With the current market volatility, investors can find some of the best low float stocks to invest in. Low float stocks have limited available shares for public trading after accounting for institutional and insider ownership. Because of the low number of available shares for trading, these stocks can be susceptible to significant price changes, thus making them risky investments. It can be hard to find sellers or buyers of these stocks, which causes any actual selling or buying activity to significantly impact the share price.
The current volatility in the equity markets is an indication of expected downturns, so here are some of the best low float stocks to keep an eye on in the meantime.
Best Low Float Stocks to Trade in the Coming Week: ShiftPixy Inc. (NASDAQ:PIXY)
ShiftPixy is a human capital management platform that is focused on transforming employment in the gig economy through the delivery of next-generation mobile tech to assist businesses that have a shift-based workforce. They aim to help them navigate regulatory mandates, as well as connect to the ready-to-hire workforce and reduce administrative burdens. The company has 1.22 million outstanding shares and a stock float of 462,000.
Early this week, the California-based company launched a “Shifter Waitlist” that will enable restaurant employees who were displaced by the COVID-19 pandemic to sign up for available work once business reopens. The company currently serves several restaurant employees in various markets across the US, and the roll-out of the Shifter Waitlist aims to facilitate recovery plans for operators and employees. The ShiftPixy platform uses AI tech and the gig economy concept to offer flexibility to workers and restaurants with open shifts.
Best Low Float Stocks to Trade in the Coming Week: InVivo Therapeutics Holdings Corp (NASDAQ:NVIV)
InVivo Therapeutics is a clinical-stage biomaterial and research biotech company that focuses on the treatment of spinal cord injuries. The company has 1.55 million outstanding shares, and a stock float around 586,000.
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Recently, the company announced the signing of a definitive agreement with some institutional investors for the acquisition and sale of around 1.715 million of its common shares at the price of $1.75 per share. The company will sell the shares in a direct registered offering priced at the current market price and will receive $3 million in proceeds. Similarly, the company will issue unregistered warrants of around 1.715 million common shares to purchase. The warrants have a term of five and a half years, with an exercise price of $1.62 for each share. Net sales of the offering will be used for general corporate operations, business development, and also as working capital.
Best Low Float Stocks to Trade in the Coming Week: Trans World Entertainment (NASDAQ:TWMC)
In the past five weeks, Trans World Entertainment stock has climbed 80%. The stock has 1.82 million total outstanding shares and a stock float of 586,000. Last month, the company announced the securing of more financing for its subsidiary, etailz Inc., from various investors led by Alimco Financing Corporation. In combination with the credit facility announced previously, the subsidiary now has more than $30 million in new financing.
The company also announced board changes, with Jonathan Marcus and Tom Simpson joining the reconstituted company board of directors. Simpson, the founder of etailz, is currently a managing member of the Kick-Start Funds. Marcus is the current Alimco CEO and has more than 30 years of investment experience. Michael Feurer left Trans World as CEO after around six years at the helm of the company.
Best Low Float Stocks to Trade in the Coming Week: Koss Corporation (NASDAQ:KOSS)
Koss Corporation designs, manufactures, and commercializes stereo headsets and related accessories across the globe. The company offers high wireless Bluetooth headsets, high-fidelity headsets, computer headphones, Bluetooth speakers, active noise-canceling headsets, and telecommunication headphones, as well as CD records under Koss Classics label. The company’s stock has 7.41 million outstanding shares, with a stock float of 1.47 million.
Recently, the company released its Q2 results, reporting a 23.1% YoY decline in sales from around $5.411 million to around $4.163 million. Net loss was $215,713, relative to $103,149 reported in Q2 of last year. Basic and diluted loss per share in the quarter was 3 cents per share compared to earnings per share of $0.01 in Q2 2019. Annual sales dipped 14.5% to $9.573 million from around $11.196 million.
Final Thoughts
These four are some of the best low float stocks right now that traders can keep an eye on. But it is important to note that they are risky investments because of their susceptibility to volatile markets.
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