Investing in penny stocks can be an attractive option for diversifying. However, caution is critical when investing in these stocks, as they come with inherent risks that can lead to significant losses if not approached carefully.
One of the main reasons why investors are drawn to penny stocks priced under $1 is the potential for significant gains. These stocks are often associated with smaller, lesser-known companies that may experience rapid price fluctuations. As a result, they can offer a high return on investment.
In addition, investing in penny stocks can be a way to diversify your portfolio and potentially reap the rewards of any high-performing stocks. By investing in multiple low-priced stocks, investors can spread their risk across different investments and potentially mitigate any losses.
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However, it’s important to remember that investing in penny stocks also comes with significant risks. These stocks are often associated with companies with limited financial resources or an unproven track record. Therefore, investing in penny stocks requires careful research and due diligence to avoid scams or companies that are unlikely to succeed.
How To Find Penny Stocks To Buy
When searching for cheap stocks to invest in, it’s crucial to look for companies with a solid financial position and a clear growth strategy. Some investors prefer to invest in companies operating in a niche market or offering a unique product or service. However, it’s important to remember that not all low-priced stocks are created equal.
Extensive research is essential before making investment decisions. There are several ways to find potential penny stocks to invest in, such as turning to financial news websites, investment forums, or using a stock screener. However, conducting thorough research before making any investment decisions is important.
As with any investment, investing in cheap stocks is entirely up to the individual. It’s notable to evaluate your investment goals and risk tolerance before making any investment decisions. Doing so lets you determine if penny stocks align with your investment strategy and help you achieve your financial goals.
Penny Stocks To Watch
Cenntro Electric Group (CENN)
CENN stock hasn’t been on the radar for a while. The EV technology stock has slowly pulled back since making waves earlier this year. Cenntro announced in February that it had begun producing battery packs at its US and German facilities. It also discussed commencing production of its LS400 and Metro electric commercial trucks at the end of February.
Not much has been discussed since as CENN stock slipped back below $0.50. That is, until this week when Cenntro came out with its first update in over a month. The company reported that it began production of its EV commercial trucks at its Jacksonville, Florida, assembly facility.
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“After more than 15 months of facility renovation, assembly line preparation, and local regulatory compliances, the Jacksonville facility has begun assembly,” said Peter Wang, Chairman, and CEO. “The vehicles assembled in Jacksonville will meet the strong market demand for our electric commercial vehicles in the region. With the capability to accommodate the LS400, Teemak, and Metro electric commercial trucks, we are well positioned to capture US market share in the years ahead.”
With this backdrop, the sub-$1 penny stock’s share prices surged more than 10% during the early morning session.
Safe & Green (SGBX)
Shares of Safe & Green Holdings closed Wednesday’s session around $0.80. While this was just a few pennies shy of its 52-week low, it was during one of the most active sessions the penny stock has seen in months.
This week the modular structure development company reported Q4 earnings, and despite missing estimates, the market is reacting favorably to some of the specifics. Among the list of things to note is Safe & green’s 476% year-over-year bump in construction services revenue. The company also said it finished vertical integration processes to support its margin expansion by producing modular units in-house.
Importantly, we have barely scratched the surface of this multi-billion-dollar industry, as illustrated by our growing sales pipeline, which is now in excess of $800 million,” said CEO Paul Galvin. “In addition to our proprietary technologies and processes, we believe the vertical integration of our business, through in-house manufacturing, filling our factories with our own work, provides us with a distinct competitive advantage in terms of pricing and speed-to-market, and is expected to drive significant margin expansion.”
This optimism translated into Thursday morning’s early breakout move, with shares trading around the $1 mark.
Boxed Inc. (BOXD)
Like Safe & Green, Boxed shares have recently seen an uptick in daily trading volumes. The company’s plans to potentially file for bankruptcy have brought concern to the markets. However, the last trend suggests a bullish outlook for the eCommerce grocery platform.
Its exposure to Silicon Valley Bank prompted initial concerns. However, since the FDIC has somewhat subdued the latest banking crisis concerns, there’s a bit more positive speculation around the topic.
It’s worth noting that the company announced plans to explore strategic alternatives earlier this year. As we’ve seen many times, this “search for strategic alternatives” can present a highly speculative situation in the market. Until the company confirms anything, traders and investors must guess what a potential outcome might look like. Boxed had said potential outcomes include a possible sale of the company as a whole.
While there are still plenty of unknowns, BOXD stock has experienced a bit of an uptick in the stock market this week.
Troika Media (TRKA)
Troika Media is no stranger to the discussion if you’re a frequent reader of PennyStocks.com content. Much earlier than the company became a meme stock on Reddit, and we followed Troika’s progress. It was initially mentioned in mid-December in the article Top Methods for Building A Penny Stocks Portfolio. Since then, it was a focus of traders looking for stocks with high short interest as well as those looking for penny stocks under $1. As we’ve discussed, one of the underlying catalysts is Troika’s situation with Blue Torch Finance.
While speculation fueled a massive rally to highs of nearly $1, uncertainty persisted, and shares of TRKA stock pulled back in recent weeks. Why is Troika Media back on the radar of retail traders? You might’ve guessed: speculation. This week, the marketing services company is back in focus after another meme stock mentioned it on Twitter.
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Genius Group (NYSEAMERICAN:GNS) CEO Roger Hamilton Tweeted, “Also Genius Group $GNS has sent to Troika Media a non-binding offer to acquire $TRKA together with a proposal on capital restructure. As agreed with @Jefferies terms are confidential. Offer approved by $GNS Board. Proceeding subject to $TRKA go-ahead (or not).”
This has prompted momentum to come back into the market. Although, Hamilton also stated that “an offer isn’t any guarantee an acquisition will happen. Apparently, Troika is “one of multiple companies” Genius is in discussions with.
List Of Penny Stocks
- Cenntro Electric Group (NASDAQ: CENN)
- Safe & Green (NASDAQ: SGBX)
- Boxed Inc. (NYSE: BOXD)
- Troika Media (NASDAQ: TRKA)
