so i've been looking at some of these stocks under 1 dollar lately and honestly it's wild how many people are chasing these things. like, i get the appeal - you put in a few hundred bucks and if it pops you're suddenly up big. but the reality is way messier than that.

i looked into seven of them that are actually trading under a dollar right now. there's velodyne lidar which does autonomous vehicle tech - cool sector but the company's revenue was down 15% in 2022 and they're still bleeding cash. then you've got patriot one technologies working on ai threat detection, but they barely made any revenue. u.s. well services is in the fracking space which got interesting after ukraine happened, but the stock tanked 45% this year.

here's what nobody talks about with stocks under 1 dollar - the liquidity is absolutely brutal. good luck selling when you want to. plus the sec literally uncovered a $194 million scam in this space across three continents. so yeah, these aren't just risky, they're actively hunted by bad actors.

then there's the legitimate ones like lake resources digging for lithium in argentina for evs, or abraxas petroleum betting on oil prices staying high. both under a dollar but both could easily go to zero. lake hasn't made any revenue yet. abraxas has a market cap of like $7.85 million - that's basically nothing.

i'm not saying don't look at stocks under 1 dollar but please go in with your eyes open. this isn't investing, it's basically gambling. the sec themselves say penny stocks are where scams happen. if you're gonna do it, only use money you can actually afford to lose completely. and honestly? most people shouldn't touch this stuff at all.