Penny Stocks To Buy For…Pennies, But Is The Risk Too High?
This week the stock market continues giving up gains, and traders are bottom-feeding to the extreme. Some of the most beaten-down names of the year are whetting the appetites of high-risk traders searching for cheap penny stocks to buy. As we discussed yesterday in the article “Hot Penny Stocks To Buy For Under $1 Right Now,” risk and reward go hand in hand.
“For traders, the risk of crushing losses from a small move in price is weighed against the potential for huge windfalls.”
In many cases, the cheapest stocks lend themselves to a day trader’s mentality. Since the moves come in quick waves, it isn’t uncommon for lower-priced stocks to skyrocket within a few hours. A case in point is today’s article focusing on penny stocks under $0.99. Even a move of 10 cents means a market-beating percentage gain. Remember, though, that just as quickly as they can move higher, they can freefall lower. There’ve been plenty of examples of how cheap stocks can implode at a moment’s notice for one reason or another.
Are Penny Stocks Worth It?
When it comes to understanding how “worth it” trading penny stocks is for you, determine your risk tolerance. Are you ok making 100% or more on a trade? Are you ok losing 50%-100% on a trade? Both instances can happen, and with an environment where some are asking about things like stagflation, trends can change daily. Today we look at some of the penny stocks experiencing some wild swings this week from just a few cents’ change in price.
Penny Stocks To Buy For Under $0.99
1. The Metals Company (TMC)
Shares of The Metals Company continue rising in the stock market today. The move continues a 2-day uptrend with TMC stock rebounding from near-52-week lows. There haven’t been many headlines recently, but momentum seems to have stemmed from growing interest in mining and metals companies. In particular, renewables and things like EVs and solar.
The Inflation Reduction Act has set sail and earmarked billions of dollars for climate and energy-related provisions, including tax credits. Could this benefit The Metals Company? It could present potential as TMC explores low-impact battery metals from seafloor polymetallic nodules. In a recent update, the company outlined plans to initiate a multi-vessel pilot test and environmental monitoring campaign and further develop its nodule collection processes.
Insiders have been very active this month, which has helped boost sentiment further. A 10% owner Eras Capital LLC bought a total of 6,250,000 shares at an average price of $0.80. The buy brought Eras Capital’s total holdings to just below 52 million shares. CEO Gerard Barron also joined in on the action with a slightly smaller purchase of 103,680 shares at an average price of $0.96. Given the hype stemming from the Inflation Reduction Acts renewables focus and insider activity, TMC has been one of the penny stocks to watch under $0.99 at the end of August.
2. Liquid Media Group Ltd. (YVR)
Broader tech stocks may be out of favor in the overall market. But when it comes to micro-caps, it’s a different story for now. Liquid Media, for example, saw its share prices jump nearly 100% overnight. Premarket highs of $0.598 were reached after the company released results from its second quarter. Revenue jumped 187% quarter-over-quarter to $1.65 million. This was thanks partly to Liquid’s IndieFlix, iGEMS, and DCU acquisitions.
Wildly enough, Liquid Media also highlighted that it did $1,373 in Q2 2021 revenues and stated that this was a 120,626% increase. Take it for what it’s worth to you, but the base case for the company is that it’s emphasizing growth in 2022.
CEO Joshua Jackson explained, “Our growth over this period serves to further strengthen our belief that we are stronger together, as each company in the group continues to excel individually and collaboratively. We are particularly pleased to have regained compliance with our financial reporting, which we expect will have a significant impact on the Company from an investor perspective.”
If you’re wondering, this is the same Joshua Jackson from movies like The Mighty Ducks and shows including Dawson’s Creek & Fringe. He was named interim CEO in July. Liquid Media specializes in entertainment and independent creator development.
3. Tuesday Morning Corp. (TUEM)
The off-price retailer, Tuesday Morning Corp., has experienced a much more active third quarter than previous periods. August, in particular, has been a month that traders have kept TUEM stock on their list. This comes after shares hit 52-week lows and promptly bounced after Tuesday Morning was wrapped into the surge of interest in low-priced retail stocks.
If you’ve been trading this month, you at least saw (and maybe made money with) the rally in meme stock Bed Bath & Beyond (NASDAQ:BBBY). We discussed the company throughout July and early August, highlighting things like growing insider activity (3 Best Penny Stocks To Buy According To Insiders; 1 Bet Over $1.7 Million) and mounting short interest (Penny Stocks To Buy Now? 4 Short Squeeze Stocks To Watch). Since BBBY stock’s explosive move, traders have continued hunting for sympathy opportunities, and stocks like TUEM have come into focus.
As of this article, data from multiple sources show higher short float percentages for Tuesday Morning. Fintel.IO, for instance, has the figure sitting around 22.5%. Others, including TDAmeritrade, put the TUEM stock short float percentage at 9.18%.