There are speculative ideas and then there are penny stocks under $1. Outside of forex trading or high-risk options trades, it generally doesn’t get much more treacherous than this space. So, you need to be careful.

I need to provide disclosures about the extreme risks associated with this investment category. My best advice is for you to watch YouTube videos of the biggest trading “fails,” to use the popular lexicon. Watching the agony of others losing their lifesavings may be a case of schadenfreude. However, it should also serve as a warning.

If you’re still okay with the idea of wildly unpredictable volatility, then go ahead and check out these penny stocks under $1. But don’t say I didn’t warn you of the dangers because I did.

Knightscope (KSCP)

One of the most intriguing ideas for penny stocks under $1, Knightscope (NASDAQ:KSCP) designs, develops and deploys autonomous security robots (ASRs). Per its public profile, these ASRs roam a geo-fenced area autonomously by utilizing numerous sensors and lasers. It’s able to monitor in a non-threatening way defined areas and facilities. As a non-human frontline security presence, it could also be a lifesaver for law enforcement officers.

To be fair, Knightscope is an extremely speculative idea. Per Gurufocus, the company suffers from six red flags, including poor financial strength and a negative Altman Z-Score indicating significant distress. There’s no way around it – investors would be speculating on its forward narrative.

Still, covering experts believe that Knightscope can generate revenue of $15.9 million for the current fiscal year. That doesn’t sound like much. However, last year, the company only posted sales of $12.8 million. Further, fiscal 2025 revenue could rise to $19.1 million.

While its price-to-sales (PS) ratio is elevated at 2.37X, when factoring in the double-digit top-line growth rate, KSCP could be an enticing example of penny stocks under $1.

Viracta Therapeutics (VIRX)

Based in Cardiff, California, Viracta Therapeutics (NASDAQ:VIRX) is a clinical-stage precision oncology company. It focuses on the treatment and prevention of virus-associated cancers that impact patients worldwide. Per its corporate profile, Viracta’s lead product candidate is Nana-val, which is undergoing various clinical trials for the treatment of multiple subtypes of lymphoma.

Fundamentally, VIRX represents another narrative play. Currently, the company does not generate any revenue. Further, Viracta only features modest financial stability, with a cash-to-debt ratio of 2.1X. That’s well off the sector median value of 6.54X. However, analysts believe in the therapeutic potential, which has helped VIRX to a nearly 36% return year-to-date.

For fiscal 2024, analysts project a loss per share of $1.16, a modest improvement from last year’s loss of $1.32. In fiscal 2025, they’re calling for a loss of $1.12 per share. However, that’s not the star attraction. Rather, the company may hit revenue of $2.33 million. Also, the most optimistic target calls for $7 million.

If the company accomplishes its directive, it could be massive for VIRX. Therefore, it’s one of the speculative penny stocks under $1 to consider.

Clene (CLNN)

Headquartered in Salt Lake City, Utah, Clene (NASDAQ:CLNN) is a clinical-stage pharmaceutical firm focused on the discovery, development and commercialization of novel clean-surfaced nanotechnology (CSN) therapeutics. It features multiple therapeutics in various stages of clinical trials, targeting diseases and conditions such as amyotrophic lateral sclerosis (ALS) and Parkinson’s diseases.

Like other speculative penny stocks under $1, conservative investors won’t get the warm and fuzzies over Clene. Per Gurufocus, the company suffers from eight red flags. They include the issuance of new debt and a declining revenue per share. To be fair, analysts anticipate a nothing burger for fiscal 2024k, with revenue landing at $440,000. Last year, the company posted sales of $654,000.

However, circumstances could change dramatically in fiscal 2025. That’s when sales on average could fly up to $5.46 million. Not only that, the high-side target hits $26 million. The company would also see improvements on the bottom line, with a projected loss per share of 28 cents in fiscal 2025. In 2023, Clene incurred a loss of 47 cents per share.

Again, it’s high risk but it could also be one of the penny stocks under $1 that could blossom.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Josh Enomoto 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.