Ever since the epic breakout and, now, break down of AMTD Digital (NYSE: HKD), the market has been in a frenzy. Finding the next multi-bagger penny stocks to buy is an immediate focus, and we’ve witnessed the massive inflow of sympathy trading to support this move.
Whether it was low float penny stocks, short interest stocks, monkeypox stocks, recent reverse splits, or something else, thematic trading is alive and well. The newest IPO to hit the stock market today is Magic Empire Global Ltd (NASDAQ: MEGL), and it has been magical for some, indeed.
Why MEGL Stock Is Up
You read the title of this article correctly. MEGL stock has exploded nearly 5,800% from its IPO price. What exactly was the MEGL IPO price, you might ask? A whopping $4 per share is what the company was offering its stock at with an insider lock-up of 180 days. When MEGL stock opened for trading, however, its first print was $50, and it has been a snowball move since.
The company’s share price reached a high of $235.95 after fewer than 260,000 shares had been traded. Countless trading halts have made it nearly impossible to see any lasting trend in the market. Regardless, the moves are aggressive when it has been able to trade.
Why is MEGL stock up today? Most of this concerns speculation on the latest Chinese tech IPO after HKD’s. Magic Empire is a financial services company in Hong Kong offering corporate finance advisory and underwriting services. The company has reported not much else. If you look into the initial F-1 filing, the financials show Magic Empire did just over $2 million in total revenue at the end of 2021.
Whether or not MEGL stock’s latest breakout ends in a trail of tears is secondary to the jolt of bullishness it has brought to penny stocks today.
Best Penny Stocks To Buy
The first step to finding the best penny stocks to buy is making your watch list. Today we look at a handful of names catching strong momentum in the stock market today and see what’s helping drive the action.
ironSource Ltd. (NYSE: IS)
On July 14th, we introduced readers to ironSource Ltd on the back of a few significant catalysts. See: 3 Good Penny Stocks To Buy Right Now According To Options Traders. Shares of IS stock exploded after Unity (NYSE: U) announced a definitive agreement for ironSource to merge with the tech company. One of the attractive aspects of IS to Unity is its business platform targeting mobile content creators looking to turn apps into scalable businesses.
According to the July 14the 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.”
This prompted options traders to establish a position in the September 16 $2.50 Calls. Seen as a bullish move, IS stock surged and has continued climbing since. Not much has been reported since the update; however, options traders have taken bullish bets even further out on the timeline. Friday saw the December $7.50 Calls light up with unusual activity. Heading into the session, there were only 92 contracts open. This didn’t compare to the more than 4,000 traded during the session.
If IS stock is on your list, the company reports earnings next week. Meanwhile, the deal with Unity is expected to close during Unity’s fourth quarter of 2022.
Bonso Electronics (NASDAQ: BNSO)
Like other low float penny stocks, Bonso Electronics shares skyrocketed this week. It’s almost as if traders were making their way through the list of names with public floats below 10 million. Friday was the day to arrive on BNSO stock. The Friday session saw the penny stock jump to highs of $5.99 before closing the week at $4.78.
What’s more, as a Hong Kong tech stock, sympathy sentiment helped spark momentum on the back of HKD stock’s massive explosion. Bonso supplies and develops electronic scales, pet electronics, and weighing instruments.
Not much is announced by the company. However, of the sporadic information, retail traders have gotten behind BNSO stock for now. The big question is how will the trend end up next week, and will the same sympathy action factor into trading?
NuZee Inc. (NASDAQ: NUZE)
Have you heard of Cuvee Coffee? If so, Nuzee isn’t far behind. It’s a copacking company for single-serve coffee. Even though things have been quiet recently, this week closed on a much different note. NUZE stock finished the Friday session at $1.13, but the real story comes after the closing bell.
[Read More] 10 Top Monkeypox Stocks To Watch Right Now
NuZee filed an 8-K terminating an equity distribution agreement with Maxim Group LLC. According to that agreement, the company could sell $20 million of its shares from time to time. The development wasn’t formally announced on the presswires (yet). However, if you’re a filing hunter, 8-K means a material event, and traders have focused on that. In tandem, NuZee also filed a prospectus to sell up to $100 million in stock. The company also stated that one of its more prominent investors, Sooncha Kim, indicated that he “may choose to purchase additional shares of common stock in this offering. The amount of such investment could be a significant portion of the securities sold in this offering.”
After posting these filings, NUZE stock surged in post-market trading on August 5th. Keep in mind, however, that financing rounds can be dilutive events and it will be important to see the pricing of the offer when/if the time comes. Should it be lower than market price, NUZE stock could turn bearish.