There’s been a brief cool-off of penny stocks under $1. One of the reasons has been the general market uncertainty thanks to mixed messages from the FOMC compared to Fed Chair Powell.
A slew of economic data has also been hanging in the balance, which was seen as the catalyst to dictate the pace through the end of the year. Now that the latest October CPI data and October PPI numbers have been released, traders appear to have become a bit more risk-on.
That may be why we’ve seen a jump in trading for cheap stocks under $1. In this article, we look at a few more lower-priced stocks and will continue the list that started in the article Best Penny Stocks To Buy? 3 To Watch Under $1 Right Now. I’ll also provide the complete list of penny stocks at the end, and if you’d like to read more about them, you can click through to the full article link provided.
Penny Stocks Under $1 To Watch This Week
Core Scientific Inc. (CORZ)
Shares of Core Scientific have steadily climbed back after a late-October sell-off took the penny stock to new lows of the year. Concerns were high after Core reported that “given the uncertainty regarding its financial condition,” the company has “substantial” doubts about continuing. As a result, Core has hired restructuring advisors and may seek bankruptcy protection.
The drop also comes as cryptocurrency prices have imploded, thanks to the FTX meltdown this month. Core Scientific provides high-performance blockchain data centers and software solutions. In October, it produced 1,295 self-mined bitcoins, operating at roughly 243,000 owned and colocated ASIC servers.
In addition, Core managed to sell some Bitcoin at prices higher than current BTC levels. Management announced that it sold 2,285 BTC at an average price of $19,639, worth roughly $44.8 million. The biggest question is, can companies like Core recover after several big blows the cryptocurrency market has taken in a very short period in 2022?
In addition, it may also be worth noting that CORZ stock has options, and there’s been an uptick in Call options volume for the $1 strike expiring on January 20, 2023. Typically, options volume has been used as a gauge for sentiment and could be something to consider if CORZ is on your list of penny stocks right now.
Clovis Oncology Inc. (CLVS)
Like Core, Clovis has also managed to begin recovering after a significant sell-off earlier this quarter. In its third-quarter update, the company warned of a potential bankruptcy filing. It also said, “We have incurred significant net losses since inception and have relied, almost entirely, on debt and equity financings to fund our operations. We expect operating losses and negative cash flows to continue for the foreseeable future even with Rubraca generating revenues.”
But since dropping to lows of around $0.23, CLVS stock has bounced back nearly 100%. With a clear focus on the future prospects of its prostate cancer candidate, Rubraca remains a point of interest.
Last month Clovis said that a confirmatory study of Rubraca met its primary endpoint. The plan now is to submit a supplemental new drug application with the US FDA based on the results in Q1 2023. Clovis also wants to discuss with the FDA a potential submission for a broader patient population.
CLVS stock is also being watched by traders looking for short-squeeze stocks. According to data from TDAmeritrade, the short float percentage on the penny stock is around 21%.
Sintx Technologies Inc. (SINT)
One of the cheapest penny stocks on this list is Sintx Technologies. It sits around 10 cents and has begun gaining attention recently thanks to momentum in cheap stocks. The company manufactures advanced ceramics for things like defense industry applications.
Last month, the Defense Advanced Research Projects Agency (DARPA) awarded the company a contract for developing thermal-environmental barrier coatings for high-temperature ceramic composites. The $1.5 million award goes toward the goal of developing gas turbines with the ability to operate at inlet temperatures of up to 3,100 degrees Fahrenheit.
Dr. Larry Fehrenbacher, Vice President of Technology, SINTX Technologies, said in an October update, “This project is designed to develop unique high-temperature ceramic composites and environmental protective coatings for the advanced CMCs that will ensure engine performance, increase flight safety, and lower maintenance costs. Spinoffs to commercial aviation and commercial power plants will lower energy costs and reduce environmental pollution.”
Otonomy Inc. (OTIC)
Like SINT stock, Otonomy is hovering on the lower end of the price spectrum as far as stocks under $1 are concerned. The company develops therapeutics for neurotology and recently delivered third-quarter results this month.
While the financial portion of the report was better than last year, that wasn’t necessarily the focus for investors. As with many micro-cap biotechs, the corporate update is the important portion of the quarterly update. Otonomy’s OTO-313, OTO-413, and OTO-825 have not lived up to what Otonomy may have hoped, as the company is looking for strategic options to extract value from its pipeline. These include possible mergers, sales, wind-down, and even liquidation.
Although Otonomy has paused its product development activities, this “strategic options” topic has become a point of speculation for many companies this year, and it’s that speculation traders feed on. So far, not much is out there to grasp besides an amended 13G filing showing RA Capital Management, L.P. doesn’t have a position in the company anymore. Whether or not institutional selling has attracted retail interest is to be seen. But OTIC stock has popped by roughly 15% since the filing came out.
OTIC is also a penny stock with options. Until today, there hasn’t been any open interest in the options chain. But look closer, and you’ll see a surge in volume in the December 16, 2022, and March 17, 2023 Calls. In particular, the $2.50 and $5 strikes are gaining the most volume today.