Top Penny Stocks To Watch At The End Of July
Should you invest in penny stocks? That’s an excellent question, especially if you’re confident trading higher volatility stocks. The definition of penny stocks includes stocks under $5, and with that low price can come fierce price swings. Not including any other catalysts, a few pennies can mean a huge gain or crushing loss. But to get to that point, you’ll need to understand how to buy penny stocks correctly. That includes learning how to put together a strong watch list.
Research is vital to your success. But it doesn’t necessarily mean undertaking the daunting task of sleepless nights piling through hundreds of corporate financials. We’re talking about penny stocks here.
Most likely, you’re looking for some trade ideas instead of investing in penny stocks for the next 20 years (though there are instances where that might pay off big). Nevertheless, we’re looking at a few penny stocks to watch with some unusual activity. This includes unusual options activity, stocks with above-average trading volumes, and even low float penny stocks experiencing an uptick in momentum.
As July ends, the hunt is on for the next round of penny stocks to buy. While I can’t guarantee that any of these will become the massive breakout names we saw in July, they may be worth a closer look based on distinctive traits observed in the stock market today. After reading the article, you can decide if they’re the best penny stocks to buy or if they should be avoided entirely.
Penny Stocks To Buy [or avoid]
- Thermogenesis Holdings Inc. (NASDAQ: THMO)
- Fathom Digital Manufacturing (NYSE: FATH)
- Silverback Therapeutics Inc. (NASDAQ: SBTX)
- View Inc. (NASDAQ: VIEW)
Penny Stocks To Buy [or avoid] 1. Thermogenesis Holdings Inc. (NASDAQ: THMO)
Low float penny stocks are becoming a favored type of stock to watch. That’s because the market moves can become so volatile that stocks go on to run hundreds of percentage points in a single session at times. Similar to short squeeze stocks, the moves come quickly, including bullish and bearish trends. But for those who love high-risk, low float stocks present some of the highest.
Thermogenesis Holdings is one of these so-called low float penny stocks. With a current outstanding share count of fewer than 35 million and some outlets showing a float reading below 10 million, THMO stock makes this list. I won’t go into a history lesson, but it’s safe to say it hasn’t been great as far as the market for this penny stock goes. Shares hit fresh 52-week lows of just $0.09 earlier this month.
What To Watch With THMO Stock
Other than the float, there are a few things to keep in mind with the company. Its focus on cell and gene therapy has given investors something to follow as this niche has been one of the more popular this year. For example, its CAR-TExpress platform allows for reduced processing time to improve cell recovery and possibly reduce costs by up to 70%. The company is also planning on launching its TG Biosynthesis division in late 2022 to provide development and manufacturing capabilities for its clients with therapeutic candidates.
Thursday, an 8-K was filed, which seems to have helped boost sentiment in the beaten-down penny stock. ThermoGenesis entered into an amendment with one of its noteholders, Orbrex Co. Limited. It extended the maturity date of a note to the end of January 2023. It also adjusted the conversion price of the note from a broader “90% of THMO stock price on the day of conversion” to a fixed $0.21. Given that THMO stock currently trades around that price, the market responded favorably to the news. Meanwhile, the maturity extension pushes back potential dilution risk from the conversion of this particular note to next January.
2. Fathom Digital Manufacturing (NYSE: FATH)
Fathom is a manufacturing company (obviously by the name) servicing numerous industry clients. Aerospace, defense, medical, automotive, tech, and IoT sectors fall into its basket. From plastics to metal additives and CNC, injection molding, and tooling, the company has developed more than 25 different manufacturing processes.
You won’t find many headlines from the company or recent filings. But you will see that late last month, FATH stock was put into the Russell 3000 and 2000 indices on June 27th. This broader accessibility brings a bit more attention to the company when it comes to the Russell deciding whether or not to keep it in the grouping when it comes time to readjust holdings. On top of that, Fathom is going through a reorganization plan and consolidating its footprint, including its leadership. The plan should be buttoned up by the second quarter of next year and contribute roughly $5.5 million to net pre0tax annualized cost savings.
What To Watch With FATH Stock
We’re taking it to the FATH stock options chain for our “what to watch” section. Specifically, the August 19th $5 strike Calls saw some unusual activity in the stock market today. The particular contract had only 120 open interest contracts, yet more than 4,200 were traded by the end of the session. In many cases, unusual activity is used by traders to gauge sentiment. Assuming this was to the buy side, some may assume this to have been a bullish move in the options market for FATH stock.
Penny Stocks To Buy [or avoid] 3. Silverback Therapeutics Inc. (NASDAQ: SBTX)
Silverback Therapeutics has mounted a quiet comeback from 52-week lows back in May. During the period, SBTX stock steadily climbed from $2.80 to highs this week of $4.80. While the $2 move didn’t happen overnight, it came when the company was working on closing a merger with ARS Pharmaceuticals.
In a transaction that would support the commercialization of treatment candidates like ARS’s neffy nasal spray. Neffy is designed to rate Type 1 allergic reactions, including anaphylaxis. With a new ticker, SPRY, also coming with the deal, it will be essential to keep track of if and when the deal officially closes.
What To Watch With SBTX Stock
Other than the pending merger anticipated to complete next quarter, the options market is again the area of interest. In this case, the September 16th $5 strike Calls drew the most attention. A little over 1,100 open interest contracts were in play, and more than double that (2,758) had traded by the closing bell on Thursday.
4. View Inc. (NASDAQ: VIEW)
Like Silverback, View has also managed a slow and steady rise since May. The company specializes in smart building platforms and technologies and has bounced back by more than 500% during that time. It’s no wonder why traders are following VIEW stock closely. It also demonstrates the unique potential for leveraging the price of penny stocks to your advantage.
Last quarter View reported strong growth of 74%, year-over-year to $17 million, thanks to the significant customer wins in life sciences, residential, multifamily, and commercial installations. View’s tech-based window technology is designed to adjust and responds to environmental cues to retain optimal comfort for anyone in a smart-building-equipped location.
What To Watch With VIEW Stock
Earnings (on August 8th) will likely be something to keep track of if VIEW stock is on your watch list. In addition, we looked at the options chain for the penny stock and saw something interesting there.
The September 16th $2, in-the-money Calls saw a near 60,000% difference in open interest and today’s options volume. There were only 2 Open contracts compared to 1,200 that has exchanged hands during the session. Whether or not this is bullish or bearish for VIEW stock is to be seen. However, the expiration is the most near-term in relation to the next round of earnings.
Are Penny Stocks Worth It?
If you’re willing to take on the risks, penny stocks can be worth it. They are notoriously volatile, so you need to be aware of the risks involved before investing. But if you know what you’re doing, penny stocks can offer the potential for big rewards. Just remember to do your research and always tread carefully.