Penny Stocks Under $1 Trending In January
It’s 2021 and penny stocks continue capturing the attention of day traders and investors alike. But if you’re new to these cheap shares you might not know where to begin. Let’s start with the simple definition of penny stocks. Easily put, penny stocks are shares of companies trading under $5.
This is taken from the official definition provided by the Securities & Exchange Commission. However, some traders take a different approach to these types of stocks, which includes setting their own “price levels”. In many cases, the focus is on actual stocks trading for pennies; ones that can be bought for under $1.
One problem though, and that has to do with access to these stocks. While there are plenty of stocks under $1 to buy, many of them trade Over The Counter – or on the “OTC”. With millions of new traders that have joined apps like Webull and Robinhood, penny stocks trading on the OTC, for the most part, are inaccessible. Does that mean that all stocks under $1 aren’t able to be bought on the app? No, but it does pose certain risks. One of the biggest is that a stock gets delisted from the NYSE or NASDAQ. These exchanges require companies to meet certain requirements.
Cheap Penny Stocks On Robinhood, Webull, & Others
One of which is holding a minimum bid price, the lowest of which is $1. If stocks fail to meet this level for a certain period of time, the exchanges could delist them, send them to the OTC, and, in turn, make them restricted from apps like Webull & Robinhood. Needless to say, most companies at risk of such an event will release news with progress updates and work with the exchanges to get extensions to meet the requirements.
So what does this mean for those looking to buy penny stocks? In my opinion, be careful and be aware of where companies stand if they’re at risk or receive notice from an exchange that they are. In the meantime, also know that cheap stocks like these tend to experience higher volatility due to lower prices. Let’s take a look at a few penny stocks that can be bought under $1 right now. But just because they’re considered “cheap,” are they worth the risk?
Robinhood Penny Stocks To Buy Under $1
- Jaguar Health Inc. (JAGX Stock Report)
- Zomedica Pharmaceuticals (ZOM Stock Report)
- Avinger Inc. (AVGR Stock Report)
Robinhood Penny Stocks To Buy #1: Jaguar Health Inc. (NASDAQ:JAGX)
Jaguar Health has been on our list of penny stocks under $1 to watch for the last several weeks. One of the bigger focuses recently has been on the company’s latest royalty financing transaction. Jaguar sold a royalty interest entitling a Lender to receive 2.0x the Royalty Purchase Price of future royalties of Mytesi® (crofelemer) and lechlemer. It also gives certain up-front license fees and milestone payments from licensees and/or distributors as well as any interest, fees, and charges. The lender paid an aggregate purchase price of $6 million.
This $6 million royalty financing transaction followed a prior $6 million royalty transaction back in October with an affiliate of the lender. Mytesi is the company’s FDA approved treatment for symptomatic relief of noninfectious diarrhea in adult patients with HIV/AIDS receiving antiretroviral therapy.
If Jaguar is on your list of penny stocks under $1 right now, you’ll notice that shares have experienced a strong move during the last few weeks. Since the end November, JAGX stock has climbed from around $0.22 to as high as $1.29. Monday’s premarket session saw shares hovering around $0.85. With a focus on obtaining non-dilutive sources of financing to build upon its pipeline, it will be interesting to see if JAGX can meet its minimum bid requirement of NASDAQ.
Robinhood Penny Stocks To Buy #2: Zomedica Pharmaceuticals (NYSEAMERICAN:ZOM)
Zomedica Pharmaceuticals is another one of the cheap penny stocks on Robinhood. Similar to JAGX, ZOM stock has been in rally mode during the weeks leading up to year-end. A lot of the excitement came from the proposed commercial launch of Zomedica’s TRUFORMA product. It was developed by Qorvo (QRVO Stock Report) providing a non-optical and fluorescence-free detection system for use at the point-of-care. Official commercial sales are expected to begin by the end of this quarter. So this comes milestone for traders to keep track of.
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This week Zomedica announced the appointment of a new CEO, Robert Cohen. He was the interim CEO and Board member prior to this. Cohen’s prior experience at other medical tech companies is something to keep in mind with this leadership transition. Wit ha successful track record in building early-stage medical device companies, and the timing of TRUFORMA’s proposed commercial launch, this could be an important time for Zomedica right now.
Robinhood Penny Stocks To Buy #3: Avinger Inc. (NASDAQ:AVGR)
Avinger Inc. didn’t have any news during premarket trading on Monday. However, just after the 8 AM EST hour, shares popped to highs of nearly $0.65. Something to keep a note of is the recent surge in trading activity in AVGR stock. Since December 21, Avinger shares have seen some of the highest trading volumes on a daily level. In fact, on the Christmas Eve half-day, AVGR stock saw its highest single-day volume of 2020.
One of the driving catalysts for this latest move was that the company was pushing for its shareholders to approve a reverse stock split. As discussed above, there are certain risks of remaining under $1. One of the ways to remedy that is effecting a reverse stock split to ensure its Nasdaq listing requirements are met.
“We believe a Nasdaq listing is critical for our stockholders. While we understand that a potential reverse stock split is a difficult matter, we believe it is in our shareholders’ best interest to have all options available to maintain our listing. Avinger has a well-funded balance sheet, with capital to cover our 2021 growth plans, a critical difference from our prior circumstances.”Jeff Soinski, Avinger’s President and CEO
Aside from that, the company received FDA clearance for its image-guided, catheter-based system called Tigereye™. Avinger expects to expand the commercial availability of the product for U.S. national launch this month. What’s more, is at the end of December, Avinger also received a European Patent titled ‘Otc imaging catheter with lag correction‘. All things considered, there are plenty of things to keep an eye on with AVGR heading into 2021.
How To Trade Penny Stocks On Robinhood
New to trading penny stocks on Robinhood? Check out this quick video: