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4 Penny Stocks To Buy For Under $5

Penny stocks to watch this week.
The post 4 Penny Stocks To Buy For Under $5 appeared first on Penny Stocks to Buy, Picks, News and Information | Penn…

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Beyond blue chips, small-cap penny stocks with prices under $5 per share offer thrilling upside for risk-tolerant investors, especially when economic tailwinds bolster markets. This guide spotlights prime penny stock opportunities primed to soar past $5 into small-cap territory in 2024 as their innovative businesses flourish.

What Are Penny Stocks

Defined as equities trading below $5 per share, penny stocks generally have market capitalizations below $300 million coupled with lower liquidity and financial reporting transparency than mature blue chips. However, their tiny market caps multiply rapidly around transformative business developments. Penny stocks list over-the-counter on exchanges like OTCQB and OTC Pink but many also call the NYSE and Nasdaq home.

Mitigating Penny Stock Risks

Despite exciting breakout potential, plenty of penny stocks end up worthless, given the heightened execution risks confronting unproven early-stage businesses. Still, diversifying mitigates company-specific failures. Monitoring management execution progress and setting disciplined stop losses around 8-10% protects against fraud or deficiency risks as well.

2024 Macro Backdrop Fueling Penny Stocks

With inflation cooling in 2023, central banks like the Fed cutting interest rates boost economic GDP growth forecasts to 3% by late 2024. Lower rates and improving business spending also lift small-cap indices, fueling penny stock runs. The current penny stock bull market entering its 13th year, still shows legs with these supportive monetary policy tailwinds.

4 Penny Stocks To Watch Heading Into 2024

With markets heating up, penny stocks boast emerging opportunities in key industries, including healthcare and technology. Their groundbreaking innovations and explosive growth set them on a path that is turning heads right now. Whether their small-cap status holds through 2024 or they blossom into mid-cap market leaders is to be seen. For now, we can at least check out recent catalysts at play, which could be taken into account next year. Just keep in mind that just because these “can” be bought for under $5, that doesn’t lessen the risk.

RedHill Biopharma Ltd. (RDHL)

Specialty biopharmaceutical company RedHill Biopharma Ltd., focuses on gastrointestinal and infectious diseases. RedHill promotes gastrointestinal drugs Talicia® and Aemcolo®, and has key late-stage development programs in various areas, including COVID-19 and oncology​​.

This week RedHill stock gained momentum after new headlines surfaced. The company announced that its investigational drugs, opaganib and RHB-107 (upamostat), show a synergistic effect with remdesivir against Ebola. These drugs, taken orally, have previously shown activity against multiple viruses, including COVID-19. The study, funded and conducted by the U.S. Army, revealed that combining these drugs with remdesivir improved viral inhibition while maintaining cell viability.

Why Investors Choose Penny Stocks Over Blue Chips

Reza Fathi, Ph.D., RedHill’s SVP R&D explained, “Opaganib and RHB-107 are both novel, oral, host-directed, small molecule investigational drugs with demonstrated activity against multiple viral targets, including COVID-19, and are expected to be effective against emerging viral variants.”

This news comes a few weeks after RedHill confirmed that it received roughly $4.8 million in additional non-dilutive external funding. It will cover all of a study of RHB-107 for early COVID-19 outpatient treatment, according to the company.

Blink Charging Co. (BLNK)

Electric vehicle (EV) charging equipment and services company Blink has deployed nearly 85,000 charging ports worldwide, many of which are networked EV charging stations. Blink’s primary products and services include the Blink EV charging network, charging equipment, and various acquisitions. The company is expanding its global presence and has recently announced plans to expand operations in the United Kingdom and Ireland​​.

In addition to the spike of interest in EV stocks, BLNK stock news has come back into focus in the stock market before 2024. The company recently announced a partnership with Mack Trucks to provide EV charging infrastructure for Mack’s customers. This collaboration involves Blink’s EV charging equipment, optimized for fleets, under Mack’s Vendor Direct Ship and Turnkey Solutions program.

The program covers all phases of infrastructure development, including site consultations, hardware and software acquisition, permit procurement, installation, and maintenance. Blink’s advanced charging solutions are key to supporting Mack’s electrification efforts, and the company has begun deploying chargers at Volvo and Mack facilities nationwide.​​

Blink Charging’s partnership with Mack Trucks signifies a big step in its expansion strategy, offering potential for growth. However, the company’s financial health and the competitive nature of the EV charging market present challenges. Those with BLNK stock on their watch list may want to weigh the company’s growth prospects against these risks.

In addition, some interest from Ken Griffin has also perked up some attention in the market. Ken Griffin’s Citadel Advisors increased their stake in Blink Charging (BLNK), now holding 610,671 shares. Other major shareholders, including BlackRock, Vanguard, and State Street, also increased their stakes in BLNK stock during the third quarter.

Baytex Energy Corp. (BTE)

This energy company focuses on the acquisition, development, and production of crude oil and natural gas. Baytex operates primarily in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. It engages in the exploration and production of light oil, condensate, heavy oil, natural gas liquids, and natural gas​​​​.

Thanks to the rise in energy prices at the end of the year, oil and gas stocks have come back into focus. Baytex recently issued its outlook report, which has helped it gain attention in the market. In its 2024 budget and five-year outlook, the company placed a focus on free cash flow generation and shareholder returns. The 2024 budget, approved by the Board of Directors, is set at $1.2 to $1.3 billion for exploration and development expenditures, aimed at generating average annual production of 150,000 to 156,000 boe/d.

The company expects to generate about $530 million of free cash flow in 2024 and plans to allocate 50% of this to share buybacks and dividends, with the other 50% to strengthen the balance sheet. The capital program is forecast to generate capital efficiencies of approximately $22,000 per boe/d across the portfolio.

For 2024-2028, Baytex expects to achieve 1%-4% annual production growth, reaching approximately 170,000 boe/d by 2028. The company also purchased insurance coverage to manage litigation risk related to tax reassessments received from the Canada Revenue Agency​​​​​​​​​​.

The company’s focus on production growth and capital efficiency, coupled with a balanced approach to capital allocation, may be encouraging for some. However, investors should also consider the potential risks associated with the tax issue and market volatility in the energy sector.

Bit Digital, Inc. (BTBT)

penny stocks to buy Bit Digital BTBT stock

Crypto prices are back on the move and crypto stocks are in the spotlight again. Bit Digital is among the list of penny stocks to watch, operating in digital assets and AI infrastructure. It’s known for bitcoin mining in the US, Canada, and Iceland. Bit Digital also runs Bit Digital AI, providing cloud-infrastructure services for AI applications​​.

In November 2023, Bit Digital produced 142.7 BTC, a 24% increase from the previous month. In its production update, the company also said that it held 551.8 BTC and 16,064.8 ETH, valued at approximately $20.8 million and $33.0 million, respectively, on November 30, 2023. The BTC equivalent of their digital asset holdings was around 1,465.1 BTC, worth approximately $55.3 million.

Bit Digital further explained that it received a prepayment for the first month from its first customer for the Bit Digital AI business. It anticipates earning between $35 million and $37 million in revenue from this contract in 2024. While Bit Digital shows operational strength and diversification into AI, inherent risks of cryptocurrency market fluctuations and regulatory changes should be considered. The company’s expansion into AI infrastructure offers an avenue for growth, but this sector’s competitiveness and rapid evolution require careful monitoring.

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The post 4 Penny Stocks To Buy For Under $5 appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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February Employment Situation

By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…

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March 9, 2024

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By Paul Gomme and Peter Rupert

The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.

Temporary help services employment continues a steep decline after a sharp post-pandemic rise.

Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.

The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.

The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.

Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.

As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.

Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.

The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.

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Mortgage rates fall as labor market normalizes

Jobless claims show an expanding economy. We will only be in a recession once jobless claims exceed 323,000 on a four-week moving average.

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March 8, 2024

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Everyone was waiting to see if this week’s jobs report would send mortgage rates higher, which is what happened last month. Instead, the 10-year yield had a muted response after the headline number beat estimates, but we have negative job revisions from previous months. The Federal Reserve’s fear of wage growth spiraling out of control hasn’t materialized for over two years now and the unemployment rate ticked up to 3.9%. For now, we can say the labor market isn’t tight anymore, but it’s also not breaking.

The key labor data line in this expansion is the weekly jobless claims report. Jobless claims show an expanding economy that has not lost jobs yet. We will only be in a recession once jobless claims exceed 323,000 on a four-week moving average.

From the Fed: In the week ended March 2, initial claims for unemployment insurance benefits were flat, at 217,000. The four-week moving average declined slightly by 750, to 212,250


Below is an explanation of how we got here with the labor market, which all started during COVID-19.

1. I wrote the COVID-19 recovery model on April 7, 2020, and retired it on Dec. 9, 2020. By that time, the upfront recovery phase was done, and I needed to model out when we would get the jobs lost back.

2. Early in the labor market recovery, when we saw weaker job reports, I doubled and tripled down on my assertion that job openings would get to 10 million in this recovery. Job openings rose as high as to 12 million and are currently over 9 million. Even with the massive miss on a job report in May 2021, I didn’t waver.

Currently, the jobs openings, quit percentage and hires data are below pre-COVID-19 levels, which means the labor market isn’t as tight as it once was, and this is why the employment cost index has been slowing data to move along the quits percentage.  

2-US_Job_Quits_Rate-1-2

3. I wrote that we should get back all the jobs lost to COVID-19 by September of 2022. At the time this would be a speedy labor market recovery, and it happened on schedule, too

Total employment data

4. This is the key one for right now: If COVID-19 hadn’t happened, we would have between 157 million and 159 million jobs today, which would have been in line with the job growth rate in February 2020. Today, we are at 157,808,000. This is important because job growth should be cooling down now. We are more in line with where the labor market should be when averaging 140K-165K monthly. So for now, the fact that we aren’t trending between 140K-165K means we still have a bit more recovery kick left before we get down to those levels. 




From BLS: Total nonfarm payroll employment rose by 275,000 in February, and the unemployment rate increased to 3.9 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in health care, in government, in food services and drinking places, in social assistance, and in transportation and warehousing.

Here are the jobs that were created and lost in the previous month:

IMG_5092

In this jobs report, the unemployment rate for education levels looks like this:

  • Less than a high school diploma: 6.1%
  • High school graduate and no college: 4.2%
  • Some college or associate degree: 3.1%
  • Bachelor’s degree or higher: 2.2%
IMG_5093_320f22

Today’s report has continued the trend of the labor data beating my expectations, only because I am looking for the jobs data to slow down to a level of 140K-165K, which hasn’t happened yet. I wouldn’t categorize the labor market as being tight anymore because of the quits ratio and the hires data in the job openings report. This also shows itself in the employment cost index as well. These are key data lines for the Fed and the reason we are going to see three rate cuts this year.

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Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Last month we though that the January…

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March 8, 2024

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Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Last month we though that the January jobs report was the "most ridiculous in recent history" but, boy, were we wrong because this morning the Biden department of goalseeked propaganda (aka BLS) published the February jobs report, and holy crap was that something else. Even Goebbels would blush. 

What happened? Let's take a closer look.

On the surface, it was (almost) another blockbuster jobs report, certainly one which nobody expected, or rather just one bank out of 76 expected. Starting at the top, the BLS reported that in February the US unexpectedly added 275K jobs, with just one research analyst (from Dai-Ichi Research) expecting a higher number.

Some context: after last month's record 4-sigma beat, today's print was "only" 3 sigma higher than estimates. Needless to say, two multiple sigma beats in a row used to only happen in the USSR... and now in the US, apparently.

Before we go any further, a quick note on what last month we said was "the most ridiculous jobs report in recent history": it appears the BLS read our comments and decided to stop beclowing itself. It did that by slashing last month's ridiculous print by over a third, and revising what was originally reported as a massive 353K beat to just 229K,  a 124K revision, which was the biggest one-month negative revision in two years!

Of course, that does not mean that this month's jobs print won't be revised lower: it will be, and not just that month but every other month until the November election because that's the only tool left in the Biden admin's box: pretend the economic and jobs are strong, then revise them sharply lower the next month, something we pointed out first last summer and which has not failed to disappoint once.

To be fair, not every aspect of the jobs report was stellar (after all, the BLS had to give it some vague credibility). Take the unemployment rate, after flatlining between 3.4% and 3.8% for two years - and thus denying expectations from Sahm's Rule that a recession may have already started - in February the unemployment rate unexpectedly jumped to 3.9%, the highest since February 2022 (with Black unemployment spiking by 0.3% to 5.6%, an indicator which the Biden admin will quickly slam as widespread economic racism or something).

And then there were average hourly earnings, which after surging 0.6% MoM in January (since revised to 0.5%) and spooking markets that wage growth is so hot, the Fed will have no choice but to delay cuts, in February the number tumbled to just 0.1%, the lowest in two years...

... for one simple reason: last month's average wage surge had nothing to do with actual wages, and everything to do with the BLS estimate of hours worked (which is the denominator in the average wage calculation) which last month tumbled to just 34.1 (we were led to believe) the lowest since the covid pandemic...

... but has since been revised higher while the February print rose even more, to 34.3, hence why the latest average wage data was once again a product not of wages going up, but of how long Americans worked in any weekly period, in this case higher from 34.1 to 34.3, an increase which has a major impact on the average calculation.

While the above data points were examples of some latent weakness in the latest report, perhaps meant to give it a sheen of veracity, it was everything else in the report that was a problem starting with the BLS's latest choice of seasonal adjustments (after last month's wholesale revision), which have gone from merely laughable to full clownshow, as the following comparison between the monthly change in BLS and ADP payrolls shows. The trend is clear: the Biden admin numbers are now clearly rising even as the impartial ADP (which directly logs employment numbers at the company level and is far more accurate), shows an accelerating slowdown.

But it's more than just the Biden admin hanging its "success" on seasonal adjustments: when one digs deeper inside the jobs report, all sorts of ugly things emerge... such as the growing unprecedented divergence between the Establishment (payrolls) survey and much more accurate Household (actual employment) survey. To wit, while in January the BLS claims 275K payrolls were added, the Household survey found that the number of actually employed workers dropped for the third straight month (and 4 in the past 5), this time by 184K (from 161.152K to 160.968K).

This means that while the Payrolls series hits new all time highs every month since December 2020 (when according to the BLS the US had its last month of payrolls losses), the level of Employment has not budged in the past year. Worse, as shown in the chart below, such a gaping divergence has opened between the two series in the past 4 years, that the number of Employed workers would need to soar by 9 million (!) to catch up to what Payrolls claims is the employment situation.

There's more: shifting from a quantitative to a qualitative assessment, reveals just how ugly the composition of "new jobs" has been. Consider this: the BLS reports that in February 2024, the US had 132.9 million full-time jobs and 27.9 million part-time jobs. Well, that's great... until you look back one year and find that in February 2023 the US had 133.2 million full-time jobs, or more than it does one year later! And yes, all the job growth since then has been in part-time jobs, which have increased by 921K since February 2023 (from 27.020 million to 27.941 million).

Here is a summary of the labor composition in the past year: all the new jobs have been part-time jobs!

But wait there's even more, because now that the primary season is over and we enter the heart of election season and political talking points will be thrown around left and right, especially in the context of the immigration crisis created intentionally by the Biden administration which is hoping to import millions of new Democratic voters (maybe the US can hold the presidential election in Honduras or Guatemala, after all it is their citizens that will be illegally casting the key votes in November), what we find is that in February, the number of native-born workers tumbled again, sliding by a massive 560K to just 129.807 million. Add to this the December data, and we get a near-record 2.4 million plunge in native-born workers in just the past 3 months (only the covid crash was worse)!

The offset? A record 1.2 million foreign-born (read immigrants, both legal and illegal but mostly illegal) workers added in February!

Said otherwise, not only has all job creation in the past 6 years has been exclusively for foreign-born workers...

Source: St Louis Fed FRED Native Born and Foreign Born

... but there has been zero job-creation for native born workers since June 2018!

This is a huge issue - especially at a time of an illegal alien flood at the southwest border...

... and is about to become a huge political scandal, because once the inevitable recession finally hits, there will be millions of furious unemployed Americans demanding a more accurate explanation for what happened - i.e., the illegal immigration floodgates that were opened by the Biden admin.

Which is also why Biden's handlers will do everything in their power to insure there is no official recession before November... and why after the election is over, all economic hell will finally break loose. Until then, however, expect the jobs numbers to get even more ridiculous.

Tyler Durden Fri, 03/08/2024 - 13:30

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