Profiting From Penny Stocks Under $1
Penny stocks trading below $1 per share offer tempting lotto-ticket like upside for risk-hungry traders seeking exponential returns. However, extreme volatility from these fledgling companies also poses massive hazards to capital. Navigating such turbulent waters successfully requires meticulous planning and discipline.
Finding Overlooked Potential
Thousands of penny stocks listed across various US exchanges can create a modern-day gold rush to discover the best opportunities. The penny stock universe serves as an incubator for emerging industries like cannabis, blockchain technology, and genomics. Astutely identifying innovative companies sitting on potential billion-dollar ideas presents possibilities for 1000% or greater returns.
Of course, the long odds of hitting home run penny stocks means facing the potential of dozens of strikeouts from picks crashing to zero first. Therefore, traders must filter ideas through financial analysis, growth evaluations, and management team reviews. Building sufficient conviction separates triumph from failure.
Braving Volatility
Extreme share price swings define penny stocks, especially those below $1 still building market confidence and visibility. Tiny market capitalizations dramatically over-amplify reactions to minor news like small funding deals or single customer additions. Stocks frequently double on speculative gossip or, conversely, dive 50% on surprise regulatory obstacles.
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Stomaching such daily volatility tests even seasoned investors. Position sizing discipline, stop loss implementation, and keeping a long-term perspective serve as critical for preserving capital needed to capture eventual outsized winners necessary to generate overall portfolio gains. While ultra-cheap penny stocks under $1 bring tantalizing upside, adequate risk management determines success.
Penny Stocks Under $1: Time To Buy Or Avoid?
In this article, we look at a few cheap stocks under $1 that traders are watching right now. Whether they are the best penny stocks to buy now is for you to decide.
- Inpixon (NASDAQ: INPX)
- Genius Group Limited (NYSEAMERICAN: GNS)
- Better Home & Finance (NASDAQ: BETR)
1. Inpixon
Data intelligence company, Inpixon, specializes in indoor data and security. They focus on capturing, interpreting, and giving context to indoor data. This includes applications in cybersecurity, marketing, and physical security. News has been a recent catalyst bringing attention to INPX stock in the stock market this month.
The company announced shareholder approval for a merger with XTI Aircraft Company. XTI Aircraft develops the TriFan 600, a vertical lift crossover airplane (VLCA). This merger is expected to complete by the end of the year, subject to certain conditions, including Nasdaq approval.
Nadir Ali, CEO of Inpixon, commented in an update, “This strategic transaction will not only deliver XTI stockholders securities of a publicly traded company but it also ensures that Inpixon shareholders can continue to hold a significant stake in a company that we believe is creating a revolutionary solution for point-to-point air travel.”
Post-merger, the company will be known as XTI Aerospace, Inc. and plans to trade under the ticker “XTIA” on Nasdaq. The merger aims to leverage Inpixon’s indoor intelligence in the aviation sector, focusing on manufacturing efficiency and the development of the TriFan 600.
2. Genius Group Limited
We’ve discussed Genius Group many times in the past. It is a global education company. They focus on developing innovative learning platforms and programs. Their goal is to transform education at all levels. However, what has the market taking a closer look at GNS stock right now is its latest news headline.
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The company provided updated guidance, forecasting a profitable 2023 with significant revenue growth. They anticipate annual revenue to increase by 43% to 60%. This growth is attributed to their strategic initiatives and expansion in the education sector. The company’s focus on innovative learning methods and global reach underpins this positive outlook.
Roger Hamilton, CEO of Genius Group, also explained “If we meet our earnings guidance, we would achieve the financial goals we began the year with. While we have had many external factors to contend with while building our business, our growth is a testament to the strength of our global community, focus of our leadership team and innovations of our product and partnership teams with the launch of our Genie AI and Genius Metaversity.”
Traders may recall GNS stock from two separate, aggressive breakouts earlier this year. Whether or not that will be repeated following this news is to be seen. Nevertheless, traders are showing more optimism than anything else at the end of this week (for now).
Better Home & Finance
Digital finance services company Better Home & Finance has begun to gain ground following a lackluster post-IPO period. Its primary focus is on streamlining the home financing process. They are known for innovative, technology-driven solutions in the finance sector.
Last month, the company announced the launch of Better Insurance. This online platform is designed to provide homeowners insurance through a fully digital experience. Developed with Sure and Toggle®, Better Insurance aims to simplify the insurance process. It addresses common challenges in obtaining homeowners insurance. The service offers customizable, user-friendly digital solutions.
What has also brought some volatility to the penny stock is its latest earnings results. Better Home & Finance reported its Q3 2023 results. They announced a revenue of $16.4 million but faced a net loss of $340.0 million. Their Adjusted EBITDA loss was $54.4 million. This marks their first earnings report as a publicly traded company. While potential growth in digital financial services could attract attention, the substantial net loss might raise concerns.
Not much has been discussed following the development. But the last few weeks have been stronger for BETR stock. The sub-$1 name has rallied from lows of around $0.42 to highs this week of $0.6875.
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