Market sentiment is mixed in the stock market today. But things are a bit more bullish for those trading penny stocks, thanks to micro-trends that traders are following. I’m talking about things like short squeeze stocks, momentum stocks, and, in this case, low float penny stocks. These are considered sentiment-based trends and don’t necessarily have much to do with broad market or sector trends.
Today we not only look at a handful of penny stocks that can be bought for under $5 but ones that are part of the cybersecurity industry. Several of them also have public floats below 30 million shares. Are they going to be top names for your list of penny stocks this week?
Cybersecutiry Penny Stocks To Watch This Week
- SuperCom Ltd. (NASDAQ: SPCB)
- Guardforce AI (NASDAQ: GFAI)
- BIO-key International (NASDAQ: BKYI)
- CynergisTek Inc. (NYSE: CTEK)
- IronNet Inc. (NASDAQ: IRNT)
Penny Stocks To Buy
When it comes to finding penny stocks to buy, you want to start with a good watch list. Regarding this idea of sentiment and sympathy trading, understanding which types of sentiment and sympathy are at play is essential. If you see that particular social media stocks are hot, then ideally, you’d begin putting together a list of social media penny stocks with similar features or models.
On the other hand, today, if you see that stocks in multiple industries are breaking out seemingly out of nowhere, you might want to look closer at share structure or other things, including insider trading, short interest, or even what’s being discussed on Reddit.
Today’s list of penny stocks is all about lower floats and cybersecurity. If you’re unaware of what I mean by “low float,” this refers to the total number of shares publicly available to traders. The lower the float, the lower the supply and, in turn, the potential for higher demand to spark momentum. Is that always the case? No, and you should understand how to trade volatile stocks first. Just as quickly as these can explode, they can plummet.
1. SuperCom Ltd. (NASDAQ: SPCB)
First on this list of penny stocks is SuperCom Ltd. The company has been battling back from a sell-off earlier this month. Thanks to some excitement in small-cap cybersecurity stocks, SuperCom has come back into focus this week. The company provides different services, including secured solutions for eGovernment, the Internet of Things, and, of course, cybersecurity.
The initial drop in SPCB stock came after the news of the company’s latest $4.7 million financing round was released. SuperCom has since reclaimed some of what it lost thanks to market momentum and a recent update on a new version launch of its cybersecurity software. Thanks to growing fears about cyberattacks stemming from the Russia-Ukraine war, companies exposed to this niche have grown in appeal.
What’s more, SPCB stock may have also gotten wrapped up in the low-float trend this week. Look at the company’s stock profile page, and you’ll see what I mean. Total shares outstanding sit at less than 17 million shares. Anything below 30 million is generally considered “low” by most accounts. Since the O/S will always be the same or more significant than the float, chances are, a lower O/S reflects a lower float.
2. Guardforce AI (NASDAQ: GFAI)
Another cybersecurity name joins this list of low float penny stocks. Guardforce AI specializes in security solutions utilizing robotics and information security to piggyback on its logistics business. Like SuperCom, GFAI stock has climbed back strongly from its early Q1 lows thanks to an uptick of interest in cybersecurity stocks.
This wee, the company announced that its expansion of Robotics as a Service (RaaS) continues. Guardforce signed a letter of intent with Shenzhen Kewei Robot Technology to buy up to 36 of its subsidiaries in China, with the first phase bringing on 8 of these subsidiaries. In light of this news, GFAI stock caught some strong momentum during the early Monday morning session.
Apart from the headlines, traders’ more prominent focal point may be its share structure. Look at the GFAI stock profile page, and you’ll see the figures. The outstanding share count sits below 30 million. In light of this, it may make more sense why the GFAI stock chart has become so volatile over the last few weeks of trading. Given this case, it will be interesting to see how this news will get digested later this week.
3. BIO-key International (NASDAQ: BKYI)
Identity-as-a-Service company BIO-key has experienced its second significant surge in trading momentum of the month this week. Shares of BKYI stock jumped to highs of $2.90 before settling back down and with some of the highest trading volumes in months. The last time shares traded like this was on March 8th, just ahead of news that BIO-key completed the acquisition of Swivel Secure Europe. Swivel is an identity and access management company providing services in Europe, the Middle East, and African markets.
According to BIO-key CEO Michael DePasquale, “Swivel Secure has longstanding relationships with over 300 customers in similar and complementary verticals including education, government, banking, finance, healthcare, and manufacturing. Through this combination, we will be able to deliver improved capabilities and service levels for customers on a global basis.”
This week the company is at the Chief Information Systems Officers Association Technology Summit. It hosts customer meetings and demonstrations throughout the period. Since the conference goes from March 20th through 23rd, it will be interesting to see how the market reacts to any developments arising from the event. It also doesn’t hurt that the BKYI stock profile page shows an O/S of fewer than 10 million shares, putting this on the list of low float penny stocks to watch.
4. CynergisTek Inc. (NYSE: CTEK)
Sticking with this cybersecurity stock trend, CynergisTek has climbed on Monday. The company’s focus is on privacy and compliance to help organizations navigate the emerging needs of cyber security.
This quarter has become an active one for CynergisTek. Not only has it announced several six-figure cybersecurity consulting deals, Last week, it also reported that it boosted its threat intelligence and incident response capabilities with GroupSense. The two companies can offer CynergisTek’s customer base ransomware negotiation services thanks to a strategic partnership. The deal also allows for improved capabilities when it comes to IR training.
CTEK is undoubtedly among the names to know when it comes to the low float trend. According to the figures on the CTEK stock profile page, the current O/S sits well below the 30 million level.
5. IronNet Inc. (NASDAQ: IRNT)
This is our outlier on the list of cybersecurity stocks with low floats. Based on the IRNT stock profile page data, you can see that its O/S is well above the 30 million share threshold. However, that hasn’t stopped the momentum from coming into the stock market today. Thanks to President Joe Biden’s comments, many cybersecurity stocks are back in focus. When it comes to smaller company stocks, IronNet has remained one to watch.
Whether it was stocks with unusual options activity or penny stocks to watch amid the Russia-Ukraine conflict, IRNT has been on the radar this quarter. Among several new developments, IronNet recently secured several global-scale deals, including one in Singapore for healthcare and finance customers. The company also inked agreements with “a Gulf Cooperation Council Country” providing defense for national infrastructure. IronNet’s AI-based Network Detection and Response solution, in addition to its Collective Defense Platform, will facilitate real-time cyber defense for key ministries and companies.
With the focus on cybersecurity stocks, IRNT could be one of the names to know right now.
President Biden Comments On Cybersecurity Threat
Cyberattacks during the Russia-Ukraine war have been speculated on since the initial murmurs of war began filtering into the news cycle. In one of the first definitive statements from the White House, President Joe Biden said that there is “evolving intelligence” the Russian government is exploring options for potential cyberattacks against the US. The White House also emphasized that the private sector must immediately harden its cyber defenses.
Given the gravity of this messaging, it may not be a bad idea to have cybersecurity stocks on your watch list heading into the final half of March.