Want explosive action in the stock market? Start putting together a list of penny stocks. These high-flying names are some of the most captivating, and for a good reason. Few places offer such random liquidity, wild volatility, and extreme breakouts as these cheap stocks. But if you’re not prepared or can’t handle high-risk situations, it may be time to take a break and learn how to trade first. Today we look at a handful of penny stocks that have already experienced big moves in the stock market. Will they make the list of top stocks to watch? I’ll leave that up to you after we dive into the fine details of some of these penny stocks.
Penny Stocks To Watch
- Leju Holdings Limited (NYSE: LEJU)
- Secoo Holding Limited (NASDAQ: SECO)
- China SXT Pharmaceuticals Inc. (NASDAQ: SXTC)
- Molecular Data Inc. (NASDAQ: MKD)
- TherapeuticsMD Inc. (NASDAQ: TXMD)
Making A List Of Penny Stocks To Buy
This list of penny stocks includes a few of the cheapest names listed on the NYSE and NASDAQ. When dealing with penny stocks under $1, a price shift of even a few pennies can mean a significant change in percentages. So, if you’re looking to put together a list of cheap stocks, have a good understanding of how to trade in the first place. I’ll discuss more on trading basics later in this article.
1. Leju Holdings Limited (NYSE: LEJU)
Earlier this month, China stocks surged thanks to new optimism based on updated regulation in the People’s Republic. A Chinese state media report discussed that Beijing supported Chinese stock listings overseas and moved toward more stability in Hong Kong financial markets.
Leju Holdings has experienced an explosive move this month as shares have briefly broken above $1 before settling back around $0.70 on Wednesday. The company operates an online media platform for the real estate and home furnishing industries in China. Besides upbeat sentiment regarding China stocks, Leju has built up some speculative optimism after announcing that it will deliver its second half and full-year 2021 results next week.
If we look at the first half data, we can get an idea of what the company is looking to excel on. During the first half of 2021, revenues experienced an increase of 8% to $301. million compared to its previous year’s period. Ecommerce services revenue also jumped to $231.4 million. This was an increase of roughly 13%.
2. Secoo Holding Limited (NASDAQ: SECO)
Secoo is in the mix of China stocks to watch following a solid move in the stock market over the last few weeks. The company’s focus on boutique lifestyle offerings has targeted the luxury goods marketplace in China.
This week the company announced that it improved the payment solution of its platform with the addition of Ant Credit Pay by Installments. This new offering is now accessible to the company’s 50 million registered users. Ant Credit Pay by Installments is one of the solutions that Secoo is planning to add to its platform to improve its online payment system and launch new services for its users.
It may also be essential to note commentary from Leju’s Chief Executive Officer Geoffrey He in that H1 update. He explained, “With the support of the strategic cooperation between our controlling shareholder E-House (China) Enterprise Holdings Limited and Alibaba Group Holding Limited, we held a series of online promotional events including ‘The 2(nd) Online Real Estate Fair’ and ‘ June 18 Top Pick House Festival ‘ on the Leju Housing platform and Leju Flagship Store on Tmall Haofang. The success of these events and the launch of our Leju Flagship Store on Tmall Haofang have greatly improved the operational capabilities of Leju’s advertising and e-commerce businesses.”
With this backdrop, the market awaits Leju’s next update on full-year results for 2021.
3. China SXT Pharmaceuticals Inc. (NASDAQ: SXTC)
Another one of the Chinese names trading higher this week is China SXT Pharmaceuticals. The specialty pharmaceutical company focuses on Traditional Chinese Medicine Pieces. Not much news has come from the company over the last month. However, that hasn’t made a difference in its share price. SXTC stock has bounced from roughly 11 cents to over $0.20 this week. The jump in China-based names hasn’t hurt things either as the Alibaba’s and Bidu’s of the market have climbed higher on optimism.
One of the recent events that have stuck with traders is China SXT’s $2.8 million financing round. It entered into a convertible note deal with Streeterville Capital wherein the note converts at $0.30. Currently, the price per share is below this level, suggesting a premium to that conversion price (for now).
In addition to the financing news, COVID hasn’t gone away despite what is currently captivating mainstream headlines. This could also give more attention to China SXT’s current medicine offerings. It is developing and commercializing several products to relieve cough, asthma, and detoxify. According to the company, it expects the annual output of the products (Kuihuapan and Zhudanfen) to reach 300,000 bottles equating to sales of roughly RMB 5 million during its fiscal year ending March 31, 2023.
4. Molecular Data Inc. (NASDAQ: MKD)
Continuing the trend in Chinese penny stocks is Molecular Data Inc. Shares of MKD are up more than 100% in the last few weeks, thanks to several tailwinds propelling momentum. The key driver has stemmed from excitement in the cryptocurrency and blockchain technology industry. While, on the surface, Molecular Data is a chemical industry logistics company, it has been working to evolve with the times, and technology has played a more significant role.
In fact, before the end of 2021, Molecular data announced a joint venture with plans to construct supercomputing clusters in North America that it anticipates generating roughly $5 million in revenue. Commenting on the milestone, Dr. Dongliang Chang, Chairman of Board of Directors of Molecular Data, said, “Based on its technical characteristics, blockchain elements are building blocks for application scenarios of the Industrial Metaverse. Therefore, we will continue to develop our blockchain capabilities to further enhance our competitiveness in the chemical platform and related businesses.”
With cryptocurrency and blockchain technologies gaining appeal in the stock market this year, MKD could be one of the penny stocks under $1 to watch.
5. TherapeuticsMD Inc. (NASDAQ: TXMD)
The biotech company, TherapeuticsMD is no stranger to significant market moves. Even though it’s trading below $0.50 right now, TXMD stock has climbed more than 150% since the end of February. One of the most significant moves came after the company announced it would divest its vitaCare prescription business to GoodRx (NASDAQ: GDRX). In a $150 million deal, the digital healthcare platform is expected to take complete control of vitaCare when the deal closes later this quarter.
With this move, TherapeuticsMD now aims at meeting the demand for its flagship product, ANNOVERA. “We are working to ensure ample supply and drive towards uninterrupted access to this important contraceptive. We are excited about our future and believe we are on a pathway towards serving women as they navigate their healthcare needs,” commented TherapeuticsMD CEO Hugh O’Dowd in the latest corporate update.
ANNOVERA is a progestin/estrogen CHC indicated for use by females of reproductive potential to prevent pregnancy. It was responsible for $7.8 million in Q4 revenue last year. Furthermore, over 9,300 prescriptions were dispensed, with over 10,700 healthcare providers offering ANNOVERA during the quarter. This prescriber growth was 199% higher compared to 2020’s Q4.
Are Penny Stocks Worth It?
Should you buy penny stocks? As I discussed above, a trading game plan is essential to have when it comes to making money trading. Specifically, you’ll want to understand how to navigate volatility and handle risk. If you’re brand new to trading or new to penny stocks, here are a few introductory articles to check out and help you decide if penny stocks are worth it for your strategy:
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