Finding Penny Stocks To Buy
Penny stocks are some of the most volatile equities you can buy, but they are also some of the most rewarding if you trade correctly. In this article, we look at some of the most active penny stocks in the stock market today. What’s moving them? Are there any events coming up that may have sparked speculative activity? What are other potential catalysts at play that could justify the recent action?
Since the broader markets remain choppy, there’s much to account for. Are you investing in penny stocks, or are you just looking for penny stocks to buy and sell on the same day? Depending on your approach to the markets, these higher-risk equities can be well worth the stress.
That may be especially true considering that so many stocks are trading at steep discounts. Even major banks like Credit Suisse (NYSE: CS) are in the running for best penny stocks to buy now, according to some risk takers. Over the weekend, details emerged that the Swiss bank group tried to calm fears regarding its health. The event brought about jitters of a 2008 scenario and the breakdown of the financial system sending shares to all-time lows.
Best Penny Stocks To Buy
Is this to say that low prices mean that all penny stocks are a buy and will become the next multi-baggers of 2022? No, but it is worth noting that in light of such depressed prices in the stock market today, chances are that you’ve already seen some of your favorite name brands reach penny stock levels.
In fact, over the last few months, we’ve compiled several articles on some of the most notable names in 2021 and 2022, asking the question: Will they become penny stocks? To much surprise, more of the names on that list have, in fact, broken to or below the $5 threshold that defines penny stocks. Some of the names include:
- Tattooed Chef (NASDAQ: TTCF)
- Robinhood Markets Inc. (NASDAQ: HOOD)
- DraftKings Inc. (NASDAQ: DKNG)
- Tattooed Chef (NASDAQ: TTCF)
- fuboTV Inc. (NASDAQ: FUBO)
- Canopy Growth Corp. (NASDAQ: CGC)
- Virgin Galactic (NYSE: SPCE)
- SoFi Technologies (NASDAQ: SOFI)
- Traeger Grills (NYSE: COOK)
- PLBY Group, Inc. (NASDAQ: PLBY)
- AMC Entertainment Holdings, Inc. (NYSE: AMC)
When it comes to penny stocks, it isn’t all about finding companies encountering massive sell-offs. In other cases, we’re talking about companies in their early growth phases. While most have plenty of work ahead of them, it doesn’t stop traders from speculating on their potential as it relates to the stock market. Which side of the coin are some of these names on right now, and are any on your list of penny stocks to watch this week?
Best Penny Stocks To Watch
- NU Holdings Ltd. (NYSE: NU)
- ADiTx Therapeutics Inc. (NASDAQ: ADTX)
- Ring Energy (NYSEAMERICAN: REI)
NU Holdings Ltd. (NU)
The bank stock is most notable for its investment from the Oracle of Omaha’s company, Berkshire Hathaway. Its most recent 13F filing from August, which reported its holdings as of the end of June, showed a 2.3% stake in Nu Holdings. While this position worth nearly half a billion dollars is a minor percentage of Berkshire’s overall portfolio, it is gaining attention because NU is a penny stock.
In addition, Nu also has exposure to digital currency, which is somewhat of a controversial topic for Berkshire’s top brass. Warren Buffett has emphasized caution regarding Bitcoin and cryptocurrency. Berkshire Vice Chairman Charlie Munger has even said it is “very likely to go to zero” in public forums.[Read More] Stock Market This Week: What To Watch 10/3-10/7
Nu is a digital bank in Brazil. Its most recent quarterly results show it’s also experiencing significant customer growth. CEO David Velez, who also founded the company, explained in an August business update, “Our largest operation – Brazil – is now profitable, having registered a net profit of US$ 13 million in the first half of 2022, driven by customer growth to 65 million and ability to offer and cross-sell new products. We are the fourth largest card player in Brazil, almost a quarter of all PIX operations pass through Nu’s accounts, and we are a leader in the digital-direct investment space with 5 million active customers.”
ADiTx Therapeutics Inc. (ADTX)
ADiTx stock was a monster earlier this year. Shares surged from around $7 to highs of over $28 last month after its 1-for-50 reverse split. A flurry of speculative trading surrounded the company as bullish optimism propelled shares. One of the components of the speculative trend was the ADTX stock’s short position. We can see now that the September squeeze, though fleeting, was a massive move in share price.
Heading into the first week of October, it looks like that has become the topic of discussion again. When you talk about stocks that encounter heavy selling pressure, ADiTx certainly fits the mold. According to Fintel.IO data, the current short float sits around 74%. Other outlets, including Morningstar and TDAmertitrade, have this figure sitting well above the 130% mark. More than likely, the massive drop from over $20 to under $5 played a role in the bearish bets from short traders.
In a corporate update late last month, CEO Amro Albanna highlighted several achievements post-split and after the closing of a $20 million offering. “Aditxt’s key to success is multifaceted and tied to the success of each of the Company’s programs, which currently include AditxtScore™, Adimune™, and Adivir™. The successful completion of the reverse stock split and the closing of our public offering were critical to continuing the progress within each of these programs toward commercialization, and as we work toward regaining compliance with Nasdaq’s continued listing requirements,”
Recent filings also show institutional interest in the penny stock, including positions established by CVI Investments and Intracoastal Capital.
Ring Energy (REI)
Following a month’s long pullback in price, Ring Energy is getting recharged in October. Shares of REI stock surged during the Monday trading session, bouncing back over 11% from last week’s close. Ring most recently completed an asset acquisition in the Permian Basin, a prolific energy industry hotbed. The transaction saw Ring snap up assets of privately held Stronghold Energy II Operating and Stronghold Energy II Royalties.[Read More] Will AMC Entertainment (AMC) Be On Your List Of Penny Stocks In 2022?
Following the acquisition, Ring gave an update to its outlook and guidance. “During the next several weeks, the Company plans to complete its development and operational plans for the combined entity and intends to provide updated guidance for the remainder of 2022, as well as an initial outlook for full year 2023.”
Ring Energy is focused on oil and gas exploration in the Permian Basin of West Texas and New Mexico. Strong earnings, thanks to a robust energy market, helped give REI stock a boost in the late third quarter. Ring reported a beat on EPS with 29 cents per share compared to estimates of $0.23. It also considerably beat revenue estimates after reporting $85 million compared to estimates of $66.46 million.
Like ADTX stock, REI stock is on the list of short squeeze names. Fintel data shows the short float percentage sitting around 20.7%. Meanwhile, other outlets like broker TDAmeritrade has that figure slightly higher at 28.99%.
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