Trading Penny Stocks Today? Here’s What You Need to Know
As morning trading gets off to a solid start for penny stocks and blue chips, there are quite a few things that investors need to know today. Recently, the Dow and S&P 500 were down by around 5% from the record highs they had hit earlier in January.
And, the majority of this is based on uncertainty surrounding the future as it pertains to the pandemic, the U.S. economy, and other factors. For that reason, let’s talk about what you need to know about trading penny stocks today.
What to Know About Trading Penny Stocks
Right now, we’re in the middle of earnings season with several major tech stocks in focus. Additionally, a few travel stocks such as American Airlines (NASDAQ: AAL) and United Airlines (NASDAQ: UAL), both reported better than expected results, while albeit, still pulling in losses.
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On the political side, President Biden has stated that Russian President, Vladimir Putin may order an invasion for Ukraine. He has stated that there will be a “disaster” for Russia if that occurs. He specifically stated that “It’s one thing if it’s a minor incursion and we end up having to fight about what to do and not do. But if they actually do what they’re capable of doing with the forces amassed on the border, it is going to be a disaster for Russia if they further invade Ukraine.”
Because penny stocks are reactive, events both political and economic, are crucial for investors to consider. And while this may not have an immediate effect on certain penny stocks, it will affect the stock market as a whole. So, with all of this in mind, let’s take a look at three penny stocks that are climbing in morning trading.
3 Penny Stocks That Are Climbing Today
- Aptorum Group Ltd. (NASDAQ: APM)
- TDH Holdings Inc. (NASDAQ: PETZ)
- DatChat Inc. (NASDAQ: DATS)
Aptorum Group Ltd. (NASDAQ: APM)
One of the largest gainers today by morning trading is APM stock. By 10 AM EST, shares of APM had climbed by over 40% to more than $1.70 per share. While many large gains occur without news, APM made an exciting announcement during premarket trading today. The company stated that it has received Orphan Drug Designation for its compound known as SACT-1. This is a repurposed drug for the treatment of neuroblastoma. Now, the company plans to submit an IND or Investigational New Drug Application so that it can begin Phase 1b/2a trials.
“The granting of orphan drug designation for SACT-1 for the treatment of neuroblastoma is another important step forward in the development of our drug candidate and reflects both the FDA’s and Aptorum’s commitment to addressing the unmet clinical needs of patients with neuroblastoma.”
The President and Executive Director of Aptorum Group, Mr. Darren Lui
As is always the case, news regarding the FDA is major for biotech stocks. It can and will likely have a material effect on how they trade as we witnessed today. So, keeping this in mind, will APM be on your list of penny stocks to watch?
TDH Holdings Group Inc. (NASDAQ: PETZ)
PETZ is a penny stock that we have covered numerous times in the past few months. And with a more than 18% gain in morning trading on January 20th, it is once again in the news. Now, in the past month, shares of PETZ stock have dropped by an extremely significant, 89%.
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So whether today’s bounce is simply a correction following it hitting a 52-week low yesterday, remains to be seen. But, we do know that there is no company-specific news that is causing this gain. Regardless, we can take a look at its most recent announcement, which is its first half 2021 financial results reported in mid-December. For some context, PETZ is a provider of pet food in China and in other nations globally.
In the results, TDH Holdings posted a 52% drop in revenue over the previous year. The company states that this is due to the suspension of its e-commerce business as well as loan repayments and Covid-19. So, while this is disheartening, many investors are interested in the company at its current low price. Whether this makes it worth adding to your penny stocks watchlist however, is up to you.
DatChat Inc. (NASDAQ: DATS)
Another penny stock that is moving significantly right now is DATS stock. By morning trading, shares of DATS had pushed up by over 23% to $3.69 per share. The main reason behind this comes as the company announced its entering into a Letter of Intent to acquire Avila Security Corporation.
This includes Avila’s large portfolio of Web 3.0 products such as blockchain messaging, secure audio and video streaming, and much more. The deal is worth $1 million in cash and either 739,650 shares of restricted common stock or $2.5 million of restricted common stock of DatChat (whichever is greater).
“The proposed acquisition of the intellectual property will further position our significant competitive advantage that we believe will govern key aspects of the Web 3.0 and Metaverse infrastructure. From this, we believe that we will be able to leverage new revenue opportunities from both the licensing and development of this technology.”
The CEO of DatChat, Darin Myman
This is very exciting news, especially considering the recent bullish moves made in the blockchain and Metaverse space. So, do you think that DATS stock is worth buying right now or not?
Are Penny Stocks Worth Buying in January 2022?
Finding the best penny stocks to buy in 2022 can be difficult. But, with the right information and a commitment to learning how to trade penny stocks, it can be much easier than previously imagined. Considering that there are so many factors affecting penny stocks right now, it all comes down to knowing how to use these events as an advantage.
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With the pandemic, inflation, the U.S. economy, and political events occurring, there is a lot to keep track of. But, the first step is starting with research and understanding who you are as a trader. With all of this in mind, do you think that penny stocks are worth buying in January 2022?
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