Penny stocks are the jittery nerves of the stock market – even minor news events can make them swing unpredictably. By definition, penny stocks are shares of companies traded below $5 per share and display extreme percentage changes from relatively insignificant moves in price. Positive updates can cause explosive moves upward, while negative news plunges them lower, swiftly.
Penny Stock News: The Good, Bad & Ugly
When a virtually unknown penny stock suddenly lands an enormous client, signs collaborations with a market leader or unveils technology with blockbuster prospects – expect fireworks.
These market-moving catalysts get traded like winning lottery tickets, leaping by unimaginable multiples within days. Traders salivate chasing the seemingly endless upside momentum.
Inversely, minor corporate stumbles often get severely overblown into shocking price declines. Clinical setbacks after ambitious drug trials or quarterly losses due to supply constraints can unleash torrential selling pressure. Skittish investors dash for the exit at once – triggering waterfall selloffs decimating equity value.
For example, popular meme/Trump stock Phunware imploded overnight after revealing a large public offering at a discount. While business fundamentals didn’t necessarily change – panicking investors took no chances in letting PHUN stock slip lower. Since that news hit, PHUN is making new record lows.
In summary, penny stocks resemble highly-strung racehorses – eager to sprint after current events but equally prone to trip over themselves when spooked. Employing tight stop losses and separating irrational from rational reactions allows successful maneuvering of such volatile waters.
How To: Finding Penny Stocks To Buy
When hunting for promising penny stocks, traders can filter through thousands of listings to uncover potential hidden gems using a structured approach. It all starts with putting together a list of penny stocks to watch. Compare financial metrics like sales, profits, or assets over recent years to find penny stocks demonstrating surging growth trends despite their small size. Expanding fundamentals signal business traction and rising investor demand ahead.
Innovative offerings that disrupt industries often get overlooked initially. Finding which penny stocks hold truly game-changing proprietary technology before wider market recognition can be a great way to find names for your list. Then again, the leadership guiding penny stocks plays an enormous role in harnessing success. Extensively research executives’ track records, skin-in-the-game via insider ownership, and vision to pick potential winners early.
Making Sense of Penny Stock Ratings: Decoding Analyst Opinions
Should you pay attention to hype and social sentiment? Beyond examining standard penny stock data, message boards can provide clues to gauging retail investor enthusiasm by analyzing posting activity and commentary sentiment. Keep in mind that not all comments made are accurate or factual, so tread carefully. Of course, do your research and monitor news events that might align with the focus of the hype. At the end of the day, the goal is the same: capitalize on the best penny stock to buy now and repeat the process.
In this article, we look at a handful of names gaining attention right now. Will they be on your list of penny stocks before next week?
Penny Stocks To Watch
- LiveOne (NASDAQ: LVO)
- iSun Inc. (NASDAQ: ISUN)
- Geron Corporation (NASDAQ: GERN)
- TeraWulf Inc. (NASDAQ: WULF)
Penny Stocks To Watch 1. LiveOne (LVO)
LiveOne, Inc. is an entertainment and technology platform known for its music and entertainment services. They focus on delivering music and entertainment services through innovative technology platforms.
This week the company signed a strategic B2B partnership with a Fortune 500 media conglomerate. This partnership is expected to generate a minimum of $20 million in revenues for 2024. LiveOne also raised its revenue guidance for the fiscal year 2024 to $118M – $120M.
This news comes just a day after LiveOne announced some restructuring. LiveOne, Inc. plans to cut an additional 25% of its staff by year-end. This decision is part of their focus on profitability and incorporating AI technologies. These measures are expected to contribute to substantial annual cost savings, which has prompted some optimism in the market.
2. iSun Inc. (ISUN)
Solar energy and clean mobility infrastructure company iSun Inc. has a 50-year history in electrical technology innovation. ISUN stock news is a tailwind for the penny stock this week. The company secured an $8 million loan from Decathlon Capital Partners.
This funding is intended to refinance their existing senior secured convertible facility. The structure of this loan is designed to prevent equity dilution, aligning well with iSun’s strategy for revenue growth. This financial maneuver is part of iSun’s broader efforts to strengthen its balance sheet and support its ongoing projects in solar energy and clean mobility infrastructure.
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Of course, eyes continue to focus on the latest quarterly results from the company. iSun announced a 47% increase in Q3 revenues compared to the previous year, driven by strong demand in its commercial and industrial division. iSun also reaffirmed its total revenue expectation of $95-100 million for 2023, reflecting a 24-31% increase over 2022. So investors may be considering iSun’s current growth trajectory alongside potential market and operational risks. However, with the strength in solar stocks lately, there are several penny stocks under $1, including ISUN on watch.
Penny Stocks To Watch 3. Geron Corporation (GERN)
Geron Corporation is a biopharmaceutical company focusing on developing treatments for hematologic malignancies. They specialize in telomerase inhibitor therapies and are known for their novel investigational drug, imetelstat.
Earlier this month, its latest data readout helped boost sentiment in the market. Geron presented new data from the IMerge Phase 3 clinical trial at the ASH Annual Meeting. The data highlighted the effectiveness of imetelstat in patients with lower-risk myelodysplastic syndromes (MDS). Key findings include the durability of transfusion independence and the breadth of effect across various MDS subgroups.
Faye Feller, M.D., Executive Vice President, Geron’s Chief Medical Officer, explained, “These latest analyses from IMerge Phase 3 presented at ASH contribute to a growing body of data from the trial, including a recent publication in The Lancet, which continue to give us confidence in what we believe is a meaningful clinical benefit with imetelstat in these lower-risk MDS patients.”
The company expressed that if approved, it believes this could be an important treatment option for lower-risk MDS patients. This update also comes shortly after Geron announced achieving 50% enrollment in the IMpactMF Phase 3 clinical trial. This trial evaluates imetelstat, a telomerase inhibitor, in patients with relapsed/refractory myelofibrosis (MF). The trial is significant as it’s the first Phase 3 study assessing overall survival in this patient group.
4. TeraWulf Inc. (WULF)
We talked about TeraWulf yesterday as crypto prices continued experiencing volatility. The company specializes in environmentally sustainable Bitcoin mining. They focus on using zero-carbon energy in the United States. What might have heads turning is what the company recently announced. It reported its November 2023 production and operations update. They highlighted an increase in self-mined bitcoins, indicating efficient operations.
In total, self-mined 323 BTC in November for a total of 3,067 BTC self-mined year-to-date. The company’s Lake Mariner and Nautilus Cryptomine facilities also showed strong performance. Their commitment to clean energy bitcoin mining is a core aspect of their operations.
“During November, the Company mined 323 bitcoin, a 3% increase from October’s bitcoin production, due to higher network transaction fees and over 95% availability from our 5 EH/s of self-mining capacity,” said Sean Farrell, SVP of Operations at TeraWulf.
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“Both of our facilities, Lake Mariner in New York and Nautilus Cryptomine in Pennsylvania, demonstrated strong operating performance during November…Additionally, the Lake Mariner facility exceeded requirements for the facility’s participation in an operating reserve program with NYISO, nearly doubling the capacity qualified to participate and providing further revenue offsets to the already below-average industry cost of power sourced at the site.”
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