3 Cheap Penny Stocks to Add to Your Watchlist
When it comes to penny stocks, there are a lot of different opinions out there. Some people swear by them, while others think they’re a huge waste of money. So, what’s the truth? Are penny stocks worth investing in, or not? Penny stocks can offer a high degree of liquidity, which is ideal for investors who want to be able to cash out quickly. They can also be a good way to diversify your portfolio and reduce your overall risk.
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However, penny stocks are also very volatile and can be difficult to predict. Overall, penny stocks can be a risky investment, but they can also offer the potential for high rewards. If you’re thinking about investing in penny stocks, make sure you understand the risks involved before you put any money down. With this in mind, let’s take a look at what you missed in the stock market on September 16th, 2022.
What You Missed in the Stock Market on September 16th
On Friday, September 16th, both penny stocks and blue chips fell during trading. The S&P 500 dropped by 0.9% during trading with the NASDAQ 100 dropping by around 1.2%. During the past week or so, we’ve seen some major losses across the board.
This is the result of bearish sentiment surrounding an upcoming 0.75% point interest rate hike. So, while it is tough to say whether this bearish movement will continue or not, it’s clear that there is a lot of volatility right now. With this in mind, let’s take a look at three penny stocks to add to your watchlist right now.
3 Penny Stocks to Watch Right Now
- Applied Optoelectronics Inc. (NASDAQ: AAOI)
- Tellurian Inc. (NYSE: TELL)
- Integrated Media Technology Ltd. (NASDAQ: IMTE)
Applied Optoelectronics Inc. (NASDAQ: AAOI)
One of the largest gainers on Friday, September 16th was AAOI stock. At EOD, shares of AAOI stock had shot up by a staggering 50%. This brings it to more than $3.76, which is no small feat. While we do see major gains like this without news behind it, AAOI made an exciting announcement only a few days ago.
On Thursday, September 15th, the company announced a definitive agreement to sell its Chinese manufacturing facilities and several assets related to its transceiver business for $150 million. This is a major deal for the company and one that should help it to have capital to continue operations. With this, now it can focus on higher margin and growth opportunities. Considering that, does AAOI belong on your penny stocks watchlist or not?
Tellurian Inc. (NYSE: TELL)
While TELL stock didn’t see as much in gains as AAOI stock did, it still saw over 2.3% in positive movement alongside higher than average volume. This is encouraging news that comes after a five day drop of around 11%.
So, is there a reason that TELL stock is climbing right now or is it simply speculation? The most recent news from the company came on August 29th. On the 29th, it announced a public offering of senior secured notes due 2027. This should raise capital for the company to continue building upon its current operations. With this considered, do you think TELL stock is worth adding to your list of penny stocks to buy or not?
Integrated Media Technology Ltd. (NASDAQ: IMTE)
At EOD on Friday, shares of IMTE exploded by almost 20%. And, in the past five day period, we’ve seen shares of IMTE stock climb by more than 32%. This indicates a high amount of bullish sentiment which is worth taking a closer look at. The latest news from the company came a few months ago when it announced a memorandum of understanding to develop sourcing for Halal products in Thailand.
Since then however, the company has not made any new announcements. So, we can assume that the bulk of this movement is due to speculation. This could make IMTE stock worth watching if you’re interested in high volatility, but if not, it may just be worth an addition to your watchlist for now.
Which Penny Stocks Are You Watching Right Now?
If you’re thinking of buying penny stocks right now, there are a few things you should keep in mind. First, the market for penny stocks is highly volatile, so prices can go up and down quickly. Second, penny stocks are often issued by companies that are not well-established or have little history, so they may be more risky than other stocks.
With all of that said, there are still some reasons why you might want to consider buying penny stocks. For one thing, they can offer the potential for high returns if the company is successful. And even if the company doesn’t turn out to be a winner, you’re only risking a small amount of money since penny stocks are so cheap.
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So, if you’re comfortable with the risks, buying penny stocks could be a good way to boost your portfolio’s returns. Just be sure to do your homework before buying and only invest an amount that you’re comfortable with losing.