Sub penny biotech stocks
These types of equities tend to suffer from poor fundamentals, an exorbitant number of outstanding shares, and shaky management. Making matters worse, penny stocks also tend to sport low institutional ownership, a feature that often makes their share prices exceedingly volatile. There is a small handful of exceptions to this general rule of thumb, however. Clinical or early commercial-stage biotechs frequently have share prices that qualify them as penny stocks. Nonetheless, growth-oriented investors shouldn't necessarily avoid this entire group of equities simply because of their low share prices.
3 Top Stocks Under $5 to Buy Now
All rights reserved. But, if like me, you see the coronavirus contagion being contained within the next few months and the economy rebounding with vigor on the back of tremendous monetary and fiscal stimulus in the second-half of the year, then now is the time to start buying stocks in anticipation of that rebound. And, if you are a particularly risk-seeking investor, then now is the time to start buying penny stocks, because such risk-on stocks tend to outperform meaningfully when markets are in rally mode.
With that in mind, some of the top penny stocks that deserve your attention in May — and could bounce when markets reverse course — include:. One penny stock which has gone from red-hot to ice-cold in — and which could get red-hot again in coming months — is hydrogen fuel cell HFC maker Plug Power.
The bull thesis at Plug Power is pretty simple. Hydrogen fuel cells have been around for a long time as a clean energy solution. Hydrogen fuel cells, which have become increasingly safe over the past few years amid technological improvements, are gaining significant traction in the material handling industry, where these fuel cells are actually better than electric batteries because they deliver more power for longer times at lower costs.
More companies are quickly joining suit, too, amid increasing pressure on companies to find cost-effective ways to reduce carbon emissions. Shares then crashed on coronavirus pandemic concerns, but have since rebounded strongly on the back of strong fourth quarter numbers which included huge billings and profit growth, and underscored that huge growth is here to stay for a lot longer. But, this sell-off is a gross overreaction to near-term pain — and investors are starting to realize that.
Strict quarantining in South Korea and China stopped new spread of the virus within two to three months. The U. This flattening should persist, and economic normalization should start in May. Thereafter, the company will resume its turnaround plan based on cost-cutting, store upgrades and closures, e-commerce build-out, and omni-channel development.
Those turnaround initiatives will gain traction in the back-half of , and drive sales stabilization and margin improvement, which should power BBBY stock higher.
Investors are starting to believe in this turnaround thesis. This big rally will continue because of strong earnings catalysts in the second-half of , and because the stock remains very cheap.
Chinese premium electric vehicle EV maker Nio has been on a roller coaster ride over the past year and a half. This roller coaster ride increasingly looks like about to make a big move higher soon. But, before coronavirus hit NIO, this company was on a tear.
Gross margins inched up from the third quarter. So did vehicle margins. Indeed, this is already happening. China has effectively stopped the spread of coronavirus in its country. Chinese consumers are back to work. Restaurants and shops are open. Consumers are spending again. And NIO reported that its delivery volumes more than doubled month-over-month in March. As it does, NIO stock will soar higher.
Small-cap Rubicon Project has plunged into penny stock territory amid the coronavirus outbreak. This plunge seems overdone, and the long-term bull thesis at current levels is quite mouth-watering. The Rubicon Project, which recently merged with Telaria, is an ad tech company that runs something called a video management platform, or VMP.
The purpose of the VMP is to help streaming platforms maximize the value of their video ad inventory. Think Hulu. They have a bunch of ad inventory. They need to maximize it. Telaria and The Rubicon Project help them do that, by leveraging user and brand analytics to always put the right ad in front of the right customer, thereby increasing ad relevance and conversion. The Rubicon Project also does this across all ad formats. Not just connected TV.
But audio, display, and mobile and desktop video, too. Essentially, The Rubicon Project is a targeted, sell-side ad platform particularly levered towards connected TV and other digital video ad spending trends. Long term, this company has huge potential. But, consumers are shifting their engagement from linear to streaming TV. Ad dollars will follow suit over the next decade, implying an inflow of billions of dollars into the streaming TV ad space within the next few years.
Because of these secular tailwinds, this company has a huge opportunity to drive explosive revenue growth for many years to come, the likes of which should power RUBI stock far higher than where it trades today. Canadian cannabis producer Cronos has plunged into penny stock territory in early on fears that cannabis consumption will come to a screeching halt as the global economy shuts down.
But, Cronos has the balance sheet to manage this slowdown. Demand trends will improve on the back of aggressive retail store openings and the launch of new vapes and edibles. Operating margins will improve thanks to cost-cutting efforts. Operating losses will narrow as improving demand and margin trends converge with one another.
He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. Premium Services Newsletters.
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See why biotech stocks Corcept and Vertex are among the How To Trade Stocks: Why Most Penny Stocks Fail To Make Investors Rich. If the Peter Leeds newsletter can be said to have a collection of "Greatest Hits," my team's Hot List Pick Amyris, Inc. (AMRS), a biotech and.
Warrior Trading offers three, comprehensive packages that give traders what they need to be successful. Penny stocks are shares of small companies that typically trade for significantly less money than shares of larger companies. Penny stocks have historically been subject to scams and artificial price inflation due to their ease of manipulation.
Biotech stocks have been in free-fall mode this holiday season. The IBB's December swoon had even outpaced the sharp drop across the broader markets -- that is, prior to yesterday's historic rally.
All rights reserved. But, if like me, you see the coronavirus contagion being contained within the next few months and the economy rebounding with vigor on the back of tremendous monetary and fiscal stimulus in the second-half of the year, then now is the time to start buying stocks in anticipation of that rebound. And, if you are a particularly risk-seeking investor, then now is the time to start buying penny stocks, because such risk-on stocks tend to outperform meaningfully when markets are in rally mode.
5 Speculative Penny Stocks Under $5 That Deserve Your Attention in May
April was another topsy-turvy month for stocks, as coronavirus fears — alongside concerns about an impending recession and sky-high unemployment rates — continued to mount all over the globe. With a number of countries and U. Below I provide updates on some of the penny stocks I've featured in this column over the past few months and introduce some new low-priced equities I'm keeping my eyes on. Some of the set-ups I describe below may no longer be relevant or intact as of the time you read this article. Please conduct your own due diligence. Many stocks mentioned here were also discussed in the Peter Leeds Newsletter.
Penny Stock Sectors
The stock market continued to climb last week and many penny stocks followed. Mainly the Fed has solidified programs to put a backstop against a potential economic meltdown of catastrophic proportions thanks to COVID Well, the interesting part is that for the most part, these cheap stocks will do what they do regardless of the broader market. However, when it comes to certain industries like oil and gas, there may be a few exceptions. Since there are so many industry reports scheduled each week, it may be important to note these dates. So it would be wise to enter and exit trades accordingly. This is just one example. The company announced back in March that it would focus its lead drug for compassionate use for coronavirus. It was used for the treatment of circulatory disorders.
I developed this Board for "Six" reasons.
