What are penny stocks? Based on the standard definition, penny stocks are shares of companies trading below $5. This simple definition gives a lot to be desired if you’re brand new to trading. Most people looking to learn a new skill expect the theory and origins to be more detailed. In this case, however, the definition of penny stocks isn’t complicated. However, the ways in which you make money with them are a bit more advanced. Let me explain.
If you’re here looking to learn how to buy penny stocks, start with the basics. You’ll first want to get yourself a general understanding of how to day trade stocks. The worst thing you can do is blindly follow someone on social media and immediately react. Some of the best traders out there focus on trends, catalysts, and fundamentals in many instances. Not just understanding that stocks are moving but why they’re moving is important. This helps you plan things like the timing of your trade or plotting out certain profit targets. While I won’t go into a full class about trading, I will provide you with a link to a free eBook we’ve got all about learning how to trade penny stocks.
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Something else to understand is that these are low-priced stocks. That’s important when it comes from making money and here’s why. Let’s say you’ve got a position in Apple (AAPL Stock Report), for example. If the price of AAPL stock declines by 10 cents, it won’t mean too much of a hit to your P & L. Now let’s say you’ve got a position in one of the penny stocks under 10 cents. A 10 cent move there could either mean you lose everything or doubled your money.Penny Stocks Under $1 To Watch
- Havn Life Sciences Inc. (HAVLF Stock Report)
- Ocugen Inc. (OCGN Stock Report)
- Acasti Pharma Inc. (ACST Stock Report)
- Advaxis Inc. (ADXS Stock Report)
- Express Inc. (EXPR Stock Report)
Two very different circumstances where volatility can make or break a trade. Taking this into consideration, obviously, the lower the price, the more likely you’ll experience higher volatility trading. This isn’t the case for all penny stocks. However, the majority will present situations where there’ll be larger percentage swings the lower in price you get. With that, are any of these stocks under $1 worth the risk?Penny Stocks To Watch Under $1: Havn Life Sciences Inc.
Havn Life Sciences Inc. has been on the move recently with trading in the U.S. seeing a pick up in momentum this month. Since October 28, the penny stock has managed to climb as much as 16%. One of the key drivers of this momentum has arisen from the new industry trends we’re seeing in health care; specifically the popularization of the use of psychedelics.
With the rising interest in newly listed companies like Compass Pathways (CMPS Stock Report), which recently went public on the NASDAQ, traders are looking for other companies in the space. Similar to the early days of legal cannabis, the recent “mushroom boom” has more companies listed on major foreign exchanges with a dual listing in the U.S. on the OTC. But unlike the early cannabis days, we’ve already seen companies – like Compass – listing on major U.S. exchanges with little pushback.
In the spirit of market excitement, something that many are looking at right now is leadership in these names. I’ll continue comparing this to cannabis early on because it is somewhat of a lesser explored area of health care. Furthermore, early on in the MJ arena, inexperienced management ended up hurting more than helping some of the companies. That is why we saw the likes of first movers like Aurora, Canopy, and Aphria (the big 3) stand out from the crowd.What To Watch With Havn Life Sciences
The CEO of Aphria, who took it on the early growth path retired from the company a few years back. He’s now emerged as the new Director of Havn Life Sciences. Vic Neufeld helped grow Aphria between its early public debut and right through to January of 2019.
What’s more is that similarities drawn between cannabis and psychedelics have Neufeld as a center point of focus when it comes to Havn. Furthermore, the company has already begun supplying companies with psychedelic compounds. In October, for instance, Havn signed a deal with Revive Therapeutics Ltd. The company is supplying Revive with psychedelics for use in its investigational new drug enabling studies and future clinical trials under the FDA guidelines.
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Currently, Revive has focused on expanding its Psilocybin-based therapeutics for mental health and abuse disorders. Havn also just recently received approval from Health Canada for six of its natural health product formulations. The formulations include a mushroom mix containing lion’s mane, chaga, cordyceps and reishi that addresses cognitive function and regulation, human performance and immunity.Penny Stocks To Watch Under $1: Acasti Pharma Inc.
Acasti Pharma Inc. has held a sideways trend for months now. Ever since dropping like a rock in late August, the penny stock hasn’t managed to make any lasting move. In fact, just 2 days ago, ACST stock reached a new 52-week low of $0.171. Regardless, Tuesday was a much different day for the penny stock. ACST stock saw some of the heaviest trading volume since September. It also jumped over 17% during the session.
After reporting some bad data in a Phase 3 trial, the future of the company didn’t seem clear. In fact, anomalies in the trial caused the company to be uncertain about the results as well. The company explained that they would move to seek other options available to it. In light of this, the company soon engaged Oppenheimer & Co., Inc., as its financial advisor to assist in the process of finding strategic alternatives.What To Watch With Acasti
Right now, ACST stock is a bit of an anomaly. There’s been an obvious increase in trading volume and price moved higher on Tuesday. Those who’re paying attention to technical indicators, you’ll also see that the penny stock tested its 50 day moving average for the first time since dropping in August.
Though this is the case, there’s no recent news or sector catalysts to point at. But I think this recent surge in volume is something to note. As this story develops, we’ll update as needed.Penny Stocks To Watch Under $1: Advaxis Inc.
Unlike Acasti, Advaxis Inc. has seen a boost thanks to recent corporate developments. This week the company presented updated data from an ongoing Phase 1/2 lung cancer trial at the 2020 Society for Immunotherapy of Cancer annual meeting. This trial is focused on the company’s ADXS-503 treatment for non-small cell lung cancer.
“The results observed thus far in Part B of this study, with ADXS-503 added to KEYTRUDA® without intervening treatment or a change in the checkpoint inhibitor at the time of progression on KEYTRUDA®, provide encouraging proof-of-concept that ADXS-503 may re-sensitize or enhance the response to KEYTRUDA®.”Jonathan W. Goldman , M.D., Department of Medicine, Ronald Regan UCLA Medical Center, UCLA Health Santa Monica Medical Center, and Lead Study Investigator
Yes, this is the same KEYTRUDA® from Merck (MRK Stock Report). ADXS-503 demonstrated a disease control rate of 67%. The overall response rate was 17% in first six evaluable patients with immediate prior progression on KEYTRUDA®.What To Watch With Advaxis
Like most biotech penny stocks, what to watch from Advaxis is what comes next in this trial. The Phase 1/2 clinical trial of ADXS-503 is seeking to establish the recommended dose, safety, tolerability and clinical activity of ADXS-503. This is for administration alone and in combination with a KEYTRUDA® in approximately 50 patients with NSCLC, in at least five sites across the U.S. So what to watch now is how these different Dose levels interact with trial patients. For now, we can look at some of the technical indicators to see what’s going on with ADXS stock in the short term.
We not only see that price has steadily increased over the last 2 weeks, volume jumped on November 10th. Furthermore, ADXS stock, like ACST, tested its 50 day moving average. As you’ll see on the chart, this has remained a consistent level of resistance for most of the year. Will this latest development be a big enough catalyst to trigger a break and hold above this level?Penny Stocks To Watch Under $1: Ocugen Inc.
Ocugen Inc. is another one of the penny stocks to watch trading under $1 right now. In a recent business update, the company discussed its 3rd quarter results. More importantly, Ocugen also discussed the future of Ocugen.
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“I am proud of the advancements we have made this quarter in developing our modifier gene therapy and novel biologic product candidates. We remain on-track to achieve multiple near and mid-term milestones with a plan to initiate four Phase 1/2a trials during 2021 and 2022. Additionally, I am pleased that we have raised approximately $28 million of gross proceeds in 2020, which have extended our cash runway for continued development of our product candidates,” said Dr. Shankar Musunuri, Chairman, Chief Executive Officer and Co-Founder of Ocugen.What To Watch With Ocugen
We know that the biotech arena can be an exciting one to watch. Numerous phase trials and data readouts remain key catalysts to look for. In its earnings update, not only did Ocugen report significant year-over-year EPS growth, the company explained key progress in its OCU400 clinical trials. According to the company next year it plans to begin the trial after receiving materials for its Good Laboratory Practice toxicology study from CanSino Biologics. This is the company’s manufacturing partner.
What’s more is that during the 3rd quarter, Ocugen also managed to pay down certain unsecured notes. This was to the tune of aggregate payments of $4.5 million. Will that present less dilution risk moving forward? What’s more, is that Cantor Fitzgerald recently initiated coverage on Ocugen. The firm started OCGN at Overweight giving it a $1 price target; more than 200% higher than its current trading levels.Penny Stocks To Watch Under $1: Express Inc.
As we’re discussed earlier this year, epicenter stocks are some of the most searched for. This has a lot to do with curiosity on what happens when “we get back to normal”. Obviously, that is a bit premature with coronavirus cases rising to record levels. Needless to say, this hasn’t stopped traders from speculating on the “what ifs” that have materialized following the lates Pfizer and Eli Lilly news. In light of these epicenter stocks, the idea is simple. Stocks that took a beating because of COVID could benefit once the economy reopens.
One of the hardest hit industries this year was brick and mortar retail. This saw companies either change models or declare bankruptcy. Some even went out of business. The ones who have weathered the storm so far were those taking up a brick and click approach to business. Limited access to in person retail and maximum exposure to online sales. Express Inc. is among the names focusing on this brick and click strategy.What To Watch With Express
Vaccine news has continued impacting EXPR stock as well as others. While analysts remain cautious with hold ratings across the board, price targets remain a bit more bullish. MKM Partners and B Riley are both neutral on EXPR but each holds a $1.50 price target ton the stock right now. That’s over 60% higher than the current trading levels this week. Similar to ACST and ADXS, EXPR stock is also testing the 50-day level, which has been a point of resistance ever since January.