Do you want to make money with penny stocks but don’t know where to start? It’s best to start with a list. Taking time to identify market trends and even speculative trends can help zero in on the best stocks to buy. Whether it’s a big move in biotech stocks pushing low-priced names or sweeping bullish sentiment stemming from short squeeze stocks, you’ve got your pick when it comes to stocks under $5. Today, we’re going to look at a few trending penny stocks to watch in a certain price bracket: $0-$2, and I’ll explain why.
Penny Stocks TL;DR 30-Second Summary
- Penny stocks are shares of companies trading for less than $5
- Though they higher in risk, the rewards can be even greater
- The lower the price, the more inehrant volatility a stock has
- Today we look at penny stocks that can be bought for under $2 right now
The exciting part about penny stocks is leveraging lower capital to experience significant gains. Take a look at some of the trending names in the stock market today. Apple (NASDAQ: AAPL) is all over the news for hitting the $3 trillion mark for the first time. As one of the most popular stocks right now, look at the 1-year gain: roughly 35%.
While that’s nothing to sneeze at, the lesser-known but popular penny stocks today have returned that within a matter of hours or days. Reliance Global Group (NASDAQ: RELI), an insurance company, has jumped from penny stock levels to highs of over $8.70 within a matter of a week.
This is why traders look for cheap stocks to buy. Today we’ll look at some of the most volatile penny stocks trading below $2 a share right now. Will they be on your buy list this year?
- Caladrius Biosciences Inc. (NASDAQ: CLBS)
- Idera Pharmaceuticals Inc. (NASDAQ: IDRA)
- Flotek Industries Inc. (NYSE: FTK)
- Gran Tierra Energy Inc. (NYSE: GTE)
Penny Stocks Under $2: Caladrius Biosciences Inc. (CLBS)
I talked about 1-year performance with Apple above. If you look at the same timeframe for Caladrius Biosciences, you’ll see a stark difference, emphasizing the higher risk that penny stocks hold. In any case, the last few sessions have been active to start 2022.
Caladrius develops therapies for treating different diseases utilizing a gene cell therapy platform. Its pipeline includes XOWNA (CLBS16) for treating coronary microvascular dysfunction, HONEDRA (CLBS12) for Buerger’s Disease, and CLBS201 for treating diabetic kidney disease.
What To Watch With CLBS Stock
While there haven’t been many recent updates, there are some potential catalysts to be aware of. In particular, CLBS201 plans to initiate a Phase 1, open-label, proof-of-concept trial evaluation. Right now could be significant based on Caladrius’ expectation of beginning enrollment of this study this quarter. Some December insider buying also came to light following the last quarterly update from the company. Director Steven Myers picked up 33,785 shares at an average price of $0.8936 last month.
Idera Pharmaceuticals Inc. (IDRA)
Like CLBS, IDRA stock has experienced a similar trend in the stock market over the last year. One of the biggest hits to Idera Pharmaceuticals came last March after the company reported disappointing trial results of its melanoma treatment.
“We are surprised and disappointed that the response data from Illuminate-301 do not lead us to an accelerated path to a new and much-needed treatment option for these patients,” said Vincent Milano, Idera’s chief executive officer at the time of the report.
This didn’t pause further development of its pipeline, however. For instance, the company’s tilsotolimod is being evaluated in multiple tumor types and combined with various checkpoint inhibitors. Recently discussed preliminary data from the second 10 patients dosed in the safety cohort of ILLUMINATE-206 demonstrated a safety profile “consistent with the first ten patients in ILLUMINATE-206 and with prior studies.” This study involves tilsotolimod combined with ipilimumab (Bristol Myers Squibb’s YERVOY) and nivolumab (Bristol Myers Squibb’s OPDIVO).
What To Watch With IDRA Stock
In addition to these data, traders may be paying attention to Idera’s latest collaboration with Abbvie. It is conducting a Phase 1b study treating patients with recurrent/metastatic head and neck squamous cell carcinoma with ABBV-368 plus tilsotolimod and other therapy combinations.
But no further details have emerged related to progress on this trial so far. Enrollment in the study was discontinued, which caused a kneejerk reaction in IDRA stock. However, Abbvie explained that it wasn’t related to safety concerns.
Idera has also explored options to out-license its tilsotolimod platform and “explore potential development or commercial-stage assets for Idera’s portfolio,” according to CEO Vincent Milano.
Penny Stocks Under $2: Flotek Industries Inc. (FTK)
One of the cheap penny stocks to watch lately has been Flotek Industries. An otherwise beaten-down stock has emerged as a big winner over the last few weeks. FTK stock has climbed from lows of $0.53 to highs of $1.36 since last week. The 150%+ move was initially prompted by potential buyout news, which has driven momentum ever since.
What To Watch With FTK Stock
Flotek focuses on reducing the environmental impact of energy on air, water, land, and people, mainly through surface cleaners. In a world where ESG is a hot topic, FTK stock has gained some attention. Where the significant catalyst comes in is the unsolicited takeover interest that came to light. There weren’t many details revealed, and no timetable was confirmed. However, Flotek has retained an advisory team to help in this process. So as the market waits, minds wander, and momentum remains in place during the early 2022 sessions.
Gran Tierra Energy Inc. (GTE)
Energy has also been a very active focus for traders recently. Thanks to reopening efforts, everything from green energy to traditional oil and gas has come into the spotlight. Gran Tierra falls on the more conventional side of things. Its progress over the last year has led its stock on a run of as much as 249%.
Last month, Gran Tierra gave its 2022 guidance. It expects production between 30,500 and 32,500 BOPD, almost 40% higher than that of 2020. The company also anticipates free cash flow between $40 and $60 million with full repayment of its credit facility.
What To Watch With GTE Stock
Due to a strong cash position, Gran Tierra elected to downsize its credit facility capacity heading into the new year. Moreover, thanks to the strong 2022 cash flow forecast, the company also expects to fully pay off its credit facility during the first half of the year. Considering the growth in the energy industry right now, GTE could be an interesting penny stock to watch in 2022.
Final Thoughts On Cheap Penny Stocks To Buy
If you’re looking for cheap stocks to buy, you’ve got your work cut out for you. But if you can handle risk and understand trading basics, penny stocks can be a great way to make money in the stock market.
New To Penny Stocks? Check Out Some Of These Articles:
- Penny Stock Basics: Making Money With Cheap Stocks
- Is The Stock Market Open Today: Trading Hours You Need To Know
- Penny Stocks: Definition, How To Buy, & When To Sell
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