Stocks To Watch Trading For Pennies Right Now; Are They Worth The Risk?
The definition of penny stocks typically includes a blanket description for stocks under $5. But ask most retail traders, and they’ve got a slightly different iteration of the term. In many cases, penny stocks will be defined as those that trade for pennies, becoming some of the most popular in the stock market today.
Of course, they don’t come without risk. When you’re talking about stocks under $1, they are some of the riskiest simply due to price action. Sure, stocks like Apple (NASDAQ: AAPL) or Tesla (NASDAQ: TSLA) might fluctuate throughout the day. But a shift in the price of a few cents is generally not noticeable in the grand scheme of things.
That isn’t the case when discussing penny stocks under $1. Even five or ten cents can mean a significant percentage change for such a stock. That also doesn’t include any other possible influence over the market in terms of added risk.
So before diving in, ensure you understand how to trade volatile stocks. These cheap shares can explode and implode to extremes within a few minutes. If you’ve been trading small stocks throughout the year, then chances are you’ve seen what I’m talking about. Does this mean all penny stocks under $1 should be avoided?
No, but again, having the proper training and knowing how to manage risk is crucial to your success. Assuming you know that, it might be interesting to know what catalysts could be at play with some of the penny stocks under $1 in today’s article.
Penny Stocks To Watch
Blue Apron Holdings Inc. (NYSE: APRN)
Shares of Blue Apron stock are popping again on Wednesday. The meal kit company has been down in the dumps this quarter. Coincidentally the drop comes after a massive rally that began during the summer and saw APRN shares rise to highs of over $8 by the middle of the third quarter.
Whether it’s short squeeze momentum or unusual options activity, Blue Apron has gained attention more for its technical market data than for its fundamentals. However, those fundamentals haven’t gone entirely unnoticed. This year Blue Apron has focused on pivoting from a members-only platform to a more broad retail model. Nevertheless, recent insider developments have brought about higher hopes for the company heading into 2023.
One of the most significant catalysts originated from funding from a key investor, Joseph Sandberg, and his affiliates. They have committed to funding a purchase obligation of $55.5 million at $5.65 per share under a private placement agreement. Blue Apron has also begun cutting its workforce and seeking to drop expenses by $50 million next year.
With this proposed funding and plans to streamline operations, it will be interesting to see how APRN stock trades during the holidays. At the time of this article, shares jumped from around $0.73 to over $0.82.
Pagaya Technologies Ltd. (NASDAQ: PGY)
Tech stocks haven’t been top performers this year. Pagay Technologies is part of that example. Though shares have dipped lower, there are a few things the market is looking at right now. Pagaya provides financial products and services using machine learning and artificial intelligence to offer consumer credit and residential real estate solutions.
It recently participated in a few investor conferences this month, including ones hosted by Wedbush, NASDAQ, UBS, and Citi. The presentation circuit came shortly after Pagaya posted an earnings and sales beat in November.
CEO Gal Krubiner went as far as saying, “We delivered another quarter of strong network volume and total revenue growth year-over-year, resulting in the highest quarterly revenue in our 6-year history. These results reflect the power of the network infrastructure we have created, the “rails” that connect our partners, investors, and consumers across the country.”
New filings have also come out showing several 13D filings for beneficial ownership of the company. This week we see another interesting spike in action. Whether or not those two coincide is yet to be seen.
Athenex Inc. (NASDAQ: ATNX)
This week, Athenex caught a strong surge in trading momentum that seemingly fizzled out as quickly as it began on Tuesday. Needless to say, now that the dust has settled, above-average trading activity persists.
The latest move comes after Athenex announced Quantum Leap Healthcare collaborators reported that Athenex’s oral paclitaxel plus encequidar combined with PD-1 and carboplatin graduated in a subgroup of high-risk patients with early-stage breast cancer. This combination is specifically being studied in neoadjuvant breast cancer patients.
Quantum anticipates presenting results at upcoming national meetings during Q2 of next year. Athenex CEO Dr. Johnson Lau explained, “This study confirms our finding of less neuropathy for Oral Paclitaxel compared to intravenous paclitaxel in our metastatic breast cancer study. It’s reassuring to see that Oral Paclitaxel regimen was not associated with increased febrile neutropenia relative to the intravenous paclitaxel regimen in a well-conducted U.S. study.”
What’s more, a new round of Form 4s shows insiders are buying up shares of ATNX stock. The largest purchase among the last three filings came from Athenex’s CEO, who bought roughly 96,000 shares at an average price of $0.1184 under a Salary Deduction and Stock Purchase Agreement.