Penny Stocks: Time To Buy?
With the stock market down again today, traders are looking for opportunities to make money trading. While some may look for options, others are hunting for cheap penny stocks to buy now. This article looks at a few low-priced stocks that gained attention on Thursday.
Many are pushing toward new highs even while the stock market crash continues. It begs the question, are penny stocks worth it? While plenty of larger companies are falling like rocks, many cheap stocks are in rally mode.
Thanks to some pockets of unbridled optimism that this could be a stock market bottom, it’s important to understand that volatility can play a huge role right now. Weighing risk and reward is crucial, especially with how things are trading in the stock market today following the latest September CPI inflation report.
Penny Stocks To Buy [or avoid]
- FuboTV Inc. (NYSE: FUBO)
- 22nd Century Group Inc. (NASDAQ: XXII)
- Tattooed Chef (NASDAQ: TTCF)
- American Virtual Cloud Technologies (NASDAQ: AVCT)
- Applied DNA Sciences (NASDAQ: APDN)
Penny Stocks To Buy [or avoid] #1: FuboTV Inc. (NYSE: FUBO)
Shares of sports entertainment streaming and iGaming company, FuboTV is back in the spotlight. The penny stock has been popular among retail traders for many reasons. Whether it was higher short interest, unusual options activity, or news headlines, FUBO stock has been one to watch. Even with the stock market crashing over the last few weeks, FuboTV has maintained a steady trend even after making a big move in August.
Some of you may remember that we identified some unusual options activity in FUBO stock at the start of August. Fast-forward a few weeks; shares spiked to highs of over $8 as FuboTV launched its Investor Day festivities. While shares have retreated from those highs, they remain above $4 and in a range above where it was trading this summer. Last week the company secured a deal with Altitude Sports to expand TV coverage of both the Colorado Avalanche and Denver Nuggets sports teams.
What To Watch With FUBO Stock
All eyes are on FuboTV earnings results coming in a few weeks. The company announced that November 4th marks the date of its next report. Meanwhile, FUBO stock short interest sits north of 26%, according to data from Fintel.IO and TDAmeritrade. Furthermore, unusual options action hasn’t left the market. Today the FUBO $4.50 Calls expiring this week have seen an uptick in volume compared to overall Open Interest.
2. 22nd Century Group Inc. (NASDAQ: XXII)
Marijuana stocks have been heating up over the last few weeks. This was thanks, in part, to Tweets made by US President Joe Biden. Known as one of his “Dark Brandon” moves, Biden said, “As I’ve said before, no one should be in jail just for using or possessing marijuana. Today, I’m taking steps to end our failed approach. Allow me to lay them out.”
He expanded on this elective further and outlined action items for his plan. These included:
- Pardoning all prior federal offenses of simple marijuana possession.
- A call to governors to pardon simple state marijuana possession offenses.
- Request to begin the process of reviewing how marijuana is scheduled under federal law.
What To Watch With XXII Stock
All eyes have been on pot stocks ever since. 22nd Century is one of the names gaining momentum in the stock market today. While the company is best known for its low-nicotine cigarette products, it also has a cannabis-based portfolio. The company uses plant-breeding technologies to develop unique cannabis products. With some bullish speculation on pot stocks today, XXII could be on the list of penny stocks to watch.
3. Tattooed Chef (NASDAQ: TTCF)
Like FuboTV, we wrote an article a while back asking the question about whether or not Tattooed Chef would become a penny stock. In the article from April, we discussed the possibility that TTCF stock could breach the $5 threshold into pennyland. Sure enough, it did, and now we get to write about the company more frequently.
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For those unfamiliar, Tattooed Chef is a plant-based food company that has been on the watch list of some traders for reasons unlinked to company operations. The latest was about TTCF stock’s short interest. Fintel and TDAmeritrade data put this figure around 30%.
What To Watch With TTCF Stock
Other than the short interest, some are watching TTCF stock after the company’s latest update. Tattooed chef announced that it would restate its quarterly and annual financial statements for 2021 and quarterly financial statements for this year’s first and second quarters. Now, speculation is buzzing as to the results of this revision and what it means for the company moving forward.
4. American Virtual Cloud Technologies (NASDAQ: AVCT)
American Virtual is one of the companies we’ve highlighted multiple times for its options activity. While that isn’t the case today, a few things are catching traders’ attention. Most importantly, it has been on our list of top penny stocks to watch since before September, based on news that it’s exploring the sale of its entire business. In addition, American Cloud made comments earlier this week regarding revenue expectations for the end of its most recent quarter. American Virtual anticipates the figure to come in at around $4.6 million, which has prompted some optimism over the last few sessions.
What To Watch With AVCT Stock
Thanks to the underpinnings of a complete sale, both bulls and bears are betting on AVCT stock. As far as bears are concerned, short data from both TDAmeritrade and Fintel show a very large short float percentage in the penny stock. Fintel.IO has this figure set at 224.41%, while TD’s AVCT short float percentage is 225.75%. These are extraordinary figures and beg the question, are they an accurate depiction of the current short interest in the stock? Nevertheless, it has come into focus in the stock market today.
5. Applied DNA Sciences (NASDAQ: APDN)
This week Applied DNA Sciences shares popped higher on a multi-day run that has taken shares back above the 50-day moving average for the first time since September. We discussed the company at the start of the week after it announced the receipt of “the most significant single purchase order” for its Linear DNA product to date. According to the company, the value of the order is “in the mid-six-figures,” and Applied will deliver the product over the next few quarters.
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What To Watch With APDN Stock
This latest update has carried momentum higher throughout the week. Some are speculating on a move that APDN stock made earlier in the year following a surge in monkeypox stocks. Whether or not that happens is to be seen. But for now, the penny stock has climbed 90% since the beginning of the week.
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