Are These Penny Stocks To Buy Or Avoid Right Now?
The topic came up recently on our Twitter feed so I thought I’d take time to address it. Seeing as so many people are looking at companies trading below $5, some may not be apprised of what penny stocks are. If you don’t know the definition of a penny stock, here’s the standard, SEC definition:
While some may say, “Well if it isn’t a penny, it’s not a penny stock,” at the end of the day, we’ll open the floor to discussing all penny stocks that fall under the above criteria. In this case, it’s important to understand the risk and reward of these cheap stocks. Rewards are pretty obvious: buy low, sell high and capture gains. As far as risks, it isn’t just about holding onto a stock too long that could make you lose money. In the world of penny stocks, there are other risks involved, many of which could be regulatory.
What I mean by this is that if certain penny stocks move quickly, seemingly out of nowhere, it could raise red flags with regulators. In instances like this, those regulators may actually halt trading in the stock to see what’s going on. While the share price didn’t technically go down, it also doesn’t really exist because there’s no actively traded market.
Is this frequent? No, but it is a risk that companies like Apple and Amazon rarely, if ever, encounter. But don’t be scared. This is usually a higher risk for certain companies that lack reporting, news, and are really just “ghost ships” trading without an operating business. So make sure that when you research all penny stocks on your list, you make sure that there are active businesses and the companies are being transparent with updated filings and recent news, to start.
Are Penny Stocks Right For Me?
Another good question that we’ve been asked. How “right” penny stocks are for you depends a lot on your risk tolerance. These low-priced stocks aren’t for everyone and while there are higher risks of investing, the potential reward can far outweigh that.
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This week alone, we’ve seen penny stocks rally 300% or more at times. One of the standard rules of thumb when it comes to buying penny stocks: only trade with what you can afford to lose. This is something that most of the top traders will tell you.
So whether that’s $10 or $110,000, it’s all subjective to your personal preferences and financial situation. If you’re new to penny stocks, I’d say to start by downloading our new e-book packed with information and education for beginners. After that, come back and take a look at some penny stocks so you can decide for yourself if they’re the top penny stocks to buy or if you should avoid them and look for others. When it comes to this list of penny stocks, these can be bought for under $4 right now. Will that be the case later this week?
Penny Stocks To Buy For Under $4: Waitr Holdings
Waitr Holdings (WTRH) has been on the list of coronavirus penny stocks to watch this year. During the time where other penny stocks (at the time) like Blue Apron (APRN) were surging as quarantines went into effect, WTRH followed. If you have read PennyStocks.com articles for a while, you probably remember this from back in November when we started following WTRH a bit more closely. At the time, shares were trading around $0.30 and the company just struck a deal with Rally’s/Checkers & reported shoddy earnings.
Since then, however, we’ve seen the company focus on turning things around. In fact, in a press release Carl Grimstad, Chairman and CEO of Waitr, said that “distractions resulted in a lack of focus on our customers and operations.” It’s not every day you read about CEO saying the company messed up. Needless to say, in the last earnings report, Waitr posted a 103% increase in revenue to $43.1 million and a slimmer net loss too.
This month, the company has focused on expansion. Not only has it seen a jump of 28,000 new driver applications, it also increased delivery areas to support more restaurant partners. Some of these areas will deliver up to 12 miles away from certain restaurants. “As these uncertain times continue, we are constantly evaluating how to better support our diners and restaurant partners,” Grimstad said in an April 9 press release. Shares have continued to surge this week with WTRH stock hitting highs of $1.33 so far. Read More on Waitr Holdings.
Penny Stocks To Buy For Under $4: NeuroMetrix Inc.
NeuroMetrix Inc. (NURO) has been one of the more volatile penny stocks this week. On Tuesday shares shot up to highs of $6.20 but came crashing back to earth by the end of the day. Today we see the penny stock trading more consistently between $3-$3.50. The penny stock’s been halted countless times for volatility and, yet, if you look for potential news catalysts, you won’t likely find much.
It’s last update was only to announce there would be a shareholder meeting on April 28. The company’s a developer and manufacturer of diagnostic and therapeutic neurostimulation-based medical devices. The Company has three FDA cleared commercial products as well. Something to possibly note is what was said in a March update:
“Starting in Q2 2020, Quell marketing will focus on lower extremity chronic pain…The Company is collaborating with GSK Consumer Healthcare through a strategic agreement that began in 2018. It is supporting GSK in their launch of Quell technology outside the US. It is also partnering with GSK on clinical research that resulted in several scientific reports at pain medicine conferences in 2019, with additional presentations expected in 2020. GSK is partially funding Quell R&D.”
Considering that Q2 has just begun, is there anticipation regarding this topic? Nevertheless, shares continue to aggressively trade in the market. NURO stock managed to bounce back from yesterday’s low of $2.05. As the story develops we will continue to update new findings. Read more on NeuroMetrix.
Penny Stocks To Buy For Under $4: AgEagle Aerial Systems Inc.
AgEagle Aerial Systems (UAVS) is a blast from the past. We discussed this company a few times last year as it climbed from around $0.30 in May to a high of $0.73 earlier this year. However, since those January highs, UAVS stock has slid to as low as $0.1901. This week, however, is a totally different story.
AgEagle didn’t announce anything about a deal for face masks or spin-off of a new medical division. The company expanded the scope for its contracted commercial drone work. It received a follow-on purchase order from a “major eCommerce company” for commercial drone small package delivery vehicles. AgEagle Chief Executive Officer Barrett Mooney said, “We are thrilled to be expanding our relationship with this key client, which is keen on taking full advantage of AgEagle’s specialized expertise in the custom manufacturing and assembly of commercial drones.”
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While the “major e-commerce client” wasn’t immediately revealed, speculation has found its way into different discussion circles. Following the news, shares have spiked to highs of $1.38 in early trading. Read more on AgEagle.
Penny Stocks To Buy For Under $4: Ampio Pharmaceuticals
Ampio Pharmaceuticals (AMPE) jumped for the second day in a row on April 15th. Similar to Nuro, there weren’t any new items to report this week. However, earlier this month, Ampio announced application news. The company was specifically featured on a Fox segment focused on companies treating COVID-19 patients.
Michael Macaluso , Ampio CEO, noted “The Company is exploring options that may enable the completion of the AP-013 study, our Phase 3 clinical trial for the treatment of severe osteoarthritis of the knee, during this COVID-19 pandemic. Simultaneously, we have directed our R&D efforts to explore the possible application of the immunomodulatory and anti-inflammatory properties of Ampion in the most severe and lethal complication of the COVID-19 infected patients: ARDS.”
Macaluso explained that the FDA has been very responsive as well. While this week hasn’t seen any new filings or news, trading volume and price are picking up. April 15th saw shares reach early highs of $0.6888. That marks a move of 40% since the start of the week. Read more on Ampio.