Have you ever dreamt of uncovering a hidden gem in the stock market, something that could turn your modest investment into a jackpot? Welcome to the world of penny stocks.
Just like those unexpected finds at a garage sale, penny stocks—those little guys trading for less than five bucks a pop—have the potential to surprise you. But, let’s not get carried away. Penny stocks can indeed be exciting, but they’re not without their fair share of risks.
The Good: Why Traders Love Penny Stocks
Why do penny stocks charm us so much? Two words: affordability and potential.
Affordability: Imagine walking into a candy store with a five-dollar bill. With penny stocks, your investment can get you a bunch of different ‘candies,’ letting you spread out the risk while getting a piece of several pies.
Potential for Growth: Penny stocks often belong to young, small-cap companies with a lot of room to grow. If they hit their stride, your small investment might reap a sizable reward.
The Bad: Penny Stocks Aren’t All Sunshine and Rainbows
Now, onto the not-so-glamorous side of penny stocks. With these stocks, you’re in for a wild ride. Prices can skyrocket or plunge, all within a single trading day. These types of cheap stocks often come from companies not required to file reports with the Securities and Exchange Commission (SEC).
This lack of transparency can make it challenging to get reliable information, making your investment a bit of a shot in the dark. Meanwhile, some penny stocks are thinly traded, making them tough to sell when you want to. You might find yourself stuck with shares you can’t offload, or forced to sell them at a lower price than you’d like.
How to Find Penny Stock Picks: Identifying The Best Penny Stocks To Buy
So, how do we navigate through the choppy waters of penny stocks? Research is King. The more you know, the better your chances of making a sound investment. Get your hands on any available financial information, understand the business model, and evaluate the leadership team.
The volume also matters. Look for penny stocks with high trading volumes. This can mean more interest in the stock and might help you avoid getting stuck with shares you can’t sell.
Pay attention to the industry the company is in. A rising tide lifts all boats, so companies in growing industries may present more opportunities. Choose the right broker. Make sure to work with a trustworthy broker who can provide the tools you need and access to reputable trading platforms.
As exciting as penny stocks can be, remember they’re a high-risk game. Don’t bet your life savings on them. Set a limit on what you’re willing to invest—and potentially lose. Today’s stock market is filled with opportunities, and penny stocks are just one piece of the puzzle.
They’re not for the faint-hearted, but with careful planning, a bit of luck, and a lot of diligence, who knows? You might just uncover a diamond in the rough. In this article, we look at a few more penny stocks to watch and continue our list from the last update, “3 Penny Stocks To Watch Right Now For Under $1.”
Penny Stocks Under $1
Bionano Genomics (BNGO)
Bionano Genomics just hit fresh 52-week lows on Tuesday. However, shortly after the morning dip, BNGO stock firmly bounced, taking back its earlier losses. The gene therapy company as slumped in recent sessions following the results of its annual shareholder meeting. But with recent events, it has found itself back on watch lists for the time being.
What To Watch With BNGO Stock
Last week Bionano presented at the Maxim Healthcare Conference. CEO Erik Holmlin, Ph.D. presented a company overview. The presentation came one day after Bionano announced a peer-reviewed publication on the utility of certain genome mapping and sequencing for the evaluation of myeloid cancers.
“This peer-reviewed publication outlines the potential utility of combining OGM with sequencing panels to evaluate myeloid cancer. I believe this research study shows that OGM can perform significantly better than KT and FISH, which can result in meaningful revisions to various risk classifications and disease stratifications, which are known to affect outcomes. The OGM and sequencing data were analyzed with the upcoming version of our NxClinical analysis software (commercially available as VIA™ analysis software). VIA analysis software will offer a powerful new workflow in cytogenomics and molecular pathology, especially for cancer,” commented Erik Holmlin.
Qurate Retail Inc. (QRTEA)
Qurate owns brands like QVC, HSN, Zulily, Ballard Designs, Frontgate, Garnet Hill, and Grandin Road. These brands also reach more than 200 million homes across multiple TV channels via social media & live-streaming platforms.
Momentum began building after Qurate sold off one of its brands, Zulily. Qurate, called Liberty Interactive Corp. at the time, bought Zulily in 2015 for about $2.4 billion. The company announced that Regent purchased the online retail brand this week.
What To Watch With QRTEA Stock
This month, Qurate’s exposure increased after its QVC+ and HSN+ streaming experiences launched on VIZIO. Chris Tanquary, Senior Director of Business Development at VIZIO, said: “With the addition of the QVC+ and HSN+ shopping app, VIZIO users will have seamless access to a world of curated products and shopping experiences in both live and on-demand formats.”
Qurate Executive Chairman Greg Maffei also participated in the Walker & Dunlop Walker Webcast. Discussions focused on the company’s performance and financial outlook.
Aeglea BioTherapeutics (AGLE)
The biotech company recently tapped fresh 52-week lows of $0.1064 on Wednesday. However, Thursday morning revealed a night and day difference (literally). The company, which specializes in enzyme therapeutics for rare metabolic diseases, announced a milestone acquisition.
What To Watch With AGLE Stock
Aeglea purchased Spyre Therapeutics, which holds a pipeline of candidates targeting inflammatory bowel disease. “The concurrent launch of Spyre and acquisition by Aeglea will provide immediate access to the public capital markets and the opportunity to accelerate research and development efforts for our broad pipeline of biologics,” said Cameron Turtle, DPhil, newly appointed Chief Operating Officer of Aeglea.
This news sparked a massive move to highs of over $1 during the premarket session following the update. Now that the excitement has died down a bit and AGLE stock has pulled back, traders seem to have refocused on the company.
NeuroBo Pharma (NRBO)
Shares of NeuroBo popped early in the stock market today. The company develops cardiometabolic diseases and has been in a bearish trend mos of the year. That changed (for now) after the latest headlines.
What To Watch With NRBO Stock
The company announced that its DA-1726 platform had been shown to “elicit superior weight loss efficacy” compared to Semaglutide (SEMA) and Tirzepatide (TIR) in preclinical testing. This, and other data, was presented in one ePoster theater discussion and two general poster presentations at the American Diabetes Association’s 83rd Scientific Sessions, earlier this week.
In response, Interim President and Chief Executive Officer Joe Hooker highlighted, “During the second half of this year, our goal is to advance DA-1726 through the IND process. Assuming acceptance by the U.S. Food and Drug Administration, we plan to initiate a phase 1a safety study during the first half of 2024 and anticipate a data readout in the second half of 2024.”