Are These On Your List Of Penny Stocks to Buy Right Now?
Penny stocks, for the most part, will trade on their own accord. I say “for the most part” in light of recent events. As many of you might recall, earlier this year we experienced this scenario a few times. When the broader markets experience such aggressive selling pressure, almost all stocks can push lower. But we’re talking about penny stocks right now and there’s always a few that tend to outperform even in a sea of red.
What were some of the sectors performing well during the early days of the pandemic? Companies like Amazon (AMZN Stock Report), Zoom (ZM Stock Report), and Teledoc (TDOC Stock Report) were all stand-outs. But that isn’t to say that tech penny stocks are the only thing you should watch right now. You might also want to see where cases aren’t growing as rapidly.
A recent trend we’ve seen are country-specific penny stocks have performed very well. Even in light of the mass market sell-off this week, many China-based stocks have managed big breakouts. Whether or not that had something to do with pandemic fears is up in the air. However, we can clearly see that the stock market is down today based on remaining fears surrounding this jolt in new COVID cases.
Trading Penny Stocks On Robinhood, Webull, TD Ameritrade & Others
What are traders doing right now? To be frank, they’re doing exactly that: trading. Having a short memory during turbulent times like this is a major asset. If you look at forums and on social media where the millions of new Robinhood traders are talking, you’ll find the conversation focused on quick profits. I reference these traders for the simple fact that Robinhood has captivated the new traders looking to make money with penny stocks. With that, has come a quick learning curve that includes understanding that “YOLO-ing” isn’t necessarily a proven strategy.
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Being able to cut losing trades quickly and find ways of staying in winning trades longer is key. We’ve discussed this strategy – called tier trading – that achieves this goal. Additionally, some traders are finding it important to get in and out of a trade within a day’s time. They might hold a small core position if they think there’s a chance for continuation. But taking profit is essential for obvious reasons. Given the current broad market trend, are these on your list of penny stocks to buy right now?
Penny Stocks on Robinhood To Buy [or sell] #1: Digital Ally, Inc.
Shares of Digital Ally Inc. (DGLY Stock Report) extended gains on Wednesday. The company has achieved a place on the list of coronavirus penny stocks to watch on several fronts. First, coronavirus-specifically bosted the company’s focus on expanding its ThermoVu product line. This is used in non-contact situations, screening for temperature and has door locking mechanisms & employee badge systems among other features. Last week the company signed a deal with Integrated Openings Solutions to be a preferred partner for ThermoVu. That’s likely one of the headlines helping bring a bit of interest right now.
Furthermore, at the heart of the company’s model, Digital Ally has also built a portfolio around wearable cameras – IE body cams. The recent unrest in Philadelphia has triggered a response in the market focused on companies that have exposure to things like civil unrest.
Reports from media sources this week cited that the White House is “prepared to deploy federal resources” amid this situation. “We’re monitoring the situation closely. If necessary, we’ll be standing by and prepared to deploy federal resources, if necessary,” Alyssa Farah, the White House communications director.
As with many sympathy breakouts, it’s important to pay close attention to trading momentum. Since there isn’t a company-specific catalyst at play right now, a change in sentiment can also sway this sympathy momentum quickly. In light of this will DGLY be one of the penny stocks on Robinhood to buy or are sellers about to come back to the market soon?
Penny Stocks on Robinhood To Buy [or sell] #2: Astrotech Corporation
Astrotech Corporation (ASTC Stock Report) is another one of the penny stocks to watch on Wednesday. ASTC stock caught a big boost in trading last week after announcing a partnership with Cleveland Clinic to develop rapid COVID-19 breath tests. This week the excitement was refreshed after another big updated. However, it was non-coronavirus-related.
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The company announced that its 1st Detect subsidiary exceeded $1 million in purchase orders and an additional $1 million in future service & support commitments for its TRACER 1000™. This is a mass-spectrometry based explosives trace detector. TRACER 1000 units are currently deployed at multiple locations in eight countries across Europe & Asia, including numerous DHL (Deutsche Post AG) locations.
The company said that upon successful completion of detection testing, which is the next and final phase, the TRACER 1000 will be added to the Air Cargo Screening Technology List (ACSTL) as an “approved” ETD for sales to the cargo screening market within the United States.
The company just closed a raise of $18 million as well to put to work. In light of these recent developments, it will be interesting to see what comes next from Astrotech. I think right now, this headline has triggered a favorable response. But the next focus will likely be on progress in its COVID breath test development with the Cleveland Clinic.
Penny Stocks on Robinhood To Buy [or sell] #3: IT Tech Packaging Inc.
IT Tech Packaging Inc. (ITP Stock Report) is another one of the trending penny stocks on Robinhood gaining ground this week. Amid the surge of interest in China-based companies, IT Tech has become a focus. Over the last 4 trading days, shares have continued extending gains now reaching highs of $0.918 from just $0.55 last Thursday. While there’s been zero news or filings to go along with this move, ITP stock may have benefited from a twofold speculative and sympathy sentiment.
The latter is just pertaining to the surge in Chinese penny stocks recently. However, the former could have something to do with expectations surrounding its last announcement. Last month IT Tech announced advancing negotiation with one of its top 5 customers for orders of paper products. Yes, this is a paper company.
The customer is currently ranked among the top 5 customers of IT Tech during the past couple of years. The company said that definitive new contracts are expected to be signed by the end of the year. As that time grows near, I’m sure there’s some focus on this to see how big a contract this could be for the company. Earlier this year, BMO Capital slapped a $15 price target on the company. At the time, shares were trading below $0.50.
Penny Stocks on Robinhood To Buy [or sell] #4: Selecta Biosciences Inc.
If you want to talk about one of the more resilient penny stocks on Robinhood to watch recently, it’s been Selecta Biosciences, Inc. (SELB Stock Report). While shares took a breather on Tuesday, Wednesday saw trading pick back up and SELB stock added another 10% to its recent uptrend. We started covering this stock more directly at the start of the month after the company reported less than favorable trial data. However, since then, Selecta has made several key updates that aided in its recovery not only filling that gap down but also pushing shares to new, 4-month highs in October.
Most recently, Selecta announced that along with Asklepios BioPharmaceutical, Inc. the U.S. FDA granted Rare Pediatric Disease Designation to MMA-101. This drug is for treating isolated methylmalonic acidemia due to methylmalonyl-CoA mutase gene mutations. While that’s another big achievement made by the company in a long-list since October 1, it hasn’t been the main source of optimism in my opinion. Throughout the month of October, Selecta’s Director, Timothy Springer has been accumulating millions of shares.
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As of the last FORM 4 filed by Springer, he holds more than 11 million shares in the company. Furthermore, Chief Scientific Officer, Kei Kishimoto filed a FORM 4 on Tuesday. This showed Kishimoto purchasing 30,000 shares of SELB stock at $2.77. That buy took his position to more than 126,000 shares. Insider optimism continued growing and new milestones were reached this month. Is SELB one of the penny stocks to buy or sell right now?
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