Trying to find the best penny stocks screener or figure out how to beat this stock market game millions of traders are playing? Believe it or not, making money in the stock market isn’t as difficult as you might think. There are considerable risks involved, but if you know some of the basics of trading, you’re already positioned better than half of the other retail traders in the stock market today.
Learning how to trade and how to invest are specific things to practice. Sure, it takes time, and you’re not likely to make money during the learning period. But education is what has set apart the pros from the Joes. One of the cornerstones of learning how to trade is understanding how to do some research.
Sure, if you’re well-versed in high-frequency trading, a penny stocks scanner focused on quick breakouts is excellent. But what if you’re a bit more novice and just getting your feet wet? Well, first thing’s first: find names to add to a watch list with more going on than just unusually high volatility. Today we look at a handful of penny stocks with recent catalysts. News, corporate filings, and even Tweets can leave a lasting impact on a stock’s market.
Best Penny Stocks To Buy
What are the best penny stocks to buy today? The answer to this question is based on your trading style. Generally speaking, however, if you’re looking for the best penny stocks to buy, you’ll want to identify a few things. First, what current or potential catalysts could factor into a move? Are there any events that could act as risks? Are companies well capitalized, so they don’t need to have surprise financing rounds to sustain operations? Is there a current level of consistent trading volume?
These are a few of the questions you’ll want to ask when looking for companies to add to your list of penny stocks. With this in mind, let’s see if some of the most active premarket penny stocks are worth a close look?
- Hycroft Mining (NASDAQ:HYMC)
- Grab Inc. (NASDAQ:GRAB)
- Datasea Inc. (NASDAQ:DTSS)
- ironSource Ltd. (NYSE:IS)
Hycroft Mining (NASDAQ: HYMC)
When you talk about meme stocks, I’m sure AMC Entertainment (NYSE: AMC) and GameStop (NYSE: GME) immediately come to mind. While these two behemoth “stonks” have captivated retail traders’ interests, the companies have also begun extending their reach and leveraging this newfound popularity. AMC, in particular, began investing in public companies, including Hycroft Mining. While there was no direct relationship to the penny stock, at the time of the transaction, AMC CEO Adam Aaron explained:
Our strategic investment being announced today is the result of our having identified a company in an unrelated industry that appears to be just like AMC of a year ago. It, too, has rock-solid assets, but for a variety of reasons, it has been facing a severe and immediate liquidity issue. Its share price has been knocked low as a result…It is appealing that the investment requires the commitment of only a nominal amount of AMC cash.
This has helped keep HYMC stock on the radar of retail.
What’s Going On With HYMC Stock?
Despite a relatively sideways trend, HYMC stock has experienced a few days of bullishness over the last few months. The latest comes on the heels of Hycroft’s latest headlines. The company announced the launch of its 2022-2023 exploration program.
According to Hycroft, this is the “largest exploration program at its Hycroft Mine in nearly a decade.”
Grab Inc. (NASDAQ: GRAB)
China-based companies caught a nice move during premarket hours on Monday. This was thanks to upbeat sentiment regarding the country’s real estate market. According to reports, China may allow homeowners to “temporarily halt mortgage payments on stalled property projects without incurring penalties.” Chinese authorities have worked to prevent a potential crisis of confidence in the housing market.
Grab Inc. is a super app company. It offers everything from food delivery and mobility to digital financial services through its application.
What’s Going On With GRAB Stock?
This week, in addition to headlines out of China, analyst coverage helped ignite some optimism. JP Morgan upgraded GRAB stock. Analyst Ranjan Sharma boosted the firm’s Neutral rating to Overweight. At the same time, Sharma lowered the GRAB stock price target to $3 from $3.50.
Datasea Inc. (NASDAQ: DTSS)
Late last week, Datasea Inc. caught a nice surge of momentum, helped by strength in broader tech stocks. While there weren’t any significant headlines from the company on Friday, shares of DTSS stock exploded above two major moving averages. The 200-day and 50-day MAs have acted as resistance levels over the last few months. As of Monday’s premarket, DTSS stock has surpassed both levels, reaching highs of $2.99.
What’s Going On With DTSS Stock?
Something that came out last week in the company’s SEC filings was a Form S-1, which discussed the resale of up to 1.218 million shares of DTSS stock by selling shareholders. This filing didn’t seem to impact the market for DTSS stock at all. However, what has brought some action is news that the company signed a purchase agreement worth $22.3 million for providing 5G messaging services in China.
The agreement is with Hangzhou Runsheng Network Technology. It provides marketing and automation services to companies like China UnionPay, JD.com, Ping An Group, and others. With the latest headline, DTSS stock has caught the attention of retail traders.
ironSource Ltd. (NYSE: IS)
Earlier this month, we discussed ironSource following merger news. Unity (NYSE: U) announced that it entered into a definitive agreement for ironSource to merge with the tech company. One of the attractive parts of IS stock to Unity is its business platform targeting mobile content creators looking to turn apps into scalable businesses.
According to a July 14 update, “The companies’ complementary offerings create a unique end-to-end platform that allows creators to create, publish, run, monetize, and grow live games and RT3D content seamlessly.”
What’s Going On With IS Stock?
One of the catalysts contributing to bullish momentum (other than merger news) was action in the options market. In particular, the September 16th $2.50 Call options gained attention. As of this article, there are nearly 5,900 Open contracts for that strike. In comparison, there are less than 700 Open contracts on the put side of the options chain in total, accounting for all strike prices.