If you’re searching for the cheapest penny stocks to buy right now, start with $1. Seriously, this is the threshold you begin seeing actual stocks trading for pennies. Even though the standard definition of a penny stock sets the high end at $5, there’s a lot to be said for actual “penny” stocks. Ahead of the new year, there’s no shortage of companies in this “prestigious” basket. Rest assured, however, that low-priced stocks like these aren’t for the timid.
Penny Stocks TL;DR 30-Second Summary
Penny stocks are high risk and high rewardThe definition of penny stocks generally refers to $5 as a threshold. But many retail traders seek out stocks literally trading for pennies.These cheaper penny stocks also don’t require much price appreciation or depreciation to result in significant percentage changes.Earlier this week we looked closer at 3 penny stocks under $1 to watch this week. Today we look at 4 more to add to that list.
Earlier this week, we discussed 3 penny stocks under $1. Each saw volatile swings taking them 20% or more in a single day. To see information on those companies, check out “3 Top Penny Stocks To Buy For Under $1 This Week.” As discussed in that article, just because traders can purchase the following stocks for under $1, it won’t negate the higher risk. So keep that in mind if any of these are on your list of penny stocks right now.
Penny Stocks Under $1 To Watch This Week
Yunji Inc. (NASDAQ: YJ)
A common thread will all penny stocks on this list besides the price is the trend. Most have faced some longer stints of selling pressure that took them to the levels they’re at right now. However, recent market momentum seems to have sparked a turnaround (for now). How long that rebound lasts is yet to be seen.
Yunji is one of these companies. Its share price recently hit new 52-week lows this week. The social eCommerce platform is coming off of mixed earnings. Yunji recorded a Q3 profit; however, revenues declined due to a change-up in its model. In particular, the company’s free access in 2020 was discontinued in 2021. According to the company, revenues from its membership program in Q3 came from paying members joining the new membership program launched during Q2 of this year. The company remains optimistic in its supply chain matrix for providing members value.
In addition to this, Chinese stocks are gaining attention, in general. It comes after UBS Global Wealth Management’s Kelvin Tay said in an interview, “I think China is cheap. If you look at the performance of China this year, on a relative basis, it has actually underperformed by about 40% against both the European indices as well as the American indices…From a valuations perspective, from a positioning perspective, China certainly looks very, very attractive.”
With that in mind, YJ stock has experienced a strong rebound in the stock market today.
CooTek Inc. (NYSE: CTK)
Mobile interest company, CooTek is another China-based penny stock to watch under $1 today. Shares spiked higher following those recent comments from UBS this week. The move in CTK stock also comes on the heels of news that a company CooTek invested in, Smillage, reached a significant milestone this month. The game studio’s Hotties Up game reached the top three in the US iOS game ranking.
Hotties Up is a scenario-based game with dress-up parkour. It targets the Gen Z female demographic and allows players to choose costumes and unlock new dialogue depending on the level that is passed.
This isn’t the first milestone for CooTek’s gaming focus, either. Earlier in December, the company’s Fengdu Novel app reached a collaboration with Tencent Video’s Mars Project. Tencent’s project is designed to support micro drama TV adaptation. With these latest initiatives and a renewed interest in Chinese penny stocks, CTK could be another one of the companies to watch this week.
Color Star Technology (NASDAQ: CSCW)
Sticking with this trend in China-based companies, Color Star Technology joins the list of penny stocks under $1 to watch this week. Shares of CSCW stock bounced back on Wednesday, as did many other China tech names. The company has been fighting for a position in the market ever since a significant sell-off in September took shares below 50 cents. The bulk of the bearish trend came after Color Star announced a multi-million dollar raise at a steep discount to market.
Regardless of the financing, the company added working capital when Color Star began expanding its reach in new entertainment initiatives. These include acquiring Chujing Esports. The companies will collaborate on developing a “global esports pan-entertainment sector” leveraging other industry assets. Shortly after, Color Star also announced the planned launch of sports-related non-fungible token (NFT) products to gain exposure to the budding metaverse industry.
In line with this, Color Star has continued building out its metaverse platform. The launch of its cooperation with the NBA’s Philadelphia 76ers and Spanish soccer player Casillas Fernández further enhanced the potential of the company’s entertainment metaverse platform.
GEE Group Inc. (NYSE: JOB)
Professional staffing services company GEE Group has steadily climbed over the last few weeks. Following a dip to 52-week lows of $0.39, JOB stock has managed to bounce over 45%. Helping with this rebound were a few recent catalysts. One of the biggest was having full forgiveness of a $19.9 million PPP loan that helped get the company through the pandemic.
Strong earnings have become the latest milestone to follow the loan forgiveness. GEE Group reported 34% year-over-year revenue growth to $41.5 million for its fourth quarter. Meanwhile, gross profit jumped 45% during the same period, and overall gross margins rose roughly 2.7% from last year’s quarter.
“We were able to add significant internal recruiting resources, both working in the offices and remotely, to meet the rising demand for labor. In fiscal 2021, we significantly increased the number of contract workers on assignment and the number of direct hire placements. And, we are continuing to experience increasing demand and a robust hiring environment in the fiscal first quarter ending December 31, 2021.” – Derek E. Dewan, CEO.
With this backdrop to the end-of-year momentum, JOB stock continues its climb this week.
Penny Stocks Under $1
When it comes to the best penny stocks to buy, beauty is in the eye of the beholder. But if you like risk, high volatility, and potential for gains from small price changes, sub-$1 stocks could be something to watch. In this list, we covered four more penny stocks under $1. Below is our complete list and a link to more details on the first 3:
Penny Stocks To Buy [or avoid] For Under $1
Flotek Indusries (NYSE: FTK)Tantech Holdings Ltd. (NASDAQ: TANH)Bit Brother Ltd. (NASDAQ: BTB)Yunji Inc. (NASDAQ: YJ)CooTek Inc. (NYSE: CTK)Color Star Technology (NASDAQ: CSCW)GEE Group Inc. (NYSE: JOB)
To see information on the first three names on this list of penny stocks, check out “3 Top Penny Stocks To Buy For Under $1 This Week.”
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