Do you know what penny stocks are? The simple definition involves all stocks under $5; that’s it. But where some traders search for all penny stocks that meet a broad price range others zero in on certain levels. In fact, some of the most popular to watch are stocks under $1. This is where we start to see those big, volatile percentage changes and hear about those “YOLO” moves in the market.
The fact of the matter is that the cheap the stock, the less price movement is needed for large gains. We discussed this in a video we posted on TikTok earlier this morning. It was all about trading penny stocks & 5 things to consider. One of these things was paying attention to price. Simply put, stocks under 10 cents need to only move a penny for traders to realize a 10% move or more in a penny stock. Compared to stocks over $5, for example, a move of 1 penny doesn’t account for much, if anything, when it comes to boosting your bottom line.
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Then again, you’ve got to consider the fact that this works for bullish and bearish cases. A drop of a penny – for stocks under 10 cents – is a loss of 10% or more. So weigh your risk and reward especially when it comes to trading stocks under $1 or even stocks under 10 cents. What else should you look at? Check out what trends are going on in the stock market today. Most of this week had EV penny stocks trending, which then overflowed into other niches.
These included things like tech, alternative energy, and more. On the other hand, we’re also seeing a spike in interest related to biotech as well. Thanks to new from Pfizer (PFE Stock Report) and Moderna (MRNA Stock Report) this week, healthcare names are gaining interest. With all of this in mind, are any of these on your list of penny stocks right now?Penny Stocks To Watch Under $1: Havn Life Sciences
Havn Life Sciences (OTC:HAVLF Stock Report)(CSE:HAVN) isn’t your typical biotech penny stock to watch. In fact, you might consider this one of the sin penny stocks to watch this year. The reason being is that Havn’s focus is on psychedelics. The rising popularity in things like psilocybin, ketamine, and LSD for addressing mental health issues has become apparent. We’ve even seen states like Oregon fully legalize psychedelics in the latest election cycle.
Research on psychedelics isn’t something new. In fact, Back in 2019, the U.S. Food & Drug Administration approved Johnson & Johnson’s (JNJ Stock Report) ketamine-derived nasal spray Spravato for treatment-resistant depression. But now things have begun rapidly evolving. Compass Pathways (CMPS Stock Report) became the first “pure-play” Nasdaq listing to hit the stock market. But there are myriad other companies beginning to emerge with this trend.
Not only has former pot stock figurehead, Vic Neufeld, the executive chairman of the company, Havn has also established a team with decades of experience. Many of them also have a strong background in building cannabis companies during the early days of the cannaboom. Neufeld is most well-known for his efforts in building Aphria Inc. (APHA Stock Report) into a multi-billion dollar cannabis company between 2014 and 2019. Needless to say, Havn could be set to hit the ground running in 2021 as it has just launched the first range of natural health products utilizing mushroom-based ingredients.Penny Stocks To Watch Under $1: Acasti Pharma Inc.
Acasti Pharma (ACST Stock Report) is one of the stocks under 30 cents that has worked to bounce back from recent lows. Earlier this month the company’s stock hit 52-week lows of $0.171 basically as momentum came to an exhaustion point. Since then, however, ACST stock has been bouncing back. One of the recent catalysts to take note of is its fiscal 2021 Q2 earnings results. The company saw significant growth, year-over-year in earnings per share. Specifically, the company posted a loss per share of 6 cents compared to a loss per share of 25 cents during Q2 of its prior fiscal year.
What’s important to pay attention to with Acasti is that it’s in a period of potential transition. Late in September, the company engaged Oppenheimer & Co to undertake a strategic review of the company. The purpose for this is to explore strategic alternatives to drive shareholder value. This includes potential mergers, acquisitions, or other initiatives that involve Acasti and/or CaPre, its omega 3 product.
Since the quarterly report, ACST stock has been on the move. Over the last 4 days, the penny stock has bounced by more than 20% so far. What’s more, is that analysts from B. Riley and Aegis follow Acasti and carry a Neutral/Hold rating respectively. B.Riley also has a price target of $0.50; 100% higher than the current trading level.Penny Stocks To Watch Under $1: Jaguar Health Inc.
Shares of Jaguar Health Inc. (JAGX Stock Report) has also bounced strongly this week. The penny stock hit a new 52 week low of $0.185 on Monday. Since then, shares bounced back by as much as 24%. This was only based on a 4 cent move. Starting to see the power of penny stocks under $1? Now, this could have easily gone the other direction as well. There’s not arguing that point. Furthermore, JAGX is down around 75% since the start of the year. So it doesn’t necessarily have the best track record on a longer-term time frame. However, for traders, sometimes only a day or two is all they look for in a move.
Whatever the case may be, Jaguar has bounced this week after reporting its third-quarter 2020 results. Jaguar missed on both EPS and sales estimates. However, traders are digesting management’s comments to find potential right now.
CEO Lisa Conte made mention of this on the corporate conference call:
“Our core focus today is on achieving financial sustainability as a commercial business in 2021, based on sales of brand name Mytesi active ingredient crofelemer, the recurrent approved indication of HIV-related diarrhea; continuing to remove barriers for patients to access Mytesi; and continuing to add services to our NapoCares patient access program.”
Additionally, JAGX is followed by HC Wainwright analysts. The firm has a Buy rating on the penny stock and carries a $3 price target right now; over 1,200% higher than the current trading level. It’s worth mentioning that this rating was given months ago so traders might take it with a grain of salt right now.Penny Stocks To Watch Under $1: Ocugen Inc.
Ocugen Inc. (OCGN Stock Report) has followed through with a 3rd day in its recent uptrend. Trading volume has been increasing and analysts are placing bets on the penny stock this month. Most recently, analysts at Roth Capital initiated coverage on the company. The firm gave Ocugen a Buy rating a put a price target of $1 on the penny stock, more than 200% higher than the current trading level.
Aside from this, the company is coming off of some stronger earnings results. Last year’s Q3 EPS showed a loss per share of $3.55. During Q3 of 2020, the EPS loss was just 7 cents, dramatically narrowing the year-over-year loss for Ocugen.
“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.”said Dr. Shankar Musunuri, Chairman, Chief Executive Officer and Co-Founder of Ocugen
Ocugen focuses on treatments addressing blindness diseases. Its OCU400 clinical trial is the nearest term trial that the company is conducting. It’s on target to begin in 2021.Penny Stocks To Watch Under $1: Oragenics Inc.
Oragenics Inc. (OGEN Stock Report) is another one of the trending penny stocks under $1 to watch this week. While most of the week has been quiet, Thursday’s action opened things up a bit. OGEN stock popped from around $0.47 to over $0.55 with its highest volume since mid-October. Something to consider with Oragenics is its involvement in COVID-related developments. Oragenics announced that it expects the timeline for the filing of an investigational new drug application for its COVID-19 vaccine candidate, Terra COV-2, as well as the launch of its planned phase 1 study will proceed on schedule, back in October.
The company is set to file an investigational new drug application by the end of Q1 2021 and begin patient enrollment for a phase 1 study in early Q2. Dr. Joslyn Ph.D., President and Chief Executive Officer of Oragenics explained, “The FDA’s response is an important step as we work to provide a vaccine against SARS-CoV-2 that is focused on the stabilized prefusion spike protein, with a potential profile that may include lifetime immunity to COVID-19.”
While there aren’t any current price targets on it, there are still analysts following along. HC Wainwright has a Hold rating on the penny stock right now.