Jun 14, 2022 (Penny Stocks via COMTEX) -- Bulls are trying to battle back in the stock market today. While broader markets continue licking their wounds, those trading penny stocks are having just another day at the office. Why's that? It doesn't seem to matter if there's a bear market, bull market, or sideways market; plenty of cheap stocks are usually making new highs. Speculation plays such a leading role. As a result, the chances are that even during a crash, there are at least a few penny stocks to buy that just hit double or triple-digit gains for the day.
News, filings, and corporate presentations can act as clear catalysts for significant breakouts. But another niche in the stock market today has become a clear driver of specific stocks. That driver starts with social media-fueled chatter and can snowball into a speculation-rich market environment for certain stocks.
We saw similar things happen with GameStop ( NYSE: GME ) and AMC Entertainment ( NYSE: AMC ). These are some recent examples of explosive reactions in the market that start from social media speculation. They aren't the only ones either.
Are Penny Stocks Worth It?
Regarding "Reddit penny stocks," there are a few things to account for if this isn't something you're used to. First, since speculation is a momentum driver, things can change quickly. So it's essential to have a plan and a clear strategy in place.
Extensive breakouts are great, but due to the higher volatility of these types of stocks, the breakdowns can come just as swiftly and to a much larger magnitude. Regardless, it's worth knowing what's happening in the stock market today. In this article, we look closer at a few Reddit penny stocks to watch heading into the second half of the week.
1. Boxed In. /zigman2/quotes/224555602/composite BOXD +16.11%
Bulk grocery company Boxed crashed hard over the last few weeks. A stock that normally traded over $8 just hit fresh lows of $1.37 on June 14th. Mixed earnings, a deal with FedEx and, ultimately, a potential sale of shares by its holder Jones Group Ventures LLCput pressure on BOXD stock.
This month could offer a bit of reprieve, however, as the company embarks on a series of industry and investor conferences kicking off on Wednesday. Boxed attends Oppenheimer's Growth, Jefferies Consumer, & Wells Fargo's Digital conferences.
One of the main points of focus in addition to the upcoming conference circuit is what insiders are doing right now with BOXD stock. In a Form 4 filing on June 14th, company director Andrew Pearson reported the purchase of 150,000 shares at average prices ranging from $1.50 to $2.40. The apparent vote of confidence from Pearson resonated with traders as BOXD shares ticked higher in aftermarket trading on June 14.
2. Microvast Holdings /zigman2/quotes/209288226/composite MVST -1.37%
Like Boxed, Microvast Holdings plummeted to fresh lows on Tuesday. Shares had been in a freefall since June 6th after a Prospectus was filed showing plans to issue up to 27.6 million shares of stock. Fearing potential dilution, it appears that the market took this as a threat and the June sell-off ensued. So why would Microvast Holdings be on a list of penny stocks to watch?
The lithium-ion battery solutions provider came into focus for insider activity. Director and Chief Financial Officer Craig Webster scooped up 300,000 shares of MVST stock between June 10th and 13th. His purchases were between $2.57 and $2.91. Even with the penny stock down more than 50% since the start of the year, Webster threw more than $730,000 into it.
This purchase came roughly 1 month after Microvast reported its Q1 earnings. In a company update, Webster explained how results exceeded expectations with 145.5% revenue growth during the quarter. "Looking forward, we are focused on sales growth throughout the year, growing our multi-year order book and executing on our capacity expansion plans, which are well underway and fully funded from our cash on hand."