Where there’s momentum, there is potential, and when it comes to penny stocks, this is the name of the game. Whether you’re looking for stocks under $5 or literal penny stocks trading for 99 cents or less, there’s plenty of companies to watch. Today, we’ll look at 5 of these cheap stocks, what’s gone on in the market recently, and current trends traders are watching. One of the main reasons for discussing penny stocks under $1 is based on the action seen in the stock market today.
BIMI Stock & METX Show Traders The Potential Of Literal Penny Stocks
These stocks are well-known for their high-risk profiles. There are few places that you’ll find an asset that can return or take away 50% or more in a single day based on a move of mere pennies. But, here we are talking about precisely that. Stocks like Bimi International Medical Inc. (NASDAQ:BIMI) and Meten Holding Group (NASDAQ:METX) both showed traders what literal penny stocks could do with a bit of “momo” on Tuesday.
In BIMI stock’s case, there weren’t any headlines or filings to point to, yet droves of retail traders flocked to the penny stock, most likely due to a lower float and higher volatility profile. Soon after, shares surged from just $0.66 to highs of over $1.80 by early afternoon.
In Meten’s case, the potential catalyst was a bit different. The company had news and announced that AGM Group Holdings, a fintech company, partnered with Meten. The duo will research and develop support systems for blockchain applications, including establishing a supply chain for crypto mining. The agreement also includes an order of 1,500 Bitcoin mining machines from Meten. METX continued its October move to new highs of $0.69 during the morning session.
5 Penny Stocks To Watch Under $1
1. Alpha Esports Tech Inc. (OTC:APETF) (CSE:ALPA)
Alpha Esports has been on the list of penny stocks under $1 recently. The esports company has focused entirely on business expansion since going public earlier in the year. This process has entailed everything from signing partnerships with organizations to expand its userbase and drive traffic to its GamerzArena gaming platform to recently acquiring Heavy Chips Casino and Sports Betting to take the company to an entirely new level of “online gaming” through sports betting.
Specifically, when it comes to this latest acquisition, management explained that there are numerous opportunities to expand its userbase and its global reach. Interim CEO Matthew Schmidt said, “We will now be active in the adult gaming space, a space we feel has tremendous potential to help the Company increase shareholder value. Ultimately, we believe Heavy Chips certainly provides value in a number of ways, including revenue, an expanded global userbase, and further operational expansion into Europe.”
This month, the company brought on a new President, Adam Morrison, who brings experience in esports and the broader video game industry. This adds to the already strong leadership team with track records at companies including Activision (NASDAQ:ATVI), Atari (OTC:PONGF), Reel One Entertainment, The Golden State Warriors, and others.
Since the end of September, APETF stock has managed to climb from around $0.19 to highs this week of $0.42 so far.
2. Good Gaming Inc. (OTC:GMER)
Another one of the OTC penny stocks on this list is Good Gaming. It’s also building itself in the niche of esports. However, instead of expanding a userbase focused on gaming and tournaments alone, Good Gaming has focused on the new trend in non-fungible tokens – NFTs. We discussed the company earlier this month and explained its development on Good Gaming’s MicroBuddies game.
This game includes blockchain technology, cryptocurrency, and its NFT platform. According to the company, MicroBuddies is “designed for players to collect ‘microbes’ that can self-replicate and passively produce their own cryptocurrency ‘GOO.’ The players can then trade this GOO on third-party crypto exchanges.”
This week the company updated the market on the progress of this MicroBuddies platform. Good Gaming expects the official launch to happen before the end of the year and is now implementing upgrades in preparation for the next round of beta testing.
Since May, GMER stock has been on the move. Shares have managed to jump from under 10 cents to highs of $0.3528 this week. What’s more, earlier this year, GMER stock tested highs of $0.75 during the height of the NFT craze this summer.
3. Farmmi Inc. (NASDAQ:FAMI)
Shares of Farmmi Inc. continue churning this week. In somewhat of a slow grind, FAMI stock has steadily climbed from $0.28 on Friday to highs of $0.3766 this week so far. Despite this only being about a 10-cent move, it’s worth about 35% to the upside.
Farmmi’s focus is mainly on selling agriculture products and selling mushrooms & fungus. However, Farmmi does have a few other subsidiaries involved in areas of biotechnology and wellness. This is what has helped boost interest in shares recently.
For instance, last week, Farmmi announced that its Healthcare Subsidiary received certifications for food safety. According to statements made in its October 18th press release, this allows the company to attract more international buyers. Furthermore, Farmmi’s Zhejiang Farmmi Biotech unit secured an order late last week for Shiitake mushrooms. “When you combine that with the underlying catalysts in our business, including more people consuming mushrooms as part of a healthy and nutritional diet, there is clear reason for optimism in our growth prospects,” stated CEO Yefang Zhang in response to the update.
These updates have culminated in a new uptrend in FAMI stock that has lasted for three consecutive days so far.
4. Gran Tierra Energy Inc. (NYSE:GTE)
October has been a busy month for energy stocks. Gran Tierra is a shining example of that. Even though it’s still one of the penny stocks under $1, it’s up significantly since the tail end of summer. Exactly how significant was this move? GTE stock was trading below $0.50 on August 20, and this week it has reached highs of $0.9588 so far. Even though that’s less than a 50-cent move, it equates to a jump of more than 90%.
The oil and gas exploration company is developing a portfolio of assets in Columbia and Ecuador. Thanks to industry momentum and more robust earnings growth, traders have continued following Gran Tierra’s progress.
Recent operational highlights include a 14% jump in average total production for the second quarter on a year-over-year basis. The company also reaffirmed its full-year production guidance of 27.5k to 28.5k barrels of oil per day with a capital program range of $130 million to $150 million.
Now, the market waits for the next round of updates. If GTE stock is on your watch list, make sure to jot down November 1 as this is the date the company announced it would release Q3 results.
5. ECMOHO Limited (NASDAQ:MOHO)
Shares of MOHO stock took retail traders by surprise last week. A surge in volume saw the penny stock jump from just $0.55 to highs this week of nearly $0.90. What was behind the move? The big news with Bausch + Lomb was announced last week. ECMOHO specializes in health and wellness solutions in China. Along with Bauch + Lomb, the companies will leverage ECMOHO’splacement in China’s eCommerce platform, Pinduoduo, to provide customers with eye care products and family health solutions.
In response, CEO Zoe Wang explained, “International and domestic brands such as Puritan’s Pride, Centrum, Caltrate, Harbin Pharmaceuticals, Johnson & Johnson, Sperry, Haier Biomedical, Abbott, Omron, and now Bausch + Lomb, have established in-depth strategic partnerships with ECMOHO, where our Company provides invaluable professional health content services, health key opinion leaders (KOL) and key opinion consumers (KOC) professional matrices, as well as, through continuous exploration, in-depth operation of new media and new traffic, which together helps to empower our partner brands’ business growth in China.”
This catalyst and resulting sentiment continue resonating this week.
Trending Penny Stocks To Watch Right Now
Whether we’re talking about penny stocks under $1 or higher-priced stocks, the goals are the same when it comes to trading. Find opportunities, take action and capitalize on market momentum. The exciting part about penny stocks is that not only are you watching for opportunities to take advantage of short-term volatility, but some traders also find new ideas for early investments as well.
Since many of these companies are in their early stages of development, the market can get a glimpse of fledgling companies as they first begin to grow. Now, whether that grown produces the next Amazon or Exxon mobile is up for debate. Regardless, that is another sentimental factor at play, especially when we’re talking about cheap stocks.
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