This week, there are plenty of penny stocks to buy, and this article discusses some of the cheapest names on the block. It’s important to remember that just because something is considered “cheap” doesn’t necessarily mean it’s worth the risk. The opposite can hold in many cases. But for the risk-takers out there, some of the most volatile stocks in the market can be found in this niche.
Penny Stocks To Buy For Under $1
Now that we’ve got the caveat on risk out of the way, what’s so special about penny stocks under $1? Many traders will look at these low-priced stocks from one of two angles. First, traders might hunt for “ground floor” or early-stage opportunities to invest in penny stocks. This isn’t usually a systematic strategy for most traders. Often, the focus is on trading these stocks to capitalize on short-term trends.
The exciting thing about penny stocks under $1 is that just a few pennies can equate to significant percentage changes. Case in point, a 10-cent move to the upside in a 50-cent stock is equal to 20% in position value. You can’t say the same for stocks like Apple (NASDAQ:AAPL) or even AMC Entertainment (NYSE:AMC).
It’s also worth noting that stocks like these don’t necessarily include material catalysts to see explosive moves in the market. It can be as simple as traders hunting for cheap stocks.
It’s also essential to be mindful of the downside risk of small moves. With this in mind, here are a few penny stocks that can be bought for under $0.99 this week. Are they worth the risk? Should you avoid them entirely? I’ll leave that up to you.
Penny Stocks To Buy [or avoid]
Avenue Therapeutics (ATXI)
Shares of Avenue Therapeutics caught a bullish surge in trading momentum on Thursday. There weren’t any apparent headlines to pair with the move. One of the things that traders are waiting for is further discussion on the company’s progress in identifying strategic transaction options.
Avenue discussed this in an SEC filing as far back as the first quarter. This was a move in response to an Appeal Denied Letter from the Office of New Drugs of the FDA. The Letter suggested that as a path forward, the company “request a meeting with the Division regarding additional studies that can better assess the appropriate clinical setting for the administration of tramadol IV and to evaluate the potential risk for opioid stacking.”[Read More] Looking for Popular Penny Stocks to Buy? 3 to Watch Now
In a meeting on August 9th, a collaborative discussion on the study design and potential path forward was conducted. Once the dust settled, Avenue disclosed that it expects to receive official meeting minutes by mid-September and expects to “evaluate further the potential to generate data supportive of an FDA approval.”
With this as a backdrop and September underway, ATXI stock could be gaining some speculative momentum ahead of a pending mid-September catalyst.
Helius Medical Technologies (HSDT)
Last month we discussed HSDT stock after taking a big hit thanks to news of a pending offering for up to 14.6 million shares. Despite the stock ‘only’ moving up about 10 cents since then, that small move is worth more than 25% in appreciation for the penny stock.
The neurotech company focuses on medical devices for neurologic deficits leveraging a platform that doesn’t require implantation but can enhance brain function. The company outlined several milestones in its second-quarter update, including a revenue increase of 68% year-over-year. TheHelius also launched its patient therapy access program to provide patients with PoNS Therapy at lower prices.
Portable Neuromodulation Stimulator or PoNS is Helius’ non-surgical medical device delivering electrical stimulation to the tongue’s surface. It’s indicated for use as a treatment for gait deficit from multiple sclerosis symptoms.
CEO Dane Andreeff also explained, “Though revenue during the quarter increased year-over-year, we did not have the sequential growth we’d expected. As a result, we’ve implemented several programs to eliminate the impediments to prescription fulfillment. First, we introduced an online training module so physical therapists can be trained in three hours or less, at the therapist’s own pace, instead of through an in-person, multi-day course.”
This month, HSDT stock could be one of the names to know as it presents at several upcoming industry conferences. If it’s on your list, you’ll want to focus on September 12th for the HC Wainwright Global Investment Conference and September 29th for the Ladenburg Thalmann Healthcare Conference.
Bird Global (BRDS)
The eMobility company Bird Global has been one of the penny stocks to watch this week. Shares have climbed from around $0.40 to highs of over $0.50 during post-market trading yesterday. Electric vehicle stocks remain a hot topic following the passage of the Inflation Reduction Act. In particular, specific tax incentives have bolstered optimism for the industry’s future. While eScooters and eBikes might not fall into that qualification (for now), the sympathy sentiment created around EV stocks is clear.[Read More] 4 Penny Stocks Making A Comeback In September, Time To Buy?
The company has focused on expansion this year. Bird has been extending its reach in new cities in the U.S. Bird specifically focuses on eScooters and eBikes and recently secured permits to extend its programs in San Diego, Memphis, and Newark. It will also enter Louisville, Minneapolis, Knoxville, and Bradenton, FL.
Yesterday we discussed the company on a list of penny stocks with unusual options activity. The April 21, 2023, $2.50 Calls saw an imbalance between today’s volume and current Open Interest.
Vistagen Therapeutics Inc. (VTGN)
Shares of Vistagen Therapeutics reset back to mid-August levels. The move comes just a few weeks after VTGN stock exploded to highs of $0.27 thanks to bullishness from insider trading activity. CEO Shawn Singh picked up 600,000 shares at an average price of $0.17 in his Singh Family Trust. This was a significant purchase for the Trust because it brought the total holdings to 626,234 shares of VTGN.
Vistagen develops treatment platforms for anxiety, depression, and other central nervous system disorders. In a Phase 3 trial of its PH94B platform, data were inconsistent with previously positive Phase 2 results, which brought some confusion to the market. It was also one of the reasons behind the significant drop in the stock price in July.
Shawn Singh discussed these results in a recent earnings update saying, “While we examine the results of our PALISADE-1 Phase 3 study in social anxiety disorder, we have paused enrollment in our PALISADE-2 Phase 3 study and have engaged an independent biostatistician to conduct an interim analysis of data collected to date. We then plan to meet with the FDA to pursue a consensus path forward for further Phase 3 development of PH94B in social anxiety disorder.”
This week Vistagen announced that it completed an interim analysis of PALISADE-2 and determined it will continue as planned. Topline data from the trial is expected in the first half of next year.