Penny Stocks To Buy? 4 To See With Breaking News

Penny Stocks: A Brief Overview

In the dynamic world of investing, information is power. For those navigating the high-risk, high-reward landscape of penny stocks, keeping up with the headlines of news and company updates isn’t just a strategy, it’s a necessity. Penny stocks, defined by the US Securities and Exchange Commission as stocks of small companies trading for less than $5 per share, are typically characterized by high volatility and are considered high-risk investments. However, the appeal of cheap stocks lies in their potential for substantial returns.

The Power of News Headlines in Penny Stock Investing

News about regulatory approvals, patent grants, earnings reports or strategic partnerships can cause significant movements in a company’s stock price. For penny stocks, which are often subject to dramatic price swings, these updates can have a particular impact. However, the key to harnessing this information lies in its implications and timing. A positive news headline can send a penny stock price up as investors rush to buy, but the subsequent sell-off can be just as swift.

Company Updates – A Valuable Insight into Penny Stocks

Company updates, such as financial reports or management changes, can also provide valuable information. These updates can provide insight into a company’s operational health and strategic direction. For example, a strong earnings report or the appointment of a reputable executive could indicate a positive trajectory, which could lead to an increase in stock value. Conversely, disappointing financial results or high turnover rates could indicate underlying problems, which can cause the share price to fall.

Balance News and Due Diligence in Penny Stock Investing

While news headlines and company updates can provide valuable information, they should not be the sole basis for investment decisions. Due diligence is essential when listing penny stocks. This includes thoroughly analyzing the company’s finances, understanding its business model and assessing its competitive position. Additionally, given the high-risk nature of penny stocks, investors should also consider their risk tolerance and investment goals.

News headlines and company updates can be powerful tools for investors in the penny stock market. They can help identify potential investment opportunities and inform decision-making when used strategically.

However, like all investment strategies, this approach must be balanced with thorough due diligence and a clear understanding of the risks involved. As we delve into our list of penny stocks to watch, keep these considerations in mind. After all, when investing, knowledge isn’t just power, it’s benefit.

Penny Stocks to Watch

ATI Physical Therapy (ATIP)

Shares of ATI Physical Therapy rose on the stock market today. The company offers outpatient physical therapy, as the name suggests. While stocks have been under pressure for most of the year, this week’s headlines have breathed new life into penny stocks.

News of ATIP actions

This week ATI announced that it would reverse a 1-for-50 split on its common stock. It will take effect at the end of Wednesday’s session and will open at the adjusted price on June 15. One of the recent trends in the stock market this week is the reverse split and low float penny stocks. In both cases, they tend to include fewer short-term tradable stocks. This can lead to extreme levels of volatility.

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Bit Digital Inc. (BTBT)

While cryptocurrency stocks haven’t been as hot as they used to be, the momentum tech stocks have gotten can’t go unnoticed. The rising tide seems to be lifting all boats at this point. Bit Digital mines digital assets and recently released its latest round of financial results for the quarter.

Bit Digital beat earnings per share estimates and sales expectations. Instead of posting a loss of 13 cents per share, BTBT’s EPS came in at +0.01. Meanwhile, sales estimates of $7.75 million were beaten by a wider margin with sales of $8.26 million. Management explained: “As of March 31, 2023, our mining operations were approximately 85% carbon-free, which is roughly flat from the prior quarter. However, if you remove from the calculation the contribution of a facility d ‘accommodation we exited at the end of March, our fleet would have been powered by approximately 98% carbon-free energy sources, and we expect to remain in that range during the second quarter and into the future.

BTBT stock news

This week’s headlines don’t just focus on company updates. Analysts have reported updates on their outlook. In this case, HC Wainwright is the most recent and increased his previous target from $3 to $4. He also has a buy rating on the penny stock.

Matterport Inc. (MTTR)

Another tech penny stock to watch right now is Matterport. With increased interest in AI stocks, many technology-driven companies are looking for ways to incorporate artificial intelligence and machine learning into their offerings. Matterport specializes in twin digital platforms that can be used for anything from planning, construction and operations to marketing and assessments.

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MTTR stock news

This week, the company announced its Genesis generative AI initiative. The new technology takes Matterport’s deep learning and computer vision platform and then combines it with AI to present dynamic and dimensionally accurate 3D designs for residential and consumer applications. RJ Pittman, President and CEO of Matterport, said, “Genesis is the continuation of this strategy to help Matterport and its partners create transformative digital experiences for properties and improve operations in buildings around the world.”

Virax Labs (VRAX)

Virax is a diagnostics company that develops platforms to detect immune responses and diagnose viral diseases. The penny stock has risen steadily since the beginning of May, and the latest update this week has drawn more attention to the company, which hasn’t reported many updates this year.

VRAX Stock News

This week, Virax released a letter to shareholders focused on its ViraxImmune. CEO James Foster explained, “We believe our ViraxImmune™ platform will change the way people can manage aspects of their immune health, taking testing and diagnosis to a proactive and preventative approach… The clinical protocol for in the clinical performance study It will soon be reviewed during our pre-filing with the FDA to meet 501(k) requirements … Periodic announcements will be made as the study progresses and we expect to announce full results in the fourth quarter of 2023″.

With potential for the next headlines, VRAX stock has made it onto some midweek Fed week watch lists.