Penny Stocks + News = ?
It’s a new week of the New Year, and traders have high hopes for a January rebound. The exciting part about penny stocks, in particular, is they tend to move independently of broader market trends. That is to say, when the stock market is down, there’s usually no shortage of cheap stocks exploding higher. But this begs the question of how do you find penny stocks to buy in the first place? One of the simplest ways to do so is to look at daily headlines.
While insider trading or unannounced material events may be hard to identify in company filings, press releases aren’t. In this article, we look at a handful of low-priced stocks with news that has prompted today’s attention in the stock market.
You will need to determine whether these news catalysts have the staying power that matches up to your game plan or not as many times, premarket headline-fueled momentum can end up fleeting once the stock market officially opens at 9:30 AM ET.
Penny Stocks To Watch With Big News
PLBY Group Inc. (PLBY)
PLBY stock has been on the radar for the last few weeks. Initially, it was seen as a potential short-squeeze penny stock to watch. In our last update about the topic, PLBY was on the list with short data showing a 20%-23% short float, according to multiple sources, including Fintel and TDAmeritrade.
The beaten-down media company stock recently gained bullish momentum after closing a new deal for a spirits company joint venture. Last week the company announced the JV and outlined the initial plan for Playboy Spirits. The company and XL Ventures II LLC share 40% and 60% ownership, respectively, in the new spirits venture.
Marc Bushala, Chief Executive Officer of XLV, SIP, and Playboy Spirits, added, “It has been amazing to develop Rare Hare in partnership with a global brand like Playboy. For the past several years, SIP has discreetly procured unique and rare spirits from around the world to offer in limited releases under the Rare Hare brand.”
PLBY Stock News
This week PLBY is back in the spotlight after more headlines surfaced. The company and Charactopia announced a new JV, Playboy China. The two will own and operate a Playboy-branded consumer products business in portions of China’s market.
Calyxt, Inc. (CLXT)
One of the hotter areas lately has been biotech. In this case, Calyxt, a synthetic biology company, focuses on gene editing for plants as opposed to humans. It looks for ways to allow farmers to manage productivity and sustainability through pest control, weed control, and fertilizers.
CLXT Stock News
This week Calyxt and Cibus, an agriculture gene editing company, announced a merger agreement. The two companies will form one entity focused on plant breeding in this all-stock transaction. “The merger of two of the original pioneers in what has become the field of gene editing in agriculture will enable new and expanded partnerships and opportunities to make farming more productive and to create a new generation of sustainable ingredients that are renewable and low-carbon,” explained Greg Gocal, Co-Founder, Executive Vice President and Chief Scientific Officer of Cibus.
Tritium DCFC Limited (DCFC)
EV stocks are another area of interest as growth & tech regain some much-needed attention after last year’s dip. Tritium specializes in fast chargers for electric vehicles, and since late last month, DCFC stock has gained plenty of attention. In December, Tritium produced record units at its Brisbane and Tennessee facilities. It contributed to the single largest monthly output in its history, with more than 600 and 400 units, respectively. This week, the momentum trend continues after a historic update from Tritium on Tuesday.
DCFC Stock News
Tritium announced that it secured its largest order in company history on Tuesday. The order came from BP (NYSE:BP) in its efforts to accelerate the deployment of EV chargers. This BP news wasn’t the only driver in the stock market today. Tritium also gave preliminary 2022 performance expectations. These included sales anticipated between $95 million and $102 million. It’s also expecting fiscal 2023 sales in excess of $200 million.
AIM ImmunoTech Inc. (AIM)
Shares of another biotech company, AIM ImmunoTech, also traded higher at the start of the week. There are a few things to remember in addition to the news headlines made today. First, penny stocks under $1 have continued captivating the interest of high-volatility day traders. A move of just a few cents can equate to large percentage changes, and many big breakouts have been seen from some of the cheapest stocks in the market. In addition, shares of AIM stock have been on a run since the end of 2022.
One of the catalysts initially propelling shares coincided with a string of insider trading activity seen at the turn of the new calendar year. The buying also came as AIM was anticipated to present at this month’s Virtual Investor 2023 Companies to Watch event on the 18th.
In addition to recently announced patent news, traders are watching AIM more intently following Tuesday’s update.
AIM Stock News
The company announced an external sponsored collaborative clinical research agreement with Erasmus MC and AstraZeneca. Under this new agreement, Erasmus will perform a clinical study using drugs provided by AIM ImmunoTech (its Ampligen platform) and AstraZeneca (its durvalumab platform).
SciSparc Ltd. (SPRC)
The specialty pharmaceutical company, SciSparc, saw its shares trading higher on Friday thanks to a series of recent headlines. It reported initial preclinical results for its obesity treatment during the first week of January, followed by news of an agreement with Soroka Medical Center to conduct clinical trials in its autism spectrum disorder candidate. But the news catalyst that ignited some of the highest levels of trading action in the penny stock came this week.
SPRC Stock News
SciSparc announced more positive data from the third portion of its ongoing study of treatment for cocaine using MEAI. The treatment candidate, MEAI, is a psychedelic molecule from Clearmind Medicine Inc. SciSparc and Clearmind have a collaboration in place with treatment based on SciSparc’s CannAmide’s active ingredient Palmitoylethanolamide along with MEAI.