There are over 500 Nasdaq & NYSE listed stocks, rights, and warrants that could be considered penny stocks today. Based on the definition of penny stocks, I’m talking about stocks under $5. They’ve become trendy among retail traders looking for opportunities while the stock market crash is in full force. Today we’re looking at some of the cheapest names of the group trading below $1, literally trading for pennies.
So why focus on NYSE & Nasdaq penny stocks under $1? Those of you who use platforms like Robinhood and Webull may be looking for some of these cheap stocks. Until recently, both platforms restricted access to OTC issuers, where the bulk of these very low-priced stocks trade. Webull recently opened access to a select number of Over-The-Counter names but still has put limits on certain issuers.
With the Federal Reserve Meeting coming to a close today, all eyes are on rates and inflation data. This year’s stock market volatility is unavoidable, but instead of fighting it, retail traders are embracing it with open arms. That’s because the volatility in cheap stocks is approached much differently compared to broader market trends. In general, you’ll likely find that the price fluctuations come aggressively and quickly in comparison with penny stocks. Therefore, it’s important to know how to trade these types of assets.
Penny Stocks To Buy For Under $1
- Kintara Therapeutics Inc. (NASDAQ: KTRA)
- ThermoGenesis Holdings Inc. (NASDAQ: THMO)
- BitNile Holdings Inc. (NASDAQ: NILE)
Finding Hot Penny Stocks To Watch
If you’re putting together a list of penny stocks to watch right now, it’s important to understand specific methodologies for compiling it. Today, we’ve focused on high-volume names gaining momentum in the stock market today. Another way to find companies for your list is to focus on specific themes like stocks with news, stocks with insider activity, stocks with unusual options volume, etc. There are plenty of ways to make money with penny stocks, and starting with a substantial list is an excellent first step.
1. Kintara Therapeutics Inc. (NASDAQ: KTRA)
The biotech penny stock, Kintara Therapeutics, surged on Wednesday thanks to reaching its latest milestone. The company announced that the FDA granted Fast Track Designation to its VAL-083 in patients with glioblastoma. This process allows companies like Kintara to develop and speed up the review of drugs to treat severe conditions.
Robert E. Hoffman, President, and CEO of Kintara, explained, “We look forward to announcing top-line data from the international registrational phase 2/3 GBM AGILE Study around the end of calendar year 2023. Fast Track Designation allows us to work closely with the FDA and may expedite our commercial launch of VAL-083, if approved.”
Other upcoming points of interest for KTRA stock include tomorrow’s company presentation at the JMP Securities Life Sciences Conference. Starting at 11:30 AM ET, Kintrara’s CEO gives a corporate overview to attendees.
2. ThermoGenesis Holdings Inc. (NASDAQ: THMO)
We discussed different trends to help you create a list of penny stocks. One of the trends I didn’t touch on was low float stocks. If you’re unfamiliar, the “float” of a company is basically all of the shares available for trading in the market. It doesn’t include restricted stock or shares that haven’t yet been registered—the lower the float, the lower the supply of tradeable shares in the market. When there are high levels of buying or selling, volatility becomes even more amplified.
ThermoGenesis has a float of fewer than 15 million shares and, by most accounts, would be considered low. Outside of the low float, THMO stock is gaining attention after a spike in trading volume turned heads early. On average, the penny stock trades fewer than 200,000 shares daily. On Wednesday, it traded more than 2.4 million before 10:30 AM ET. There weren’t any headlines to pair with the jump in activity.
Speculation may be at play now in light of the limited level of external catalysts. ThermoGenesis provides automated technologies for CAR-T and specific cell-based therapies with a full suite of solutions ranging from biobanking to immuno-oncology.
3. BitNile Holdings Inc. (NASDAQ: NILE)
Like the overall market, cryptocurrencies have gotten hammered over the last few months. While they may have initially been considered inflationary hedges, that is not the case right now. The price of Bitcoin, the price of Ethereum, and the prices of countless alt coins have plummeted. Bitcoin has fallen to some of its lowest levels since 2020.
Believe it or not, this bearish trend hasn’t held down all cryptocurrency stocks daily. BitNile Holdings is an example of that. Overall, NILE stock is down on the year, but recent daily swings of 10-20% have kept it on the watch list for day and swing traders alike.
The company has multiple holdings but focuses on data, bitcoin mining, and mission-critical technologies. The most recent catalyst for the mid-June move isn’t related to any news. You’ll have to look at the corporate SEC filings to find that. In this case, insider and executive chairman Milton Ault III reported purchasing 1 million shares of NILE stock on June 13th. His average price per share was just under $0.26.
Are Penny Stocks Worth It?
Since these low-priced stocks have such high risk, you might be wondering if penny stocks are worth it? Assuming you’ve got a trading strategy in place and understand this underlying risk, penny stocks can be worth it as they can present opportunities that other, higher-priced stocks cannot. While a 5% move in Tesla (NASDAQ: TSLA) might be considered “big,” that pales in comparison to the daily swings of 50% or more in certain stocks under $5.