Ever heard of penny stocks? If you’re new to investing, you might be scratching your head. But don’t worry, we’ve got you covered. Let’s dive into the world of penny stocks and see why they’re causing such a buzz among investors.
What Are Penny Stocks?
In the simplest terms, penny stocks are shares from small companies that trade for less than $5 each. They’re often tied to micro-cap companies, the underdogs of the stock market. Unlike the big boys that hang out on the NYSE or NASDAQ, many penny stocks trade on over-the-counter (OTC) markets. Though, there are many that maintain a place on the higher exchanges.
Are Penny Stocks Worth It
So, why are penny stocks catching the eye of investors? Are they worth it? It’s all about the potential for big returns. With their bargain-bin prices, you can snap up a ton of shares without breaking the bank. Even a tiny uptick in the share price can mean a hefty profit. Imagine a stock jumping from $1 to $2 – that’s a 100% return.
Plus, penny stocks often belong to up-and-coming companies or industries. If they hit it big, some could be looking at exponential growth. It’s like finding a hidden gem in a sea of pebbles. That’s why investors are always on the hunt for the best penny stocks to buy.
The Rollercoaster Ride of Penny Stocks: Don’t Forget The Risks
But before you dive headfirst into penny stocks, you need to know about the risks. These stocks are known for their wild price swings. One day you’re up, the next you’re down. It’s not for the faint-hearted.
And there’s another catch. Penny stocks don’t come with the same level of transparency as their big-league counterparts. Companies on the OTC markets don’t have to meet the same reporting standards as those on larger exchanges. This can make it tough to get the full picture of a company’s health, adding an extra layer of risk.
Finding Your Penny Stock Picks
Despite the risks, the potential rewards of penny stocks can be hard to resist. So how do you find the best penny stocks to buy? Start by keeping an eye on a reliable list of penny stocks from trusted financial news sources. Look for penny stocks to watch in sectors you know, and that show promising trends.
Dig into the company’s fundamentals. How healthy are its finances? What’s its business model? Who’s running the show? Also, stay on top of any news or developments that could affect the company’s performance. Technical analysis can also be your friend. Look for patterns in price movements and trading volume that could hint at a stock’s future direction.
And remember, when it comes to penny stocks, due diligence is your best friend. The more you know, the better you can navigate the choppy waters of penny stocks.
Penny Stocks To Watch
Coherus BioSciences Inc. (CHRS)
The share price of Coherus continued ticking higher in the stock market today. CHRS stock has steadily bounced back following the big pullback in June. That was when the company announced its acquisition of Surface Oncology Inc. (NASDAQ: SURF), which develops targeted treatments for tumors. The stock-for-stock transaction is valued at $65 million. Coherus also projected $48 million to $53 million of net product revenue during Q2 with affirmed 2023 guidance for revenue and expenses.
Despite the pull-back, management seemed optimistic about the deal. “This transaction is well-timed, as it coincides with the accelerating growth of our biosimilar revenues driven by the launch of CIMERLI® and near-term launch of YUSIMRY®. With the agreement to acquire Surface and the expected near-term approval of toripalimab, Coherus is positioned to become one of the very few I-O companies with demonstrated commercial expertise, significant product revenues, and unique, competitively positioned R&D programs addressing critical unmet medical needs,” said CEO Denny Lanfear.
This week, the company continued putting out press and announced the launch of its YUSIMRY. This is a biosimilar of Humira. Furthermore, it will be sold at nearly an 85% discount to Humira’s $6,922 per carton price.
Near Intelligence Inc. (NIR)
Near provides data intelligence on people and places with recent news helping spark a rally in the stock. Late last month, the company reported on a customer agreement with ALDI France in collaboration with CoSpirit Media. ALDI will utilize Near’s data platform to push traffic to ALDI France’s online catalog.
“Data-driven intelligence empowers businesses to connect with their customers in meaningful ways. We are thrilled to partner with ALDI France and CoSpirit Media to deliver personalized and dynamic advertising campaigns that will drive engagement among new and existing customers,” said Anil Mathews, CEO of Near.
Roughly a week later, analysts jumped on to weigh in on the penny stock. Benchmark initiated coverage on Near. The firm set a Speculative Buy rating with a $3 stock price target. This acted as a strong catalyst for NIR stock at the end of the week.
22nd Century Group Inc. (XXII)
Recently reverse split 22nd Century Group has experienced higher volatility, post-split. The company’s shares traded as highs as $4.23 over the last few days but sit below $3 as of this update. 22nd Century focuses on developing reduced nicotine tobacco as well as hemp/cannabis and hops plant technologies.
This week the company announced definitive agreements with investors to purchase $3 million in common stock at a premium price of $3.80. 22nd Century intends to use the fresh capital to further expand its commercial products VLN reduced nicotine tobacco cigarettes as well as provide working capital to other commercial activities.
“We are encouraged by the confidence investors have demonstrated in our path forward through the participation in our latest offering of securities which corresponds with the inflection point we are experiencing in critical aspects of the business,” said James A. Mish, Chief Executive Officer.