Hot Penny Stocks To Buy For Under $3
Are you looking for penny stocks to buy today? You’re not alone, and the process of finding them isn’t as easy as you might think. One of the main reasons is the much higher volatility in the stock market today. It isn’t just penny stocks experiencing heightened levels of rapid price fluctuation either.
The market, as a whole, is trading in one giant chop-fest. But that doesn’t mean it’s time to abandon ship. In fact, 2022 and possibly 2023 could be some of the best times in the market to learn how to trade. The landscape is much different compared to 2020 and 2021, especially with economic headlines driving sentiment. If you are looking to dive into these wild waters, understand that cheaper stocks can pop and drop within a matter of hours or even minutes. That’s why your trading game plan matters so much right now.
Penny Stocks That Could Explode
On a daily basis, we see penny stocks that could explode and many that do. Take, for instance, Camber Energy (NYSEAMERICAN: CEI). This beaten-down stock hit fresh 52-week lows on Friday. In a complete about-face, CEI stock exploded to highs of $0.16 Monday morning (just one session later), equating to a move of 180% from last week’s low. It wasn’t out of the blue, either. As we’ve seen with plenty of penny stocks with news, headlines can become a significant catalyst.
In Camber’s case, the former FinTwit meme stock rose on the back of news that it had an anticipated effective date for a 1:50 reverse stock split. December 21st is expected to be the day when CEI stock reverse splits and consolidates its shares. This welcomed news helped spark a rally this week.
But CEI isn’t the only penny stock with news to skyrocket. There were several names following suit in the stock market today. However, a vast majority popped and dropped shortly after the opening bell. This article looks at a few more cheap stocks to buy for under $3.
But just because they might appear “cheap, that doesn’t mean there’s any less risk involved. We look at what could be catalysts for the move and any future events that could keep these stocks in focus. Once you’ve got the information, you can decide if they deserve a place on your watch list or not.
1. HTG Molecular Diagnostics Inc. (NASDAQ: HTGM)
Shares of HTG Molecular Diagnostics were a big favorite among retail traders earlier this month. It was part of the list of short squeeze stocks to watch, and it fits the mold to a T. Shares exploded to the upside from around $0.20 to highs of nearly $2 within a matter of a few days. Then they came crashing back down to settle around the $0.50 area shortly after.
Now that things have cooled a bit and HTGM stock has seemingly found some footing, trading activity has started to pick back up this week. Most recently, HTG announced the next event in its RNA Profiling in Drug Discovery webcast series. Key opinion leaders (KOL) participated in the webinar titled “The Role of RNA Profiling in Drug Discovery and Analysis.”
HTG also reported that it would give results from the application of its transcriptome-informed approach to drug discovery. They want to design and refine small-molecule chemical libraries to allow the “selection and characterization of de-risked candidate molecules for selected therapeutic targets.”
While short-squeeze might not be in the picture right now, another possible point of focus is. HTG’s float sits at around 10 million shares. By most accounts, you could consider that a low-float penny stock. With that comes possibilities for high volatility. It was seen during the short squeeze period earlier this month and could be something to keep in mind at the end of December.
2. Landos Biopharma (NASDAQ: LABP)
Like HTGM stock, Ladndos Biopharma is one of the penny stocks under $1 to watch this week. The company develops oral medicines for patients with autoimmune diseases and, earlier this quarter, reported its Q3 financial results. It wasn’t so much the numbers that gained attention but what was discussed in the business update portion that caught attention.
Landos said it made “significant progress” in advancing its clinical-stage programs, including omilancor, NX-13, and LABP-104. Specifically, however, management pointed out that the company is in the last stages of a review of clinical development plans and “expects to provide an update in the coming weeks.”
That update was at the start of November. Since then, no further updates have been given. Now, speculation may be playing a role in recent activity in the stock market. Shares of LABP stock have seen an increase in daily trading volumes since December 9th, with Monday’s being the highest yet, during that period. As far as the pipeline and timing of the rest of the year go, there were also expected timeframes for releasing different sets of data.
Landos said that by the end of the year. This includes NX-13 in UC patients is expected to reveal details and timing of initiating a Phase 2 proof of concepts trial. It also includes Omilancor, which is expected to see the next steps and timing in the development “later this year.” Meanwhile, LABP-104 Phase 1a clinical data is expected to report top-line results “later this year.”
With only a few weeks left in 2022, all of this has come into focus.
3. Amyris Inc. (NASDAQ: AMRS)
We’ve discussed Amyris Inc. in the past based on several developments. These include unusual options activity and, most recently, higher short interest. As we pointed out last week, TDAmeritrade & Fintel.IO data show the Amyris short float percentage sitting around 19%.
Recent analyst ratings may also suggest a more mixed outlook, but some are more bullish than others. HC Wainwright has AMRS at a Buy with a $30 target. Other analysts like Roth Capital and Piper Sandler have less bullish ratings (Neutral). But both have set targets higher than current trading levels ranging from $2 to $4.
This week, shares have climbed higher following news that Amyris entered into an amended loan agreement and purchase of Aprinnova shares for $49 million. The update comes shortly after Amyris provided earnings results showing Q3 revenue growth of 49% compared to last year’s quarter. The increase was attributed to record consumer revenue of $46.6 million.
CEO John Melo also commented in Amyris’ third-quarter update that “Amyris outperformed key players in the beauty space according to the NielsenIQ 12 weeks trailing year-over-year growth rate of 7%…We have built the leading Lab-to-Market(TM) technology platform for synthetic biology and bio-manufacturing. After an extended period of rapid organic growth and acquisition activity, we are increasingly focused on brand integration, cash conversion efficiency, and cost optimization to achieve our profitability goals.”