3 Cheap Stocks to Buy Under $1 in August 2023
The world of penny stocks is rife with potential pitfalls to avoid. Many firms trading at those prices are manipulated by actors with bad intent. Financial information can be difficult to source, and that which you can find is sometimes difficult to trust. Even if you find a surefire company to purchase, liquidity issues can pose risks for those looking to cash out.
That doesn’t stop investors, however, and it shouldn’t stop you either. The returns can be very high, and for those willing to take the plunge, the risk is often justified. Bearing that in mind, let’s look at a few stocks under $1 to buy that fit the bill.
Affimed (AFMD)
Source: Billion Photos / Shutterstock
Affimed (NASDAQ:AFMD) is a clinical-stage biopharmaceutical firm focused on developing cancer immunotherapies in the United States and Europe. Its stock trades for 60 cents but is valued at $6.46, using an exchange rate of 1.10 USD to 1 EUR.
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Usually, biotech firms trading at that level tend to lack a well-developed pipeline of therapeutics. However, that isn’t the case with Affimed. One of its lead candidate drugs, AFM13, has completed its Phase 2 clinical trial for its effectiveness in targeting CD30-positive lymphoma or transformed mycosis fungoides. The company also boasts multiple other therapeutic candidates progressing through clinical trials. The AFM24 drug is undergoing a Phase 2a trial for efficacy in treating advanced cancers.
The firm has developed partnerships within its pipeline, seen here, that set it up to grow rapidly in the future. What is particularly impressive about AFMD stock is the degree to which its candidate drugs have progressed through trials while the stock trades well below $1.
Ostin Technology Group (OST)
Ostin Technology Group (NASDAQ:OST) is inherently risky due to several factors. For one, it’s a relatively small, unknown firm in China. That makes information on the company somewhat susceptible to manipulation and verification difficult.
The other issue with Ostin Technology, a maker of display modules, is that it is contracting. Sales declined by 37% to $105.4 million for the year ended September 30, 2022. The fact that investors only have information as recent as nine months ago is another risk factor to take into consideration. There are clearly a lot of unknowns related to Ostin Technology Group.
Here’s the kicker: Even after its contraction in fiscal year 2022, the firm continued to eke out a meager net income of $112K. Those earnings make it attractive for the simple fact that it wasn’t losing money based on the most recent information that we have. That arguably makes it worth the risk the unknowns pose.
Sigma Additive Solutions (SASI)
Source: shutterstock.com/Alex_Traksel
Sigma Additive Solutions (NASDAQ:SASI) is a very small 3D printing firm and stock offering investors a substantial upside.
During the first quarter, Sigma Additive Solutions’ sales totaled $130,159, up from $51,844 the year prior during the same timeframe. Losses narrowed to $1.8 million from $2.2 million year-over-year. That’s really all investors need to know from a fundamental perspective. The positive here is that the firm more than doubled its sales. Losses remain large relative to its revenue base. It’s difficult to put it any other way. However, I’d argue it doesn’t matter.
Sigma Additive Solutions is going to pop up when investors search for cheap 3D printing stocks. Interest in the sector has ebbed and flowed over the past few years as firms grapple with profitability and finding in-demand products.
Demand will continue to ebb and flow, and that’s why SASI stock makes sense. Investors can purchase it for $0.23 and simply sit on it. All that’s necessary is paying attention to the 3D printing market and selling when it makes sense.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Alex Sirois did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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