Are Penny Stocks Under $1 A Buy Now Or Too Risky?
There’s no shortage of volatility in the stock market today. Whether you’re trading penny stocks or higher-priced names, wild swings are happening daily. But that doesn’t mean it’s time to head for the hills. That means it’s time to learn how to day trade the trends and take advantage of them. If you already have a handle on things like risk management and can tolerate moves up or down for 20% or more, then penny stocks may be right for you.
They’re well-known for doing precisely that and then some. The most volatile of the bunch are the ones trading for the lowest prices. That means stocks under $1 can be the kind that experiences some of the most significant moves from some of the slightest price spikes or drops in the market. This article will look into a few more penny stocks under $1. This continues the list from our article, “Best Penny Stocks To Buy? 3 To Watch Under $1 Right Now.”
We’ll see what has acted as a catalyst in recent days and what, if anything, could be on the horizon to pay attention to. Then you can decide if any are worth adding to your watch list.
Penny Stocks Under $1 To Watch
Helbiz Inc. (HLBZ)
The company specializes in “micro-mobility,” a fancy word for things like eScooters, eBikes, and eMopeds. Its fleet management technology uses artificial intelligence and environmental mapping to scale and manage its assets sustainably.
When it comes to trading stocks, indicators are generally used to help identify trends. It might be something like charting candlesticks. It could also be something like following volume trends. On a day when the overall market traded one of its lowest volumes of the year, Helbiz traded one of its highest volumes in a single day.
In fact, since the 21st, HLBZ stock trading volume has been considerably higher than weeks prior. The only other time this year when it progressively traded unusually higher daily volume was during the summer. This came after a partnership with Logan City Council in Australia for Helbiz to operate up to 400 eScooters and 400 eBikes.
Fast-forward to this month, Helbiz has just completed the acquisition of Wheels, a sit-down scooter operator. Adding to things was active insider activity in the stock. CEO Salvatore Palella has continued his shopping spree from earlier in the year. Palella’s latest round of buying saw his 5.4 million shares position turn into a 9.57 million share position. With that has come plenty of upbeat sentiment in the market for the sub-$0.50 penny stock.
Nuwellis Inc. (NUWE)
Another one of the cheap stocks to watch is Nuwellis. The company provides medical devices for patients suffering from fluid overload. Like Helbiz, Nuwellis stock has experienced progressively higher levels of daily trading volumes over the last few weeks, with Friday’s being some of the highest since August.
Despite reporting lower-than-expected earnings results for Q3, NUWE stock has been bouncing back. That may have stemmed from CEO Nestor Jaramillo’s comments from the Q3 update. He explained, “We are confident that continued expansion of our field sales team, including clinical education specialists, bolstered by our market penetration initiatives and growing body of clinical evidence, will position Nuwellis well for strong growth in 2023 and beyond.”
The last week’s worth of trading activity saw shares pop over 30%. The question now is will the momentum continue into December?
Stryve Foods Inc. (SNAX)
Healthy snack and consumer-packaged goods company Stryve Foods saw shares continue higher this week as SNAX stock has accelerated price performance since November 11th. The move comes after stronger earnings per share performance for the third quarter. Despite missing sales estimates, Stryve hit its stride, reporting a loss per share of $0.16 compared to expectations of a $0.20 loss per share. The company also recorded its lowest historical net loss and adjusted EBITDA.
“We have improved Q3 to a respectable 22.4% gross margin versus negative Q2 gross margins — and delivered the best quarter in the Company’s history in terms of Adjusted EBITDA. Our productivity initiatives are underway across the organization to further drive positive financial outcomes.”Chris Boever, Chief Executive Officer
SNAX stock has also benefited from some insider trading. CEO Christopher Boever built his 5.23 million share position to over 6 million thanks to his purchases in November. Boever has been a net buyer since June.
Are Penny Stocks Risky?
This brings us to the question, “are penny stocks risky?” Without a doubt, penny stocks (let alone those under $1 are very risky. But in many cases, that risk can be worth the potential reward. It all comes down to managing this risk. Understanding when to hold and when to cut your losses is important.
If you’re new to trading, in general, or new to penny stocks, it’s best to know the basics first. In the article “Biggest Beginner Penny Stocks Trading Mistakes? 3 to Know,” we outlined several pitfalls that new traders might encounter. Things like not using technical indicators, ignoring stock market trends, and not having a trading strategy, are surefire ways to set yourself up for failure.
On the other hand, if you are an experienced trader, then you already understand the pitfalls that come with the territory. This list of penny stocks has some of the riskiest names, by price. Are they worth the risk to add to your watch list? That’s something I’ll leave up to you to decide.