Penny stocks are shares of companies that trade for less than $5. While some people may have their own definitions, this is generally considered the standard. Whatever the case, the goals are the same: make money and repeat the process.
One of the most exciting things about finding cheap stocks to buy is leveraging their inherent volatility to turn small sums into significant gains. For example, a 50-cent move in a stock trading for $5 is a quick 10%. Today, however, we look at some of the cheapest penny stocks. These are ones that a 50-cent move could equate to a jump (or drop) of 50% or more.
Now that you know what penny stocks are (according to the definition) trading them is the next step. We’ll provide a few resources at the end of the article for anyone new to trading or new to low-priced stocks. Let’s look at a handful of some of the cheapest stocks to watch right now, and you can decide if the risk is worth the potential reward.
Penny Stocks To Watch
How To Find The Best Penny Stocks To Buy
Today, price is the focus. But that isn’t the only way to find penny stocks to buy. Late last week, we saw a surge of interest in several biotech stocks that had companies developing treatments for monkeypox. Whether or not this topic captivates headlines in the coming weeks is secondary to the speculation that it has sparked.
We’re seeing topics like “monkeypox stocks to watch” as a trend. The critical thing to remember is that whatever the catalyst might be, your trading strategy and game plan are crucial to your success. Without knowing how, why, or when you’re going to buy or sell, it can become challenging to make money trading. Again, we’ll discuss some strategies at the end of the article. Let’s take a closer look at a few stocks under $1 to watch this week.
1. Catalyst Biosciences Inc. (NASDAQ: CBIO)
Shares of Catalyst Biosciences jumped early on Monday morning. This was thanks to news that came out during premarket hours. The biopharma company announced that it sold its portfolio of protease medicines, including its CB 2782-PEG platform, to Vertex Pharmaceuticals (NASDAQ: VRTX). The news of a sale is great, but the price tag has traders reacting. Catalyst’s deal was for $60 million in cash.
“We have been exploring strategic alternatives to monetize our assets and maximize value for our shareholders. This sale is part of the ongoing strategic process that we announced in February to explore alternatives and create value for shareholders. We have significantly reduced our cash burn and continue to work with our advisors to evaluate additional strategic alternatives for Catalyst.”
Nassim Usman, Ph.D., Chief Executive Officer of Catalyst Biosciences
Armed with fresh cash and continuing efforts to seek strategic alternatives, traders have rallied behind CBIO stock early in the week.
2. Jaguar Health Inc. (NASDAQ: JAGX)
Another one of the biotech penny stocks to watch…