DailyBubble News
DailyBubble News

Best Penny Stocks To Buy? 3 To Watch Under $1 Right Now

Penny stocks under $1 are a popular topic of discussion. That’s because they are some of the cheapest stocks in the market and can offer substantial potential for significant returns. Of course, this doesn’t mean that all penny stocks are destined for record-breaking moves. But if you know how to trade and understand how volatility can play a role, then trading stocks under $1 might be for you.

Are Penny Stocks Risky?

This brings us to the question, “are penny stocks risky?” Without a doubt, penny stocks (let alone those under $1) are very risky. But in many cases, that risk can be worth the potential reward. It all comes down to managing this risk. Understanding when to hold and when to cut your losses is important.

If you’re new to trading, in general, or new to penny stocks, it’s best to know the basics first. In the article “Biggest Beginner Penny Stocks Trading Mistakes? 3 to Know,” we outlined several pitfalls that new traders might encounter. Things like not using technical indicators, ignoring stock market trends, and not having a trading strategy, are surefire ways to set yourself up for failure. On the other hand, if you are an experienced trader, then you already understand the pitfalls that come with the territory.

penny stocks to watch under $3 right now

Penny Stocks To Watch

Faraday Future Intelligence (NASDAQ: FFIE)

We discussed Faraday Future earlier this week as attention on EV stock picked up. The electric mobility company has undergone a management transition as it moves forward with a hopeful launch of its flagship FF 91 Futurist product. The company reached a deal with one of its significant shareholders, FF Top, which appeared to have been one of the hurdles to moving things forward.

“The resolution of governance and related issues with our largest shareholder is a major accomplishment and an important step forward for Faraday Future and all our stakeholders. We can now focus our effort on building the FF 91. We appreciate all parties’ efforts in reaching this agreement,” said Dr. Carsten Breitfeld, Global CEO of Faraday Future.

[Read More] Biggest Beginner Penny Stocks Trading Mistakes? 3 to Know

Another catalyst playing a role could also be short interest in FFIE stock. According to data from Fintel and TDAmeritrade, the short float percentage in the stock sits around 23%.

Hycroft Mining Holding Corp. (NASDAQ: HYMC)

Mining stocks are in focus today. That’s thanks, in part, to industry news.  Agnico Eagle Mines Ltd (NYSE: AEM) and Pan American Silver Corp (NASDAQ: PAAS) gave an unsolicited acquisition offer to acquire Yamana Gold (NYSE: AUY). The kicker is that total consideration consists of $1.0 billion in cash and the issuance of roughly 153.5 million Pan American shares and around 36.1 million Agnico shares.

Why does this matter? Sympathy sentiment can play a significant role in the momentum of penny stocks. Hycroft Mining is another small mining company that has been at the center of speculation at the end of this week. Along with the gold miners, HYMC stock caught a gust of momentum thanks to this news.

In a business update this month, Hycroft outlined its upcoming plans for its Northern Nevada claims. Diane Garrett, President, and CEO, discussed these in more detail. In a November PR, she said, “The initial assay results reported this quarter from our exploration drilling program delivered significantly higher grades as compared to our current modeled resource grade, and, in addition, we are demonstrating improved continuity in the targeted higher-grade areas.  As we complete residual leaching, we recovered more gold and silver ounces than projected to be recovered from the leach pads and ended the quarter with a very healthy $153 million of unrestricted cash and cash equivalents.  During the quarter we also added talent in the organization to focus on Hycroft’s largest exploration program in nearly a decade as we focus on higher-grade opportunities that are important for Hycroft’s next phase of  operations.”

With this update and mounting M&A speculation buzzing around mining stocks, HYMC is one of the names traders are watching in the stock market today.

OneConnect Financial Technology (NYSE: OCFT)

Fintech company OneConnect saw its shares explode higher on Friday. The company specializes in technology applications and business services for financial institutions. Its solutions include digital retail banking, digital commercial banking, and digital insurance.

Its OneCosmo platform has been used by more than 50 million new accounts, registering more than 2 billion transactions with a total transaction value exceeding US$109 billion. OneCosmo is the result of the joint product offerings of a partnership between…

Read More: Best Penny Stocks To Buy? 3 To Watch Under $1 Right Now

Comments are closed.