Small- and micro-cap companies take the cake when it comes to cheap stocks to buy. They’re well-known for their risk/reward profile, but they’re also known for their unique trends. Things like “low float stocks” or “short squeeze stocks” are more common among these companies.
They also go through periods of boisterous popularity and extreme lulls in interest. It only takes one spark to ignite the broader small-cap market, and that may be exactly what has happened in the stock market this week, thanks to Digital World Acquisition Corp. (NASDAQ: DWAC). It has been a polarizing name among retail traders, and right now, the tide is pushing in a bullish direction.
Why Are Traders Watching DWAC Stock?
Digital World Acquisition Corp. is the new home of former President Trump’s social media platform, Truth. Through Tump Media and Technology Group, the company plans on launching the platform on February 21dst. Short-form posts will be the main attraction in a similar setup to Twitter (NASDAQ: TWTR). Leading up to this launch, speculation has taken hold even amid the market’s recent pullback. This has helped boost small-cap stocks, which seems to have come to a head today.
Hot Penny Stocks To Watch Today
Phunware Inc. (NASDAQ: PHUN)
When it comes to Trump-sensitive stocks, Phunware is probably one of the go-to names for traders. That’s thanks to its connection to the former President. Among other things, during the 2020 presidential campaign, Phunware announced a partnership with American Made Media Consultants. The plan was to develop, launch, and manage the Trump-Pence 2020 Reelection Campaign’s mobile application portfolio.
The latest focus, however, has related more to cryptocurrencies. Whether it’s acquiring bitcoin as it did last quarter or launching cloud solutions for digital optimization, Phunware has placed its focus on the emerging trend in digital assets. The company recently launched four personal computers designed for high-end gaming, trading, and cryptocurrency mining in conjunction with CES Las Vegas.
The long and short of it today is PHUN stock seems to have gained attention thanks to its connection to the Trump name.
Splash Beverage Group Inc. (NYSE: SBEV)
Another one of the hot penny stocks to watch recently is Splash Beverage. Last week, we discussed the company after big news sparked a significant move in SBEV stock. In particular, Splash reported authorization to sell its TapouT beverage in Florida with 47 Walmart locations. Since then, the penny stock has run rampant with Wednesday’s action giving no break in the action.
Why is SBEV moving today? Once again, Splash announced another grocery store victory. The company’s Pulpoloco brand received authorization to sell in 187 Ralph’s Grocery stores in California. Robert Nistico, Splash Beverage Group’s Chairman and CEO, explained, “After a successful test run, Ralph’s authorized all three SKU’s of Pulpoloco white, rosé, and classic red. Ralph’s already carries Splash’s Copa di Vino varietals, which were added in the early summer of 2021, and now all 3 Pulpoloco varietals. We believe this is a strong affirmation that consumers are catching on to the unique product lines that Splash distributes and bodes well for future expansion.”
With this, SBEV stock was on the move early, making even higher highs in premarket trade.
Vivos Therapeutics Inc. (NASDAQ: VVOS)
Shares of Vivo Therapeutics have been sliding for months. This might’ve come as a shock to those who followed the company’s developments last August. Vivos was granted FDA 510(k) clearance for its modified mandibular Repositioning Nighttime Appliance sleep apnea device. Even with new collaboration agreements and even eligibility for Medicare reimbursement, VVOS stock hasn’t been able to recover.
Heading into the second half of this week, however, things are slightly different. Vivos announced “significant increases” across several key metrics for its SleepImage Home Sleep Apnea Tests (HST). Kirk Huntsman, Chairman, and CEO of Vivos, explained, “Converting positive OSA tests using our HSTs into Vivos System case starts is a major focus of our Practice Advisors and support personnel at Vivos as we roll into 2022. We also expect that our new pricing arrangement with SleepImage will yield positive financial results for Vivos.”
VVOS stock has surged back toward the $2 during premarket trading on Wednesday, thanks to this news.
Gamida Cell Ltd. (NASDAQ: GMDA)
Another biotech penny stock in a similar situation as Vivos is Gamida. After months of declines, GMDA stock has bounced strongly on Wednesday morning. The cancer treatment company announced a significant development related to recent meetings with the FDA.
Gamida announced that after a positive Type B meeting, there are plans for beginning a rolling Biologics License Application for its omidubicel platform. This is the company’s treatment candidate for patients with blood cancers needing stem cell transplants. CEO Julian Adams, Ph.D., said, “Initiating the BLA submission will move us one step closer toward bringing potentially curative therapies to patients. We plan to complete the full BLA submission in the first half of this year, which will be an important achievement for Gamida Cell and the bone marrow transplant community.”
With this backdrop, the market has taken this as a big positive for Gamida on Wednesday. Shares were up over $2.40 during premarket trade.
Penny Stocks To Watch Today
These are a handful of hot penny stocks today. Following a “Trump Bump,” some retail traders are looking at small-caps for more opportunities to make money while broader markets sort out recent bouts of uncertainty.
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