Best Penny Stocks to buy? 3 to watch after MEGL stock hits 5798%
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Since the epic and, now, the collapse of AMDD Digital (NYSE: HKD), the market has been in a frenzy. Finding the next multi-bagger penny stocks to buy is an immediate priority, and we’ve seen the overwhelming influx of sympathy exchanges to support that decision.
Whether it’s low-float stocks, short-term stocks, monkeypox stocks, recent reverse splits, or something else entirely, thematic trading is alive and well. The most recent IPO to go public today is Magic Empire Global Ltd (NASDAQ: MEGL), and it has been magical for some, indeed.
Why MEGL Stock Is Rising
You read the title of this article correctly. MEGL stock has soared nearly 5,800% since its IPO price. What exactly was MEGL’s IPO price, you might ask? A whopping $4 per share is what the company was offering its shares for with a 180-day insider lock. When MEGL stock opened, however, its first impression was $50, and it’s been a snowball move ever since.
The company’s stock price hit a high of $235.95 after less than 260,000 shares were traded. Countless trading stops have made it nearly impossible to see a lasting trend in the market. Either way, the moves are aggressive when he was able to trade.
Why is MEGL stock out of stock today? This mainly concerns speculations on the latest Chinese technology IPO after that of HKD. Magic Empire is a Hong Kong-based financial services company providing corporate finance advisory and underwriting services. The company didn’t report much else. If you look at the initial F-1 filing, the financial data shows that Magic Empire made just over $2 million in total revenue by the end of 2021.
Whether or not the latest breakout in MEGL stock ends in a trail of tears is secondary to the bullish jolt it brought to penny stocks today.
Best Penny Stocks to Buy
The first step to finding the best penny stocks to buy is to make your watchlist. Today we take a look at a handful of names that are benefiting from strong momentum in the stock market today and see what is helping to boost the stock.
- ironSource Ltd. (NYSE:IS)
- Bonso Electronics (NASDAQ:BNSO)
- NuZee Inc. (NASDAQ: NUZE)
ironSource Ltd. (NYSE:IS)
On July 14, we introduced readers to ironSource Ltd through some important enablers. See: 3 Great Penny Stocks to Buy Right Now According to Options Traders. IS shares surged after Unity (NYSE:U) announced a definitive agreement for ironSource to merge with the technology company. One of the appealing aspects of IS to Unity is its business platform targeting mobile content creators looking to turn apps into scalable businesses.
According to the July 14 update, “The companies’ add-on offerings create a single, end-to-end platform that enables creators to create, publish, run, monetize, and develop live games and RT3D content seamlessly. “.
This prompted option traders to set up a position on the September 16 calls to $2.50. Considered a bullish move, IS stock surged and has continued to climb ever since. Not much has been reported since the update; however, options traders took bullish bets even further down the timeline. Friday saw the December $7.50 calls flare up with unusual activity. Before the session, there were only 92 open contracts. This does not compare to the over 4,000 traded during the session.
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If IS stock is on your list, the company will release its results next week. Meanwhile, the deal with Unity is expected to close during Unity’s fourth quarter of 2022.
Bonso Electronics (NASDAQ:BNSO)
Like other low-float penny stocks, shares of Bonso Electronics have soared this week. It’s almost as if traders are browsing the list of names with public floats below 10 million. Friday was the day of arrival on the BNSO stock. Friday’s session saw the penny stock hit highs of $5.99 before closing the week at $4.78.
Additionally, as a Hong Kong tech stock, sympathy sentiment helped provide momentum following the massive explosion in HKD stock. Bonso provides and develops electronic scales, electronic pet devices and weighing instruments.
Not much is announced by the company. However, amid sporadic news, retail traders have so far been following BNSO’s actions. The big question is how the trend will end next week, and will the same sympathy action factor into the trade?
NuZee Inc. (NASDAQ: NUZE)
Do you know the Cuvée Café? If so, Nuzee is not far behind. It is a copacking company for single serve coffee. Although things have been quiet lately, this week ended on a much different note. NUZE stock ended Friday’s session at $1.13, but the real story comes after the closing bell.
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NuZee has filed an 8-K terminating a stock distribution agreement with Maxim Group LLC. According to this agreement, the company could sell $20 million of its shares from time to time. The development has not been officially announced on the news wires (yet). However, if you’re a rank hunter, 8-K means a material event, and traders have focused on that. Meanwhile, NuZee also filed a prospectus to sell up to $100 million worth of shares. The company also said that one of its largest investors, Sooncha Kim, has indicated that he “may choose to purchase additional shares of common stock under this offering. The amount of such investment could represent a significant portion of the securities sold under this offering.”
After publishing these documents, NUZE stock surged in post-trade trading on August 5th.