What Are Low Float Penny Stocks
Penny stocks have continued growing in popularity, and now sub-sets of these cheap stocks are beginning to pop up. Today we look at low-float penny stocks that can present some of the most volatile trading action in the stock market today.
What are low-float penny stocks? While different traders might have different definitions, the standard includes stocks with publicly available floats of fewer than 20 million shares. The term “float” refers to the shares out in the open market. It’s usually lower than the outstanding and authorized share count.
If float data isn’t available, you might be able to go by stocks with a low outstanding share count. Generally speaking, the float can be equal to or less than the O/S depending on how a company issues shares, and it’s also worth noting that Float figures can vary from one data outlet to another.
Regardless of the share structure dynamics, the important thing to note is that low-float stocks are incredibly volatile. The moves they make in the market can come quickly and in big directional swings. That goes for moves up and down, so if you’re unfamiliar with how to trade high-volatility stocks, you may want to take some time to learn on a trading simulator first.
Here’s a list of penny stocks traders are watching that have lower floats.
Penny Stocks To Buy [or avoid]
- PaxMedica Inc. (NASDAQ: PXMD)
- SaverOne 2014 Ltd (NASDAQ: SVRE)
- Vallon Pharmaceuticals (NASDAQ: VLON)
- Innovative Eyeware (NASDAQ: LUCY)
PaxMedica Inc. (NASDAQ: PXMD)
Shares of PaxMedica have recently climbed higher over the last few days. Some news earlier this month seems to have helped hold things steady in the stock market this month. PaxMedica appointed Charles Casamento to its Board, whose industry experience includes over 40 years of leadership in the pharmaceutical & biotech industries. He’s also a member of numerous other boards, including Eton Pharmaceuticals, First Wave Biopharma, and Relmada Therapeutics.
The clinical-stage biotech company specializes in treating neurologic disorders, including Chronic Fatigue and autism spectrum disease. It was a recent IPO back in August that failed to hold gains. But now that it’s a penny stock, things seem to be more attractive to some of the retail audience.
With a float listed below 5 million shares and some outlets showing it even lower, PXMD stock has made its place on the list of low-float penny stocks to watch this week.
SaverOne 2014 Ltd (NASDAQ: SVRE)
Another one of the lower float penny stocks to watch is SaverOne 2014 Ltd. Most figures put the SVRE stock float below 5 million shares. Meanwhile, the penny stock has experienced several sessions of explosive (and implosive) moves.
[Read More] Best Penny Stocks To Buy? 4 Short Squeeze Stocks To Watch TodayThis week, the transportation safety technology company released news that sparked a significant gap up in the stock. The SaverOne news was signing a memorandum of understanding with Iveco, a truck manufacturer, where the company will integrate its solution with Iveco’s vehicles. CEO Ori Gilboa explained in the Wednesday update, “Our solution will create a safer driving experience for Iveco’s customers by preventing driver distraction from cellphone use. This is an important milestone for SaverOne, marking our first international co-operation with a leading global OEM whose large customer base represents a key market and very significant growth potential for our technology.”
The milestone comes less than a week after SaverOne announced its Generation-2 platform. The product is designed to improve accuracy and response time. The company also said it had passed laboratory tests for certification by the FCC (Federal Communications Commission of the United States) and CE (EU requirements).
Vallon Pharmaceuticals (NASDAQ: VLON)
Penny stocks under $1 have also become a popular topic among traders. Since last Friday, Valon Pharmaceuticals sits below $0.40 and has slowly climbed higher. Vallon develops drugs for central nervous system disorders but is currently exploring strategic alternatives.
As discussed in the article “7 Penny Stocks To Buy According To Top Wall Street Analysts,” companies making a pivot through strategic alternatives have become somewhat similar to the attention SPACs received a few years ago.
The “alternatives” can result in M&A activity, though not always the case. But until the actual event is confirmed, investors will bet on what the outcome might be. This was announced by Vallon back in July and could be what has come about in the market recently.
What’s the VLON stock float? According to multiple outlets, it’s below 5 million shares. Furthermore, since it’s one of the penny stocks under $1, that could amplify any potential volatility.
Innovative Eyeware (NASDAQ: LUCY)
Another recent IPO stock that crumbled is Innovative Eyeware. Shares woke up earlier this month thanks to an October investor presentation. The Lucyd glasses were one of the main posts of focus (no pun intended), as the company highlighted its position in the “smart eyewear” category. It also noted that it checked off more features than competing brands like Bose, Snapchat, and Ray-Ban.
[Read More] End of October Penny Stocks Watchlist? 3 to Watch Right NowOther than appointing a new Senior VP of Sales & Marketing and VP of Global Optical Sales earlier this month, not much has been released by Innovative Eyeware in terms of news. But that hasn’t stopped traders from taking advantage of its latest trading spikes. Thanks to a float of fewer than 3 million shares, LUCY stock has been one of the lowest float penny stocks to watch on this list. It has also presented a scenario where high volatility is likely a risk/reward factor to weigh.
Finding The Best Penny Stocks To Buy
Low-float penny stocks can be exciting. But it’s useless if you don’t know how to trade or find the best penny stocks to buy. If you’re new to penny stocks or new to trading, in general, learning the ropes first will be your biggest asset.
If you’re interested in learning more about penny stocks, the stock market, and how to trade, check out True Trading Group, the fastest-growing & highest-rated online premium educational platform available today. True Trading Group offers a 7-day Trial of its platform for $3 (non-autorenewing, nonrecurring): To Learn More Click Here.
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Also, LUCY struck a deal with Nautica that’s going to be the game changer for this penny stock.
“The Nautica smart eyewear line will stay true to the brand essence of bringing the inspiration of the sea into smart eyewear that is modern and innovative,” says Harrison Gross, CEO of Innovative Eyewear, Inc. “Our Nautica® smart eyewear collection, powered by Lucyd®, will align perfectly with today’s lifestyle, as we believe consumers are looking for designer eyewear that allows them to remain connected to their digital lives.”
The Nautica smart eyewear collection is expected to launch for Holiday 2022 or soon thereafter.