The first half of 2022 for the stock market was the worst since 1970. Consequently, investors are forced to re-evaluate their portfolios and discard risky assets. Therefore, the topic of which penny stocks to sell is highly pertinent at this point.

Many would consider the current market situation an incredible opportunity to load up on high-quality penny stocks. Adding them to your portfolio might significantly increase its upside potential.

However, there’s a flip side to that scenario. There might be plenty of those penny stocks you picked up out of greed and probably should’ve avoided.

Here are seven penny stocks to sell before they fall to zero and those you should discard.

IBIO	iBio	$0.28
SOLO	ElectraMeccanica	$1.43
NBEV	NewAge	$0.15
EXPR	Express	$1.40
TMC	TMC Metals	$0.98
HYZN	Hyzon Motors	$1.99
EOSE	Eos Energy Enterprises	$1.88

iBio (IBIO)

iBio (NYSEAMERICAN:IBIO) is among the more obscure biotechs that burst onto the scene during the pandemic.

It came to the fore early in the vaccine race when it announced two candidates in IBIO-200 and IBIO-201. Consequently, its shares shot to the moon.

However, after failing to deliver on its promises, IBIO stock tanked by over 78% in the past year.

Fast forward to 2022, with the pandemic in the rear-view mirror, iBio’s vaccine candidates still haven’t hit the markets, making it among the medical penny stocks to sell now.

It recently reported its third-quarter results, generating almost the entirety of its sales from royalties. It seems to be going nowhere with its future long-term plans as a biotech, with most of its pipeline in the early development stages. This is a stock that will likely be worth nothing in the future.

ElectraMeccanica (SOLO)

ElectraMeccanica (NASDAQ:SOLO) is a Canadian electric vehicle (EV) producer that is looking to commercialize its three-wheeled approach.

Four-wheeled cars are ubiquitous in the global automotive space; however, SOLO aims to change that and carve out a niche of its own.

It not only has to convince customers to buy an EV and buy it in a form that is completely new to them. The chances of that happening on a wide scale seem unlikely, making it one of the EV penny stocks to sell while you can.

SOLO has some lofty plans to scale production fast and potentially produce 20,000 of its cars each year. However, investors don’t seem to be buying into its plans for now, as the stock shed over 50% of its value in the past 12 months.

Scaling production is no easy task, especially with just its relatively small cash balance.

NewAge (NBEV)

NewAge (NASDAQ:NBEV) is a developer, marketer and distributor of healthy products in the U.S. and other parts of the world.

It became popular over the years for its CBD-infused beverages. However, the business recently filed for bankruptcy protection after failing to meet its debt obligations. It plans to pursue the sale of its business through a court-supervised auction.

One of its bidders has offered just $28 million to pick it up, an insufficient amount needed for recovery for stockholders.

NBEV has been burning through heaps of cash, and it’s unlikely to see any higher bids appear in the upcoming auction process. It lacks a viable long-term business model, with an inability to generate profits.

Its equity holders are doomed, and it may be best to liquidate holdings before they go to zero.

Express (EXPR)

Express (NYSE:EXPR) has been a meme stock in the past couple of years.

The high-end apparel retailer saw a healthy bump in sales during the pandemic with the rampant increase in online buying.

With the economy down in the doldrums and post-pandemic headwinds in play, it’s tough to see a recovery in sight. EXPR finances its operations primarily through debt, with roughly $849 million in total debt and just $37.7 million in cash.

In the current market scenario, there is little wiggle room for it to mount a comeback. The leveraged retailer markets to people with high disposable income within the 18-30 age brackets.

Discretionary buying has slowed down, and Express is unlikely to thrive in the current scenario making it among the clothing penny stocks to sell while you can.

TMC Metals (TMC)

TMC Metals (NASDAQ:TMC) is a Canadian small-cap mining concern that became public via the SPAC craze been destroying shareholder value ever since it went public.

The company has big plans to explore nickel, cobalt, copper and other metals to collect, process and refine nodules found on the seafloor. Given the proliferation of EV production, it has some tailwinds for future production for the EV manufacturing process.

The company has recently raised funds to beef up its cash position before its test campaign. Moreover, it will test whether nodule extraction is feasible on a commercial scale.

Nonetheless, the execution of commercial operations is up in the air, with International Seabed Authority not giving much approval.

Hyzon Motors (HYZN)

Shares of fuel cell electric vehicle producer Hyzon Motors (NASDAQ:HYZN) were taken to the cleaners last year after being hit by fraud allegations from short-sellers.

The disclosures that followed lend plenty of credibility to those reports. The firm has withdrawn all financial and operational guidance. Moreover, its operations in Europe require restructuring, and its board has hired third-party consultants to assess its global strategies and operations.

Hyzon’s reported financials and outlined strategy has essentially become null and void.

Its long-term strategies are unclear, while its stock continues to be in free fall. Hence, with claims essentially a sham, there’s hardly any incentive to invest in it.

Eos Energy Enterprises (EOSE)

Eos Energy Enterprises (NASDAQ:EOSE) aims to become a utility-scale battery producer with its smart Zinc-ion-based platform. It’s experienced its fair share of swings in its stock price, but with the current risk-off environment, its stock has shed over 80% of its value.

The key issue with the business is its inability to limit costs, as rampant cost increases across the board offset any meaningful bump in sales.

In the past few quarters, its operational costs have risen by double-digit margins while its business structure and ability to commercialize batteries remain challenging. Moreover, it doesn’t have the cash to back up its growing cost base.

Eos received $100 million from Koch industries, but that money has evaporated already. It’s now running on hardly $16 million in cash. Therefore, its outlook remains mighty bleak at this time.

On the date of publication, Muslim Farooque did not have (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.