Jan 18, 2021 (Penny Stocks via COMTEX) -- Should You Buy Cheap Stocks Under $1 Right Now?
When it comes to making money in the stock market, there are plenty of ways to go about it. However, one of the most popular ways recently is by trading penny stocks. Whether you love them, hate them, or have no idea what they are, these cheap stocks have moved to the top of the list for traders in January. But what's so great about these anyway? To answer this question, we first need to define what a penny stock actually is.
What Are Penny Stocks?
Penny stocks are shares of companies that trade for less than $5. While popular opinion suggests they should be trading for pennies, the Securities & Exchange Commission has done the leg work in setting a formal definition. With this in mind, we can move on to more important things like what are the top penny stocks to buy right now?
This is where you begin your research. Sifting through things like news, corporate filings, and even looking at analyst ratings can help you find some good names to add to your list. On the flip side, taking time to research can also help you find names to avoid. This is sometimes even more valuable than finding stocks to buy. This brings me to my next point: are penny stocks worth it?
Are Penny Stocks Worth It?
For new traders, understanding risk is a big deal. Becoming consistently profitable involves weighing risk and reward. Since these companies tend to be more speculative in nature, traders can be more reactive at times. This creates higher levels of volatility. What's more, is that the lower the price, the higher the volatility as well. Case in point, we're going to discuss some penny stocks that can be bought for under $1.
Even a small move of just 10 cents can equate to a change of 10% or more. So in determining if penny stocks are worth it or not, that is something you'll have to answer based on your own trading style. Can you handle big price swings? Are you able to trade based on speculation? Will you be able to place trades quickly? These are just some of the things to ask yourself in determining if these types of stocks are right for you.
Now, if you've already concluded that they are, the next step is making your watch list. Keeping this in mind, here are stocks that can be bought for under $1 right now. Are they worth the risk?
Penny Stocks To Buy Under $1
Onconova Therapeutics Inc. ( NASDAQ: ONTX )
Oragenics Inc. ( NYSE: OGEN )
Exela Technologies Inc. ( NASDAQ: XELA )
Synthetic Biologics Inc. ( NYSE: SYN )
Onconova had a very active day on Friday. Shares of the company saw the third highest trading volume day of 2021, with over 69 million traded. The penny stock also extended its recent multi-week uptrend that began late last year, reaching highs of $0.8684 before the closing bell. While ONTX stock did pull back during aftermarket trading, the momentum surge has remained a focus.
This week Steven Fruchtman, MD, President & CEO of Onconova, presents a company overview at NobleCon17. One of the recent wins that have been circulated by traders coincidentally wasn't reported on by the company. So this may actually be one of the sources of speculation driving this latest uptrend. Earlier this month, registration with the European Patent Office Registration showed a patent was granted for 'TREATMENT OF HEMATOLOGICAL CANCER REFRACTORY TO AN ANTI-CANCER AGENT.'
Aside from this, Onconova is setting up to begin a Phase 1 study under the company's Investigational New Drug application for ON 123300, the company's cancer drug. In a December press release, Onconova had received permission from the FDA and set to dose the first patient during the first half of this year.
One of the penny stocks that we have discussed for a few weeks now is Oragenics Inc. Since climbing over 50% since the start of 2021, OGEN may be worth taking a look at. The company is working on a wide range of treatments with a focus on infectious diseases.