Are These Cheap Robinhood Penny Stocks Worth The Risk?
There’s a love/hate relationship with Robinhood penny stocks. On the one hand, the app allows for simple order entry without too many technical features. But then you have the other side of the token: slower order fill times, continuous technical issues & the latest, limited access to trades. Thanks to the massive rip that stocks like GameStop and AMC Entertainment saw within the last few weeks, Robinhood and other brokers actually limited the amount you could trade of both stocks and options of certain companies. In this case, we saw at least 50 companies included on Robinhood’s restricted stock list. To the dismay of users, some stocks were only allotted 10 shares or less in certain circumstances.
While many users vowed never to use the platform again, once the dust settled, there were plenty of screenshots floating around on places like Reddit, showing position sizes and win/loss records. Whether or not users will actually find solace in other trading apps like TDAmeritrade, ETrade Pro, or others is yet to be seen. But what we can say is that the overwhelming level of users still on the platform gives rise to those searching for penny stocks to buy.
Cheap Penny Stocks On Robinhood Under $1
There’s a catch, however. It’s not just Robinhood but also other apps like Webull which have this catch. Users are limited to purchasing listed penny stocks. These are not stocks on the OTC but, rather, ones listed on the Nasdaq and NYSE. Are there some exceptions, yes. But the vast majority of penny stocks on Robinhood are ones listed on major exchanges.
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With this in mind, the number of cheap stocks to buy under $1 is limited. The simple reason for this is that exchanges like the NYSE and Nasdaq have minimum bid requirements. Usually, they start at $1. Once a stock dips below this level, they are actually at risk of being delisted. So stocks need to trade over $1. Are all penny stocks on Robinhood trading over $1, though? No, and this is where our list comes into play.
- Almaden Minerals Ltd. (NYSE: AAU)
- United States Antimony Corporation (NYSE: UAMY)
- Castor Maritime Inc. (NASDAQ: CTRM)
- Denison Mines Corp (NYSE: DNN)
Almaden Minerals Ltd.
Maybe you have or haven’t heard the latest gossip about silver. There was a rumor that silver stocks and the metal itself were a focus of Reddit boards this month. While many, including r/WallStreetBets, refuted these reports, it did shine a brighter light on the precious metal. In fact, last week, the price of silver jumped to highs of $30.35. This is a level that silver hasn’t traded at since 2013. Obviously, hype played a big role, and we saw the slow pullback during the days that followed. Some traders, however, found merit in silver. For one, we’ve got inflationary hedges as a key point of focus right now, thanks to continued stimulus measures.
On the other hand, we’ve got the industrial use of silver as a backdrop right now too. The Biden Administration’s push to begin large-scale infrastructure projects could see certain metals being used more than others. Thanks to silver’s multi-faceted application for several industrial uses, silver stocks could become a focus—Almaden Minerals Ltd. mines properties in Canada and Mexico for silver and gold.
The company’s Ixtaca project has recently been in the news as Almaden looks to expand its platform with this project. “We believe the Ixtaca project has many natural advantages which allow it to make a significant net positive contribution to the local and regional area and to define new ground in the realm of sustainable mining,” said Morgan Poliquin, President and CEO. “Our intention moving forward is to seek opportunities to allow for robust dialogue on the nature of these potential contributions and to submit a new MIA which clearly reflects the current priorities in Mexico. In the meantime, we also plan to continue to advance high priority exploration targets identified at the property.”
United States Antimony Corporation
On a different end of the mining spectrum, United States Antimony Corporation has been in the spotlight among electric vehicle discussions. The company mines gold, silver, antimony, and zeolite, among other things. The EV play comes into focus after comments made by GM’s Tim Grewe, head of General Motors’ (NYSE: GM) global electrification and battery systems, suggested potential uses for zeolite include EV batteries. He explained that GM is pushing ahead with zero-cobalt and zero-nickel cells. Grewe said the company is experimenting with electrolyte and zeolite additives “that will extend their service life even more.”
Aside from this, the company recently updated the public on its drill program in Los Juarez, Queretaro, Mexico. Specifically, the company said that “Highly anomalous to ore-grade intercepts merit further study of the system which will require detailed geological, geochemical and geophysical studies.”
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With EV as the main focus, UAMY stock could be something to look at as far as raw materials go. However, from a speculative angle, recent updates on this gold/silver property could also be something that keeps UAMY in the spotlight this week. The company also closed a $10.7 million raise to put to work as well.
Castor Maritime Inc.
One of the restricted activity stocks on Robinhood was Castor Maritime. Due to increased trading volumes, CTRM stock was limited on the app recently. That restriction had been lifted last week, which could’ve been one of the reasons why momentum started to rebuild back in the market. Needless to say, CTRM also has a few fundamental things going on right now that have remained a clear focal point for traders. This has helped spark momentum in the stock since the start of the year.
At the start of January, shares were trading around 19 cents. Since then, the stock has made its way to highs of $0.90 in the last few weeks. The company operates shipping transportation services through its ownership of dry bulk vessels. This past week, Castor announced yet another vessel acquisition.
“We remain committed to our plan of steadily growing our fleet by announcing the acquisition of our second Kamsarmax vessel, shortly after the acquisition of our first one. Upon completion of our recently announced acquisitions, our fleet will consist of nine vessels, tripling in size since last summer.”
Petros Panagiotidis, Chief Executive Officer of Castor
Denison Mines Corp.
Earlier today, we discussed some energy penny stocks to watch. One of the themes of that article had to do with uranium and nuclear power. Traders have recently circulated some insight apparently from B of A discussing 100-year licenses for nuclear plants. Furthermore, the U.S. Senate Committee on Environment and Public Works approved a bill that would increase the U.S. stockpile of uranium. So it makes sense that the supply chain and any companies with exposure to it have caught attention in the market.
Denison has been one of the top alternative energy penny stocks to watch. It mines uranium, and one of the biggest things we’ve pointed out is Denison’s in-situ recovery mining method. This creates a more streamlined process for uranium recovery. Denison has said that in-situ recovery can generate strong output, and it is planning to deploy the strategy at its Tthe Heldeth Tú é deposit.
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At the end of January, the company announced a high-grade uranium mineralization northwest of its Phoenix uranium deposit. “The exploration team is also very interested in the presence of high-grade nickel mineralization along the margins of the uranium mineralization – as this type of zonation presents very similarly to other well-known and sizeable high-grade unconformity uranium deposits,” said Andy Yackulic, P. Geo ., Denison’s Director, Exploration.
