Are These Robinhood Penny Stocks A Buy Right Now?
Robinhood has become the go-to for millions of new traders this week and penny stocks are their focus. While there’s growing interest in trading with ETrade, Schwab, and TD Ameritrade growing their user-bases, Robinhood has experienced a large jump in new clients this year.
Just to put things into perspective, the numbers are eye-opening. In May, Robinhood said it had 13 million accounts. This was up from 10 million at the end of 2019. ETrade reported 5.5 million and Schwab said it had 12.7 million brokerage accounts in its latest filing.
The ease of sign-up and access via a mobile-first platform, has made it simple for customers to open an account. Outside of that, however, Robinhood has had its fair share of issues. Many of these issues had to do with technical operations of the platform. Its website has dropped connection or gone down quite often. Despite this, there are, in fact millions of traders on the app searching for penny stocks to buy.
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But all problems aside, there are a few features that give insight into the supply and demand of certain company stocks. One of these features is the “People Own” function. Across all blue-chip and penny stocks on Robinhood, the app gives information on how many user accounts hold shares. Plotting this information can help find out where interest is heading toward or moving away from. In August, we’ve started to see several Robinhood penny stocks surge in new user interest. Does it mean it’s time to start watching?
Penny Stocks On Robinhood To Watch: Jaguar Health Inc.
Jaguar Health Inc. (JAGX Stock Report) has been one of the penny stocks to watch off and on this year. For the most part, JAGX stock has been more of a sideways trade up until the third quarter. Between the end of March and the beginning of July, JAGX couldn’t break above $0.70 nor below $0.40. However, in July and August, Jaguar Health began trading higher and with above-average volume. Furthermore, during that time, traders on Robinhood holding shares grew from around 9,000 to over 13,000 this week.
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.
Fast-forward to this week and JAGX stock is trading much higher. It’s also finally managed to break and hold above $0.70. What’s more, is that Jaguar announced the activation of the investigational new drug (IND) application filed by Napo with the U.S. DA. This was for the use of crofelemer (Mytesi®) for prophylaxis and symptomatic relief of diarrhea in adult patients with solid tumors receiving targeted therapy with or without standard chemotherapy. According to the company, IND activation is an important milestone for Napo to initiate its pivotal trial with Mytesi in CTD in adult solid tumor patients.
Penny Stocks On Robinhood To Watch: Biocept Inc.
Biocept Inc. (BIOC Stock Report) is another one of the penny stocks on Robinhood gaining interest. In mid-April, there were around 36.6k users on the app holding shares of BIOC stock. This week according to Robintrack, more than 65k have exposure to BIOC. Since we started following along in April, BIOC stock has climbed nearly 100% to date. At the end of July Biocept came out with a tweet that seems to have excited the market a bit.
The company tweeted: “In addition to the vital work that Biocept’s specialized staff does each day for patients diagnosed with cancer, Biocept is now providing COVID-19 testing to assist in the fight against the global coronavirus pandemic.”
Furthermore, this week has already seen a news catalyst. Biocept said that it has received more than 7,000 specimens and processed more than 6,500 COVID-19 specimens to date using RT-PCR technology at its molecular lab. Thursday, Biocept announced an agreement with Aegea Biotechnologies, Inc. It’s focused on the co-development by Biocept and Aegea.
This is for a highly sensitive PCR-based assay designed by Aegea for detecting the COVID-19 virus. The COVID-19 PCR assay is based on the core Switch-Blocker technology used in Biocept’s suite of ultra-sensitive oncology-focused assays. The collaboration will leverage Biocept’s experience in developing high-performance assays based on its Switch-Blocker technology. This news sparked another move in BIOC stock Thursday morning. Can the momentum sustain into next week?
Penny Stocks On Robinhood To Watch: Tonix Pharmaceuticals
Late-breaking news on Thursday put Tonix Pharmaceuticals (TNXP Stock Report) on the list of Robinhood penny stocks to watch. Since the beginning of July, users holding shares on the app have more than doubled to over 40k as of this week. If this looks familiar, its probably because TNXP stock has been on our watch lists since late-February. Last month Tonix announced that it met its target enrollment of approximately 470 participants in a Phase 3 RELIEF trial of TNX-102 SL 5.6 mg.
The treatment is in development as a non-opioid, centrally acting analgesic, taken daily at bedtime for the management of fibromyalgia. Tonix also announced a collaboration with Columbia University to study immune responses against COVID-19. Specifically, it focuses on T cell and antibody responses to SARS-CoV-2 (CoV-2).
Since mid-July, shares have ticked up much higher and quicker than previous months. In fact, TNXP stock broke and held above its 200 Day Moving Average for the first time since the summer of 2018. During the period between then and now, the 50 and 200 DMA’s have acted as consistent levels of resistance for the penny stock. This week, momentum continued after another big update. The company announced the U.S. FDA cleared its Investigational New Drug Application for the initiation of a Phase 2 proof-of-concept study using TNX-102 SL for treatment of alcohol use disorder.
The program is expected to qualify for the 505(b)(2) pathyway for FDA approval. While the 505(b)(2) pathway offers a unique opportunity for rapid approval there are some things to consider. Specifically, its success is based on identifying products that have documented market differentiation, low development risk, and high-profit potential. Will that be the case for Tonix moving forward?