Penny stocks are well-known for giving you the ability to make money quickly. By most definitions, I’m talking about stocks trading for less than $5 per share and typically have much smaller market caps than most companies in the stock market. Today we’ll look at a sub-set of this niche: stocks under $1.
This can bring a whole new type of risk and reward. What’s more, for those using some of the popular trading apps like Webull, your choices are a bit more limited. Since many of the penny stocks under $1 trade Over The Counter, brokerages, including Webull, limit access due to higher risk profiles and lack of reporting documents.
So are you SOL if you trade using Webull and you’re looking for penny stocks to buy under $1? No, and the best part is that there are plenty of these cheap stocks to research. Today we’ll look at a handful gaining momentum in the stock market today. Like with all stocks, it’s up to you to decide if they’re worth the risk or should be avoided entirely.
Palatin Technologies was on our list of penny stocks to watch earlier this week. Thanks to attention on the company’s potential pipeline treatment that has shown promise in treating COVID patients. Something that has now become commonplace is when biotech companies figure out that their current pipeline therapies have opportunities beyond the initial therapeutic target.
Read more: 3 Top Penny Stocks To Watch Under $4 This Week
A case in point with Palatin is its PL8177 candidate. It was initially in development for inflammation (things like IBS, for example). However, the company announced last year that it would begin developing the candidate as a potential treatment for COVID patients.
Late last month, Palatin received a US patent to use melanocortin peptides in treating immune reactions typically experienced in cancer therapy. Known as cytokine storm, the body releases too many cytokines into the blood too quickly. Carl Spana, Ph.D., President, and CEO of Palatin, explained that “particularly when early data suggest they can help resolve the over production and expression of pro-inflammatory cytokines associated with many diseases, including acute viral infections such as COVID-19.”
With growing concern stemming from a new variant of the virus, companies including Palatin have come back into focus.
Following this week’s Fed meeting, energy stocks are back in focus. In fact, among the top-performing sector ETFs today, the SP Oil Gas ETF (NYSE: XOP) is in the top-5 right now. Gran Tierra has followed suit, and despite being one of the penny stocks under $1, it’s had a great year overall. Shares of GTE stock started 2021 trading below $0.40. What’s more, is that this near-100% move, to date, has been accompanied by several milestones from Gran Tierra as well.
This month, Gran Tierra released its 2022 guidance, which has caught the market’s attention over the last few weeks. The company expects production to come in between 30,500 and 32,500 BOPD. This is a boost of 19% over this year’s figures and almost 40% higher than that of 2020. Furthermore, the company expects free cash flow between $40 and $60 million and full repayment of its credit facility.
Gary Guidry, President and Chief Executive Officer of Gran Tierra, also explained that the company has plans to allocate capital to new drilling opportunities. “Our forecast 2022 capital budget is a balanced, returns-focused program which is expected to provide free cash flow generation, ongoing strengthening of our balance sheet, optimization of ultimate oil reserves value and exposure to exploration upside,” Guidry said in a December release. “We see material potential in our exploration portfolio located in highly prospective geological trends in Colombia and Ecuador.”
Another one of the parts of the market that swiftly rebounded after Fed Chair Powell’s commentary was cryptocurrencies. On Wednesday, everything from Ethereum and Bitcoin to the countless sh*tcoins ripped into the closing bell. That also went for crypto-related stocks.
Powerbridge offers software solutions and blockchain applications for its clients. Like energy stocks, the broader cryptocurrency and blockchain sector pulled most related stocks lower. Powerbridge’s blockchain includes BTC and ETH mining as well as digital assets. This week PBTS stock surged higher not only for broader industry momentum but company-specific headlines as well.
Powerbridge expanded its crypto mining operations in North America. Its Powercrypto subsidiary is bidding for a facility in Canada with the capacity to host up to 20,000 BTC and ETH mining rigs. The added bonus is that a sustainable and green energy supply powers the facility.
As the company goes through this bidding process and the crypto industry attempts to rebound, PBTS could be one of the penny stocks to watch.
Read more: Best Penny Stocks to Watch in the Second Half of December
Biotech is trading higher following the FOMC meeting this week. If you look at some related ETFs like the Nasdaq Biotech ETF (NASDAQ: IBB), you’ll see what I mean. In line with this, some of the cheaper stocks in the market have followed suit. Sesen Bio has extended a now 3-day move this week.
It was red hot earlier this year ahead of an FDA decision date for its bladder cancer candidate, Vicineum. Unfortunately, the FDA determined that it couldn’t approve Sesen’s Biologics License Application for the candidate as it was presented. Fast-forward to this month, and the beaten-down penny stock has started gaining some momentum into year-end.
Last week, Sesen gave a much-needed update on its regulator path forward for Vicineum. It offered much greater clarity for the resubmission process of the BLA that was denied in August. Specifically, the company held a Clinical Type A Meeting with the FDA, which gave requirements for the resubmission process.
Included elements was a randomized clinical trial assessing the safety and efficacy of Vicineum. The company said it’s also encouraged to submit final VISTA trial results with the resubmission. This has led to the company expecting to hold a Type C meeting with the FDA early next year to talk about the protocol for the additional trial. SESN stock has gained some interest over the last few weeks in light of the new path forward.
This time of year is interesting for small-cap stocks. That could be especially true considering the recent sell-off. Regardless, less tax-loss harvesting between now and the end of the year could become an exciting situation for low-priced stocks.
Chief Investment Officer of Dimensional Fund Advisors, Gerard O’Reilly, said in an interview that “Even after years when small/value has outperformed large/growth, … the following 12 months tend to be pretty good for small and value…Regardless of what the Fed has done, about two-thirds of the time, the market has gone up in months whether it’s raised or decreased the target Fed funds rate.”
As we head into the new year, it’s going to be interesting to see if small-caps follow this bullish projection.
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