Trading in the US penny stocks has dropped severely in the past three quarters when it was at a peak. 2021 was a great year for such unlisted stocks when investors speculated more but later the regulators had to crackdown due to potential fraud in penny stocks.
Some of the US penny stocks which performed at a surprisingly high level in 2021 include American Resources Corporation, Seanergy Maritime Holdings Corp., Professional Diversity, Rolls-Royce and TFH Holdings.
However, all the penny stocks are not trading lower than before. Ardelyx Inc., Veon Ltd., Farmmi Inc. and ToughBuilt Industries Inc. are a couple of such stocks which may offer good returns in 2022 even though most over-the-counter stocks are losing value.
Ardelyx has caught a nice boost recently. The company deals in drugs for diseases like chronic kidney and hyperkalemia. Its ZPHOZAH for treating hyperphosphatemia is under development. After the mixed earnings, it boosted its target from $1 to $5.
Farmmi is one of the most popular stocks under $1 that has appealed to retail traders. About 20 to 30 million shares are traded every day and the figure has been consistent since February 2021. The agriculture supply company lately announced a new US product order for dried sliced Shitake mushrooms and to be exported to New York. According to CEO Yefang Zhang, the company is optimistic with its growth strategy and there is more room in the US market.
ToughBuilt Industries Inc. has a focus on a big niche even though it is low priced. It deals in tools and accessories for construction industries. The products are basically do-it-yourself. Amazon's online marketplace is like a blessing to it and the same has been revealed by the company's CEO Michael Panosian.
There are certain things to note while trading penny stocks when the trading volume has slashed down significantly in the US market lately. One of the important factors is to keep a close look at the news and press releases. Most companies update the public through PR wires about their upcoming events or recent developments.
The second factor is the corporate filings for the events of companies. Next, it is important to take a look at the upcoming earnings. It makes it easy to understand whether the market may go up or down. Moreover, social sentiment is significant. It plays an important role. Rumors are sometimes created by the companies to get the market favorable. It is not easy to understand whether the public sentiment is based on rumors. In fact, false rumors could have been the reason for the recent drop in penny stocks trading in the US.