Inflation data, earnings, and now, the debt ceiling crisis are dominating headlines in the stock market today. However, one of the market segments likely shrugging these “fears” off is the one that includes penny stocks. Generally defined as stocks under $5, these low-priced public company shares move more on speculation and hype than broad market fundamentals.
While the S&P 500 and Nasdaq give back their overnight gains, there are more than a handful of penny stocks exploding higher. Take, for instance, GSI Technology (NASDAQ: GSIT). Until May 12th, the highest trading volume day of the year was in April, with GSIT stock trading just over 2 million shares. Fast-forward to today, and more than 28 million shares were traded before 10:30 AM ET.
No headlines came out early in the morning, nor were there any apparent filings made by insiders or institutions. However, with the stock market down today, GSIT stock was up by more than 100%, surging from a previous close of $1.64 to highs of over $3.80.
The California-based company develops technology for AI and high-performance computing solutions for markets including telecom and military. Certainly, a focus on AI penny stocks could be one of the sentiment-based focuses of retail traders. If GSIT stock is on your list of penny stocks right now, next week is when the company reports its latest earnings.
Penny Stocks To Watch
The move that GSIT stock is seeing in the stock market today isn’t uncommon among low-priced company shares. In this article, we’re looking at a few more of some of the “cheapest” names among the bunch, stocks under $1. This penny stocks watch list will continue the list from our article Best Penny Stocks to Buy? 3 Under $1 To Watch Before Next Week. We look at some of the more recent potential catalysts, look for upcoming events, and give some snackable information to add to your due diligence process.
Clearmind Medicine Inc. (CMND)
Like GSIT stock, shares of Clearmind Medicine saw some of their highest trading volumes of the quarter on Friday. The biotech company focuses on psychedelic-derived therapy development. This week, in an exclusive, Clearmind told Benzinga that it received an ethics committee approval for its Phase 1/2 trial to assess its CMND-100 for treating alcohol use disorder.
“Ethics Committee approval of the study marks a key step forward in beginning the first-in-human clinical trial of CMND-100,” stated the company’s CEO Dr. Adi Zuloff-Shani. “With CMND-100, we aim to revolutionize AUD treatment and improve patients’ compliance to therapy compared to other marketed pharmacotherapies.”
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If you’ve followed the story this year, you’ll remember that Clearmind engaged a contract research organization to support a first-in-human trial of CMND-100. The company also filed a provisional patent application with the US Patent and Trademark Office as a part of its collaboration with SciSparc. The application seeks protection for the company’s combination of MEAI and SciSparc’s palmitoylethanolamide for treating depression.
Addentax Group Corp. (ATXG)
Companies with exposure to China have gotten a lot of attention recently. It was hard not to see at least a few Chinese penny stocks exploding higher for an entire week. While that isn’t the case this week, the trend hasn’t entirely died out, and Addentax Group stock is an example of that.
Shares jumped over 14% on Friday, just two weeks after announcing new collaboration efforts. The garment manufacturing and logistic company announced its intent to engage with Zhejiang Jinsuo Holding Group Co., Ltd. and Zhejiang Weicheng Textile Co., Ltd. Addentax said that during preliminary meetings, the companies agreed to “enhance textile productions by developing AI-driven robots to automate labor-intensive tasks.”
With interest in AI penny stocks, ATXG shares have gotten a boost in the stock market today. Remember that in many cases of sentiment-based moves, the follow-through or momentum after the initial move is important to note. Since sentiment can change quickly, so can the direction of related penny stocks.
Tivic Health Systems Inc. (TIVC)
It’s still earnings season, and there’s plenty of anticipation in the market. With Tivic Health set to report on Monday, there’s no shortage of action. The company’s stock has steadily climbed for the better part of the last two weeks leading up to these results.
Last week the company announced the launch of a B2B portal, which will support the high demand for commercial ordering of its doctor-recommended and FDA-approved bioelectronic sinus device, ClearUP. Pharmacy groups and healthcare providers will have availability to order the product.
“The B2B portal will further enable our commercial and operational reach as we accelerate growth,” said Jennifer Ernst, CEO of Tivic. “This is one of many steps towards increasing access of bioelectronic medicine for all patients that can benefit from drug-free clinically effective therapeutic solutions.”
The market will most likely focus on Tivic’s ability to get things back in order. In its last earnings update, it missed sales estimates by a wider margin. However, the company did report 46% growth in revenue and over 100% growth in its direct-to-consumer channels.
Sunworks Inc. (SUNW)
Like TIVC stock, Sunworks has seen its share price steadily rise over the last few weeks. The company provides solar power and battery storage solutions for residential, agriculture, industrial, and commercial clients.
Analysts and investors are also likely anticipating earnings from the company. Monday, they will get the results. Sunworks reports data before the market opens and will host a conference call in the early afternoon to discuss this in more detail.
Last quarter, the company missed estimates on earnings per share but beat sales expectations by a wider margin. Specifically, CEO Gaylon Morris explained, “Our direct sales channel represented a record 27% of fourth-quarter revenue, up from 5% in the prior-year period. Since the Solcius acquisition in 2021, we’ve increased our direct sales force to more than 600 representatives, positioning us to drive above-market originations growth. By year-end 2023, we expect our direct sales channel will represent approximately half of our annual sales.”
Against this backdrop, speculative bets may have begun to get placed ahead of Monday’s big reveal. If SUNW stock is on your watch list, pending earnings can be a coinflip and, as such, creates a higher risk scenario should the results not favor the buy side.
List Of Penny Stocks Under $1
- Clearmind Medicine Inc. (NASDAQ: CMND)
- Addentax Group Corp. (NASDAQ: ATXG)
- Tivic Health Systems Inc. (NASDAQ: TIVC)
- Sunworks Inc. (NASDAQ: SUNW)
- Pieris Pharmaceuticals (NASDAQ: PIRS)
- Clover Health Investments Corp. (NASDAQ: CLOV)
- Porch Group Inc. (NASDAQ: PRCH)
