Buying Penny Stocks Today? Here’s What You Need to Know
If you’re looking to find the best penny stocks to buy, there are plenty of options to choose from. But, to have the greatest chance of profitability, investors need to have a complete understanding of what is going on in the stock market. This means looking at the news daily and considering how certain events will affect both the penny stocks on your list and the stock market as a whole.
In 2022, we’ve seen the market be extremely volatile and reactive. And, it doesn’t look like this is going anywhere anytime soon. So, with that in mind, let’s take a look at what you need to know about trading penny stocks today.
What to Know About Trading Penny Stocks Today
During Friday morning trading, stock futures dropped across the board. The main reason behind this comes as yesterday’s CPI report showed inflation nearing a four-decade high. And as a result, investors are fearful for both the future of the U.S. economy and the Fed putting in place higher interest rates. Yesterday, we saw the S&P 500 and NASDAQ drop by around 1.8% and 2.1% respectively while Treasury yields climbed substantially. In the CPI report, we saw a 7.5% jump in prices which is the largest annual climb since 1982.
To add to this, the St. Louis Federal Reserve President, James Bullard, stated that he would like to see interest rates climb by 1% by as soon as July of this year. While this is not outside of what could happen, it is still a very hawkish sentiment. So, with this in mind, let’s take a look at three penny stocks climbing during premarket trading right now.
3 Penny Stocks Climbing During Premarket Right Now
Castor Maritime Inc. (NASDAQ: CTRM)
With an almost 7% gain during premarket, shares of CTRM stock are in focus right now. With penny stocks, we often see substantial gains with little to no news behind it, and this is the case with Castor Maritime right now. But, it did report interesting news only a few days ago. On February 7th, Castor announced $29.2 million in net income for the three months ended on December 31st, 2021.
In addition, it posted $52 million in net income for the 2021 year. These are substantial and show major growth over 2020. With over $43 million in cash on hand compared to $9.4 million in 2020, we see that CTRM is in a financially advantageous position right now. Considering this, will it be on your penny stocks watchlist today?
Modular Medical Inc. (NASDAQ: MODD)
One of the largest premarket gainers is MODD stock, which shot up by almost 60% during premarket trading. This brought it from around $3.70 per share to over $5.90 in early morning trading. The main reason for this comes as the company announced the pricing of its $15 million public offering as well as its uplisting to the NASDAQ exchange.
It states that the offering consists of 2.5 million units sold at $6 per unit. These funds will be used for general corporate purposes, working capital, and R&D expenditures. While it does look like MODD stock is highly volatile right now, there’s no doubting that today’s gain is impressive. With this in mind, is MODD going to be on your list of penny stocks to watch?
Orphazyme (NASDAQ: ORPH)
ORPH stock is a popular penny stock that we have covered numerous times in the past. And today, shares of the biotech penny stock climbed by over 12% in premarket trading. During premarket today, the company announced that it has made progress toward resubmitting its NDA of arimoclomol and will request a Type C meeting in the second quarter of this year.
“Requesting a Type C Meeting is the next step in establishing a potential path to resubmission of our NDA to the FDA. NPC is a rare neurodegenerative disease for which there are no approved treatments in the United States, and we look forward to continuing our interactions with the Agency.”The CFO of Orphazyme, Anders Vadsholt
This is exciting news and should be kept in mind for those interested in ORPH stock. Whether this makes it worth buying or not is up to you.
Are Penny Stocks Worth Buying?
If you’re trying to find penny stocks to buy, there are hundreds of options to choose from. But, because of the sheer number of penny stocks out there, it can be difficult to find ones that are worth buying.
Now, the best method of making money with penny stocks is a combination of understanding what is going on in the stock market and what your trading strategy is. With this in mind, do you think that penny stocks are worth buying?