If there’s one thing we know now it’s that catalysts play a significant role in trading penny stocks. This is where things like sympathy sentiment can play a much larger role. In this case, someone trading based on “sympathy” is looking for stocks with similar traits to one that is making larger moves in the market. Most recently, a sweeping trend in AI stocks ignited thanks to the early breakout in stocks like C3 AI and other small-cap artificial intelligence technology companies.
While a sector-based move can be one example, others are less niche. In the stock market today, shares of U Power Limited (NASDAQ: UCAR) exploded following news headlines from the company.
Why UCAR Stock Is Up Today
A mix of news, market momentum, float size, and short interest have played a role. The vehicle sourcing services provider entered into a framework strategic cooperation agreement with Quantum Solutions Co., Ltd. According to the company, Quantum is the first and only independent Japanese electric vehicle manufacturer listed on the Tokyo Stock Exchange.
The agreement aims to develop business initiatives related to marketing, research and development of new energy vehicles. Details of the agreement show Quantum Solutions will advise on the selection and development of suitable EV models. Meanwhile, U Power will provide battery-swapping technology, products, and compatible cloud service platforms.
Since the news was released, UCAR stock has gone from being a penny stock to one priced above $11. This has opened the door for traders to begin flocking to cheap stocks. Some are looking for short-squeeze stocks. Others are hunting for low-float penny stocks. Meanwhile, there are a few traders hunting for companies with exposure to similar industries. In this article, we look at several others gaining momentum in the stock market today.
Penny Stocks To Watch
Amyris Inc. (NASDAQ: AMRS)
Shares of Amyris continue trading higher in the stock market this week. The “clean” beauty and cosmetic company recently announced the completion of a license for a supply of sustainable squalene with specialty chemicals company Croda International.
Daniele Piergentili, President Life Sciences at Croda, explained, “Our partnership with Amyris is fully aligned with Croda’s commitment to be the most sustainable supplier of innovative ingredients across our growth markets and with our pharmaceutical strategy to Empower Biologics Delivery. Our ambition is to be able to offer vaccine developers the most appropriate adjuvant systems to maximize the efficacy of their antigen.”
Against this backdrop, AMRS stock has surged as traders focus on low-priced penny stocks on Thursday.
SciSparc Ltd. (NASDAQ: SPRC)
Shares of SciSparc also took flight on Thursday. The company focuses on developing therapies for treating central nervous system disorders. Earlier this week, the company reported that it has brought on a new VP of Strategy and Business Development to structure business strategies and identify new opportunities. SciSparc has been in the middle of restructuring plans to “unlock” value for its shareholders.
One of the more recent highlights centered around a joint venture drug discovery strategy with MitoCareX Bio. In May, the two announced the successful development of its core algorithm to offer suitable modelling of human mitochondrial carriers to speed up cancer drug discovery.
SciSparc also announced the final patient enrolled in its Phase 2a trial of SCI-110 in Alzheimer’s Disease. Trial results are anticipated in “upcoming weeks.” Thanks to this mix of catalysts, the market is taking notice. The question now is will strategic plans and the latest and upcoming trial milestones prove fruitful for the company?
Eos Energy Enterprises Inc. (NASDAQ: EOSE)
Eos Energy develops zinc-based energy storage systems. With clean energy stocks remaining a core focus in the last few weeks, EOSE stock has seen an uptick in activity and stock price. Its Znyth battery is designed as a direct competitor to lithium-ion batteries.
The latest round of earnings helped give EOSE stock a boost. While it missed earnings per share estimates, sales beat expectations by a significant margin. Eos reported $8.84 million, while the Street anticipated $3.1 million. Eos Chief Executive Officer Joe Mastrangelo said, “The Eos team delivered a solid first quarter, with continued backlog growth, strong manufacturing performance, and 1 GWh of discharged energy in the field, all while raising additional capital that enables us to scale operations and accelerate our market competitiveness.”
There are plans to raise $8 million based on a May filing and closing the transaction on or about May 17th. Shares were being sold at a purchase price of $2.221 per share, along with warrants exercisable at a price of $2.50.
Penny Stocks & Trading Strategies For 2023
You’ll also want to understand other nuances of trading penny stocks or higher-priced stocks in general. If you’re new to cheap stocks or want to get some additional insight, check out some of these articles below:
- Buy Penny Stocks Like Hedge Funds Do: A How-To Guide
- Making Profits With Penny Stocks, Beginners Guide
- 10 Secret Ways To Find The Best Penny Stocks To Buy In 2022 [Updated]
- Trading Options 101: A Beginner’s Guide
- Penny Stocks: 7 Day Trading Strategies for Beginners
- Are Penny Stocks Good For Beginners? [Answered]
- New Years Penny Stocks Trading Advice: 3 Tips
- What Are Penny Stocks? A Beginner’s Guide To Making Money Trading
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