Penny stocks are stocks trading for less than $5 per share. These are some of the most volatile names in the stock market today. This isn’t only based on the inherent price volatility but also the fact that penny stocks are usually shares of smaller companies. Fewer shares in the public float or lower market caps tend to help fuel added volatility. When you start looking at the cheapest penny stocks, this wild activity can get amplified.
Are penny stocks under $1 riskier than others? In keeping everything else constant except price, they generally can be. A move of 10 cents can mean a huge gain or massive loss depending on the direction of that move. This is one of the reasons why retail traders flock to cheap stocks. While treating the market like a lottery ticket isn’t suggested, it’s hard to ignore the potential of cheap stocks.
The ultimate goal is making money, no matter the price. Today we look at a few more popular penny stocks under $1 that are gaining the interest of retail traders in the stock market today. This is a continuation of our article “Penny Stocks To Buy Now? 3 To Watch Under $1 This Week,” and we’ll include those in the complete list at the end of this article.
Penny Stocks To Buy Under $1
- RiceBran Technologies (NASDAQ: RIBT)
- Acasti Pharma Inc. (NASDAQ: ACST)
- Guardforce AI Co., Limited (NASDAQ: GFAI)
How To Find Penny Stocks To Buy
If you’re looking for penny stocks to buy, a good first step in preparing for your trade is putting together a list. Some will choose to use a theme like biotech stocks, energy stocks, or whichever industry is hot right now. Traders might also put together a list of penny stocks experiencing high levels of market momentum, ones that have news, or high short interest. Whichever your criteria, understanding how to trade is crucial. Today we look at a few more penny stocks to buy for under $1. Are they worth the risk, or should they be avoided entirely?
1. RiceBran Technologies (NASDAQ: RIBT)
A recent fan-favorite of retail traders, RiceBran Technologies, is gaining attention amid the global food shortage. Thanks to sanctions on Russian exports, for instance, gain prices have skyrocketed. Meanwhile, another major exporter of wheat, India has decided to restrict wheat exports amid a severe heatwave. This has helped spark momentum and growing interest in food and agriculture stocks.
RiceBran develops nutritional and functional ingredients made from rice and other grains for use in human food, pet food, and even equine feed applications. While the latest trend has been steadily bullish, this week saw a much more significant spike in RIBT stock. This was thanks to news that the company began a capacity expansion of its MGI Grain Incorporated facility.
This expansion is anticipated to boost capacity by double of the pearling mill. RiceBran said this would allow it to meet the growing demand for North American-sourced, grain-based ingredients. “The demand for regionally-sourced ingredients and agricultural products is soaring given the uncertainty of the geopolitical environment and challenges in the global supply chain, and we are able to respond,” said RiceBran Chairman Peter Bradley. With this as the case, agriculture and food stocks like RIBT could be the ones to watch right now.
2. Acasti Pharma Inc. (NASDAQ: ACST)
Despite a pullback in the broader biotech niche, some small- and micro-cap biotech stocks remain immune to this bearish trend. Acasti Pharma is one of these penny stocks to watch, and recently published a new update that has sparked interest in the stock.
Acasti announced the top-line results of its pharmacokinetic bridging study with its IV GTX-104. The study’s primary objective was to evaluate the relative bioavailability of IV GTX-104 compared to oral nimodipine. The secondary aim of the study was to assess safety and tolerability. GTX-104 is the company’s candidate for treating Subarachnoid Hemorrhage. The treatment met all of its planned study endpoints.
Acasti said it now plans on submitting the results to the FDA in addition to a proposed design for a Phase 3 safety study. This is on track to begin later this year. What’s important about the safety study is that it’s anticipated to be the last step necessary to seek regulatory approval before submitting a New Drug Application to the FDA. With a conference call planned for 1 PM ET, ACST stock could be on the radar heading into the May 18th session.
3. Guardforce AI Co., Limited (NASDAQ: GFAI)
Tech stocks haven’t necessarily weathered the stock market crash and other stocks. The tech-heavy NASDAQ has become one of the main laggards this year. This hasn’t pushed traders away from day trading tech penny stocks. Guardforce AI is one of the companies that have gained popularity over the last few days.
In Guardforce’s case, it has grown in appeal thanks to continued virus concerns. While it has established a reputation for AI-based security solutions, recently, its disinfectant platform has been the highlight. To this end, Guardforce made a significant announcement this week. The company reported the expansion of its robotic disinfection services. This was in response to the latest virus outbreak in China.
Terence Yap, Chairman of Guardforce AI, also explained, “We continue to evolve our robotic ecosystem with a goal of providing our clients a one-stop-shop solution. Based on a recent report from ResearchAndMarkets.com, the global disinfection robot market is expected to grow at a CAGR of 30.1% from 2021 to 2028 and will reach $2.79 billion by 2028. Through our robots-as-as-service (RaaS) model, bundled with disinfectant supplies, we can provide our customers with a truly hassle-free and cost-effective solution. Following our pilot program in Shenzhen, we plan to promote this robotic disinfection solution in other regions across China and around the world.”
Penny Stocks To Watch
It doesn’t matter if you’re searching for penny stocks under $1 or looking for the next big large-cap breakout, a trading plan is necessary. Set profit targets and stop losses to be ready for any move that comes. You’ll also want to make sure that you keep track of stock market trends. Overall, if specific sectors are weak, it may be best to avoid them until there’s a firm recovery.
Since we’re talking about stocks under $1 in this article, volatility is something you should know how to handle. A slight move of just a few pennies can be the difference between a big windfall and a crushing loss. If you’re brand new to trading penny stocks, here are a few articles to help get you started:
- What Is A Penny Stock – Definition & More
- How to Trade Penny Stocks When the Stock Market Crashes
- Penny Stocks To Buy: 5 Tips For Trading Stocks Under $5
- Are Penny Stocks Good For Beginners? [Answered]
Penny Stocks To Buy For Under $1
- Molecular Data Inc. (NASDAQ: MKD)
- NiSun International (NASDAQ NISN)
- Evoke Pharma Inc. (NASDAQ: EVOK)
- RiceBran Technologies (NASDAQ: RIBT)
- Acasti Pharma Inc. (NASDAQ: ACST)
- Guardforce AI Co., Limited (NASDAQ: GFAI)
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