Buying Penny Stocks on May 9th? Here’s What You Need to Know 

If you’re looking for penny stocks to buy, there are hundreds of options to choose from. And after last week’s very volatile trading, many investors are unenthused about the state of the stock market right now. So, how can we find penny stocks that are worth buying? Well, there are many ways to answer this question. First, we have to consider our individual trading strategy.

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Some traders are looking for stocks that have the potential to double or triple in price, while others are content with stocks that will simply offer consistent growth. There are many factors to consider when trying to find the best penny stocks to buy. With this in mind, let’s take a look at a quick stock market recap of the last week.

Stock Market Recap, Week of May 2nd, 2022

During the week of May 2nd, we saw some of the largest losses we’ve seen since 2020. Right now, investors are digesting news regarding high inflation and tightening interest rates. Despite this, profits across the board appear to be climbing. Now, with all of this news, we see that there is a lot of volatility to take advantage of. And alternatively, there is also a lot of volatility that investors should be weary of.

This past week, the Fed announced the first of several rate hikes, with the latest coming in at 0.5%. So, with all of this news in mind, we begin to see just how crucial it is to be diversified with your investments. And, having a trading strategy that can adapt and change with time, is also a crucial step to making money with penny stocks. Considering this, let’s take a look at what you should know about trading small caps this coming week.

What to Know About Trading This Week

Last week, we saw major hype around biotech penny stocks, mining penny stocks, and tech penny stocks. While it is tough to say if this trend will continue with certainty, there is no doubting that it is a trend on the rise. So, keep this and any upcoming economic data in mind for the coming week. In addition, understand that the stock market is likely to remain highly volatile moving into the near future. So, if you’re risk averse, it may be worth avoiding for now.

3 Penny Stocks to Add to Your Watchlist This Coming Week 

  1. Mereo BioPharma Group (NASDAQ: MREO)
  2. Imperial Petroleum Inc. (NASDAQ: IMPP)
  3. Allena Pharmaceuticals Inc. (NASDAQ: ALNA

Mereo BioPharma Group (NASDAQ: MREO)

Even with the Dow sliding and Nasdaq falling further, there are still several lower-priced stocks on the move, early. Mereo BioPharma is hoping to lead the charge after late-breaking news last Friday helped spark an after-hours trading frenzy. The clinical-stage biotech company announced that it will host a conference call today at 10:30 AM ET to review top-line data from its ASTRAEUS Phase 2 study. The focus is on its alvelestat in Alpha-1 antitrypsin deficiency-associated emphysema.

In tandem, the company kicked things off on Monday with news confirming positive top-line efficacy and safety data from the ASTRAEUS trial. Dr. Denise Scots-Knight, Chief Executive Officer of Mereo expanded on this further and said, “Alvelestat has the potential to be the first-in-class oral neutrophil elastase inhibitor for the treatment of AATD-LD. We look forward to analyzing the additional data on the secondary and exploratory endpoints and to engaging with the regulators on the design of a pivotal study.”

With Monday’s call still on schedule for mid-morning, early momentum has already begun building up. MREO stock jumped above $0.60 as of press time. It will be interesting to see how the market responds once the company goes live to discuss results on its morning call.

penny stocks to buy avoid Mereo BioPharma MREO stock chart

Imperial Petroleum Inc. (NASDAQ: IMPP) 

Imperial Petroleum is as its name suggests, an energy penny stock. While its YTD drop of over 65% is nothing to write home about, the company has begun to see some small signs of bullish momentum in the past few weeks.

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In March of 2022, we saw shares of IMPP stock shoot up by over 1,400% in the span of less than a month. And since that, IMPP has fallen back down toward a realistic valuation. So, while IMPP stock is highly volatile, it does present an opportunity for those looking to capitalize on large movements.

Penny_Stocks_to_Watch_Imperial

Allena Pharmaceuticals Inc. (NASDAQ: ALNA)

On Friday, May 6th, shares of ALNA stock managed to push up by over 3% during trading and after hours. This signifies that there is some decent momentum behind the company despite a one month drop of over 50%. Now, a few days back, the company announced a $2.8 million registered direct offering.

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The company states that the net proceeds from this offering will be used for capital purposes as well as the repayment of certain debt. If you’re not familiar, Allen is a biotech penny stock working on oral biologic therapeutics that treat rare and severe metabolic kidney disorders. Considering all of that, do you think ALNA stock is worth adding to your buy list or not?

Penny_Stocks_to_Watch_Allena

Are Penny Stocks Worth Buying?

Are penny stocks worth buying or not? This is a question that many investors ask, and the answer completely depends on you and your trading strategy. While buying penny stocks can be profitable for many, for others it can be a complete disaster. As stated many times in this piece, it is crucial to understand your own tolerance for risk and investing profile. This will allow you to make the best investment decisions for yourself.

Because penny stocks are highly volatile they tend to fluctuate rapidly in price. For many investors, this is part of the appeal, as penny stocks have the potential to generate large profits. For others, it can mean large losses. So, with all of this considered, do you think penny stocks are worth buying or not?

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Sign up for our FREE Newsletter and get:

  • The Beginner’s Handbook For Trading Penny Stocks
  • Penny Stock Alerts And Ideas
  • Learn To Trade Penny Stocks
  • Free Access to The Fastest Growing Highest Rated Trading Chatroom
Privacy Policy

Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | news@pennystocks.com

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