The great part (and scary) about penny stocks is their volatility and potential for quickly making huge moves. It isn’t a rarity to see these cheap stocks explode hundreds or even thousands of percentage points in a day or even a few weeks. Our writers have written about many of the top penny stocks to watch this summer that saw eye-popping gains far outpacing market averages.
But these massive gains have come at a cost. Stress, anxiety, fear, doubt, excitement – a full spectrum of emotions as changes of a few cents in price equate to significant percentage changes in position value. On top of this, the cheaper the stock, the more volatile its market. Aside from other contributing factors, the cheapest penny stocks can be some of the most explosive.
Earlier today, shares of Addex Therapeutics (NASDAQ: ADXN) experienced a significant percentage move from a change in its stock price of just $1.63. While this is less than a cup of coffee at your favorite “fancy” coffee shop, it was worth 189%. ADXN stock was one of the penny stocks under $1 that traders turned their attention to, thanks to a big corporate update released during premarket hours on July 21st.
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Are penny stocks worth it? Yes, and ADXN is just one of many examples as long as you know what you’re doing and understand how to trade. Today we look at a handful of stocks under $5 that are gaining steam heading into the weekend. News, speculation, and general market momentum have all added to the action in the stock market today. Will they be on your watch list before Monday? Let’s see what’s going on, and then you can decide for yourself.
4 Penny Stocks To Watch Under $5 This Week
- Velo3D Inc. (NYSE: VLD)
- Blue Hat Interactive Entertainment (NASDAQ: BHAT)
- DSS Inc. (NYSEAMERICAN: DSS)
- Boxed Inc. (NYSE: BOXD)
Velo3D Inc. (NYSE: VLD)
Shares of Velo3D have quietly mounted a strong breakout over the last few weeks. You might’ve not seen VLD stock mentioned on your favorite sub on Reddit. But rest assured that at least a few traders are paying close attention to this company.
Velo3D is involved with metal additive manufacturing. Its technology provides mission-critical parts for organizations, including government agencies. What helped give this beaten-down stock a boost in July initially was a deal with Raytheon business, Pratt & Whitney. The deal was for the acquisition of an end-to-end solution from Velo3D to evaluate the Sapphire printer for manufacturing production jet engine components.
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What To Watch With VLD Stock
With a short float percentage of less than 9%, according to Fintel.IO, this may not have made it to the list of short squeeze penny stocks to watch. However, recent headlines have put a bright spotlight on the company. Velo3D announce a new partnership with Hartech Group for distributing its technology to government agencies.
“We have chosen Velo3D and its end-to-end solution for our federal government customers interested in acquiring advanced additive manufacturing technology due to the company’s very high quality and reputation. We will use our top ratings with the federal government to make sure we supply a full Velo3D solution.”
Gary Bredael, Hartech Group Director of Additive Manufacturing
With the ramp-up of fresh deal flow, VLD could be on the list of penny stocks to watch before next week.
Blue Hat Interactive Entertainment (NASDAQ: BHAT)
Blue Hat specializes in augmented reality and interactive entertainment technology. Thanks to cryptocurrency and blockchain technology prompting the growth of metaverse applications, AR/VR and extended reality technology companies have gained some attention. Furthermore, Bitcoin’s latest price bump has also brought a bit of a revival to all things “digital assets” this month.
One of the biggest contributing catalysts was news of Blue Hat terminating a stock offering. This effectively communicated to the public that potential dilution may not be a factor. The company eventually raised funds to the tune of $3.6 million, which was for $3.60 per share and still a premium to the current market price. The first tranche of $1.44 million was expected to close last week, with the remaining balance due by the end of the month.
What To Watch With BHAT Stock
Other than the financing news, BHAT stock hasn’t seen many corporate-related catalysts as far as information is concerned. But the short squeeze trend may have begun playing a role. That’s because BHAT stock has a short float percentage of just over 40%, according to Fintel.IO data.
DSS Inc. (NYSEAMERICAN: DSS)
Shares of DSS Inc. could be on the radar before the week’s close. The company’s multi-pronged approach to business transactions has created strategic deals in myriad verticals. Everything from product packaging and financial assets to marketing and biotechnology falls into its wheelhouse.
You might remember this company from back in the first quarter. A series of news releases, including strategic investments into the company, corporate presentations, and progress within its biotechnology arm, helped send DSS stock to highs of nearly $0.80.
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What To Watch With DSS Stock
DSS stock has given back much of those gains as broader market trends trickled into the micro-cap. But a new update after Thursday’s close might turn some heads. Once again, it has to do with its biotech company, Impact BioMedical.
The company reported that announced Global BioLife, Inc., a subsidiary of Impact, executed a license agreement with ProPhase BioPharma, Inc., a subsidiary of ProPhase Labs, Inc. (NASDAQ: PRPH). The deal was for Global BioLife’s Linebacker portfolio (LB-1 and LB-2). They are two patented small molecule PIM kinase inhibitors with potential across multiple therapeutic indications.
On another note, DSS stock has tested its 50-day moving average the last few sessions. As this is a major moving average and consistent point of resistance over the last few months, it will be interesting to see if DSS stock has a technical “play” as well.
Boxed Inc. (NYSE: BOXD)
At the end of June, we began picking up on activity in BOXD stock. The company is best known for its bulk grocery purchasing platform and licenses its eCommerce software to other enterprise retailers.
Missed earnings expectations are to blame for its slide from over $10 to below $5. A prospectus filed also showed that Jones Group Ventures planned to sell “up to” 15 million shares of BOXD stock. The firm advised on the transaction that resulted in Boxed becoming public through Seven Oaks Acquisition Corp.
What To Watch With BOXD Stock
If you’ve followed the SPAC trend, a trail of tears like this (as far as the chart is concerned) isn’t an uncommon sight. Even the most popular SPAC deals have crashed lower. So, where does Boxed go from here? For starters, the company announced its planned expansion into the Vietnamese market via its partnership with Aeon Co., a large retail in Asia. Aeon previously helped Boxed gain access to Malaysia and is expected to bring the company into Indonesia.
However, what could be more of a focus right now is Boxed upcoming earnings. In a potential fight for redemption from its last quarterly report, Boxed reveals its Q2 figures on August 9th. As the date approaches, traders may take a speculative look at the retail penny stock.
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