Thanks to key economic data, this has been one of the wildest weeks in the stock market. Whether you’re trading penny stocks or higher-priced companies, it is almost impossible not to notice all macro catalysts in motion. Whether it was March CPI inflation data, the PPI data from last month, the latest FOMC meeting minutes, or more jobs and retail sales data, this week was not a week to sleep on.
With these catalysts came plenty of stock market volatility, which is a breeding ground for momentum in cheap stocks. They’re inherently volatile on their own, but with the addition of broad market trends, things have become even more amplified.
Look at a company we discussed yesterday, CXApp Inc. (NASDAQ: CXAI). It was trading as a tech penny stock under $5 at the time of our update. Today’s premarket session saw its share price reach highs of nearly $70.
We also saw SAI Tech Global (NASDAQ: SAI), another low-volume penny stock skyrocket overnight. Thursday’s closing price on SAI stock was $1.52. This morning, it reached highs of $7.40 right off the opening bell.
Stock Market Today
The initial sentiment in the stock market today is leaning more bullish. This is a stark contrast to how things began on Monday morning. Fears of mounting inflation against a pending recession were weighing on stocks.
The start of earnings season and the latest round of bank earnings reports have also brought about speculation for investors regarding the outlook after last month’s banking crisis. Heading into next week, there’s a sense of optimism, for now, that may or may not remain in light of more earnings data coming out.
Nevertheless, even when the stock market is down, you can find at least a handful of penny stocks to watch that are making new intra-day highs. This article looks at some of the most volatile stocks under $1.
Penny Stocks To Watch
Heliogen Inc. (HLGN)
Heliogen stock has been in recovery mode for the last month or so. Since reaching fresh 52-week lows last month, shares have bounced back roughly 100%. This uptrend seems to have strengthened over the last week thanks to strength in the artificial intelligence technology industry. Heliogen provides AI-enabled concentrating solar energy technology platforms. In particular, the renewable energy tech company focuses on delivering carbon-free heat, steam, power, and “green hydrogen” for industrial clients.
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Something that has been at the back of anyone’s mind who has looked at Heliogen this month is a proposal for a buyout. In a public filing, the company was delivered a letter on behalf of Continuum Renewables proposing to acquire Heliogen at $0.40. Friday morning, the company confirmed receipt of the unsolicited bid and brought some added clarity to the market.
Heliogen said that Continuum was co-founded by Heliogen’s former CEO, who left in February. The interesting part of this is that according to Heliogen, Continuum’s largest investors are Idealab Studio and Prime Movers Lab, “which collectively hold…approximately 26% of the Company’s outstanding shares.”
Against this backdrop, HLGN stock has carved out a place on watch lists this week.
Predictive Oncology Inc. (POAI)
There is no shortage of excitement around AI stocks. Thanks to the popularity of ChatGPT, there’s been a surge of interest in any company with exposure to the industry. Unlike other AI companies focused on general business solutions, its AI platform is used to develop cancer therapies.
Predictive can use a biobank of over 150,000 cancer tumors against drug compounds for drug development ranging from early discovery to clinical trials. It’s using its platform to help drug companies make higher confidence predictions regarding which molecules may or may not be successful and potentially lead to commercial-grade candidates.
Right before the start of April, predictive inked a deal with Integra Therapeutics to build upon its gene therapy pipeline. The goal is to advance Integra’s ability to use gene editing for future cancer therapies.
mCloud Tech Corp. (MCLD)
Cloud tech company mCloud is another tech stock to watch this week. Action has been relatively quiet until Friday, when MCLD stock saw its highest trading volumes of the year. In particular, mCloud’s platforms are used in energy applications. Its platform offers ways to curb energy waste and make energy production more efficient while eliminating emissions. Its AssetCare solutions enable users in industries like oil & gas and wind to use AI for optimizing performance.
Last quarter, mCloud partnered with Mercedes-AMG PETRONAS Formula One to advance its “path to Net Zero.” The Chief Commercial Officer of the F1 Team, Richard Sanders, explained that mCloud’s “industry-leading expertise is a valuable addition to our working group and will complement the wealth of knowledge that already exists within our partner ecosystem. We look forward to collaborating closely with the mCloud team moving forward.”
In addition, mCloud has taken a proactive approach in seeking strategic alternatives for the company. Last month it formed a committee that included retaining ATB Capital Markets and Maxim Group as financial advisors to maximize value for the company’s shareholders. However, the latest sympathy sentiment stemming from AI stock momentum may be one of the more prominent factors in the stock market today, helping in the recent uptick for MCLD stock.
VBL Therapeutics (VBLT)
VBL Therapeutics has been on the radar over the past few weeks, thanks to speculation and general momentum in VBLT stock. As we’ve discussed previously, the company is in a period of transition. VBL announced an agreement to merge with Notable Labs. In a related update, the company explained the deal would create a clinical-stage therapeutic platform company developing precision medicines. The new focus will be on Notable’s Predictive Precision Medicines Platform and pipeline targeting cancer.
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CEO Dr. Dror Harats explained in its latest earnings update, “I am confident that the recently announced merger with Notable Labs Inc. provides the best path forward and will position the new enterprise to deliver both near and long-term value for shareholders of both companies and patients.”
With the pending merger anticipated to close in the second quarter of 2023, the clock is ticking, and traders are watching.
List Of Penny Stocks
- Heliogen Inc. (NYSE: HLGN)
- Predictive Oncology Inc. (NASDAQ: POAI)
- mCloud Tech Corp. (NASDAQ: MCLD)
- VBL Therapeutics (NASDAQ: VBLT)