong quarter, with a 38% increase in year-over-year revenue…As the country emerges from the pandemic and visits to medical offices are on the rise, we have experienced a corresponding recovery in our FastPack test kit sales. We continue to be encouraged by this increase.”
Michael S. Poirier, Qualigen’s Chairman, CEO, and President
FastPack is the company’s diagnostic platform used in testing for prostate cancer, thyroid function, metabolic disorders, and research applications. It also has a therapeutics pipeline consisting of cancer drug compounds. With optimism centered around Qualigen’s recent growth, it will be interesting to see how it finishes out the year.
Final Thoughts On Penny Stocks
Different themes can come into play when you’re looking for penny stocks to buy. Today, SOPA stock seems to have spurred attention on low-float stocks. With that, it’s essential to understand that volatility could become a significant factor. So, if you’re putting together your watch list right now, keep this in mind.
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