Penny Stocks Under $1: Worth The Risk Or Avoid Entirely?
Are penny stocks worth it? The answer to that question depends on who you ask. In many cases, these higher-risk investments tend to scare away would-be traders and investors simply due to their volatility profile. The assumption is to treat them like a lottery ticket, and if you lose, “so what.”
The truth of the matter is you can make money with penny stocks on a consistent basis. It would be best if you had the right strategy, and it doesn’t hurt to get an education on how to trade penny stocks, either. Under these circumstances, cheap stocks like these can be worth the risk, but not everyone sees it this way.
For those who enjoy risk and understand how to make money trading, it might lead you to look for stocks with even greater volatility. What do I mean? Well, once some traders get a taste for what “normal” penny stocks are capable of, they hunt for even cheaper stocks. These are ones like those on this list that can be bought for under $1. Even the slightest change in price can equate to significant percentage gains (or losses) in your portfolio.
Penny Stocks Under $1
Troika Media (TRKA)
Sitting at less than $0.20 per share, Troika Media is one of the cheapest names on this list of penny stocks. The company has come under serious pressure over the last year or so, and broader markets pulled back. The business solutions provider offers brands and experiences to connect consumers.
What may have been in a brighter spotlight and more significant focus for the market is Troika’s dealings with Blue Torch Finance. At the end of December, the two companies entered into a further limited waiver of certain events of default under an original March 2022 finance agreement.
These “events of default” relate to Troika’s failure to satisfy specific covenants under that Agreement. There are currently “good faith” negotiations going on between the companies to amend the agreement and mitigate events of default.
What To Watch With TRKA Stock
Why does all of this matter right now? According to the amended filing, the Limited Waiver expires on January 13th if it isn’t terminated sooner by Blue Torch. Considering that it’s on Friday, it could be something helping to spark speculation in the stock market this week for TRKA stock.
Faraday Future (FFIE)
EV penny stocks have been somewhat of a mixed bag over the last few months. That is also true for penny stocks under $1, like Faraday Future. The EV company has continued working toward launching its initial flagship FF 91 Futurist vehicle, which has brought plenty of speculative events to the table for traders.
Most recently, the company shook up its leadership, including the appointment of new Board members. The company also made headlines before the New Year after reporting that it plans to deliver its FF 91 EV before the end of April.
What To Watch With FFIE Stock
Since the clock has begun ticking, momentum in the market for FFIE stock has gotten a boost. In addition, this week, Faraday announced plans to showcase the FF 91 at the 2023 CES show in Las Vegas. It has become the go-to event for technology companies, and Faraday said it would be displaying alongside Innovusion. The company recently selected Innovusion to provide LiDAR to power the FF 91’s autonomous driving feature.
If FFIE stock is on your list, it could be essential to also keep something else in mind. Faraday said that the start of production of a saleable FF 91 at the end of March and roll-out from the assembly line before the end of April is subject to funding. In this case, the company said it’s “subject to the timely availability of $150 to $170 million of additional funding and timely stockholder approval of an authorized share increase.”
The question now is: will that present a higher risk of potential dilution or not? On top of it, you’ve also got sources like Fintel.IO showing a noticeable short float interest of 18% in the penny stock. While this is all unfolding, it’s important to keep bullish and bearish cases in mind if FFIE stock is on your radar.
VistaGen Therapeutics Inc. (VTGN)
The clinical-stage biotech company, VistaGen Therapeutics has steadily climbed in price over the last few weeks. One of the initial catalysts that started 2023 on a bullish note was news that the company was building upon its intellectual property program.
VistaGen expanded its patent protection for its PH94BB platform after filing national applications at the US Patent and Trademark Office. This aims to further protect the candidate in treating adjustment disorder. This is the same approach VistaGen took to protect its other central nervous system disorders with anxiety.
On top of this, VistaGen also announced the pending acquisition of Pherin Pharmaceuticals to bring in the company’s entire pherine pipeline. The deal would also result in Vistagen gaining complete ownership of IP rights to PH94B. The acquisition comes with full ownership of other clinical product candidates, including PH15 in cognition improvement, PH284 in appetite-related disorders, and PH80 for migraines and hot flashes.
What To Watch With VTGN Stock
This week VistaGen continues making headlines for PH94B. The company completed the last patient last visit in its Phase 2 trial for adjustment disorder with anxiety. Topline results are now expected by the end of this quarter.
Commenting on the milestone, CEO Shawn Singh said, “Along with many other mental health challenges, the prevalence of adjustment disorder is alarming due to increasing levels of health, safety, economic and social stressors that adversely impact mental health and wellbeing. Vistagen is dedicated to developing treatments to address the escalating mental health crisis. We look forward to completing data analysis for this important study over the coming months.”