Penny stocks have earned their place in the stock market today for their high-risk & high-reward reputation. But something that most new traders fail to realize is that these cheap stocks aren’t just “lottery tickets” to buy blindly. There are plenty of ways to make money with penny stocks, and the first step is research. Also considered “due diligence,” identifying catalysts is essential to the process. Today we look at a handful of penny stocks making big moves premarket. In this article, we break down the latest trends and discuss potential catalysts to make a note of right now.
5 Penny Stocks To Watch
- Gamida Cell Ltd. (NASDAQ: GMDA)
- ObsEva SA (NASDAQ: OBSV)
- Jiuzi Holdings Inc. (NASDAQ: JZXN)
- Imperial Petroleum Inc. (NASDAQ: IMPP)
- Redbox Entertainment Inc. (NASDAQ: RDBX)
Best Penny Stocks To Buy
Should you invest in penny stocks? It’s essential to know your risk tolerance to identify the best ones to buy. So many low-priced stocks make their moves within a single day. After that, the trend dies off. Is this the case with all penny stocks? No, and today’s article will give some insight to help you better understand what’s happening in the stock market today.
Penny Stocks To Watch #1: Gamida Cell Ltd. (NASDAQ: GMDA)
Thanks to a new update, the biotech company Gamida Cell Ltd. is on the premarket watch list today. The company specializes in developing NAM-enabled (Nicotinamide) cell therapies for different cancers and serious diseases. Its treatments are designed to enhance the amount and functionality of targeted cells.
Why Is GMDA Stock Moving?
Tuesday morning, the company announced that the FDA cleared an Investigational New Drug (IND) application and removed a clinical hold for a formulation of its GDA-201 treatments. This platform is designed as an “off-the-shelf” cell therapy for treating B cell lymphomas. Investors may be looking ahead at an expected initiation of a Phase 1/2 clinical study of GDA-201 later this year.
2. ObsEva SA (NASDAQ: OBSV)
Shares of ObsEva have been on the move since early March. The penny stock has climbed from lows of $1.08 to highs of $1.73 during premarket trading on April 26th. ObsEva develops therapies for reproductive health in women. Its linzagolix for the treatment of uterine fibroids was in the spotlight earlier this week. In particular, the Committee for Medicinal Products for Human Use of the European Medicines Agency confirmed its previously adopted positive opinion, recommending approval of linzagolix. The company has a licensing agreement with Theramex to commercialize and market the candidate in Europe.
Why Is OBSV Stock Moving?
In addition to Monday’s news headlines, analyst coverage has helped spark premarket momentum for the penny stock today. Canaccord Genuity initiated coverage on ObsEva. The firm gave a Buy rating and issued a $12 price target. Based on April 26th premarket highs of $1.73, that represents a premium of over 590%.
3. Jiuzi Holdings Inc. (NASDAQ: JZXN)
Unlike ObsEva, Jiuzi Holdings has been in a strong downtrend over the last several weeks. Much of this has come as investors weigh the future of China-based companies and their listing on US exchanges. Jiuzi is a new energy vehicles franchisor in China. As such, it has gotten wrapped into the discussion along with other China-based names.
Why Is JZXN Stock Moving?
This week the company entered into an acquisition agreement to purchase 72.05% interest in an automobile sales service shop operator, Huizhou Jiwo Automobile sales service Co. Ltd. CEO Shuibo Zhang explained, “This acquisition is an important strategic milestone for our Company. The addition of the high-end EV brand Geometry of Geely Auto Group furthers our multi-brand strategy and achieve another major advancement by upgrading our competitiveness and securing sustainable development in the future. It will also drive our continuous business growth in the new fiscal year.”
4. Imperial Petroleum Inc. (NASDAQ: IMPP)
Shares of Imperial Petroleum have pulled back significantly from their March highs. Last month’s surge in energy prices bolstered an industry-wide breakout in oil, gas, and even alternative energy stocks. Imperial owns ships that provide petroleum products and crude oil to seaborne transportation services.
Why Is IMPP Stock Moving?
Oil and energy stocks have followed suit after the latest dip in the broader markets. However, premarket trading on April 26 has seen a reversal in this trend. Oil futures surged during the early hours of the session and approached the $100 level to reclaim their losses from Monday’s session. IMPP stock has experienced bouts of volatility in tandem with the move in oil (both up and down). With oil prices back on the move (for now), it will be interesting to see how or if IMPP stock reacts in kind.
5. Redbox Entertainment Inc. (NASDAQ: RDBX)
You’ve likely seen a Redbox outside of your local drugstore. Yes, people still rent DVDs, and Redbox has become the company to meet these needs. The company also offers a streaming option that is ad-supported (something that another popular streaming service has just begun pondering as an option).
Shares of RDBX stock have plummeted since going public. Like other SPAC deals, the early IPO breakout was short-lived. Redbox stock has slipped from highs of $27.22 last year to lows of $1.61 earlier this year.
Why Is RDBX Stock Moving?
Speculation has become a driving force with RDBX stock. Earlier this month, an 8K filing showed that CFO Kavita Suthar is set to resign next month. Following this news, traders have speculated on the future direction of Redbox from a financial angle. Regardless of these next steps, traders have reacted bullishly to the leadership shakeup as shares of RDBK stock bounced from around $2 to highs of over $4 during premarket trading on Tuesday.
Are Penny Stocks Worth It?
Thanks to premarket updates, many of these penny stocks are on the move. The important thing to note is whether or not “now” is the best time to trade them. Are these catalysts for higher highs, or will current shareholders take this as a profit-taking opportunity? Ultimately, the choice is yours, and knowing what’s behind the move in specific penny stocks is a great place to begin your research.