Penny stocks are shares of small companies with a price of less than $5 per share. These stocks are known for their high volatility and low liquidity, making them a risky investment option. However, they also offer some unique benefits and opportunities for traders and investors.
One of the main benefits of trading penny stocks under $1 is the potential for high returns. As a result, even a small development can cause a significant change in the stock price. Skilled traders and investors who can identify these opportunities have the potential to earn substantial gains.
Another benefit of trading penny stocks is the low entry barrier. Unlike other investment opportunities that require a considerable amount of capital to get started, cheap stocks require relatively low capital. New investors can purchase many shares in a low-priced stock with just a few hundred dollars. This low entry barrier makes it easier for them to test their investment strategies without risking large sums of money.
Trading Penny Stocks Under $1
Researching and analyzing these stocks can be a valuable learning experience. These companies often have less information than larger, more established ones. Trading these stocks can also help investors develop their risk management skills as they learn to manage the high volatility and potential losses associated with these stocks.
There are also unique opportunities in trading penny stocks under $1. Some companies in this category may be in the early stages of growth and have significant potential for expansion. These companies may be trading for less than $1 per share because they are not yet profitable or are still developing their business model. In this update we cover a few more low-priced stocks traders are watching and is a continuation of the article 7 Hot Penny Stocks Under $1 To Watch This Week.
Another opportunity is the potential for merger and acquisition activity. Small-cap companies are often targeted for acquisition by larger companies looking to expand their business or enter new markets. If a company is acquired, its stock price can increase significantly, providing a potentially lucrative opportunity for investors.
However, it is important to note that trading penny stocks under $1 comes with risks. Due to their high volatility and low liquidity, these stocks can experience sudden and significant price swings. Some of these companies may be fraudulent, and investors may fall victim to scams. It is crucial to thoroughly research and analyze any company before investing in penny stocks.
Adial Pharmaceuticals (ADIL)
Shares of Adil Pharmaceuticals have jumped for the second day in a row. The move comes just a few days after the company announced that it was granted a meeting with the FDA for its alcohol use disorder treatment candidate, AD04. A previous Onward trial has already demonstrated the ability to achieve “statistically significant” reductions in heavy drinking days in those who drank fewer than ten drinks per drinking day before enrollment.
Cary Claiborne, President and Chief Executive Officer of Adial, explained, “We have finalized and are actively pursuing a regulatory strategy that we believe will bring AD04 to the commercial stage within important global markets in the shortest timeframe possible—initially focusing on the U.S. and Europe. Importantly, as a result of further analysis, we identified specific genotypes that have responded very well to AD04, and by combining these genotypes with the heavy drinker sub-group, we have a high level of confidence that we will be able to meet the FDA’s prespecified responder analysis primary endpoint to obtain FDA approval.”
ADIL stock could be on the radar heading into the rest of the month. That’s because management is set to present at the Roth Conference in California. So if this is on your list of penny stocks to watch, keep March 14th in mind.
Kiromic Biopharma Inc. (KRBP)
Another one of the biotechnology penny stocks trading higher this week is Kiromic Biopharma. The company specializes in developing immune-oncology treatments using its DIAMOND artificial intelligence and data mining platform. KRBP stock has been very volatile over the last several weeks and continues to fail to break above the 50-day moving average. This technical level seems to remain at a significant level of resistance if you look at its stock chart.
Shares have climbed over the last week thanks to continued momentum from the news at the end of February. Kiromic announced favorable results from a preclinical study of the pharmacology of its KB-GDT-01 platform (Deltacel). Data showed that no adverse microscopic findings related to the administration of Deltacel alone or as part of a treatment.
“We’re pleased to receive a clean pharmacology profile with no adverse findings and are encouraged by the preclinical results to-date in support of our planned IND submission. This histopathology report includes results from more than 500 histological sections from multiple organs of mice treated with Deltacel™, with the combination treatment of Deltacel™ and a non-biological anti-tumor therapy, or mice left untreated. This study completes the necessary dataset for authoring the Pharmacology Report of the Efficacy Study, which is an essential component of the nonclinical module of our IND application,” explained Leonardo Mirandola, Ph.D., Chief Scientific Officer of Kiromic BioPharma.
If an IND application is submitted and accepted by the FDA, the company said it plans to begin activating the clinical trial process in the second quarter of 2023.
Borqs Technologies (BRQS)
Shares of Borqs Technologies have steadily bounced back over the last week. The technology stock continued higher on Thursday following another project win. This time, Borqs announced that it won a contract to develop and manufacture an Android 5G rugged, waterproof device for deployment in agriculture, oil and mining, utilities and safety, & other industries. The initial launch is anticipated in North American and European markets.
“We are very excited to have won this contract. Borqs has extensive experience and a track record in the developing and manufacturing of rugged devices for vertical industries, including intrinsically safe Zone 1 and Zone 2 devices. This new win further confirms Borqs’ technology leadership in this area”, said CEO Pat Chan in a recent update.
The update came just after preliminary revenue results highlighted 79% year-over-year growth in the company. On the back of the news, BRQS stock has once again caught a strong move in the stock market today.
List Of Penny Stocks To Watch
- Adial Pharmaceuticals (NASDAQ: ADIL)
- Kiromic Biopharma Inc. (NASDAQ: KRBP)
- Borqs Technologies (NASDAQ: BRQS)
- Blue Star Foods Corp. (NASDAQ: BSFC)
- Asensus Surgical Inc. (NASDAQ: ASXC)
- Akebia Therapeutics (NASDAQ: AKBA)
- Sono Group (NASDAQ: SEV)
- Myomo Inc. (NYSEAMERICAN: MYO)
- vTv Therapeutics (NASDAQ: VTVT)
- Novo Integrated Sciences (NASDAQ: NVOS)