Penny stocks priced under $1 per share have attracted a dedicated following among traders seeking massive returns. While penny stocks are inherently high-risk investments, the potential reward with these low-priced shares is exponentially higher compared to traditional blue chip stocks.
For example, if a stable, large-cap company’s share price rises or falls by a few dollars per share, it makes business headlines. But with penny stocks trading at fractions of a dollar, even tiny price fluctuations can result in dramatic percentage gains of 100% or more. Of course, penny stocks can also experience sudden crashes just as quickly.
The appeal is clear – stocks trading at literal pennies seem like bargains for risk-tolerant investors. There’s a rush or thrill that comes from purchasing shares priced so cheaply at less than a dollar. While the SEC defines any stock under $5 per share as a “penny stock”, those priced at less than $1 generate the most buzz and speculation.
Trading Penny Stocks Under $1
Successfully trading penny stocks under $1 profitably over the long-term requires meticulous research. Investors must thoroughly analyze financial statements, leadership teams, industry conditions, and other potential catalysts that could impact share prices, both positively and negatively. Staying on top of breaking news and understanding the hype machine of trading forums is also critical.
For disciplined traders willing to embrace volatility, penny stocks can present opportunities to realize massive percentage returns on a small investment. But inexperienced investors drawn in by get-rich-quick dreams more often get burned. Chasing hot tips without doing proper due diligence often ends badly.
By focusing more on market fundamentals over flashy metaphors, traders can better evaluate whether specific penny stocks merit the high risk. The lure of striking it rich burns bright for penny stock traders. But finding hidden gems amidst the sea of overhyped stocks proves elusive for most. Avoiding metaphorical gambles and understanding the harsh realities of this volatile market remains the key to trading penny stocks successfully.
In this article, we look at a handful of penny stocks that continue our list from the last update, “Best Penny Stocks To Buy Now? 3 Under $1 To Watch.”
Penny Stocks Under $1 To Watch
- Nektar Therapeutics (NASDAQ: NKTR)
- Inpixon (NASDAQ: INPX)
- Rubicon Technologies Inc. (NYSE: RBT)
- Senseonics Holdings Inc. (NYSEAMERICAN: SENS)
- Novo Integrated Sciences Inc. (NASDAQ: NVOS)
- Synaptogenix Inc. (NASDAQ: SNPX)
- Asensus Surgical Inc. (NYSEAMERICAN: ASXC)
Nektar Therapeutics (NKTR)
Shares of Nekta Therapeutics are on the radar after a strong rebound in the stock market today. The penny stock was slowly bleeding out after last month’s robust yet short-lived rally. The move came after the biotech company announced efficacy data previously generated by Eli Lilly for rezpegaldesleukin were incorrectly calculated by Lilly. REZPEG was developed by Nekta to treat various autoimmune diseases.
Since these data were presented at the EADV Congress, it was a significant update from Nektar. What’s more, the new, updated data highlighted the potential of the platform to help atopic dermatitis patients.
“These corrected data importantly demonstrate that REZPEG, a novel and differentiated T regulatory cell mechanism, holds great promise for treating patients with atopic dermatitis,” said Howard W. Robin, President & CEO of Nektar Therapeutics. “The data further reinforce the importance of Nektar’s renewed strategic focus on advancing REZPEG into a robust Phase 2b study in biologic-naïve patients with moderate to severe atopic dermatitis by October of this year.”
Nektar has gone further in suing Eli Lilly for breach of contract, and negligent misrepresentation and accuses Lilly of attempting to undermine Rezpeg. Looking ahead, Nektar will host a virtual investor and analyst event later this week. So if NKTR stock is on your list, keep September 13th at 11 am ET in mind as that is when things kick off.
Inpixon specializes in real-time location services and solutions to help its customers secure various environments. Like Nektar, Inpixon shares caught a much-welcomed boost of bullishness on Monday. Shares had been slowly drifting lower over the last several weeks. There weren’t any big news headlines helping to promote momentum in the stock. However, speculation has begun centering around the proposed strategic alternatives.
In an August update, which included the latest financial performance for Q2, 2023, management made comments regarding its prospects. Nadir Ali, CEO of Inpixon, explained, “…We’re excited to have recently announced entering into a definitive merger agreement with XTI Aircraft, an innovative aviation company developing a vertical lift crossover airplane (VLCA)…We are enthusiastic about the potential of the combined company and anticipate closing the transaction during the fourth quarter of 2023.”
As the fourth quarter nears, anticipation seems like it could be building up. Whether or not this strategic move ultimately helps on the market side of things is to be seen. However, INPX stock has pushed higher this week.
Rubicon Technologies Inc. (RBT)
The software-based products company services businesses and governments with its digital marketplace tailored for waste and recycling. Rubicon Technologies has been quiet in August in terms of stock market news.
However, that doesn’t mean there aren’t things to watch with this company. At the end of July, Rubicon announced the timing of its next earnings update, which will be next week on the 8th. The market will likely look to see if the company can maintain the trend from its first-quarter results.
Rubicon reported an earnings and sales beat for the first quarter. Sales came in at $181 million with a loss per share at 5 cents. These were better than the $165.19 million and loss of 30 cents per share expected by Wall Street. CEO Phil Rodoni also mentioned, “Rubicon remains the definitive digital platform for eliminating waste which enables us to provide a differentiated service offering to our customers. Our core business is strong, and we are focused on accelerating the Company’s progress to profitability while driving Rubicon’s next phase of growth.”
As for Q2, Rubicon reported $174.6 million in sales, which missed estimates by a little over $1 million. The company also said it remains on track to achieve positive adjusted EBITDA for Q4. Phil Rodoni said, “With a solid foundation in place, we are now focused on growth and driving even greater results for the Company and our valued customers.”
Senseonics Holdings Inc. (SENS)
SENS stock continues holding higher levels compared to a few weeks ago. The company develops implantable glucose monitoring systems for diabetes patients. Its Eversense, Eversense XL, and Eversense E3 are placed under the skin and communicate with a smart transmitter worn over the sensor. Updates are sent every five minutes to a mobile app for users to monitor.
Retail traders are also watching the SENS stock short. According to data from sources like Fintel and TD Ameritrade, the Senseonics short float is around 10.86%. Given the longer-term selling pressure in the stock market earlier this year, short-squeeze stocks are back in focus.
This week, Senseonics reported a new loan facility with Hercules Capital. The $50 million facility has “increased financial flexibility” for the company, according to CFO Rick Sullivan. “This year, we have made significant progress simplifying the Company’s capital structure and extending the maturation of our debt to support our growth plans. The Hercules loan facility strengthens our balance sheet on a non-dilutive basis and is currently expected to provide the capital required to fund our current operating plans to cash flow positivity.”