The phenomenon that has now become known as “short squeeze penny stocks” has taken the retail trading world by storm. Heading into the final month of the third quarter, the focus on these high-risk, high-volatility stocks has become obvious. When you’ve got stocks of companies like Sphere 3D (NASDAQ:ANY) skyrocketing over 550% since the start of the year, people are bound to notice.
That’s what we’ve seen happen in 2021. Right now ANY stock has traded as high as $9.49 per share during the September 2nd morning session. But at the start of the year, it was just another one of the penny stocks on the watch list sitting under $2.
A wild mix of crypto-industry-related headlines, speculation, and a surge of interest in ANY as a potential short-squeeze stock culminated into an epic breakout this year. If you’re an active trader, I don’t need to give you the play-by-play at this point. However, if you’re brand new to this story, check out some of our recent commentary on ANY stock here.
Now, the “cat’s outta the bag” so to speak. Traders are seeking out data on short interest, float, and other share structure information to base new trade ideas on. So, we decided to take a closer look at some companies that report a higher level of short interest and/or lower public floats.Hot Penny Stocks To Watch Right Now
- Meta Materials Inc. (NASDAQ:MMAT)
- Senseonics Holdings (NYSE:SENS)
- Liquid Media Group (NASDAQ:YVR)
- Molecular Data Inc. (NASDAQ:MKD)
- Data Storage Corporation (NASDAQ:DTST)
Shares of Meta Materials have been on fire for the last few weeks. Following the completion of its acquisition of Torchlight earlier in the year, the focus has been on how the company aims to execute on a business plan that has been a hot topic since before the merger deal was formalized. Fast-forward and now Meta Materials is looking to expand its reach in the green energy/ESG ecosystem. It’s also broadening its technology offerings.
Meta’s latest acquisition target, Nanotech Security Corp., is in the middle of the company’s next potential roll-up valued at just under C$91 million. The deal is expected to boost Meta’s commercialization strategy. In particular, it brings Nanotech’s electron beam lithography equipment anticipated to decrease production costs noticeably. “Nanotech also adds complementary skill sets which can support META’s markets, accelerating our commercialization plans in verticals such as solar energy, 5G and other antennas, battery and fuel cells, and carbon capture,” said George Palikaras, META’s President and CEO.
The move comes as Meta reported strong earnings. This included nearly 200% revenue growth in the second quarter. Furthermore, with so much selling pressure in MMAT stock over the last few months, some are looking at it as potential “short squeeze stock.” We’ll have to see how things unfold moving forward but for now, it continues testing the upper levels of the penny stock range.2. Senseonics Holdings, Inc. (NYSE:SENS)
Another one of the penny stocks we’ve discussed plenty of times throughout the year is Senseonics. The company specializes in medical diagnostic devices. Specifically, it develops long-term implantable continuous glucose monitoring systems (CGMs) for those with diabetes.
No recent headlines have come out to support the momentum in the stock. However, since reporting strong earnings earlier this quarter, traders appear optimistic on the future of SENS stock. “In the second quarter we made progress driving increased patient and provider awareness of Eversense through a targeted direct-to-consumer digital advertising campaign and presentations of the PROMISE Study, an evaluation of our 180-day sensor, at the ADA and ATTD conferences,” said Tim Goodnow, Ph.D., President and Chief Executive Officer of Senseonics.
Looking ahead, the company submitted the data to the FDA. There is an active review for the company’s Eversense 180-day PMA supplement application. What’s more, Senseonics continues to expect that global net revenue to Senseonics for the full year 2021 will be in the range of $12.0 million to $15.0 million.
As far as the share structure goes, this isn’t one of the “low float penny stocks” to watch. However, recent data suggests that there is higher short interest in the stock. Short float information sourced as of this article shows it sitting around 22%.3. Liquid Media Group (NASDAQ:YVR)
On the flip side of SENS stock, Liquid Media doesn’t have a massive short float percentage based on recent data. But it does show an outstanding share count of under 13.6 million. By most accounts, this is considered on the lower end of shares in the public float. Originally brought to attention for its media business, YVR stock has gotten wrapped into the NFT category.
Earlier this year, the company signed a development deal with CurrencyWorks to develop NFTainment.io. The goal was to release “Red Carpet” NFTs with pre-releases. But to be honest, the last few headlines have emphasized the company’s move to beef up its entertainment and “edutainment” platforms. Last month, the company signed a letter of intent to buy a video content management company, Digital Cinema. This week Liquid Media announced a definitive agreement to purchase iNDIEFLIX in an all-stock deal.
This latest acquisition is expected to be completed in the “coming days” and buttons up a deal that was originally announced in May. “This is an important acquisition for Liquid and our business solution engine as we work to support independent creative professionals and IP owners in monetizing their content,” said Ronald Thomson, CEO of Liquid.
With a lower float, news, and momentum as a tailwind, YVR stock could be one to watch amid this latest trend in retail trading.4. Molecular Data Inc. (NASDAQ:MKD)
We’ve discussed Molecular Data a bit more frequently lately. That’s because of the transition the company seems to have made from traditional logistics technology and into the world of blockchain. It is neither a “low float” or a “high short” stock. However, given the similar industry in comparison to companies like Sphere 3D, it may be one to watch. As one of the penny stocks on Robinhood under $1 right now volatility has played a large role. As you’ll see, 2021 has been a tough one for the stock, in general. However, the latest round of headlines seems to have sparked some additional interest in the market.
Earlier this quarter, the company announced a partnership with Wanxiang Blockchain. The focus is digitizing the chemical industry as a whole. Addressing things like supply chain bottlenecks, enhanced eCommerce, and the like, The two plan to establish a digital platform build on the blockchain.
This week, Molecular Data announced a partnership with an investment firm to establish blockchain data centers. The company’s press release was vague and didn’t say which US investment firm. Nor were there any other details revealed other than “The partnership will address bottlenecks in the Chemical space and establish commercial-scale Blockchain data centres in America.”
So take this for what it’s worth. Vague headlines have been a big source of speculation and higher risk. But in light of ANY stock breaking out, some blockchain stocks could be seeing sympathy sentiment in the short term.5. Data Storage Corporation (NASDAQ:DTST)
Shares of Data Storage Corporation were on the move early Thursday morning. That’s thanks, in part, to the company’s latest headlines. The company announced a managed services model partnership with Precisely. They are a data integrity software business and the deal aims to bring security software solutions to the Data Storage cloud.
Data Storage specializes in business services ranging from disaster recovery protection as well as cloud infrastructure services.
“The addition of Precisely’s expanded solutions within a cloud environment allows us to offer an even more robust and full-featured, monthly subscription-based offering that addresses the most common IT security exposure issues, including ransomware,” stated Chuck Paolillo, Data Storage’s CTO. “Through a no-cost risk assessment and associated reports, we can pinpoint challenges and immediately remediate any issues that are discovered.”
Furthermore, DTST stock is also one of the lowest float names on the list of penny stocks. Outstanding share count on the DTST stock profile page shows the stock has less than 7 million out. Considering the public float will never be larger than the OS, DTST is in the low float category. The biggest thing to understand now is that volatility can play an active role in driving directional momentum in the stock market today.Are Penny Stocks On Your Watch List Today?
Whether we’re talking about low float penny stocks, short squeeze stocks, or momentum trades, these cheap stocks are red hot right now. Clearly, some are seeing record returns in very short periods of time. If you’re looking for penny stocks to buy right now, understanding how to trade is the first line in the sand to cross over. Have a plan and strategy before jumping into any trade. The gains are great but losses can happen just as quickly.More Short Squeeze/Low Float Penny Stocks To Watch