Are You Watching These NASDAQ & NYSE Penny Stocks This Week?
In this article, we’re going to go over a few things. First, what are penny stocks? Second, we’re going to discuss the difference between “penny stocks on Robinhood” or “listed stocks” vs OTC penny stocks. Finally, we’ll go into some detail on a few of these “Robinhood penny stocks,” current updates, and some interesting aspects of each to note this week.
What Are Penny Stocks?
Penny stocks are shares of public companies trading for $5 or less. The definition isn’t complicated by any means. Though, some traders try to make it a mathematical equation to quantify price, volume, etc. Let’s just keep it simple and discuss stocks under $5. What are the lowest priced penny stocks? These trade at levels of $0.0001. Yes, you read that correctly, 1/100th of a penny. However, those types of companies are very high risk and there’s usually a reason why companies are valued so low. We won’t be discussing those types of sub-penny stocks today. But our last article about penny stocks to buy under $1 on Robinhood had a nice response from readers so why not look at a few more?
Penny Stocks On Robinhood vs Other Penny Stocks
The idea behind penny stocks on Robinhood has a few origins. First, Robinhood has amassed millions of new traders in 2020 alone. With such growth, many have searched for penny stocks. While there are plenty to choose from, the app itself limits access to many others. Specifically, almost all penny stocks on Robinhood are listed stocks. These are companies listed on the NYSE and NASDAQ. When it comes to most OTC stocks, Robinhood and other apps like Webull restrict access. Now, not all penny stocks on the OTC are restricted on Robinhood. Some instances have seen certain names available for trading. But for all intents and purposes, these Robinhood stocks will be listed companies.
What’s more, is for traders looking for stocks under $1, the list gets shorter. That’s because exchanges like NASDAQ and NYSE require companies to meet certain price requirements starting at $1. Does that mean all penny stocks under $1 are inaccessible, no and, in fact, we’re going to discuss a few penny stocks on Robinhood that can be bought for under $1 right now. The question you need to ask is whether or not they are worth the higher risk or not.
Considering higher levels of volatility, cheap stocks may or may not be optimal for your individual trading style. Just look at stocks like Jaguar Health Inc. (JAGX Stock Report). We covered this company frequently over the last few days and you can see how quickly that stock has exploded. Whatever your strategy, just remember these stocks carry higher risk and can come down just as quickly as they go up.
Robinhood Penny Stocks Under $1
- Onconova Therapeutics Inc. (ONTX Stock Report)
- Teligent Inc. (TLGT Stock Report)
- Biolase Inc. (BIOL Stock Report)
- Oragenics Inc. (OGEN Stock Report)
Robinhood Penny Stocks To Buy #1: Onconova Therapeutics Inc.
Onconova Therapeutics is one of the biotech penny stocks that we’ve discussed already this week. It’s been a bigger focus during the month of December. Shares of this cheap stock managed to make a move from just $0.26 on November 30th to highs of over $0.55 this week. Volume has also become a focus recently too as the second half of December saw some of the highest daily trading volumes of the 3rd and 4th quarters.
What has been going on with ONTX? Last month, Onconova received permission from the FDA to study its drug, ON 123300. This is used for treating certain types of cancer. What’s important to note is what the company’s CEO said and the milestones he gave. Specifically, Steven Fruchtman said, “We are advancing the process to secure institutional review board approval, and affirm our expectation that the first patient will be enrolled during the first half of 2021.”
This has become a very big point of interest with traders this month already. However, you should also keep in mind that the company had filed a proxy statement at the end of 2020. It included a letter to shareholders pushing for approval of a reverse stock split to remain in compliance with NASDAQ. The shareholder meeting isn’t until March 4th, however, so it will be interesting to see if this factors into the market’s approach to ONTX stock.
Robinhood Penny Stocks To Buy #2: Teligent Inc.
Teligent is another one of the penny stocks on Robinhood under $1 right now. While it hasn’t experienced the same trend as ONTX over the last month, TLGT shares have begun trading higher on Tuesday. This move comes just a few days after the company released its Q3 results on December 31st. Revenues increased quarter over quarter but were still lower on a year over year basis during the third quarter.
One of the more key highlights revealed in the business update portion of Teligent’s update was its current position on reviewing all of its products. This was done to remediate issues identified in the FDA’s warning letter earlier in the year. While this has already been expected to negatively impact operations in the short-term, it could end up benefiting if the company can fix these issues.
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The company is a generic pharmaceutical company. Its products include both injectable and topical prescription medicines. With some 250 employees, it isn’t necessarily one of the smallest biotech companies on this list of small cap stocks. However, with a clearly outlined action plan heading into 2021, will TLGT manage to regain some of what it lost at the end of 2020?
Robinhood Penny Stocks To Buy #3: Biolase Inc.
Biolase is another one of the biotech companies we’ve discussed over the last few weeks. Instead of developing therapies, the company’s on the medical tech side of the industry. Specifically, Biolase provides lasers and other products to a wide range of dental offices around the world. While BIOL stock is still trading much lower compared to some of its peers, the last month, following the release of its quarterly results has been strong. In fact, heading into 2021, CEO Todd Norbe echoed a much brighter outlook.
“Our significantly improved third-quarter revenue was driven by several factors, including 95% of dental offices having reopened in the United States, dental procedure levels having reached 70-80% of their pre-covid-19 levels, and the fact that our product portfolio reduces the risk of infectious pathogens.”
Later this month, Biolase presents at the HC Wainwright BIOCONNECT Investor Conference. Company management will present on recent progress and achievements. Will it include the latest patent win from December? We’ll have to see as the date nears. But for now, BIOL stock continues trading higher during the first week of 2021.
Robinhood Penny Stocks To Buy #4: Oragenics Inc.
Oragenics Inc. has been quietly mounting a comback over the last few sessions. At the end of December, shares were trading around 43 cents. The last 3 sessions have seen OGEN stock steadily bounce to recent highs this week of $0.58 so far. Much of the momentum began after the company closed a $6.5 million financing deal for 14.44 million shares at a purchase price of 45 cents. The importance of these funds was revealed in the “use of proceeds” portion of its update.
The company said it intends to use proceeds to continue funding pre-clinical development of its SARS-CoV-2 vaccine, Terra CoV -2 and its lantibiotics program. It has also earmarked money for general corporate purposes, including research and development activities, capital expenditures and working capital.
Keep in mind that the company is planning on filing an Investigational New Drug application for Terra CoV-2 and begin a Phase 1 study this year. Oragenics expects to file the IND by the end of this quarter and begin patient enrollment in its Phase 1 clinical study early in the second quarter of 2021.
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