What are Penny Stocks?
Penny stocks, sometimes called “micro cap” or “nano” stocks, are small-cap stocks that represent small companies that are publicly traded. They are often offered by companies that are still in the development phase or that only offer one or two different products. Or they are easier for investors with little capital. Penny stocks are rarely regulated. Unlike large national exchanges with strict regulations, silver coins are not held to the same standards. It is difficult to tell what is right and what is wrong. Silver coins have declined significantly due to many of these events. Businesses can rise or fall quickly.
Why invest in Penny stocks?
There are benefits to trading penny stocks, which are:
- Since penny stocks are priced on the low end, they’re accessible to traders with small accounts.
- Investors can start with very low capital.
- One of the biggest advantages of trading penny stocks is that it’s extremely easy to get started.
- Diligence can be rewarded. If investors can do their own research on the companies to evaluate whether or not they’re good investments, then you might be rewarded for your studies.
- Potential profit on the way up or down. With penny stocks, investors can potentially profit as stocks go up or down in value. While many of the companies offering penny stocks will fail, this can actually provide an opportunity for traders to sell short.
Penny stocks risks
- A primary risk of penny stocks is the potential for a lack of reliable, readily available information.
- Also, many penny stocks are issued by newly formed companies with little or no track record. Without enough information, you may not be able to fully evaluate the company.
- Less stringent disclosure requirements can make penny stocks particularly susceptible to illegal “pump-and-dump” schemes. Unscrupulous investors buy the stock, and actively promote only its virtues to artificially inflate the price. And when the stock price appreciates, they sell it at an artificially inflated price.
- Penny stocks have low liquidity. Many penny stocks are thinly traded. When buying or selling a stock that has low trading volume, investors may not be able to do so at their desired price or time, and that can be costly.
Tips for trading penny stocks
Trading penny stocks can be risky due to their potential for high volatility and low liquidity. Therefore, investors should proceed with caution and measure. Here are some tips to consider:
- Invest money which is not a part of your regular expenditure. Never invest money you can’t afford to lose. It also may be best to avoid penny stocks if you have a short investment time horizon.
- Pay close attention to market trends to make informed decisions.
- Use technical analysis, charts, and watch patterns to predict future price movements. Penny stocks can provide significant returns but come with a lot of risk.
Here is the list of the best Penny Stocks to buy Right now:
| Sr | Company Name | Symbol | Stock Price | Market Cap |
| 1 | Savara | SVRA | $ 3.64 | $ 598.32 million |
| 2 | Navitas Semiconductor | NVTS | ||
| 3 | Archer Aviation Inc. | ACHR | ||
| 4 | Pitney Bowes | PBI | ||
| 5 | Taboola | TBLA | $ 3.52 | $ 1.14 billion |
Savara
Savara is a clinical-stage biopharmaceutical company developing treatments for rare respiratory diseases. Its lead product candidate is an immunostimulator called molgramostim. Molgramostim is in phase 3 clinical trials to treat autoimmune pulmonary alveolar proteinosis, or aPAP.
Molgramostim has received an FDA orphan drug designation — given to drugs targeting rare diseases — for treating aPAP. It has also received a similar designation from the European Medicines Agency and a breakthrough therapy and fast-track designation by the FDA.
Savara expects data from its pivotal phase 3 trial of molgramostim by mid-2024. The company also said it has enough cash to fund operations into 2026.
Breakthrough therapy and fast-track designations suggest the FDA is facilitating molgramostim’s approval process. The biopharma company has reported enough cash to fund operations into 2026. Moreover, the Phase 3 trial data on molgramostim is imminent. However, there is a risk that the molgramostim trial data disappoints. Also, it may take a while for Savara to commercialize molgramostim and turn a profit. Given aPAP is an extremely rare disease, molgramostim’s market size may be limited.
The chart below shows the performance of Savara Stock in the past year. The stock started the year 2024 at a price of $ 4.65. After a small decline in the initial month, the stock picked up pace and went as high as $ 5.59 in March. Then the stock started to decline and continued to do so in the next few months. The stock went as low as $ 3.66. Then again, the stock went up and touched $ 5.07, and eventually the stock last closed at $ 3.63. The stock remained volatile throughout the year with a 22 % decline during the year.
Navitas Semiconductor
Navitas Semiconductor develops ultra-efficient gallium nitride (GaN) semiconductors. The company hopes to help transition the semiconductor industry from silicon chips to GaN for power applications. Those applications include consumer electronics, fast mobile chargers, and data centers.
Navitas has reported impressive growth in recent quarters. The company also said customers have responded positively to its new technology, including GaNSlim products. Unfortunately, the company is not consistently profitable and has required periodic capital infusions.
The market of Navitas is a massive high-growth market. The company is reported acquiring new contracts among AI-based data center customers. And its customers are reportedly increasing at a very high rate. However, there have been liquidity issues for the company, where cash in hand has been problematic. Moreover, the future of good profitability is still unclear.
The below chart shows the performance of Navita’s stock during the current year. The stock started the year 2024 at a price of $ 7.92. The stock remained bullish throughout the year and went as low as $ 2.18. The stock last closed at $ 2.47, representing a 68 % decline to date.
Archer Aviation Inc.
Archer Aviation designs and manufactures electric vertical takeoff and landing (eVTOL) aircraft. Archer’s Midnight aircraft is a piloted, four-seat, electric vertical takeoff and landing aircraft. Midnight is designed to be a series of short, consecutive flights with minimal return flight time. Archer hopes Midnight will reduce the 60 to 90-minute urban commute to 10 to 20-minute electric taxi flights. Flight certification. Archer also recently announced a major deal with the Abu Dhabi Investment Office. The deal will accelerate the development of the air taxi sector in the United Arab Emirates. Archer is not yet profitable but has good revenue.
Archer Aviation recently received certification from the FAA to operate commercial aircraft. Its two-pronged approach to airline direct sales and air taxi services differs from the major airlines. It has also begun expanding partnerships with other major airlines, including United Airlines and Strantis Airways. However, the company’s business model is still unclear and not widely understood. The company’s high starting price is a major headache for expansion and profitability. One of its special products, the “electric vertical takeoff and landing”, is not unique and will take many years to mature because the market is small. work for years. The stock started the year at $6.02 and started to decline. This decline continued for several months and the stock fell to $3 in May. From there the stock recovered and rose to $5.39. The stock started to decline again and closed at $3.15. Overall, the stock is down 48% in the past year.
Pitney Bowes
Pitney Bowes Inc. is a transportation and mailing company that provides technology, logistics and financial services to small and medium-sized businesses, large enterprises, retailers and government customers in the United States and around the world.
It operates through:
- Global E-commerce – The Global E-commerce segment provides domestic parcel services, cross-border solutions, and digital delivery services
- Presort Services – The Presort Services segment offers mail sortation services, which allow clients to qualify volumes of first-class mail, marketing mail, marketing mail flats, and bound printed matter for postal work sharing discounts.
- SendTech Solutions segments – The SendTech Solutions segment provides physical and digital mailing and shipping technology solutions, and other applications for sending, tracking, and receiving letters, parcels, and flats as well as financing alternatives to finance equipment and product purchases.
It markets its products, solutions and services through direct sales and internal personnel, international and regional partner channels, direct mail and digital channels.
Shares of shipping company Pitney Bowes have lost about half of their value since the start of 2021, as the company has been under pressure from some poor decisions and investments in the global e-commerce space (GEC). In May, Pitney Bowes announced plans to cut more than $100 million in annual costs as part of an overhaul of its business. Pitney Bowes agreed to divest most of its e-commerce business with the help of Hilco Global.
The chart below shows Pitney Bowes’ performance this year. The stock price at the beginning of 2024 is $4.40. The stock has maintained its price for the first few months. The stock started May on bullish notes and continued to rise throughout the year. The stock rose to $7.50 and last closed at $7.21. Overall, the performance over the past year shows a 64% satisfaction rating.
Taboola
Taboola.com is an online advertising and content company. It provides a two-sided business that connects digital owners and publishers. Taboola focuses on open online commerce, that is, digital assets outside of closed platforms like Facebook, Google, and Amazon.com. Taboola estimates the value of the open source web market to be more than $80 billion. Its recommendation engine combines AI and deep learning. The company works with a large network of advertisers to reach millions of users every day.
Taboola’s partnership with Yahoo is a major source of revenue. Revenue growth has been very strong in recent quarters. In addition, its AI suite of competitive technologies is enabling change and generating significant revenue for the company. However, Taboola needs to be careful with AI machine learning and algorithms to remain competitive. Relying heavily on revenue from a single source (e.g. Yahoo!) can be risky in the face of unforeseen circumstances.
The chart below shows how Taboola stock has performed this year. The stock started 2024 at $4.30. After the price started to rise to a high of $4.86, the stock has been on a roll. This decline continued throughout most of the year, with the stock falling to a low of $2.8752 in August. The stock recovered slightly and eventually closed at $3.32. Overall, the stock is down 22.8% for the year.
