What’s going on in the stock market today? You probably know that things have been very volatile if you’ve been watching the trading action over the last month. And no class of stocks enjoys volatility quite like penny stocks. There aren’t many places where you can make (or lose) so much money in such a short period.
Penny stocks can experience moves of several hundred percent within a matter of minutes at times. This is also one of the biggest reasons some traders avoid cheap stocks under $5 entirely; the ups and downs are too hot to handle.
But if you know some of the basics and have a general understanding of how to find top penny stocks to buy, then you’re on the right website. Today we look at a few that are making big moves in the stock market today after new headlines were released this week.
Penny Stocks To Watch
Genprex Inc. (NASDAQ:GNPX)
Genprex kicked off 2022 in a big way thanks to news, and that trend doesn’t seem to have subsided either. The company specializes in gene therapy targeting cancer and diabetes. Thanks to an FDA Fast Track Designation for its REQORSA platform, traders have placed this name on their penny stocks list in January. REQORSA is Genprex’s therapy that, combined with Merck’s Keytruda, aims to treat unresectable stage 3 or 4 non-small cell lung cancer. Since a Phase 1/2 trial is expected this quarter, the Designation was a sign of optimism for the therapeutic.
Fast-forward to this week, and once again, the news is at the center of attention. This time it was for another one of Genprex’s pipeline candidates, ONCOPREX. This is its nanoparticle delivery system for treating colon cancer. The company published new, preclinical data showing positive results for the platform.
In response, Mark S. Berger, MD, Chief Medical Officer at Genprex, said, “These positive preclinical data validate that the ONCOPREX Nanoparticle Delivery System can be used to deliver tumor suppressor genes other than TUSC2, which we are using in lung cancer studies with REQORSA, to address multiple types of cancer…The data also provide early support for FAS as a tumor suppressor gene in colorectal cancer.”
In light of this, GNPX stock is back on the watch list heading into the end of the week.
Save Foods Inc. (NASDAQ:SVFD)
Unlike Genprex, Save Foods started the year off a bit rockier. The last week has been very active for the penny stock, and two critical updates have added to the excitement. Save has placed its focus on eco-crop protection for reducing food waste, and the last few sessions have been full of speculation thanks to new updates from the company.
Save announced that it teamed up with Galilee Export to fight food waste earlier this week. Galilee is one of Israel’s largest exporters of fresh produce. The two will team up to implement Save Foods’ treatment process into the bell pepper supply chain. Galilee will treat 100% of its bell pepper supply along with avocados coming into the fold shortly after.
While no financial details were immediately discussed, this news was well-timed with new findings that Save has set its sights on the berry industry. Thursday, the company reported that it’s working on expanding its eco crop protection treatment, and recent trial results demonstrated a “significant reduction” in produce waste while also maintaining freshness.
Thanks to this news, SVFD stock turned heads and gained momentum in the stock market today. What’s more, with fewer than 10 million shares outstanding, Save has also been viewed as one of the low float penny stocks to watch right now.
Indonesia Energy Corporation Limited (NYSE:INDO)
The following two penny stocks are shining examples of the risks that traders face when trading low-priced stocks. Indonesia Energy has been very volatile since the start of the year, but no session more volatile than Thursday’s. The recent surge in energy prices may have helped bring industry momentum to INDO stock as oil and gas exploration stocks have risen this year. What’s more, following a $7 million raise, attention has now turned toward the company’s next steps in advancing its business.
This week, Indonesia Energy gave an update on its 2022 drilling plans. Something to note is that the company said it expects to begin drilling its next two wells within 30 days. There is also a plan to add a third new well starting before the end of next quarter. These wells are at its 63,0000 acre Kruh Block and based on current oil prices, Indonesia Energy expects to have cash-flow positive operations as a result.
As another lower float penny stock, the action in the stock market today clearly demonstrates how volatile things can get. If you’re unaware, a lower float means fewer shares are publicly available to trade. With higher demand and lower supply, you get the classic case for higher prices.
But, when momentum dies down, so can price. This seems to have been the case after the morning session for INDO stock. Shares rallied to highs of $9.21 from an open of just $3.10. As the lunch hour began, the stock had already pulled back below $5. Whether or not it can regain steam is yet to be seen. However, it’s important to keep trends like this in mind, especially if you’re looking for penny stocks to add to your watch list.
Gatos Silver Inc. (NYSE:GATO)
Gatos Silver comes onto this list in a much more dramatic fashion after making a big move (to the downside) this week. The silver exploration company hadn’t traded below $9 per share for over a year. However, within the last three days, a lot has changed. The penny stock dropped from a close of $10.19 on January 25th to lows below $2.70 on the 27th.
Why is GATO stock down? The company gave a mining update and issued 2022 performance guidance in a press release after the close on the 25th. This revealed some concerning information. One of the biggest concerns was errors in the technical report relating to the production performance of its Los Gatos Project in Chihuahua, Mexico.
In addition to the errors, the company also said that there were indications of an overestimation in the existing resource model. Gatos now expects to undertake a financial review process thanks to this information. If the overestimate is found to be accurate, it could continue a default event under the current credit facility in place. According to Gatos, that facility has $13 million outstanding as of the end of 2021.
Now that you see the catalyst, the biggest question is what happens next. As far as GATO stock is concerned, analysts are making significant adjustments. CIBC downgraded the company to Neutral and has a $7 target. RBC cut its rating to Underperform-Speculative Risk and dumped its $17 target in exchange for one at $4. Thursday, Cannacord Genuity downgraded Gatos to a Hold and announced a $4 target as well.
Are Penny Stocks Worth The Risk?
This begs the question: Are penny stocks worth it. That is something only you can decide, and it all starts with how you plan on making money with stocks. If you can handle higher risk and understand how to manage it, penny stocks can be a great way to profit from volatile markets.
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