Looking for penny stocks to buy? I’m sure you’re not alone. These low-priced stocks are the main attraction for thousands of investors every day. The broad appeal of making money with penny stocks quickly has gained acclaim from high-risk investors across the globe. Therein lies the sticking point though, doesn’t it? Taking on the responsibility of something that is so volatile it creates massive gains one moment and huge losses the next. That is if you have trouble managing your trades.
Over the weekend, I took some time to flip though social media and get a feel for market sentiment this week. Along the way, I stumbled on a few discussions from traders sharing their war stories about taking huge losses. I scratched my head for a minute because what they were explaining was trading based entirely on emotions. They neglected the most of the fundamentals and relied mainly on corporate headlines and what other traders were saying.
I, for one, will always make a point to lift up a few rocks here and there. If the goal is taking a high-risk position, you probably want to have a grasp on where that risk comes from. The easiest way to “level up” your DD is to do simple disclosure research. Just because you can buy 1 million shares of a penny stock for a few thousand dollars, it doesn’t make it a good opportunity.
How much debt does the company have? Are there upcoming earnings or phase trial results? Did insiders just report selling instead of buying on Form 4? You get the point. So keeping this in mind, here’s a list of trending penny stocks that can be bought for under $4. But are they worth the risk? You decide.Penny Stocks To Buy For Under $4: Can-Fite Biopharma Ltd
Ever since hitting 52-week lows of $1.08 in February, Can-Fite Biopharma Ltd. (CANF Stock Report) has been on a slow, yet steady climb. There’ve been a few spikes here and there, but overall, CANF stock has maintained this steady uptrend for months. While it might not be as exciting as those parabolic “KODK moves,” the penny stock is up over 100% to date.
Since early March, CANF has been on our list of penny stocks to watch this year. The company had just expanded its collaboration with Univo Pharmaceuticals for testing the effects of CBD against liver cancer. Fast-forward to this week, and Can-Fite has come out with more clinical news. On Monday, the company announced that the FDA cleared the company to begin its Phase 2 study of Can-Fite’s Piclidenoson in the treatment of COVID-19. The trial will last 28 days and include 40 patients.
Piclidenoson has been dosed in over 1,400 patients in prior trials as well as two ongoing Phase III studies for the treatment of rheumatoid arthritis and psoriasis. Can-Fite CEO Dr. Pnina Fishman commented, “Having received this go-ahead from the FDA, and given the urgency of finding safe and effective treatments for COVID-19, we are eager to enroll and start treating patients. We believe Piclidenoson’s unique combination of anti-inflammatory effect and very favorable safety profile make it an ideal candidate to treat the complications of COVID-19.”Penny Stocks To Buy For under $4: Genworth Holdings Inc.
Shares of Genworth Holdings Inc. (GNW Stock Report) shot up during Monday’s premarket session. Last week, the company’s stock price tumbled into Friday’s closing session in one of the largest 1-day drops GNW stock has seen in a while. There wasn’t any news or filings, per se. However, the company was just coming off of closing its $750 million offering of 6.5% Senior Notes.
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One of the underlying points of focus with GNW stock has been a proposed merger deal. Back in June, the company and China Oceanwide Holdings Group Co., Ltd.extended their merger deadline to no later than September 30, 2020. The extension gave Oceanwide additional time to finalize financing for the transaction. It was proposed at a purchase price of $5.43 per share, which may include debt funding of up to $1.8 billion through Hony Capital and/or other third parties. Oceanwide said that the financing was delayed due to COVID-19 and uncertain macroeconomic conditions.
In any case, the market is buzzing again this week in light of merger rumors. So far, there hasn’t been much news from Genworth, directly. But the insurance company’s shares have begun trading higher during Monday’s premarket hours. If GNW is on your list of penny stocks to watch, it should be noted that GNW stock is up but not based on any corporate update thus far. In the event that they are or aren’t, the market could react in a volatile manner. We’ll have to see how things unfold and if this information can be confirmed as official.Penny Stocks To Buy For Under $4: Canaan Inc.
Canaan Inc. (CAN Stock Report) has been trading relatively flat for most of the third quarter. There was a period of a few weeks in July where CAN stock managed to break above $2.50. But after its announcement of the departure of 2 directors, it went right back to business as usual. One thing that was a sticking point for traders over the last month has been the company’s upcoming earnings results.
Canaan is a chip-maker and is currently focused on things like AI chips, AI algorithms, AI architectures, system on a chip integration and chip integration. While this year has been mixed for some of the top chip stocks on Wall Street, Canaan seems to have performed admirably during the second quarter. The company reported Q2 results on Monday and the market responded favorably. Shares jumped to highs of more than $2.30 before the bell.
Revenue came in at $25.2 million and Canaan reported a loss per share of 10 cents. Gross profit increased by 302.5% year over year and 1,711.5% quarter over quarter to RMB43.3 million (US$6.1 million) from RMB10.8 million in the same period of 2019 and RMB2.4 million in the first quarter of 2020. The gross margin also grew to 24.3% from 4.5% in the same period of 2019 and 3.5% in the first quarter of 2020.Penny Stocks To Buy For Under $4: UTStarcom
UTStarcom (UTSI Stock Report) is a global telecommunications infrastructure provider. Shares jumped during premarket hours on Monday. This came after UTStarcom introduced a Converged Packet Transport Platform, SkyFlux. The says that the platform is ready to meet the complex set of requirements from 5G mobile networks and other applications.
Dr. Zhaochen Huang, UTStarcom’s Acting Chief Executive Officer, commented, “We are excited to launch our next-generation communications platform, SkyFlux Converged Packet Transport. As network infrastructure continues to transition to 5G, we believe the product is well-positioned to meet the needs of key network operators globally. Our new SkyFlux Converged Packet Transport platform enables carriers to effectively manage the network resources and meet complex requirements of 5G mobile systems as well as of various other traditional and emerging applications by ensuring high performance, flexibility and efficiency.”
If UTStarcom doesn’t sound familiar, don’t feel bad. This year has been a rough one of the company and its stock. Shares have been in a perpetual decline since the start of 2020. There was a bit of reprieve in June but that was a pause before continuing lower. Will this latest new mark a turnaround for UTSI stock or just another break in the downward move?Penny Stocks To Buy For Under $4: Boxlight Corporation
Boxlight Corporation (BOXL Stock Report) has been on the list of penny stocks to watch for weeks. On July 12th we started to follow this company as attention focused on eLearning. This year Boxlight released its MimioConnect. This is the company’s cloud-based teaching and learning platform that helps teachers streamline lesson delivery in remote and blended classrooms. However, the last few weeks of trading haven’t been the bright spot for BOXL stock. After reaching highs of $4.65 in July, the overall trend has been bearish. Friday saw the penny stock hit a low of $1.43.
On the final day of August, however, Boxlight is in the spotlight. This follows some news released by the company before the opening bell. Boxlight announced that Jeffco Public Schools in Denver, Colorado has selected the company as a provider of STEM solutions with partner DHE Computer Systems. Jeffco Public Schools will acquire STEM solutions including Robo3D Printers, MyStemKits K-12 curriculum, and 3D printable manipulatives. Jeffco Public Schools has over 155 schools and a student population of nearly 84,000.
“The award for JeffCo Public Schools sets the stage for our partnership with Boxlight’s MimioSTEM division to bring their various STEM technology solutions to more districts around the country. We look forward to providing an incredible solution in hardware, software, and training,” said Dan Hammack , CEO, DHE Computer Systems. Will this news mark a turning point for BOXL stock?