One of the hottest trends in the stock market today involves high-volatility trading. More times than not, this trend is found in stocks under $5. Otherwise known as penny stocks, these small companies can experience massive bouts of speculative momentum, which tends to see share prices soaring.
Take Reliance Global Group (NASDAQ: RELI), a company we’ve discussed for the last few weeks. On December 13th, we discussed the insurance company’s stock in our article “4 Top Penny Stocks To Watch With The Stock Market Down Today,” and right around the time, the broader markets started shaking thanks to virus concerns.
Penny Stocks TL;DR Summary
- Penny stocks are well-known for high volatility, which is one of the main attractions for retail traders
- Attention on low float penny stocks has come into focus this week after RELI stock surged
- Low float penny stocks carry even higher risk profiles due to limited supply in the market. IE. big swings up and big drops lower in a quick period
- The names on this penny stocks list can be bought for under $5 and we’ll let you decide if they’re worth the risk or should be avoided entirely
One thing that we noted was that RELI stock was moving without any apparent catalyst. No news or filings were released. However, we found that a prominent trend that had traders looking for low float penny stocks may have triggered the mid-December commotion. Since then, we’ve watched as RELI stock surged from $2.10 on the 13th to premarket highs of over $7.50 during the premarket session on December 28th. This over 250% move has brought retail trading attention to low float stocks.
One thing to remember is that the public float figures can change frequently. But since the float will only be less than or equal to the Outstanding Share count, companies with a lower OS can meet the criteria for low floats in most cases. This is a metric we’ll also use in the article today.
Low Float Penny Stocks To Watch
- Pop Culture Group (NASDAQ: CPOP)
- Petros Pharmaceuticals, Inc. (NASDAQ: PTPI)
- Twin Vee PowerCats (NASDAQ: VEEE)
- Nuverra Environmental Solutions (NYSE: NES)
- Creative Medical Technology Holdings (NASDAQ: CELZ)
Pop Culture Group (NASDAQ: CPOP)
Shares of Pop Culture Group have been in and out of the spotlight as the company works to regroup. The self-proclaimed hip-hop culture company in China recently boosted its organizational structure while also outlining growth strategies. Among these strategies was focusing on its three core business groups: POPIDEA, POPSPORTS, and POPLIVE.
Aimed at a younger demographic, Pop Culture is leveraging its technology assets to offer entertainment events, online programming, and marketing services. It also recently won a tender for the Hanfu Cultural Festival celebrating Hanfu culture. Further commenting on the win, CEO Zhuoqin Huang explained, “Through our extensive experience in producing content, leveraging media resources, and planning events, we believe that Pop Culture has the capability to provide an in-depth analysis of market demand and strategical cross-industry cooperation, as well as expanding the user pool to improve the brand awareness of Migu Comic’s app, Migu Quanquan, a mobile social entertainment platform that integrates trendy and creative short videos, live broadcasts, animation works, and e-commerce.”
Add the low float trend into the mix with CPOP showing fewer than 25 million shares outstanding, and it could be one to watch during the final days of 2021.
Petros Pharmaceuticals, Inc. (NASDAQ: PTPI)
We’ve discussed Petros several times over the last few weeks. The company’s STENDRA tablets have become the main focus, and earlier this month, Petros reported sales growth earlier this quarter. This was thanks, in part, to its digital health marketing agreement with Hims & Hers Health Inc. (NASDAQ: HIMS). The product is a treatment for erectile dysfunction.
This week, Petros continued gaining attention after announcing the closing of a recent $7.5 million financing round. The cash is earmarked for expanding its men’s health platform, among other things. “This latest raise, in which we are grateful that our largest stockholder continues to participate, creates our strongest cash position in the history of the Company going into 2022, which we believe to be a vital component in our strategic plans toward leadership in the men’s health category and allows us considerable flexibility and confidence in our ability to execute on that strategy,” commented Fady Boctor, Petros Pharmaceuticals’ President and Chief Commercial Officer.
In addition to this news, the low float trend may also have become a factor. A look at the PTPI stock profile page shows fewer than 25 million shares outstanding right now.
Twin Vee PowerCats (NASDAQ: VEEE)
Another one of the low float stocks on this list is Twin Vee PowerCats. The company manufactures and designs recreational and commercial catamaran boats. One of the more recent focus points is on the company’s subsidiary, Forza X1. That’s because Forza just released renderings of its first, all-electric “vehicle.” The FX1 is a catamaran powered by an electric motor.
Sympathy sentiment has overflowed from the EV arena this year. Whether you’re looking at electric cars, motorcycles, tractors, or boats, plenty of optimism surrounds this emerging industry. Twin Vee expects the FX1 to be ready for purchase next year.
In addition to industry momentum, the low float trend persists with VEEE stock. If you look at the Twin Vee stock profile page, you’ll see that fewer than 10 million shares are outstanding. This puts the float at or lower than that. VEEE could be another one of the penny stocks to watch this week, given the recent runup.
Nuverra Environmental Solutions (NYSE: NES)
Coincidentally, Nuverra Environmental is a company we discussed on December 13th. The attention came after Nuverra entered into an acquisition agreement with Select Energy Services Inc. (NYSE: WTTR). Since the update, shares of NES stock have been on the rise.
Also bolstering momentum in the market is a boost to the energy sector. Nuverra provides logistics and oilfield services specifically for solid and liquid materials used in drilling and production. With an evident focus on environmental impact, Nuverra’s suite of services offers oil and natural gas producers a way to meet safety and environmental compliance standards. This latest acquisition adds to Select’s growing list of M&A targets.
The clock has started ticking with the transaction expected to close next quarter. You also can’t forget that fewer than 20 million shares are outstanding for NES stock. Some outlets also show a float of fewer than 10 million. In light of this, as a low float penny stock to watch, it will be interesting to see if volatility from the past few weeks continues leading up to the consumption of the deal.
Creative Medical Technology Holdings (NASDAQ: CELZ)
Shares of Creative Medical Technology recently uplisted to the NASDAQ from the OTC this month. In a 3.875 million share offering, CELZ stock made its debut at an offering price of $4.13. Since then, the biotech stock has been on a wild ride, flip-flopping between lows of $1.58 and highs of $3.25. Something else worth mentioning is that the last three sessions have seen a bit more bullishness as CELZ stock has jumped back above the $2 level.
For those unfamiliar with the company, Creative specializes in regenerative medicine and stem cell technology targeting immunotherapy, orthopedics, neurology, and urology. Its pipeline ranges from in-market to preclinical treatment candidates. More recently, a focus was placed on advancing efforts for Creative’s ImmCelz immunotherapy product. In a recent study, data demonstrated proof that the platform could “reprogram” patient immune cells.
In addition, its CaverStem is in the process of expanded commercial activity. Late last quarter, the company engaged a contact management organization to speed up the platform’s adoption. CaverStem is an in-market regenerative stem cell procedure for treating erectile dysfunction in men.
With fewer than 10 million shares outstanding following its IPO, CELZ could also be one of the low float penny stocks to watch this week.
Final Thoughts On Low Float Stocks
When you’re looking for low float stocks to buy, keep in mind you’re looking for some of the highest-risk names in the market. That’s because you’ve got the unique situation of lower supply “floating” in public hands and potentially higher demand. RELI stock is a prime example of the volatility that can come into play with these types of penny stocks.
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