Penny Stocks That Can Be Bought For Under $4 Right Now; Are They On Your List?
Whether you’re looking for penny stocks to buy or just names to add to your watchlist, the weekend is one of the best times to put in work. The markets aren’t open and it gives you time to digest all of the news from the past few days. It also allows you to do a bit more research on which names will initially be on your watchlist Monday morning. When it comes to stocks under $5, the name of the game is weighing risk and reward.
Obviously the cheaper the stock, the less it needs to move in order to see significant percentage gains. A $1 stock needs to move $0.20 to see a 20% move. Yet when it comes to a $0.20, it only needs to jump 4 cents to record the same percentage change. It sounds like a no brainer to focus on cheaper stocks. But you’ve also got to consider share structure as well as what type of financial situation a company’s in.
How To Find Top Penny Stocks
Does a company have millions of shares outstanding and hundreds of millions of dollars in debt on the book? In that case, a 4 cent move may not come as quickly as you think. Then again, a company with only a few million shares outstanding and lower levels of debt could see a $1 stock jump 20 cents or more within a matter of hours; sometimes minutes. So when you talk about risk/reward, not only do you need to weigh the industry, but also the individual penny stocks as well.
Another good rule of thumb, check out penny stock charts after you look into fundamentals. Start with the last day’s trading action and “look to the left”. All that means is we want to analyze what has happened in the past few weeks or even months. Being able to determine levels of historic support and resistance can also give you a general understanding of potential areas where traders bought or sold a higher number of shares.
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If you’re interested in how to read penny stock charts, you can download our free eBook or check out articles like this. Whether you’re trading penny stocks on Robinhood, WeBull, or other brokers, these can all be bought for under $4 right now. In any case, going into the new week, some of these penny stocks could be on a few watch lists right now. Are any on yours this week?
Penny Stocks On Robinhood & WeBull To Watch: Polar Power Inc.
At the end of June, Polar Power Inc. (POLA Stock Report) was one of the top penny stocks to watch. We saw POLA stock jump from under $2 to nearly $5 within a single day. Considering that the day previous to that, shares were trading under $1.50, it was a meaningful move to take into account. The main driver behind the penny stock’s move was its latest filing. While there was no announcement made by the company, Polar Power reported quarterly results that could be found by reading the company’s filing data.
During the first quarter of 2020, the company increased revenues by 226% as compared to the fourth quarter of 2019. It also reduced its workforce to levels that match corresponding labor hour requirements. During the same period, Polar Power also reduced inventory. Something we were adamant about is being cautious with POLA stock and for good reason. On a “good day” it maybe traded 100,000 shares leading up to June 30th. That day it traded more than 146 million shares.
“With less than 15 million shares outstanding, this could see volatile swings…As we’ve seen with different breakout penny stocks and low floats, eager traders feeling the ‘FOMO’ can quickly turn into bag holders.”
As we saw, POLA stock eded up, in fact, consolidating over the next few days. However, it has held trading levels much higher than it did earlier in 2020. Since dipping to $2.35, POLA stock has climbed back above $3.50. After the market closed on Friday, shares jumped from a regular hours closing price of $3.33 to $3.60 by the time after-hours trading finished the week.
Penny Stocks On Robinhood & WeBull To Watch: Xeris Pharmaceuticals
Xeris Pharmaceuticals (XERS Stock Report) was another one of the penny stocks we started watching at the start of the third quarter. Heading into the start of Q3 the penny stock had slowly started to creep back after its late-June drop. On July 1, shares closed at $2.73 and the company made its first announcement of the quarter. Xeris reported that its Gvoke HypoPen would be available in the U.S. to treat severe hypoglycemia.
Believe it or not, access to affordable diabetes treatments has been a growing issue. According to Xeris, for a limited time, it’s offering eligible commercially insured patients may pay as little as $0 for a two-pack of Gvoke HypoPen by using the Gvoke® copay savings card. After that update, XERS stock traded relatively sideways but with much higher daily average trading volumes.
Going into the new weeks, XERS stock could be one to watch after key developments last week. You won’t find any news or “rumors” but you will find something interesting in the filings. On July 10th a 13G filing showed a well-known institution bought shares of XERS stock. Specifically, Soros Fund Management LLC reported a 5.26% passive stake in the company.
Founder, George Soros has become one of the most well-known names in the stock market today for his list of successful investments. Shares gapped up after hours on Friday to highs of $3.19 marking a move of about 17% since its July 1st closing price. Will this remain a key point of focus for XERS stock this week?
Penny Stocks On Robinhood & WeBull To Watch: Jaguar Health Inc.
Currently, more than 13,000 accounts on Robinhood hold shares of Jaguar Health Inc. (JAGX Stock Report). We started watching JAGX stock back in May after the company announced it submitted a regulatory filing to the U.S. FDA. Furthermore, on May 27, 2020, Napo Pharmaceuticals, the Company’s wholly-owned subsidiary, received notification from the National Institute of Allergy and Infectious Diseases that Napo’s request for testing crofelemer was approved. Furthermore, crofelemer would then be tested against five different viruses, one of which is SARS-CoV-2.
This month, Napo completed the filing of the investigational new drug application with the U.S. FDA for crofelemer (Mytesi®) for the planned indication of prophylaxis and symptomatic relief of diarrhea in adult patients with solid tumors receiving targeted therapy with or without standard chemotherapy.
Aside from these latest updates, JAGX has simply gained attention after a surge of trading volume sparked more momentum late last week. On Friday, the penny stock traded its second highest, single-day share volume this year. By the close of business on July 10th, JAGX traded more than 23.7 million shares. The stock also tested levels above its 200-Day Moving Average for the first time in over a year. For the most part, its 50-Day Moving Average acted as resistance. But recently, it appears to act as a level of support. After last week’s action, will JAGX stock continue higher or will it put on the breaks at its 200 DMA?
Penny Stocks On Robinhood & WeBull To Watch: Heat Biologics
A familiar face to a list of penny stocks to watch, Heat Biologics (HTBX Stock Report) continued higher on Friday. Ever since late February, HTBX stock has been in a generally bullish trend with the 50 Day Moving average acting as lower support since the start of April.
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The initial move came just as March was beginning. Following those 52-week lows, HTBX exploded to highs of $1.25 after entering a research collaboration with UM leveraging Heat’s gp96 platform to address SARS-CoV-2 coronavirus. Fast-forward to June and Heat shares continue to climb higher. Last month, Heat announced the initiation of its first clinical trial site for PTX-35. This is the company’s antibody T-cell co-stimulator. It targets what is known as TNFRSF25 (death receptor 3), which is a receptor that is preferentially expressed by antigen-experienced T cells.
Almost immediately after that news came out, Heat announced another key update. The company announced that the first patient was treated in its first-in-human Phase 1 clinical trial evaluating PTX-35. This first-in-human study is expected to enroll up to 30 patients with advanced solid tumors refractory to standard of care, according to the company. The trial is also supported by a $15.2 million grant from the Cancer Prevention and Research Institute of Texas. With volume continuing to see above-average levels, will July have more bullish momentum in store?