These Penny Stocks On Robinhood Rallied Last Week; Can That Continue Monday?
This coming week has a lot going for it already and it isn’t even Monday yet. For those who like penny stocks, that could be a very good thing. Late last week we saw the US and China seemingly reach a Phase 1 deal in trade talks. However, there’s been no inclination as to what will become of or when we’ll see a “Phase 2” in these talks. U.S. Trade Rep Robert Lighthizer said this last week, which contradicted what was said by President Trump.
The U.S. President explained negotiations would start right away. It also came after the President’s comments that he’s willing to and prefers to wait until after the 2020 election to see a formal U.S./China trade deal conclude. In any case, this has created an incredible climate for volatile trading.
How To Find Penny Stocks On Robinhood
There are plenty of platforms to choose from when it comes to penny stocks. However, one of the most popular, Robinhood, has attracted a younger, more technology-based generation of uses. This has resulted from several things like no trade fees as well as easy means to sell or buy penny stocks.
If you’re familiar with the platform, you already know how easy it can be to find penny stocks on Robinhood. There’s an easy tool that allows you to sort by price among different sectors within the stock market.
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Needless to say, it doesn’t come without some drawbacks. For starters, penny stocks on Robinhood are limited to companies listed on the major U.S. exchanges. This refers to the NASDAQ and NYSE only. If you wanted to buy OTC penny stocks, you’d have an easier time using a penny stock broker like TD Ameritrade or E*TRADE.
Robinhoood, Penny Stocks, & New Developments
Nonetheless, the younger generation likes tech and Robinhood has just recently launched a brand new feature: fractional shares. This suggests to me that users want more access and ways to participate in the market with even the smallest capital. Its some 10 million users are now able to invest in stocks and ETFs with as little as $1 — regardless of the price of a stock. That means instead of buying 1 share of something like Amazon, you can buy $10 worth of Amazon stock.
In theory, this is incredible but let’s face it, even if your $10 of AMZN stock jumped 20%, it would take months for that to happen and the return would be minimal. For that reason, this move definitely opens options for new users but also exposes them to things like penny stocks as well.
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It’s this line of thought that could truly be a gamechanger as far as new volume coming into the market is concerned. So with this in mind, let’s take a look at a few penny stocks on Robinhood that not only made new highs last week but could be on the watch list heading into the new week.
Robinhood Penny Stocks To Watch #4: Acasti Pharma Inc. (ACST)
Biotech penny stocks have been red hot this year. In fact, biotech stocks, in general, have seen a great second half to the year. As 2019 comes to a close, these high volatility stocks continue to capture attention. Acasti Pharma Inc. (ACST Stock Report) is no different. Shares of ACST stock first rallied big during the summer up to highs of $2.95. Considering it was trading under $0.80 in mid-May, this 278% move is nothing to ignore.
Since that time, shares consolidated a bit while trading in a channel between $1.80 and $2.40. But last week, Acasti Pharma saw an aggressive reversal in price following a multi-week downtrend. At the end of November, Acasti announced that the last patient completed the final visit to the company’s Trilogy 1 phase 3 trial of CaPre.
Since topline results are still expected to come out this month, speculation has begun to build. On Friday, shares of ACST scrambled from $1.75 to a close of $2.04 but promptly moved higher in aftermarket trading to $.209. Heading into the week, it’s likely something that the markets will keep an eye on. Phase 3 is a pivotal milestone that comes as a “make it or break it” moment for most biotech stocks.
Robinhood Penny Stocks To Watch #3: Office Depot (ODP)
One of the top stories of 2019 has focused on Office Depot (ODP Stock Report). It’s no secret that brick and mortar retail have taken a back seat to e-commerce. Earnings from the company have reflected this. At one point, ODP stock traded as high as $7.91 over the last 3 years but hit a fresh low of $1.23 this year. Since then, however, Office Depot’s stock has rebounded by more than 100%. Late last week we saw shares spike back above $2.50 for the first time since early November.
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So why the sudden spike in trading action? It’s hard to say because the company hasn’t released any news since last month. Also, no filings have been reported since 11/22. What the company does have going for it was a strong quarterly report. Though earnings just beat estimates, revenues declined compared to the same time last year.
Office Depot still believes it hits full-year sales expectations of $10.8 billion to $10.9 billion. “We made further progress this quarter on our transformation efforts, enhancing our foundation for profitable growth and driving another quarter of strong operating results and free cash flow generation,” said Chief Executive Gerry Smith. As far as next week is concerned, will traders remain bullish on this penny stock come Monday morning?
Robinhood Penny Stocks To Watch #2: NantKWest (NK)
One of the top penny stocks to watch during the last few weeks was NantKWest (NK Stock Report). Since mid-November, shares have soared from around $1.15 to highs of $3.10. This hasn’t come without catalysts. Earlier this month the company announced Phase 1 results for “first-in-human” PD-L1, tumor-targeted natural killer cells in patients with metastatic solid cancers. As I said previously with expected results from a Phase 3 trial with ACST, NantKWest benefited big from reporting promising results.
Since reporting this to the market, NK stock has broken out even further. Gains extended on Friday as the stock hit fresh 52-week highs on its highest trading volume since March. It’s interesting to note that this was one of the penny stocks to watch in March and has been relatively quiet ever since.
Something else to note is that there was a recent Form 4 filed. We’ve covered this topic in the past as insider trading can be its own catalyst suggesting overall sentiment. In the case of NantKWest, however, it showed that company Director John Thomas actually sold shares of NK stock last week.
His average price was $1.9918 but was conducted pursuant to Rule 10b5-1, which is a predetermined trading plan. You’ll see things like this when it comes to management. Even Facebook CEO Mark Zuckerberg has sold shares predetermined by a selling plan and it’s usually not taken as a negative (or a positive) based on that. As for what’s to come this week, we’ll see how the market reacts after last Friday’s impressive performance.
Robinhood Penny Stocks To Watch #1: Matinas Biopharma Holdings Inc. (MTNB)
Last on this list of penny stocks, Matinas Biopharma Holdings Inc. (MTNB Stock Report) was no stranger to readers during the last few months. We’ve reported on the company since October as shares and volume began to record above-average levels on both accounts.
Last week the company extended its move after reporting a feasibility evaluation update. The company entered into this evaluation with Genentech which is a member o the Roche Group (RHHBY Stock Report). The evaluation involves the development of oral formulations that use the company’s lipid nano-crystal platform.
“The interest shown by these companies in applying our platform delivery technology to their compounds is indicative of the emerging importance of drug delivery in the advancement of medicine.”
Jerome D. Jabbour, Chief Executive Officer of Matinas
Based on the momentum from Friday, the market sentiment would suggest that MTNB could be one of the penny stocks to watch in December. The reason has to do with the fact that this news came out Thursday, yet shares ended up breaking out Friday. Without any new developments after the announcement (including SEC filings), it’s something of interest at the very least.
One Penny Stock To Watch Not On Robinhood: Fannie Mae (FNMA)
One of the downsides of using Robinhood for penny stocks is the restriction from OTC penny stocks. While many of these are start-up level organizations, there are other OTC stocks that aren’t. Fannie Mae (FNMA Stock Report) is one of these. Shares of FNMA stock have been on fire this year.
Much of the excitement spurred from comments made that control would be given back to private hands with some government oversight. This is in comparison to the full government oversight in place since the financial crisis began in 2007/2008.
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Let’s start by saying that FNMA stock isn’t accessible on Robinhood. But that’s not to say it isn’t worth watching in general. A look at the organization’s Q4 mortgage lender sentiment survey showed mortgage lending profit margins for the next 3 months remain solid.
“Mortgage lenders’ profit margin outlook remains steady following gains in the first three quarters of 2019. Credit standard trends also continue to hold steady amid the largely unchanged profitability outlook. Lower interest rates, which drove the refinance boom, have been the engine driving mortgage demand growth this year. Lenders’ purchase and refinance demand expectations align with our own forecast: With interest rates stabilizing in 2020, we expect a decline in refinance activity and slightly higher purchase activity.”
Fannie Mae Senior Vice President and Chief Economist Doug Duncan
Further to this, Fannie Mae announced the completion of its 3rd and final multi-tranche Multifamily Credit Insurance Risk Transfer transaction of 2019. This is part of Fannie Mae’s continued efforts to boost the role of private capital in multifamily mortgage markets. Can this remain a positive catalyst for the stock in the week ahead?
