The world of penny stocks never ceases to amaze us all. On one hand, it can offer a glimpse at cheap stocks with companies in their start-up phase. On another hand, they seemingly offer traders an innate ability to capitalize on random speculation-based trading. This includes sympathy sentiment, and it’s something we’ve seen a lot more of recently.
So what exactly is “sympathy” sentiment regarding stocks? It can be any common thread that companies or stocks have compared to another that is breaking out. For instance, during the boom in AI stocks earlier this year, nearly any and all companies with even a whisper of artificial intelligence technology development or machine learning caught the attention of retail traders. Initially, the spark was lit by ChatGPT and its explosive debut. Then it turned into a race for cheap AI stocks with potential. Another type of sympathy sentiment we’ve seen plenty of is related to share structure and market dynamics like short interest.
The idea of short squeeze stocks was glamorized by meme stocks like AMC Entertainment (NYSE: AMC), GameStop (NYSE: GME), and other companies with heavily shorted stocks. In the stock market today, we’ve seen another stock-related (v.s. fundamental-related) sympathy trend in low-float penny stocks as well as stocks with exposure to the Chinese market. What was the initial root cause for the excitement?
Top Financial Group Ltd. (NASDAQ: TOP) was a low-float, Hong Kong-based equities, futures, & options trading fintech company. With a listed float of fewer than 10 million shares, higher demand and lower supply in the stock market on Thursday and into Friday contributed to a massive rally aided by the addition of a short squeeze. TOP stock surged from roughly $6.53 to highs of $256.44 during regular trading. Extended hours trading between April 27 and April 28 saw prices climb as high as $260.
Low Float Penny Stocks To Watch
Now the hunt is on for more stocks with similar attributes. In this case, it looks like low-float penny stocks with exposure to the Chinese market, and that may or may not have a higher short interest. This article looks at a handful that has seen a reaction in the stock market today.
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Missfresh Limited (MF)
Shares of Missfresh surged on the back of today’s sympathy sentiment for low-float penny stocks. The day opened with MF stock trading as low as $0.92. By the afternoon, the price broke over $1.15 as the trend took hold across the retail market. Missfresh hasn’t reported any news in months, and that isn’t something unusual when it comes to sympathy-based moves. The important thing to know is that the underlying move is likely due to high speculation and could change quickly.
Missfresh has built a model around retail sales of fresh produce and consumer goods. Its “Missfresh” mobile app and “mini program” that’s embedded in third-party platforms allow users to purchase groceries.
Jiuzi Holdings Inc. (JZXN)
While it hasn’t reported any new updates in April, it hasn’t been months since Jiuzi gave a business update. The “new energy vehicle” dealership group established two regional operations centers via joint ventures in the Jiangxi and Zhejiang provinces.
Shuibo Zhang, CEO of Jiuzi Holdings, Inc. commented, “This is the debut of our newly launched subsidiary, Jiuzi Haoche, which was built to implement Jiuzi’s “asset-light” strategy. Jiuzi Haoche focuses on empowering the regional operations centers by leveraging Jiuzi’s advantages in vehicle sourcing while leaving the daily operation and market exploration to the Local Partners. We believe this new “asset-light” strategy will accelerate Jiuzi’s pace to become one of the leading NEV dealers in China.”
With some financial outlets showing a JZXN stock float below 10 million, the penny stock has gained some attention in the stock market today.
Sentage Holdings Inc. (SNTG)
With some outlets showing Sentage stock having a float below 5 million shares, it’s one of the lowest float penny stocks on this list. The company’s last update in 2022 explained it as a “holding company incorporated in the Cayman Islands with no material operations of its own.” However, via Chian-based operating entities, Sentage had said it offers a range of financial services including consumer loan repayment and collection, loan recommendation services, and prepaid payment network services in China.
However, considering the lack of information out there, chances are this is a purely sentiment-based move as it stands for now. If any further detail come about from Sentage, we’ll be sure to update this article.
List of Low Float Penny Stocks
A few last things when it comes to stocks like these, speculation and sympathy sentiment tend to drive direction. Just as quickly as many of these can explode higher, they can drop just as quickly. If you’re looking at any low float or short squeeze penny stocks right now, make sure to keep that in the back of your mind. That also goes for any stocks moving based on sympathy sentiment. At the end of the day, its for you to decide if the risk is worth the reward. No matter what, the stock market will be open the next session, and more opportunities can present themselves.
- Missfresh Limited (NASDAQ: MF)
- Jiuzi Holdings Inc. (NASDAQ: JZXN)
- Sentage Holdings Inc. (NASDAQ: SNTG)