Robinhood is an interesting platform when it comes to penny stocks. Brokerages like ETrade, TD Ameritrade, Interactive Brokers, and Fidelity allow trading of all stocks under $5. But apps like Robinhood and Webull are set up differently. What I’m talking about is the accessibility of certain stocks. Many are restricted. In this case, penny stocks on Robinhood and Webull are only traded on major exchanges.
When it comes to stocks on the OTC, you’re going to be hard-pressed to find stocks to trade. There are some names that are accessible, which are also listed on the OTC. These would include the few stocks that are dually listed on foreign exchanges. However, in this article, we’re going to only be talking about stocks that are also listed on the NASDAQ and NYSE. Furthermore, we’re going to be talking about specific penny stocks under $1.Are These Cheap Stocks Besides Ones On The OTC?
Why point out this price? If you’re a Robinhood or Webull user, for example, cheap stocks like this are more difficult to find. That’s because these major exchanges require their listings to meet certain requirements. One of these requirements is to maintain a minimum bid price. At the low end, this minimum is $1 so it makes sense as to why most penny stocks under $1 aren’t usually listed on major exchanges.
Nevertheless, traders are abuzz at the start of the week this week. There was a big move by a 60 cent stock, Signal Advance, which actually ran to highs of more than $70. It ended up being a case of mistaken identity. But it clearly demonstrated how low priced stocks can return massive gains after moving less than $1. While Signal was one of the OTC penny stocks, here’s a list of names that Robinhood traders have begun looking at. Will they be on your list to buy this week or is the risk a bit too high?Robinhood Penny Stocks To Buy For Under $1
- Exela Technologies Inc. (NASDAQ: XELA)
- Assertio Holdings Inc. (NASDAQ: ASRT)
- Synthetic Biologics Inc. (NYSE: SYN)
- Aeterna Zentaris Inc. (NASDAQ: AEZS)
- Onconova Therapeutics Inc. (NASDAQ: ONTX)
Tech stocks have definitely been a focus for traders over the last year or so. Even after the pandemic sell-off last March, some of the top-performing names were in tech. For the most part, it had to do with the virtual nature that comes with the industry itself. Exela Technologies was no different. In fact, since last March, XELA’s stock price is up considerably.
Exela Technologies offers business process automation or BPA. Its global market in combination with its trademarked technology means that it can continue to build upon its current business model. This includes a customer base of 4,000 businesses across 50 countries. However, the focus on the company has been more on what the future holds than its prior achievements. The company even retained UBS Investment Bank to explore strategic alternatives to build shareholder value. Additionally, Exela secured a $145 million credit facility and retired its existing debt under a previous facility, which brought in more liquidity for its strategic initiatives.
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There haven’t been many new updates on the progress of any of this. However, shares continue rising this year. Monday brought another green day for Exela with shares hitting $0.606 late in the afternoon. With pending strategic options, will these be a key point of speculation for XELA traders?Assertio Holdings Inc.
Another one of the penny stocks that’ve been climbing recently was Assertio Holdings. In fact, since the end of last year, ASRT stock has jumped nearly 80% so far. We discussed this company at the end of the week last week. Specifically, we highlighted the fact that Assertio was restructuring and changing leadership.
Arthur Higgins, Chairman of Assertio, explained, “To adapt to the current market environment and maximize shareholder value, we are refocusing and substantially reducing our operating footprint, which is expected to result in significant cost savings.”
Ultimately, this restructuring plan could decrease the company’s total annual cost base by roughly $45.0 million according to Assertio. Furthermore, the majority of its restructuring milestones are expected to be achieved by the end of this quarter. More details are anticipated to be revealed on the company’s Q4 earnings call.
Something to note right now is in reference to what I was talking about above. Assertio received an extension from Nasdaq to meet its minimum bid price of $1. While there is still plenty of time before the expiration date of that extension, it looks like ASRT stock has preemptively begun heading in that direction. The question now is can that continue in January?Synthetic Biologics Inc.
This year kicked off with a monster move from several penny stocks. Synthetic Biologics was one of them. Traders saw SYN explode from around 40 cents on January 4th to highs of $1.70 the next day. What was the catalyst behind the move? If you recall, there weren’t any headlines to accompany the move. However, speculation had already begun building from late in December.
Last month, Synthetic announced receipt of approval from the Institutional Review Board at Washington University School of Medicine in St. Louis, to begin its Phase 1b/2a clinical trial of SYN-004 (ribaxamase). The trial will focus on allogeneic hematopoietic cell transplant (HCT) recipients. Synthetic said it expected to begin patient enrollment for the Phase 1b/2a clinical trial “in the first quarter of 2021.”
Obviously, we’re in that quarter and since specific timing wasn’t offering, this could be something to keep in mind. Furthermore, institutions have begun taking up positions as well. Custodian Capital recently reported a 9.99% stake in Synthetic Biologics and considering the recent spike in action, there’s likely a reason behind it. Even though SYN stock pulled back during the last few sessions, it goes without saying that it has remained a stock to watch. That’s not only for the institutional movement into the market. It’s also because there’s still an outstanding milestone yet to be seen.Aeterna Zentaris Inc.
If you’re looking for penny stocks to watch that trade below $1, Aeterna Zentaris is likely going to be on that list. Last year, during the 4th quarter, was when much of the attention began focusing on the company. In particular, the company entered into an amendment of its existing license agreement with Novo Nordisk for the development and commercialization of macimorelin. This is Aeterna’s oral test indicated for the diagnosis of adult growth hormone deficiency. In this amendment, Novo Nordisk agreed to make an immediate upfront payment to Aeterna of €5 million. That news helped boost momentum in a big way in November, which has continued into the new year.
Aside from its deal with Novo Nordisk, Aeterna also inked a licensing deal with Consilient Health, Ltd. last month. The focus is on the commercialization of macimorelin in Europe and the United Kingdom. This is based on an upcoming safety and efficacy study, AEZS-130-P02, evaluating macimorelin for the diagnosis of childhood-onset growth hormone deficiency. This Phase 3 Study is expected to be initiated this quarter. SO this is yet another key potential milestone to keep track of.
In light of these developments and the company’s upcoming presentation at H.C. Wainwright’s BioConnect Conference this week, there’s a lot the follow. Right now, however, we’re seeing increased momentum in concert with this week’s Conference. So it will be interesting to see if there is additional information provided as to the outcome of BioConnect in my opinion.Onconova Therapeutics Inc.
Finally, Onconova remains a hot penny stock to watch this week. Shares have now made a move from just $0.26 on November 30th to highs of over $0.70 this week. Last month, Onconova received permission from the FDA to study its drug, ON 123300. This is used for treating certain types of cancer. What could have traders excited right now, or at least speculating on the stock are Steven Fruchtman’s comments in a company update:
“We are advancing the process to secure institutional review board approval, and affirm our expectation that the first patient will be enrolled during the first half of 2021.”
Similar to other names on this list, here we are in Q1 and the first half of the year. No further updates have come up so far. However, this has become a very big point of interest with traders obviously. Institutions have also taken notice. Lincoln Park Capital Fund reported a stake in the company. Considering that a recent financing the company announced was expected to close “on or about January 11,” could this add more excitement for the stock?Are Penny Stocks Worth It?
Something you need to understand is that penny stocks carry a lot of risk. Furthermore, whether you’re using Robinhood, Webull, TD Ameritrade, or others, the lower the price, typically the higher the volatility will be a factor. If you’re not experienced with stocks that encounter big moves quickly, then it may be best to get educated on how to day trade first. In any case, this is a list of penny stocks that can be bought for less than $1. Now it’s up to you to decide if they’re worth it or should be avoided entirely.