Buying Penny Stocks Today? Here’s What You Need to Know
As we enter another week of trading penny stocks and blue chips, there is a lot to know. Right now, we’re witnessing the stock market post more potential signs of a negative trading day as well as a further crash with Bitcoin. While this is concerning for those who invest in penny stocks, we have to consider the underlying factors. And to understand all of this further, let’s take a closer look at what is going on in the stock market right now.
What’s Going On With The Stock Market Today?
Many believe that what we are witnessing right now is a stock market crash. However, the recent moves we’ve witnessed are not characteristic of a complete market crash. Rather, they seem to be a correction and a sign that the stock market is quite weak right now.
[Read More] 3 Penny Stocks to Watch Under $4 Right Now
Today, we have witnessed stock market Futures fall substantially, indicating another day of losses. In addition, we have witnessed BTC hit around $33,000, down by almost 10% from its 5 PM EST level on Friday. Along with this, shares of several crypto-related stocks such as Coinbase (NASDAQ: COIN), dropped substantially, losing around 10% in value by morning trading. And, we have witnessed Peloton Interactive Inc. (NASDAQ: PTON), drop by over 77% in the past six months.
So, while a lot of this is disheartening, we have been due for a corrections for some time now. And because of this, the momentum we’re witnessing right now could be considered short term by some. Regardless, we have to assume that it will continue into the near future and trade accordingly. So, with all of that in mind, let’s look at some of the biggest early morning gainers.
3 Penny Stocks That Climbed In Early Morning Trading
Exterran Corp. (NYSE: EXTN)
One of the biggest gainers of the day during premarket is EXTN stock. By market open, shares of EXTN had jumped by over 50%, indicating sizable bullish sentiment. While many large gains with penny stocks occur without news, Exterran made an exciting announcement during morning trading.
The company stated that it has engaged in a business combination with Enerflex Ltd. to build out a global provider of energy infrastructure. The deal, will see Enerflex acquire Exterran in an all stock transaction that values Exterran at around $735 million. This represents an 18% increase over its January 21st share price. With this exciting news in mind, will EXTN be on your penny stocks watchlist?
BT Brands Inc. (NASDAQ: BTBD)
Up by over 37% during morning trading are shares of BTBD stock. While shares did shoot up by over 70% during premarket, they had since corrected as the market opened. While there is no reason behind this gain that is company specific, it could be an upward correction following losses sustained by the company on Friday.
If you’re not familiar, BT Brands owns a line of fast-food restaurants known as Burger Time. After its recent IPO, the company has worked to make acquisitions across the fast food industry. This includes the purchase of a Dairy Queen in Minnesota. While it is hard to say why shares climbed so heavily today, it is an interesting prospect to consider.
Neurobo Pharmaceuticals Inc. (NASDAQ: NRBO)
While NRBO stock’s gain of around 4% during morning trading is not much compared to the other stocks on this list, it is still substantial. Similarly to BTBD stock, NRBO did not release any company specific news today. Rather, it seems as though this is the result of a bullish reversal following its losses on Friday.
Aside from this, the most recent news from NRBO came in November when it announced its Q3 2021 financial results. In the results, the company updated its outlook on its ANA001 treatment for those with Covid-19. This is one of the reasons that NRBO has seen positive sentiment recently. Considering this, does NRBO deserve a spot on your list of penny stocks to watch?
Can Penny Stocks Show Positive Sentiment Next Month?
After several weeks of less than stellar trading with penny stocks and blue chips, it is tough to see a light at the end of the tunnel. However, with positive news surrounding the pandemic, excitement around the future and much more, many investors are hopeful that the next few months could turn bullish for the stock market.
While it is hard to say with certainty, traders should continue to keep a close eye on what is occurring in the news. With that in mind, do you think that penny stocks can show positive sentiment next month?
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