Before we get into the best stocks under $1, many traders will know that cheap stocks are a whole different breed.
People trade these stocks primarily because of their volatility. Penny stocks can dramatically increase or decrease in value over the course of a normal trading day.
For example, if a $0.10 stock increase to $1, you can make quite a bit of cash. So, what are the characteristics you are looking for in a decent stock under one dollar? Well, here are a few things to watch out for:
- Try to look for a quality exchange…if possible –When looking for a quality penny stock, try to find a quality exchange. We recommend tried and true options like the NYSE or Nasdaq. If you do see a stock on the OTC Markets, we think you should stick to the OTCQX, the highest tier of the OTC, and the clearest standards.
- Earnings per share – Now this may be hard to come by in the world of penny stocks, but it’s worth your time to check the EPS and see if the company is profitable. It should not be a dealbreaker, but it is good to know and might give you some level of comfort.
- Trading volume – Daily trading volume is a good indicator of if other traders are willing to buy. You want to make sure there is some solid volume. If you want to sell, you are going to need to make sure there is someone who will take the shares off your hands. Check the volume to make sure you have some liquidity.
Now that we have established a bit of a guidepost, let’s look at the best stocks to buy now under $1.
Stocks Under $1
We have grouped these stocks based on sectors and characteristics that we think are useful given the market. Industrial commodities and biotechs with vaccine exposure are some of the notable stocks we are watching.
Current economic activity is leaning toward infrastructure and even some precious metal miners.
Best Stocks Under $1 with Potential
These stocks are the most promising and best stocks under one dollar. We know you’ve got some loose change under your couch cushions. Dig it out and push your chips on the table.
Oxbridge Re Holdings Limited (OXBR)
OXBR is a company that insures hurricane policies and reinsurance contracts in the Southeast. The company’s stock price has been depressed from an active storm season.
But, the company trades well below its net cash. Oxbridge has managed risk well and the core business is growing around 3 cents per share.
“We remain optimistic about the long-term prospects of our core reinsurance business as well as the prospects of the sidecar. In addition, we continue to evaluate additional opportunities for growth as well as diversification of risk,” said Oxbridge Re Holdings President and Chief Executive Officer Jay Madhu.
OXBR is a company to put in your portfolio. It makes sense especially if you want to play the other side of the green wave.
Plus, the stock is safe as its volatility is rather low and presents niche market value for the company’s intrinsic value.
Emerson Radio Corp. (MSN)
Emerson sells household wares, specifically radios, through big-box retailers like Amazon and Walmart.
The real reason this stock makes the list of best dollar stocks to buy is that it trades for far less than its liquidation value.
I have read estimates of the stock’s liquidation value being around $28-$36 million.
Right now, its market cap is just a hair above $13M. Now, before you get too interested, the controlling shareholder is opposed to liquidation.
But, and this is a big but, the current consumer confidence index could make margins even worse for this stock…So, anything can change and the current financial situation could be a catalyst for change, especially considering the company’s cash reserves are not getting any bigger.
My only concern for MSN is that its cash burn could eventually turn into dilution to shareholders, but there is decent padding at the moment.
NCS Multistage Holdings, Inc. (NCSM)
NCSM is a fracking equipment manufacturer and represents a growth play well into 2021.
Before I discuss the company’s sales and revenue, the real reason they make the list is that this year the company won a patent infringement case against Diamondback Industries, Inc.
NCSM is expecting a settlement of more than $34 million. To accompany this windfall, the company has been working hard to strengthen its balance sheet during tough times for the industry.
However, NCS Multistage is now a zero debt company (plus, over the last four quarters, the company has surpassed consensus EPS estimates two times), and while maybe there is a low demand for fracking equipment when the market rebounds, the company is primed for a nice jump in price.
Although, CEO Robert Nipper was bullish on a faster oil price recovery in the recent earnings call:
“While starting from a low base, I’m encouraged by the rebound and completion activity from the trough experience in the middle of the second quarter. And so far in the third quarter, we’ve seen an increase in demand in the U.S. for our frac plug product line as well as our tracer diagnostic services.”
We see its price target in the $0.87 range, which would bring some nice paydays…So, we are putting it down as an important penny stock under $1.
Stocks Under $1 That Pay Dividends
TransAtlantic Petroleum Ltd. (TAT)
We are adding several concussed energy stocks to our portfolio, and TransAtlantic Petroleum fits the mold of what we are looking for perfectly.
The Company holds interests in developed and undeveloped properties in Turkey and Bulgaria, and its shares are dirt cheap right now, and, to be honest, the company’s balance sheet is much improved.
TAT has no reason but to go up as the seasons’ change and the economy rebounds.
Our price target for TAT is around the $1.80 mark and at its current price that could not quite a haul— if oil prices cooperate and recent production cuts at OPEC+ don’t harpoon the price of a barrel.
Furthermore, TAT just announced $0.10 dividends per share.
Besides the dividends, we see long-term growth potential here for TAT and the stock price is just too tempting to pass up.
Biotech Stocks Under $1
Tonix Pharmaceuticals Holding Corp. (TNXP)
Tonix has an observational study ongoing to analyze antibody responses and T-cell responses for specific proteins. But this is not the reason why we are bullish on TNXP.
Tonix also has a Phase 3 study ongoing for fibromyalgia.
The candidate is called TNX-102 and it has shown positive results in managing symptoms, and now the company is really analyzing the safety and efficacy of the treatment.
Data published recently showed that the company’s treatment was in-line with FDA pain management guidance, so we are optimistic that the company will have a suitable treatment.
These two combined novel therapies along with a host of developing drugs are reason enough to watch Tonix and place a bed for little under a buck.
Novus Therapeutics, Inc. (NVUS)
NVUS is back on our radar after acquiring Anelixis Therapeutics, Inc. It’s a power move for the company and we think the deal brings a clinical-stage antibody, AT-1501, into the company’s portfolio.
“We are excited about AT-1501 and the potential to develop and commercialize the next generation anti-CD40L antibody, a well-validated target with broad therapeutic possibilities,” said Keith A. Katkin, Chairman of the Board of Directors of Novus. “After exploring a range of strategic options to maximize shareholder value, we believe this acquisition represents the greatest value creation opportunity for Novus stockholders…”
The company is expecting gross proceeds of more than $100 million. This deal brings more interesting potential to the company along with flagship ear, nose, and sinus treatment drugs.
We like the move and we are bullish on the growth prospects for NVUS. Honestly, this is one of the best stocks under $1 right now.
NASDAQ Stocks Under One Dollar
Miragen Therapeutics, Inc. (MGEN)
MGEN is a microRNA therapy company that is working across a wide swathe of diseases including leukemia/T-cell lymphoma.
The current financial situation has made gathering patients for trials somewhat challenging, so some of the company’s potential has been pushed even further back, and many shareholders jumped ship.
We do think the company’s pulmonary fibrosis candidate will announce preclinical results this year and that could lead to a solid pop for MGEN.
The treatment is called MRG-229 and the program is supported by the NIH and Yale University.
The company recently said this about the treatment: “We announced additional preclinical broadened safety and in vitro human efficacy data for MRG-229, which suggests that miR-29 replacement might represent a novel paradigm in the treatment of IPF (Idiopathic pulmonary fibrosis).
No doubt about it, the stock has been taking it on the chin this year, falling from highs above the $2 mark to where it currently sits, but we think there is potential on the horizon.
Our conservative estimate for MGEN is above the $3 mark.
Acasti Pharma Inc. (ACST)
ACST’s lead product candidate is CaPre, an omega-3 phospholipid therapeutic that is in Phase III clinical trial to treat patients with hypertriglyceridemia, and recent results were not what the company was hoping for, but there was triglyceride reduction, just not enough to warrant the trials being called a success.
While it may be counterintuitive to some to buy the stock while the company evaluates strategy, ACST is extremely cheap and there is more than one way to use the therapy with the clinical data that has been gathered.
Personally, I see value in buying the company now because shares are so depressed and CaPre can still have value.
There is an obvious risk in buying depressed assets like ACST, but as many a biotech traders has seen…therapies can be resurrected and repurposed quite easily…and share prices can awaken.
Onconova Therapeutics, Inc. (ONTX)
There was some legitimate hype behind this stock and for good reason. Rigosertib (named INSPIRE) looked like it had serious upside in treating Myelodysplastic Syndrome, but it did not meet its endpoint for the Phase 3 trial.
There is still plenty of potential here even though the final trial flopped—similar to ACST.
ONTX stated that it will focus on the investigator-initiated study program with oral rigosertib beyond the ongoing phase I/IIa study in KRAS+ lung adenocarcinoma into additional solid tumors.
Furthermore, ONTX has also started to implement Rigosertib as a potential candidate to treat the coronavirus.
Now, there are many drug candidates and biotech that are taking platforms and shifting them for vaccine or therapeutic trials, but ONTX has a much more advanced therapy and a more experienced pharma staff.
These shares are about as low as they can go, but we think there is potential for ONTX to shift the treatment plan toward a viable target and return shareholders some value in the future.
This is a stock under $1 that fits the more buy and hold profile, if you ask me.
Best Stocks Under $1: Conclusion
Those are the best stock under a dollar that we recommend. We have tried to cover a wide range of catalysts and market events, so do your research and see which ones best fit your own portfolio’s profile.
Are there any stocks under a $1 that we missed? Are there any stocks with serious growth potential that we need to know about in the nano-cap or small-cap space? Let us know in the comments below.