Penny stocks are shares of companies that trade for under $5. While that may be the standard definition, it isn’t the only one if you ask retail traders. In the stock market today, most day traders will look at some of the cheapest of the bunch, the ones that can be bought for pennies on the dollar. In this article, we look at a few more of these low-priced stocks to see what traders are looking at and what may be on the horizon that could be a source of speculation.
Why would anyone want to buy such risky stocks? The simple answer is to capitalize on volatility. When you talk about penny stocks under $1, you’re talking about stocks capable of jumping significant percentages without seeing overall prices climb aggressively.
Case in point, any stocks under $1 need to move 10 cents or less to experience a 10% move or more. The same can’t be said for stocks like Apple or NVIDIA. Take, for instance, Akanda Corp. (NASDAQ: AKAN) on Thursday. The medical cannabis company saw its stock explode over 150% from just a 30-cent price increase. There weren’t any company-specific updates. However, FDA-related headlines regarding exploring regulatory pathways for CBD products prompted speculation about cheap marijuana stocks.
Of course, these big moves can happen quickly in either direction, which is why there’s so much risk involved in cheap stocks like these. It’s up to you to decide if the risk is worth the reward. This is an update on the list of penny stocks from our article Best Penny Stocks To Buy? 4 Under $1 To Watch In January 2023.
Penny Stocks Under $1
Avaya Holdings Corp. (AVYA)
Last month we discussed Avaya Holdings on a list of penny stocks with high short interest as traders were hunting for the next big breakout company. AVYA stock didn’t experience an explosively aggressive move like AMC or GME stock. However, since that update, it has maintained a strong rebound. In fact, between then and now, the penny stock has climbed from around $0.15 to highs of over $0.40. That trend continues this week as shares tick higher.
One of the sources of speculation for Avaya is its financial positioning. A few weeks before the end of 2022, Avaya disclosed business information that “it confidentially shared” with specific stakeholders. Right now, a comprehensive resolution is ongoing to potentially strengthen the company’s balance sheet and business overall.
In a December update, Alan Masarek, Avaya’s Chief Executive Officer, said, “We are pleased to remain engaged in constructive discussions with all of our financial stakeholders to enhance our capital structure, increase liquidity and accelerate our investment in innovative products and solutions.”
Avaya was granted earlier this month titled “Sentiment Analysis (Emotion Artificial Intelligence) of Message Posting In Group Conversations,” which helped boost sentiment. The company also announced it was named a “Leader” in a report titled The Aragon Research Globe™ for Conversational AI in the Intelligent Contact Center (ICC) 2023 by Aragon Research, Inc.
– Penny Stocks To Buy Now? 7 To Watch With Big News this Week
What To Watch With AVYA Stock
Penny stocks and the underlying companies carry plenty of risks. One of these can be a failure of the business overall. While Avaya hasn’t sounded the alarm that it’s “failing,” reports from Bloomberg have cited that Avaya may have been in talks with first-lien lenders for a $450 million loan that would fund operations during a potential bankruptcy filing. Of course, Bloomberg cited “people with knowledge of the matter.”
This week, we also see that a new 13G was filed, showing BlackRock, Inc. has an 8.8% stake in the penny stock.
Cenntro Electric Group Ltd. (CENN)
Electric vehicle technology company Cenntro has focused on developing a portfolio of commercial electric vehicles. Late last year, its Class 4 Logistar 400 received a US Environmental Protection Agency Certificate of Conformity. This confirmed the Logistar 400 conformed to the EPA’s regulations and emission standards.
Whether for last-mile delivery or municipal services, the Logistar 400 was designed to carry a max payload of over 7,400 pounds with an 84-mile range. Earlier this month, Cenntro’s portfolio was showcased at the Consumer Electronics Show in Las Vegas. Its lineup included a hydrogen fuel cell vehicle (LM864H), a Class 3 Van (Logistar 300), and its iChassis line of three programmable vehicles used for automated and autonomous driving.
What To Watch With CENN Stock
There haven’t been any recent headlines from the company since its CES event. However, industry sentiment could promote some bullishness in the stock market this year. Thanks to the rallies in top EV stocks like Tesla (NASDAQ: TSLA), the industry is getting some long-awaited attention. Year-to-date, CENN stock has climbed from $0.44 to over $0.61 or roughly 38%.
Asensus Surgical Inc. (ASXC)
Last month Asensus fell to new 52-week lows after having slowly bled out during November and most of December. However, news right before the New Year helped promote some bullishness around the company and, in turn, its stock. Asensus initiated a Senhance program at the Kashiwa Kosei General Hospital of Japan.
– 4 Penny Stocks To Buy According To Analysts & Targets Over 600%
The company has explained that its Senhance platform in Japan is intended to “assist in the accurate control of laparoscopic instruments for visualization and endoscopic manipulation of tissue including grasping, cutting, blunt and sharp dissection, approximation, ligation, electrosurgery, suturing, mobilization, and retraction in laparoscopic surgery.”
What To Watch With ASXC Stock
ASXC stock has exploded in 2023 compared to the end of 2022. With news-fueled momentum, it will be interesting to see what follow-through comes (if any) after headlines have had time to get digested.
HC Wainwright recently reiterated coverage on ASXC stock with a Buy rating. It also maintains a $3 price target. Based on current levels of around $0.70, the ASXC stock forecast price is 328% higher.
List Of Penny Stocks To Watch
- Avaya Holdings Corp. (NYSE: AVYA)
- Cenntro Electric Group Ltd. (NASDAQ: CENN)
- Asensus Surgical Inc. (NYSEAMERICAN: ASXC)
- PolyPid Ltd. (NASDAQ: PYPD)
- Troika Media Group (NASDAQ: TRKA)
- Novo Integrated Sciences (NASDAQ: NVOS)
- Lightning eMotors (NYSE: ZEV)
