Welcome to the world of penny stocks. This is a corner of the stock market that piques interest and raises eyebrows in equal measure. Today, we’re exploring the territory of cheap stocks trading under $1.
What are Penny Stocks?
Penny stocks typically represent shares of smaller companies, trading for less than $5 each. But the stocks we’re zeroing in on today are even less, trading under $1. These shares can be found on over-the-counter markets and occasionally on major exchanges. Their low price tag can be alluring, but it’s important to remember that they carry substantial risk.
Why Penny Stocks Under $1?
The appeal of penny stocks under $1 lies in their potential for high returns. The low initial investment coupled with the prospect of substantial gains can be tantalizing. But, like any high-reward scenario, there’s often high risk involved.
Think of investing in penny stocks under $1 as gold mining. It’s a game of patience, persistence, and a keen eye for potential value. Many stocks may not deliver, but occasionally, an investor may strike gold. These success stories keep the dream alive and motivate the search for the next breakout penny stock.
So, how do you identify promising penny stocks under $1 amidst a sea of options? Today we look at a handful gaining momentum and turning heads. We’ll discuss strategies for uncovering potential winners and avoiding common pitfalls. This list of penny stocks also continues from our article 7 Penny Stocks To Watch Right Now For Under $1.
Sector Analysis and Financial Health
Identifying promising sectors, understanding a company’s financial health, and mastering technical indicators are all part of the recipe for success. By keeping a pulse on industry trends, you can get a sense of the sectors heating up, and in turn, identify potential penny stocks under $1 to consider.
Remember, investing in low-priced stocks, particularly those under $1, should only be a small part of a diversified portfolio. This update is meant to go into a brief overview of what’s happening in the stock market today, why certain stocks might be moving and give you some additional insight to help in your research process.
Penny Stocks Under $1
Amyris Inc. (AMRS)
Shares of Amyris started the trading session off below $1, trading around $0.90. The company has been on our lists of penny stocks to watch for several weeks. The “clean” beauty and cosmetic company announced completing a license for a supply of sustainable squalen with the specialty chemicals company Croda International. The partnership was explained by Croda President Daniele Piergentili as “fully aligned with Croda’s commitment to be the most sustainable supplier of innovative ingredients.”
Its latest restructuring plan brought a bit more volatility to the penny stock. Amyris discussed securing funding as part of the plan. John Melo, Amyris CEO, explained, “We are pleased with the support of the PwC team as well as our board Restructuring Committee on the expansion and acceleration of our “Fit to Win” efficiency and cost reduction program. It is an important and necessary step in the evolution of Amyris to reduce our cost base, improve our operational effectiveness and achieve sustainable growth while continuing to execute the delivery of sustainable chemistry through our Lab to MarketTM capabilities and invest in our leading consumer brand portfolio.”
Though there was an initial adverse reaction in the stock market this week, that seems to have subsided so far.
Cybin Inc. (CYBN)
Cybin Inc. is one of the companies benefiting from the micro trend in microdosing. The company focuses on mental healthcare by developing new and innovative psychedelic-based treatment options.
It announced a transition in its Scientific management team earlier this month. This came after Cybin completed the acquisition of Adelia Therapeutics. Furthermore, in a corporate update, CEO Doug Drysdale presented a company outlook and update in June. He explained, “The second half of 2023 will be pivotal for Cybin as we expect topline clinical data readouts from both our Phase 1/2a trial of CYB003, our deuterated psilocybin analog, and from our Phase 1 trial of CYB004, our deuterated DMT molecule.”
Looking ahead, Cybin has several potential milestones to keep track of this year. The most near-term could likely be topline clinical data readouts in Q3 and Q4 for its CYB003 and CYB004 platforms. In particular, the US FDA submission of CYB003’s Phase 1/2a data for the end of Phase 2 meeting is expected before the end of the year.
“With these catalysts in our sights, we believe that we are moving ever closer to our goal of developing treatment options, as demonstrated in our Phase 1 and Phase 2 studies to date,” said Doug Drysdale, Chief Executive Officer of Cybin, in the company’s June business update.
Clene Inc. (CLNN)
Clene is a biotech company developing neurodegenerative disease treatments. While the last month hasn’t been an easy one for the penny stock, shares have made a turnaround over the last few sessions. One of the recent catalysts came after the company announced the publication of Phase 2 CNM0Au8 trial data in treating ALS. The data were published in Lancet’s eClinicalMedicine journal detailing the analysis of the study.
Professor Steve Vucic, PhD, DSc, Northcott Chair of Neurology, The University of Sydney, and a co-investigator of the RESCUE-ALS study. “The treatment effect demonstrated a clear survival signal associated with CNM-Au8 treatment and evidence for delayed clinical worsening morbidity events such as tracheostomy and initiation of feeding tube during the double-blind placebo-controlled period. Additional functional benefits such as decreased worsening of ALSFRS-R scores are emerging later through the long-term open-label extension.”
One of the things that has also turned heads was a slew of insder participation in the latest funding round. Clene raised $40 million at $0.80 per share with company Directors snatching up shares. In addition, CEO Robert Etherington bought shares in the open market between $0.80 and $0.82 recently in an insider trading spree worth a little over $20,000.
List Of Penny Stocks
- Amyris Inc. (NASDAQ: AMRS)
- Cybin Inc. (NYSEAMERICAN: CYBN)
- Clene Inc. (NASDAQ: CLNN)
- Bionano Genomics (NASDAQ: BNGO)
- Qurate Retail Inc. (NASDAQ: QRTEA)
- Aeglea BioTherapeutics (NASDAQ: AGLE)
- NeuroBo Pharma (NASDAQ: NRBO)
- IronNet Inc. (NYSE: IRNT)
- Hyzon Motors Inc. (NASDAQ: HYZN)
- Clearmind Medicine Inc. (NASDAQ: CMND)