What are penny stocks? This is probably a question you're asking if you're brand new to the stock market. The basic definition includes stocks trading for less than $5 and are typically associated with smaller start-up companies. However, that doesn't leave out the fair share of companies that have fallen on hard times. Certainly, the stock market sell-off over the last year has helped push plenty of notable names into the depths of the sub-$5 range.
This begs the question, what are the cheapest penny stocks to buy? Generally speaking, the cheapest stocks trade without a bid at $0.0001 and are Over-The-Counter-listed stocks. These are essentially lottery tickets for traders and are usually restricted from specific brokerage clients and firms. So are the cheapest penny stocks entirely out of reach for those using apps like Robinhood or Webull? In short, no, and in this article, we'll look at some stocks trading for pennies on the dollar.
Of course, they aren't the lotto ticket stocks I mentioned earlier. But that doesn't mean they don't have the potential for big swings from small-dollar moves in the market. When you look at stocks under $1, even a change in value of 10 cents can equate to a market-beating move.
Today we look at a few more cheap penny stocks trading on the Nasdaq and NYSE that have turned heads recently. Even while the stock market is down like it is today, many are pushing higher. This is also a continuation of our list of penny stocks from the article "Hot Penny Stocks To Buy For Under $1 Right Now." What you'll have to decide is: just because they can be bought for under $1, are they worth putting on your watch list right now?
Penny Stocks To Watch
Troika Media (TRKA)
Shares of TRKA stock have been on the radar for months at this point. While the action was steadily more bullish at the beginning of the year, that accelerated dramatically last month. Shares of Troika stock surged to highs of $0.99 on deal speculation coupled with a higher short interest. The media company was in the spotlight most recently due to additional deal news. This time it came from another meme stock that mentioned it on Twitter.
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Genius Group (NYSEAMERICAN: GNS) CEO Roger Hamilton Tweeted, "Also Genius Group $GNS has sent to Troika Media a non-binding offer to acquire $TRKA together with a proposal on capital restructure. As agreed with @Jefferies terms are confidential. Offer approved by $GNS Board. Proceeding subject to $TRKA go-ahead (or not)."
This has ignited momentum to come back into the market. Although Hamilton also stated that "an offer isn't any guarantee an acquisition will happen. Apparently, Troika is "one of multiple companies" Genius entered into discussions. No further details have surfaced regarding the next steps, if any. However, momentum suggests that there is a somewhat bullish tone in the stock market today.
CN Energy Group (CNEY)
Alternative and clean energy companies have taken a back seat recently to traditional oil and gas. OPEC+'s production cut news prompted traders to focus on energy stocks with exposure to fossil fuels. In conjunction, oil prices continue rising this week. But that doesn't necessarily mean green energy is out of the conversation entirely.
CN Energy is one example of cheap stocks grabbing attention in the stock market. The company produces recyclable activated carbon and renewable energy from abandoned forest and agricultural residues. Industries,d including food and beverage, pharmaceutical manufacturing, and environmental protection, use its products.
As volatile stocks are in focus this week, CNEY shares popped during Wednesday's morning session. The most recent news catalysts that could be in focus came at the end of March. CN announced winning a large activated carbon order for use in the pharmaceutical industry. Delivery was expected by the end of March. With this initial milestone, CN said it plans to replicate and scale its sales to clients in the pharma industry.
CEO Zinyang Wang explained, "Now that we have moved diligently in this direction, we will continue to strive for better client satisfaction. We are determined to strengthen our capabilities in R&D, quality control, and marketing endeavors to differentiate ourselves from competitors to steadily gain an increasing market share."
With plenty of speculation fueling momentum in the stock market today, it will be important to see if any other potential catalysts surface as the penny stock has experienced one of its highest single-day trading volumes in months.
Molecular Templates Inc. (MTEM)
Molecular Templates is one of the lighter volume penny stocks under $1 on this list. The company specializes in targeted biological therapeutics developed for cancer. Like CNEY stock, MTEM shares are in recovery mode following a significant drop last month. Coincidentally, it came after a big move higher for MTEM stock.
News that the FDA accepted Molecular Templates' MT-8421 ETB program's Investigational New Drug application prompted the move higher. The targeted treatment is now progressing with clinical testing in patients with relapsed/refractory solid tumors. CEO Eric Poma also explained that the treatment candidate "represents a novel approach to target CTLA-4 in a wholly distinct manner from the current monoclonal antibody approaches."
Despite the drop, MTEM stock has recovered back to late-February levels. While there aren't any immediately apparent headline catalysts, there is a recent filing to note if this is on your watch list. The company filed a registration statement for 2,254,066 shares of common stock. Whether this poses, a potential dilution risk is to be seen. However, it could be important to note the recent multi-day uptrend that is in motion at the same time this registration statement was filed.
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Nisun International Enterprise (NISN)
Another one of the lower volume penny stocks under $1 to watch this week is Nisun International. The company provides technology-based supply chain solutions. Last week, it signed an agricultural product procurement agreement with a company engaged in purchasing and selling food additives, feed ingredients, grain, and the like. Accordingly, Nisun said that this deal is "significant" for the company in its supply chain business strategy for building a presence and accelerating its growth in the market of commodity wheat flour.
In response, CEO Xiaoyun Huang highlighted, "The collaboration is expected to significantly bolster our business footprint and drive the exploration of new expansion in the wheat flour market. We believe that this partnership will provide us with a competitive advantage and allow us to offer our customers an even wider range of quality agricultural products and services."
In the stock market today, no further updates have come out from the company. However, shares of NISN stock managed to climb over 13% on the highest single-day volumes Nisun International shares have seen all year.
List Of Penny Stocks Under $1