3 Hot Penny Stocks to buy for less than 10 cents
Are these Penny Stocks worth it?
By the standard definition of penny stocks, we’re talking about stocks under $5 per share. However, traders are not required to trade “more expensive” penny stocks; most of the time, the hunt is for the cheapest to buy. Obviously, the drop in price will be accompanied by greater volatility. A stock trading at $5 may move 50 cents before it reaches 10%. But when you look at some of the companies in today’s article, even a single penny move can make a huge difference in portfolio value.
What penny stocks are we looking at today? Well, we take a look at the cheapest stocks to buy on platforms like Robinhood (NASDAQ: HOOD) and Webull. Since platforms like these limit access to most OTC penny stocks, it can be complex to find public companies trading below 50 cents.
Rest assured, there are still a handful of penny stocks on Robinhood and Webull trading for pennies. Thanks to the stock market crash of 2022, many Nasdaq and NYSE companies are hanging out in the bargain bin. The thing you need to decide is whether or not this is a “bargain” to take a risk on. With higher search volume for “penny stocks on Robinhood” and “penny stocks under $0.10it’s worth looking at the ‘menu’ to see which companies are actually at those levels and if there’s any hope for a rebound.
3 Penny Stocks Under $0.10 to Watch
- Kalera Public Limited Company (NASDAQ: KAL)
- The Very Good Food Company (NASDAQ: VGFC)
- COMSovereign Holding Corp. (NASDAQ: COMS)
Kalera Public Limited Company (NASDAQ: KAL)
Vertical farming company Kalera Public recently released its third quarter financial statements. Despite a drop of nearly 100% over the year, management remained optimistic following the latest results. CEO Jim Leighton explained, “While our balance sheet is in question, we are meeting or exceeding our targets for both revenue and profit.”
This was reflected in third quarter revenue, which more than doubled from the third quarter of last year. Capacity utilization also jumped to double digits to 24% from 11% last year. During that time, he met or exceeded yield goals on all of his US farms.
Plans for Kalera are to expand into certain markets that lack access to local, fresh produce. Initially, they are focusing on the lettuce and microgreens categories. The move comes shortly after Kalera announced the sale of its international business, Vindara. Kalera has set itself the goal of achieving financial breakeven at its US farms by the end of next year, which this divestiture and focus on US farms should help.
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The Very Good Food Company (NASDAQ: VGFC)
Another plant-centric company, The Very Good Food Company, is trading below $0.10. Like all the other names on this list of penny stocks, the stocks have fallen dramatically this year. Declining revenues and strong cash burn are two important contributors to the lackluster performance.
Is VGFC stock worth a spot on your watchlist? I’ll leave the choice up to you, but let’s take a closer look at the numbers. On cash burn, for example, Very Good Food saw its cash and cash equivalents implode from over $21 million last year in the third quarter to nearly $700,000 at the end of the year. of the third quarter of this year.
Revenue fell 31% over the same period and was attributed to an 83% drop in e-commerce sales. The company decided to limit eComm sales due to higher digital marketing cost per new customer acquisition. Very Good is also expected to exit the eComm segment completely by the end of the year.
With obstacles evident, it is difficult to argue a bullish position on the penny stock. However, there was a management reshuffle and a reshuffle of the board of directors. Whether that bodes well for the company in the near term remains to be seen. For now, it’s simply one of the few NASDAQ penny stocks under $0.10.
COMSovereign Holding Corp. (NASDAQ: COMS)
COMSovereign’s actions recently caught the attention of traders on Reddit and in the FinTwit community. A very cheap price, a listing on a major exchange and a momentum fueled by speculation have helped the company gain some notoriety among retail traders.
Nonetheless, the company faced its share of headwinds throughout the year. As a communications stock, the industry, in general, has been battered. COMSoverieng develops 4G LTE Advanced and 5G communication systems.
In a CEO update letter earlier this month, its chief executive, David Knight, outlined a proposed strategy for the company. In particular, three areas of focus are revenue generation, financial reporting, and capital.
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From a revenue perspective, our wireless connectivity and tethered aerial platform businesses represent our primary sources of revenue. These products are built around proprietary and proprietary differentiating technologies and deliver unparalleled capabilities to their respective customers. In Wireless, we are actively fulfilling customer orders through existing inventory and at Drone Aviation we continue to progress against its $8.4 million subcontract award.
Whether or not this model will result in meaningful revenue remains to be seen. However, given capital constraints and the current share price, it will be interesting to see how COMSovereign manages to regain its operational strength.
Cheap Penny Stocks and Risk
All penny stocks carry risk, but the cheapest fold in another lies because of price. Additionally, there are reasons why many sub-$1 penny stocks and sub-$0.10 stocks are trading at these levels. It usually has little to do with robust fundamental performance.
With this in mind, if you are looking for penny stocks under $0.10, it should be noted that the underlying companies may be in poor shape and any trading opportunity may be based solely on the technicals of the stock market alone. . With that, leave a comment below and let us know if any of the penny stocks under $0.10 are currently on your watchlist.
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