The great (and scary) part of penny stocks is their volatility and potential to make huge moves quickly. It’s not uncommon to see these cheap stocks explode by hundreds or even thousands of percentage points in a day or even weeks. Our editors have written about many of the best penny stocks to watch this summer that have posted stunning gains far exceeding market averages.
But these massive gains come at a cost. Stress, anxiety, fear, doubt, excitement – a full spectrum of emotions, as price changes of a few cents equal significant percentage changes in position value. Also, the cheaper the stock, the more volatile its market. Aside from other contributing factors, the cheapest penny stocks can be some of the most explosive.
Earlier in the day, shares of Addex Therapeutics (NASDAQ: ADXN) saw a significant percentage move from a stock price change of just $1.63. Although it was less than a cup of coffee at your favorite “fancy” cafe, it was worth 189%. ADXN stock was one of the sub-$1 penny stocks that traders turned their attention to, thanks to a big company update released during premarket hours on July 21.
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Are penny stocks worth it? Yes, and ADXN is just one example of many as long as you know what you are doing and understand how to trade. Today we take a look at a handful of sub-$5 stocks that are gaining traction heading into the weekend. News, speculation and general market momentum all added to the stock market action today. Will they be on your watch list before Monday? Let’s see what happens, and then you can decide for yourself.
4 Penny Stocks to Watch Under $5 This Week
- Velo3D Inc. (NYSE: VLD)
- Blue Hat Interactive Entertainment (NASDAQ:BHAT)
- DSS Inc. (NYSEAMERICAN:DSS)
- Boxed Inc. (NYSE: BOXD)
Velo3D Inc. (NYSE: VLD)
Velo3D shares have quietly mounted a strong breakout over the past few weeks. You might not have seen the VLD stock mentioned on your favorite subreddit on Reddit. But rest assured that at least a few traders are paying close attention to this business.
Velo3D is involved in metal additive manufacturing. Its technology provides critical parts for organizations, including government agencies. What helped give a boost to this stock shot down in July was an initial deal with Raytheon, Pratt & Whitney. The agreement was for the acquisition of an end-to-end solution from Velo3D to evaluate the Sapphire printer for the manufacture of production jet engine components.
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What to watch with VLD Stock
With a short float percentage of less than 9%, according to Fintel.IO, it may not have made it to the list of short-term stocks to watch. However, recent headlines have shone a spotlight on the company. Velo3D announces a new partnership with Hartech Group for the distribution of its technology to government agencies.
“We chose Velo3D and its end-to-end solution for our federal government customers interested in acquiring advanced additive manufacturing technology because of the very high quality and reputation of the company. We will use our highest ratings with the Federal Government to ensure that we provide a complete Velo3D solution. »
Gary Bredael, Director of Additive Manufacturing at Hartech Group
With the surge in new trade flow, VLD could be on the list of penny stocks to watch ahead of next week.
Blue Hat Interactive Entertainment (NASDAQ:BHAT)
Blue Hat specializes in augmented reality and interactive entertainment technology. With cryptocurrency and blockchain technology driving the growth of metaverse apps, AR/VR and extended reality technology companies have caught the eye. Additionally, Bitcoin’s latest price surge also brought a bit of a revival to all things “digital assets” this month.
One of the main catalysts was the announcement by Blue Hat of the end of an equity offering. This effectively communicated to the public that potential dilution may not be a factor. The company eventually raised $3.6 million, or $3.60 per share and still a premium to the current market price. The first tranche of $1.44 million was expected to close last week, with the remaining balance due by the end of the month.
What to watch with BHAT stock
Aside from funding news, BHAT stock hasn’t seen a lot of company-related catalysts when it comes to news. But the trend towards short compression may have started to play a role. This is because BHAT stock has a short float percentage of just over 40%, according to data from Fintel.IO.
DSS Inc. (NYSEAMERICAN:DSS)
Shares of DSS Inc. could be on the radar before the close of the week. The company’s multi-pronged approach to business transactions has created strategic deals across a myriad of verticals. Everything from product packaging and financial assets to marketing and biotechnology falls into its wheelhouse.
You may remember this company from Q1. A series of press releases, including strategic investments in the company, corporate presentations and progress within its biotech arm, helped push DSS shares near $0.80.
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What to watch with DSS Stock
DSS stock returned much of those gains as broader market trends trickled down to micro-cap stocks. But a new update after Thursday’s close could turn heads. Again, it’s his biotech company, Impact BioMedical.
The Company said it has announced that Global BioLife, Inc., a subsidiary of Impact, has signed a license agreement with ProPhase BioPharma, Inc., a subsidiary of ProPhase Labs, Inc. (NASDAQ: PRPH). The deal was for Global BioLife’s Linebacker portfolio (LB-1 and LB-2). These are two patented small molecule PIM kinase inhibitors with potential in multiple therapeutic indications.
On another note, DSS stock has been testing its 50-day moving average over the past few sessions. As this is a major moving average and a consistent resistance point over the past few months, it will be interesting to see if DSS stock has some technical “play” as well.
Boxed Inc. (NYSE: BOXD)
At the end of June, we started to resume activity on BOXD shares. The company is best known for its bulk grocery shopping platform and licenses its e-commerce software to other enterprise retailers.
Missed earnings expectations are to blame for its fall from over $10 to under $5. A filed prospectus also showed that Jones Group Ventures planned to sell “up to” 15 million BOXD shares. The company advised on the transaction that resulted in Boxed’s IPO through Seven Oaks Acquisition Corp.
What to watch with BOXD stock
If you’ve been following the SPAC trend, a tear trail like this (as far as the chart is concerned) is not uncommon. Even the most popular SPAC deals have collapsed. So where does Boxed go from here? For starters, the company announced its planned expansion into the Vietnamese market through its partnership with Aeon Co., a major retailer in Asia. Aeon previously helped Boxed gain access to Malaysia and is expected to bring the company to Indonesia.
However, what might be more important right now are the upcoming canned profits. In a potential fight over the takeover of its latest quarterly report, Boxed reveals its second quarter numbers on August 9. As the date approaches, traders can take a speculative look at the retail penny stock.
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