The saga continues with penny stocks today. This week, retail traders are in a frenzy thanks to the mega breakouts from stocks like HKD, AMTD, APDN, and countless others. What’s on the menu for Wednesday? Well, as the epicness of HKD cools, new interest is focused on other low float stocks today.
Why Is KSPN Stock Up?
Kaspien Holdings Inc. (NASDAQ: KSPN) was a company we discussed earlier this quarter after it surged on the back of retail trading speculation. Like other stocks this week, KSPN stock skyrocketed when caught up in a low float penny stocks breakout trend. Shortly after the move, the company announced an $8 million offering, and shares came crashing down.
Now, armed with cash and a float still considered low, KSPN stock is skyrocketing again. It’s important to remember that there is a frenzied sentiment in the stock market today. This is especially evident with penny stocks. While KSPN stock is still trading near highs at the time of this article, a simple suggestion is not to chase shiny objects, especially if you don’t know how to trade penny stocks. Heart Test Laboratories is an example of what can happen when hype-fueled rallies turn sour.
What Happened To HSCS Stock?
Heart Test Laboratories (NASDAQ: HSCS) is the newest stock in the mix. The wild part about the latest big market moves is that they have come seemingly out of nowhere. HSCS stock traded just over 200,000 shares on Tuesday, and there’ve been some sessions where it traded fewer than 20,000. August 3rd, however, saw the penny stock explode over 240% and trade more than 14 million shares by lunch. There weren’t any headlines, and its last filing was in July.
The only other recent news was on Monday when the company gave a corporate update, which didn’t come with much fanfare. With a float below 10 million, a current focus on cheap stocks, and some recent commentary from the company, it seems that’s all the market needed.
The unfortunate side of this story is shortly after hitting highs of $6, HSCS stock quickly dumped back below $4, down over 30% from the top of the move. The medical technology company and KSPN stock have gained plenty of attention, which has also translated to other stocks in sympathy. UPDATED 8/8/2022: HSCS stock ultimately managed to rebound during the week of August 7th, bouncing above the $3.75 level once again. Since August 2nd, shares of the penny stock have climbed over 125%.
Today we look at a few more low-float penny stocks to watch in light of explosive moves from small- & micro-caps stocks.
Low Float Penny Stocks To Watch
MSP Recovery (NASDAQ: MSPR)
As discussed in an article earlier this week: The name of the game with this list of penny stocks is “low float” stocks to watch.
If you don’t know what “float” means, that’s ok, and I’ll explain. When looking at share structure, you’ve got the Authorized Shares, Outstanding Shares, and Public Float. Authorized is the most amount of shares a company is authorized to issue and will be the largest of the 3.
Outstanding is the amount of shares issued and outstanding but will also include restricted stock, which doesn’t factor into the retail market. This is either equal to or less than the Authorized amount. Then you’ve got the public float. This is the number of shares publicly trading between hands daily. This figure is usually less than but can also be equal to the OS. The lower the float, the higher the chances of increased volatility.
Since most outlets have less than 5 million shares listed for the MSP Recovery float, MSPR stock is on the list. The company specializes in medical reimbursement recovery and technology. It began trading during the middle of the second quarter and reports its first financial results this week. One thing to point to ahead of these results was the revenue guidance reported in May.
MSPR reaffirmed revenue guidance that will “either match or surpass the $992 million in gross revenue for 2022” in its models. In the meantime, speculation can be a double-edged sword, especially if results come short of expectations. Is this a “buy the rumor” move in MSPR stock or one step further on the road to rebounding?
Aclarion Inc. (NASDAQ: ACON)
The healthcare technology company, Aclarion is also on the list of penny stocks today. According to most financial outlets, the ACON stock float sits around 4-5 million. Considering the move it had just one day ago, it would appear the market is taking notice.
Aclarion uses augmented intelligence algorithms to help medical professionals find the location of chronic low back pain. Its Nociscan solution is under evaluation for its impact on the cost of care for patients with chronic lower back pain. Initial findings from this EVAL study are expected next quarter, and initial evaluations have shown 87% of patients showed “significant clinical improvements at a two-year follow-up.”
ACON stock has joined the growing list thanks to the bullish trend in low float penny stocks.
Direct Digital Holdngs Inc. (NASDAQ: DRCT)
Marketing and advertising technology company, Direct Digital Holdings has gained some early momentum after news came out right before the opening bell. The company announced an extension to its existing debt facility. What does this mean? Direct Digital has more money to access.
Mark Walker, Chairman and Chief Executive Officer of Direct Digital, commented, “We are pleased to enhance our financial flexibility utilizing our existing debt agreement with Lafayette Square. Lafayette Square has been a committed, collaborative partner and has provided us with access to supportive non-dilutive capital as we continue to grow our business and optimize our capital structure.”
Direct aims at deploying the additional capital to firm up its financial situation and tighten up outstanding payouts owed to former owners.
With a float below 5 million, DRCT stock is considered a low float penny stock. Given the news and generally bullish sentiment for this niche, it will be interesting to see what happens the rest of this week.