Picture this: you’re sat with a pile of ‘pennies’ in your hand, and you’re daydreaming about turning those pennies into dollars. Not in the usual sense, though, you’re thinking about penny stocks. And boy, are they a wild ride! If the thought of diving headfirst into this high-stakes treasure hunt tickles your fancy, this article is a one-stop-shop for everything you need to know.
Penny Stocks – The Lowdown
Let’s get down to brass tacks. Penny stocks are the ‘little guys’ of the stock market – shares of smaller public companies trading under $5 each, as defined by the SEC. You won’t typically find these scrappy contenders on big stock exchanges like NYSE or NASDAQ because they don’t meet certain financial benchmarks. But don’t count them out – these underdogs can pack quite a punch!
How to Bag Your Penny Stocks?
Now, you can’t just stroll into the Wall Street and ask to buy penny stocks. You’ve got to go through online brokerage platforms. But, hey, not all platforms deal in penny stocks, so you’ve got to pick one that does. And don’t forget, your chosen broker should be registered with the SEC and a member of FINRA to ensure you’re protected. Check out the broker’s fees, trading platforms, customer service, and other knick-knacks before you dive in.
Spotting Opportunities For Penny Stock Picks
Finding a needle in a haystack seems easier than spotting a potential penny stock hit. With limited information on these companies, it’s a bit like playing detective. Here’s how you can get cracking:
- Keep an Eye on Market Movements: Trends are your friends. Keep an eye on rising sectors, and you might just spot a penny stock ready to ride the wave.
- Do Some Detective Work: Not all penny stocks are open books. But those that are should be thoroughly scrutinized. Look for firms with sound financials or exciting new products.
- Look for Action: Stocks with high trading volumes are usually a good sign. They indicate that the stock is in the limelight, which could make selling easier when you need to.
- News is Gold: Positive news like a successful product launch or a big contract can send a penny stock’s price shooting up.
The Thrill and Spill of Penny Stocks
Penny stocks are not for the faint-hearted. They can lead to massive gains, yes, but they’re as unpredictable as a roller coaster ride. Imagine, a stock priced at $0.50 shoots to $5.00 – that’s a 900% profit! Now, that’s the stuff dreams are made of.
But hold your horses! There’s a flip side too. Penny stocks can be wild, with prices swinging like a pendulum. And let’s not forget the possibility of scams, like the infamous “pump and dump” where fraudsters hike the price artificially before selling off their shares and leaving you high and dry.
To add to this, information about penny stock companies can often be scanty or misleading. They don’t need to file with the SEC, which means they might not be as transparent as bigger companies. This can make decision-making a bit of a guessing game.
Penny Stocks to Watch
The world of cheap stocks isn’t for everyone. It’s like walking a tightrope, where balance is key. You need to be patient, diligent, and brave enough to risk losses. But for those who dare, it could be a ticket to hefty returns. So do your homework, know your risk appetite, and never bet more than you can afford to lose.
The prospect of turning ‘pennies into dollars’ sounds tempting, but remember, the road is littered with obstacles. So tread carefully, arm yourself with knowledge, and who knows, you might just strike gold in this exciting game of high stakes.
- Ginkgo Bioworks (NYSE: DNA)
- Astra Space Inc. (NASDAQ: ASTR)
- Proterra Inc. (NASDAQ: PTRA)
- TuSimple Holdings Inc. (NASDAQ: TSP)
- Virgin Galactic Holdings (NYSE: SPCE)
Ginkgo Bioworks (DNA)
We discussed Ginkgo Bioworks most recently in our article Best Penny Stocks to Buy? 5 To Watch With Big News, and it has been a sight to see. Shares continue higher in the stock market today, with DNA stock testing levels not traded at since February.
In that article, we talked about the company’s latest milestones. Its recent headlines focus on Ginkgo’s growth via new collaboration initiatives. A few weeks back, it announced its collaboration with Voodoo Scientific to push the production of “Smooth” spirits forward.
Voodoo will leverage Ginkgo’s enzymatic solution to offer distillers to produce premium spirit products. Further to this, the company also announced another milestone with Ambrosia Bio. The two companies are working on a way for Ambrosia to leverage Ginkgo’s enzyme services to develop scalable production of Ambrosia’s proprietary enzymes for converting feedstock to allulose. This is an FDA-approved rare sugar found in things like figs and raisins, to be used as a sweetener.
Last week Ginkgo announced advancing its collaboration with Novo Nordisk on expression systems for pharmaceutical products. It also reported that Ginkgo was awarded a research contract from the Intelligence Advanced Research Projects Activity. This is the R&D arm of the U.S. Intelligence Community for Biointelligence and Biosecurity for the Intelligence Community program. The company also reported an award of a DARPA contract to reimagine manufacturing processes for complex therapeutic proteins. This is a 4-year contract with “up to” $18 million.
Astra Space Inc. (ASTR)
Penny stocks under $1 have grown in popularity as the greater risk-on sentiment has taken over the stock market. Today, Astra Space is one of the more active in this niche, rising over 5$ in early trading with som of its highest single-day volumes in weeks.
It’s the first of two space stocks on this list and focuses on pre-launch orbital launch services. Earlier this year, Astra announced an agreement with the US Space Force for an $11.45 million value to launch an ESPA-class space vehicle. It also has a contract in place with Apex Technology to provide 5 spacecraft propulsion kits for Apex’s satellite bus platform.
Something traders appear to be monitoring is the recently approved reverse stock split. In order to maintain its status on the NASDAQ, the sub-$1 price won’t cut it. Astra’s board approved a 1:15 stock split. paired with a capital raise of up to $65 million. The split is anticipated on or before October 2nd.
Workhorse Group Inc. (WKHS)
EV stocks have seen a recharge of interest in recent weeks. Workhorse Group is part of this movement developing a zero-emission commercial vehicle line. Some renewed interest has come about thanks to the latest milestone announced by the company.
Workhorse recently engaged Burr Truck and Trailer Sales as its first distribution and service partner in New York. The news came a few weeks after the company began production o its W750 platform and announced that Smyrna Truck would be the first certified dealership in Georgia.
Workhorse CEO Rick Dauch explained in a recent update, “We could not be more excited to see the W750 rolling out of our Union City facility, and we are poised to ramp up production of it in the coming months. In addition, we are thrilled to announce this dealer partnership with Smyrna Truck, expanding on our network for customers. We look forward to partnering with the Smyrna Truck team, who share our goal of delivering safe, reliable electric vehicles with the highest standard of service to customers.”
This week WKHS stock has tested levels not traded at since April.
TuSimple Holdings Inc. (TSP)
TuSimple builds autonomous driving technology platforms. It focuses on the automotive industry’s commercial portion and provides fully autonomous deriving solutions for long-haul heavy-duty trucks.
Earlier this year, the company announced that its autonomous trucks began testing in Japan. As of March, the company’s trucks have logged more than 10 million cumulative miles through testing, research, and freight delivery. Thanks to the driver shortage in Japan, TuSimple aims to tackle this problem head-on and could be a “promising solution,” accounting to CEO Cheng Lu.
TuSimple also completed its autonomous semi-truck run on open roads in China. CEO Lu expressed that “Being the first to conduct a Driver Out run in China is a significant milestone,” which has also helped to bolster attention on the stock. Meanwhile, plans for a potential sale of its US business have also raised eyebrows.
“If a transaction involving the U.S.-based business occurs, TuSimple will continue to be a global level 4 autonomous driving technology company with greater emphasis on Asia-Pacific and other major global markets,” the company said in a late-June update.
Virgin Galactic Holdings (SPCE)
One of the more active names on the list of penny stocks to watch over the last few months has been Virgin Galactic. Last month the company announced the commencement of commercial spaceflight service, Galactic 01.
There will be a second spaceflight, Galactic 02, that will take to the skies in August. This first mission is designed as a research mission hosting members of the Italian Air Force as well as the National Research Council of Italy. They will conduct microgravity research while on spaceflight.
Last week Virgin Galactic gave an update on that second planned flight. The new flight window for the ‘Galactic 02’ mission will open on August 10th. This mission will be Virgin Galactic’s seventh spaceflight, second commercial spaceflight, and third spaceflight this year.
It will include 3 passengers who will travel to space. But don’t forget; earnings season is in full swing. So if SPCE stock is on your penny stocks to watch list, August 1st is the date to keep in mind.