Under-the-radar penny stocks are catching the eye of risk-tolerant investors searching for the next big winner. But what exactly are penny stocks, and what risks come with these affordable yet volatile shares?
Penny stocks typically trade over-the-counter. They represent stakes in young startups or struggling firms across emerging industries. With prices under $5 per share, investors can buy bundles of penny stocks for a fraction of the cost of mainstream equities. However, limited liquidity and lack of financial reporting create added risks.
While gains can materialize quickly with penny stocks, so can crushing losses. Pump-and-dump schemes remain commonplace. In these schemes, false hype pushes prices sky-high before scam artists sell out fast. This leaves average investors holding worthless shares. Dilution is another threat. Constant share issuances deflate the value of existing stakes.
Finding The Best Penny Stocks To Buy Now
In 2023’s rough market, penny stocks in fields like tech, biotech, and cryptos are proving interesting for risk-tolerant traders. Discovering the occasional diamond in the rough amidst a sea of duds requires in-depth research. Examining leadership, target markets, and capital needs helps gauge winners versus likely washouts.
– Should You Avoid Penny Stocks? Why or Why Not
Though penny stocks can bring great rewards, caution remains essential. Spread capital across multiple positions rather than overexpose yourself to any single pick. Weigh risks against revenue potential. An experienced trader’s guidance provides an invaluable sounding board before pulling the trigger.
For seasoned investors willing to do the legwork, penny stocks can unlock game-changing windfalls this year. But realizing those outsized returns hinges on carefully selecting the most promising needles in the haystack.
Penny Stocks To Watch
- Biolase Inc. (NASDAQ: BIOL)
- Powerbridge Technologies (NASDAQ: PBTS)
- Novo Integrated Sciences Inc. (NASDAQ: NVOS)
Biolase Inc. (BIOL)
Shares of Biolase saw signs of life in the stock market today. The biotechnology penny stock surged during mid-day trading after news that it received a notice of allowance for its patent application titled “Dual Wavelength Laser Treatment Device.” While the official headline wasn’t from the company directly, the US Patent & Trademark Office website released the official info in real-time.
Biolase recently closed a $4.5 million offering this week. The dental laser company cited the use of proceeds for working capital. This was the same financing round that initially caused BIOL stock to plummet earlier in September. Biolase reported its plans to raise the funds, and the market saw it as a bearish sign of potential dilution ahead.
Now that the deal has been closed and money is in, the latest Patent win seems to have helped turn things around.
Powerbridge Technologies (PBTS)
Even penny stocks under $1 are on watch amid the latest stock market sell-off. Powerbridge saw its first bullish move in over a month, thanks to its latest headlines. The company provides tech solutions for multiple industries via various segments like global trade, agritech, and renewable energy. It also caters to the cryptocurrency industry.
This week Powerbridge announced plans for a 1-for-8 reverse stock split. This was seen as a bullish move by the market, and shares surged 60%. The post-split price should take effect by September 22nd. This move also comes about a month after Powerbridge received notice from Nasdaq that it didn’t qualify to keep its listing if it didn’t meet the minimum bid price set by the exchange. Instead of waiting for its share price to climb, it has conducted a reverse split to maintain that level within the timeframe set by the Nasdaq.
Earlier this year, Powerbridge gained attention after some AI-related headlines boosted sentiment. As the industry has been extremely hot this year, the company’s subsidiary integrated an AI-engineered reading app using AI and ChatGPT.
Stewart Lor, CEO of Powerbridge Technologies, expressed optimism about the partnership’s potential: “With AIedu already demonstrating impressive growth, this partnership presents significant opportunities for accelerated growth at AIedu. It aligns well with our long-term growth vision and solidifies our position as a significant player in AI education innovation.”
Novo Integrated Sciences Inc. (NVOS)
Novo Integrated Sciences is another one of the sub-$1 names on this list of penny stocks to watch. The common thread has been biotech & life sciences. Novo specializes in holistic health and wellness. The company offers a technology-focused method for personalized care and virtual access, among other things.
A series of releases since the middle of August has prompted momentum in the penny stock. For instance, Novo and Farm 7 Group announced a joint venture for the Kenya Cooperative Agriculture project. Novo will be providing all administration and structured finance solutions to the joint venture.
– 3 Penny Stocks To Buy For Under $1, Are They Worth The Risk?
Novo’s IoNovo Iodine was also granted regulatory approval by Turkey’s Ministry of Health as a dietary supplement at the end of August. In addition, The company received underwriter clearance for the transaction between Novo and RC Consulting LLC in favor of SCP Tourbillion Monaco. This is for the transaction of an unsecured 15-year $70,000,000 promissory note with the Buyer for debt funding of $57,000,000.
On Thursday, Novo provided an update on several events, including a shareholder vote this month.
