Are you new to penny stocks? Do you want to know how to use momentum and stock market volatility to your advantage? In many instances, there are hidden opportunities with low-priced stocks, and savvy traders seek to uncover the next big winners. In this article, we will dive into this niche and shed light on five cheap stocks that have captured the attention of retail traders.
We will explore the unique characteristics of these stocks, discuss recent catalysts, and provide insights into why they may have gained so much interest. Whether you’re an experienced investor seeking new prospects or a novice looking to explore penny stocks, this article aims to provide extra information as you build your knowledge base and potentially your watch list.
What Are Penny Stocks?
Penny stocks are often characterized as stocks trading at low prices, usually below $5 per share. They have garnered attention for their potential to deliver substantial returns within short timeframes. These stocks can be an appealing investment option for traders seeking to maximize their gains. While they may carry higher risks than more established stocks, the allure lies in their ability to experience explosive price movements and generate significant profits for astute investors.
Penny Stocks To Watch
In this article, we will focus on five specific penny stocks that have captured the interest of market participants. We’ll shed light on the factors that may have made these stocks noteworthy and provide you with information to consider.
By examining revenue growth, market trends, and competitive advantages, we will seek to identify the catalysts that could play a role. It is important to note that investing in low-priced stocks requires careful consideration and due diligence.
While they offer the potential for significant gains, they can also be volatile and subject to sudden price swings. Therefore, it is crucial to approach penny stock investing with a well-defined strategy. Have a thorough understanding of risk management and focus on your trading goals.
Affimed (NASDAQ: AFMD)
Despite trading at roughly $1 per share, Affimed has been on a tear over the last few months. The immunotherapy company recently reported first-quarter results, including operational progress highlights. Among recent milestones was an Investigational New Drug Application approved by the FDA for Affimed’s AFM13 combined with Artiva Biotherapeutics’ AB-101 for treating peripheral T-cell lymphoma.
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“Despite recent advancements in the field that include promising targeted and immunological agents, there is still an unmet medical need for treatments in the r/r setting of classical Hodgkin Lymphoma,” said Dr. Andreas Harstrick, Chief Medical Officer at Affimed.
As for upcoming events, June looks to be a busy month. A pre-clinical data set of AFM13 combined with AB-101 has been accepted for a poster presentation at the International Conference for Malignant Lymphoma (ICML) on June 13Best Penny Stocks Today? 3 Under $1 To Watch Now-17. L. A posthoc subgroup analysis from the AFM13 REDIRECT study in patients with r/r Peripheral T Cell Lymphoma was accepted as a poster presentation at the European Hematology Association Congress, taking place June 8-11, 2023. So if AFMD stock is on your watch list, these may be notable dates to keep track of.
mCloud Tech Corp. (NASDAQ: MCLD)
Cloud tech company mCloud is another tech stock to watch this week. Action has been relatively quiet until this quarter when MCLD stock has seen some of its highest trading volumes of the year. In particular, mCloud’s platforms are used in energy applications. Its platform offers ways to curb energy waste and make energy production more efficient while eliminating emissions. Its AssetCare solutions enable users in industries like oil & gas and wind to use AI to optimize performance.
Last quarter, mCloud partnered with Mercedes-AMG PETRONAS Formula One to advance its “path to Net Zero.” The Chief Commercial Officer of the F1 Team, Richard Sanders, explained that mCloud’s “industry-leading expertise is a valuable addition to our working group and will complement the wealth of knowledge that already exists within our partner ecosystem. We look forward to collaborating closely with the mCloud team moving forward.”
In addition, mCloud has taken a proactive approach in seeking strategic alternatives for the company. mCloud has already formed a committee that includes retaining ATB Capital Markets and Maxim Group as financial advisors to maximize value for the company’s shareholders. However, the latest sympathy sentiment stemming from AI stock momentum may be one of the more prominent factors in the stock market today, helping in the recent uptick for MCLD stock.
Opendoor Technologies (NASDAQ: OPEN)
Shares of residential real estate eCommerce company Opendoor bounced back on Wednesday as the penny stock maintained its recent uptrend. The move began shortly after it reported first-quarter earnings results, which helped bring some optimism to the beaten-down stock.
Opendoor beat earnings per share and sales estimates during a topsy-turvy period in the real estate market.
“Our Q1 results demonstrate our progress in navigating the housing market transition against an uncertain macro backdrop. We exceeded our sell-through expectations for our longest-held homes and continued to build a new book of inventory with strong margin performance. We also took further actions to right-size our cost structure,” explained CEO Carrie Wheeler.
Opendoor also gave 2023 guidance. It expects revenue to come in between $1.75 and $1.85 billion. The 2023 Adjusted EBITDA is anticipated to be between $(180) million to $(200) million.
Palisade Bio Inc. (NASDAQ: PALI)
Biotech penny stocks remain a hot topic of discussion this month. Due to their highly speculative nature, retail traders tend to hunt certain stocks with specific criteria. It might be news, a particular share structure, market cap, etc. Palisade Bio is on the radar thanks to its latest headlines.
Its LB1148 ongoing clinical trials are expecting topline data readouts. Interim CEO J.D. Finley mentioned that the company would “remain focused on our U.S. Phase 2 adhesions study with our lead drug, LB1148, and look forward to our data readout in the coming weeks. We believe the topline data from our Phase 2 study will provide valuable insight related to future trial design…We have already dosed eight patients and remain on track to have that topline data in the third quarter of this year.”
In a separate development, the European Patent Office granted Palisade a European Patent number and patent titled “Stable neural stem cells comprising an exogenous polynucleotide coding for a growth factor and methods of use thereof.”
Against this backdrop, PALI stock has caught a boost of momentum in the stock market today.
Immutep (NASDAQ: IMMP)
One of the hottest penny stocks recently is Immutep. Shares surged from under $1.60 to nearly $4 within a matter of days earlier this month. The biotech company is developing cancer immunotherapies and treatment candidates for autoimmune diseases.
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One of the most significant catalysts was feedback from the FDA on Immutep’s late-stage clinical development of its non-small cell lung cancer treatment candidate, eftilagimod alpha.
CEO Marc Voigt said, “In light of our compelling clinical data that efti has generated in combination with anti-PD-1 therapy, this meeting with the FDA is a critical step in our late-stage development process for 1st line non-small cell lung cancer. We are thankful for the positive feedback as we continue moving forward with our unique immuno-oncology approach for the many cancer patients impacted by this difficult disease.”
In addition, Immutep announced the survival data from a study of efti combined with Merck’s KEYTRUDA, which “achieved robust initial Overall Survival in 1st line non-small cell lung cancer patients” in the Phase 2 TACTI-002 trial.
This week, more data surfaced from a clinical trial of efti in conjunction with standard-of-care anti-PD-1 therapy and doublet chemotherapy in non-small cell lung cancer patients. The trial’s lead investigator, Dr. Salah-Eddin Al-Batran, said that the initial results support efti’s ability to “safely engage such a robust immune response for cancer patients.”