Should These Be On Your List Of Penny Stocks To Buy Right Now?
If you’re looking for cheap stocks, I’m willing to bet that penny stocks will be the first thing you think about. But with the great potential rewards, so to come greater risks. Aside from the fact that these are typically thinner traded names, the lower prices also contribute to the higher risk due to more volatility. Now, if you’re new to these types of stocks, let me explain a bit more about how volatility plays a role.
What Is Volatility In Stocks?
Simply put, volatility in stocks is the swings you see in the price—the tighter the move, the lower the volatility, the wider the move, the higher the volatility. Some measure this on a price scale. However, I’m talking about volatility based on percentage change. In my opinion, this is what matters the most. If a stock moves up $3, that’s one thing. But if that $3 move is worth 300%, that’s something entirely different. For this reason, lower-priced stocks tend to experience higher levels of volatility.
One example of this is looking at shares of Apple (NASDAQ: AAPL) vs. shares of a $3 stock. If AAPL moves by 30 cents, the impact of that price change is minimal. However, with the $3 stock, 30 cents is a 10% change, much more noticeable. So it’s important to remember that if you’re looking for cheap stocks, you’re bound to run into more volatile trading environments.
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So, where do “Robinhood penny stocks” come into the equation? Since stocks on the app trade on the NYSE and NASDAQ, cheaper stocks are more scarce. That’s because these exchanges need companies to meet certain requirements. One of these requirements is maintaining a minimum bid price. Anything below $1 opens up the risk of being delisted. For today, we’re going over a quick list of names that can be bought for under $1.50. Will they be the best cheap stocks to buy now, or should you avoid them entirely?
Penny Stocks To Buy Under $1.50 On Robinhood
- Acasti Pharma Inc. (NASDAQ: ACST)
- Oragenics Inc. (NYSE: OGEN)
- Globalstar Inc. (NYSE: GSAT)
Acasti Pharma Inc.
Shares of Acasti Pharma have experienced a strong move in 2021 so far. Since the start of the year, ACST shares have climbed from $0.3389 to highs of $0.858 and currently sit around $0.69. Trading volume has also been much higher compared to previous months. Even though there haven’t been any news headlines this year, speculation has been a key driving force.
In particular, Acasti is exploring and evaluating strategic alternatives. It has engaged Oppenheimer & Co to help. This could include potential mergers, acquisitions, or other initiatives that involve Acasti and/or its product. In its current pipeline are products including CaPre, the company’s treatment for hypertriglyceridemia.
Acasti reported Phase 3 data of its CaPre treatment last year. Following the results, the company decided not to push forward filing a New Drug Application with the FDA. This is likely what had initially prompted the search for strategic alternatives. In any case, there hasn’t been much of anything materially from the company in weeks. But the uptick in trading volume has started turning heads.
Oragenics Inc.
With vaccine-related topics still captivating the news headlines, “COVID stocks” remain a focus for traders. In light of this, Oragenics has become one of the penny stocks under $1 to watch this month. In fact, since the start of 2021, shares of OGEN have climbed by more than 100% so far. With Oragenics in particular, attention has been on the company’s COVID-19 vaccine, Terra CoV-2.
Earlier this month, the company entered into a transfer agreement with Adjuvance Technologies Inc. for the use of the adjuvant TQL1055 in Terra CoV-2. It will be used in pre-clinical animal studies supporting the FDA Investigational New Drug application expected to be conducted this quarter.
In a shareholder update last week, company CEO and President Alan Joslyn, Ph.D., explained this treatment’s potential. Joslyn said that “given the size of the worldwide pandemic there will be plenty of demand for the Terra CoV-2 vaccine.” The company has compared some of the facets of its platform to that of Moderna’s vaccine related to stabilized spike protein. As development continues, the market awaits the next step and proposed IND filing. If OGEN is on your watch list, keep in mind that there’s still plenty of speculative momentum helping to drive stocks related to the virus right now.
Globalstar Inc.
One of the hot topics in the stock market today has been 5G. The race for new communications technology and web access is on, and companies are jockeying for position. Globalstar is one of the companies frequently on our list of 5G penny stocks to watch. Its latest deal with Nokia (NYSE: NOK) and a partnership entered into recently have brought more attention to the company lately.
First, with the Nokia deal, the two entered into an agreement with Tideworks Technology. The plan is to deploy Globalstar’s Band 53 spectrum at the Port of Seattle, Terminal 5. This was the second collaboration between Globalstar and Nokia at a US Port. Next this week, Globalstar subsidiary SPOT LLC announced a partnership of its own. The company entered a partnership with monthly subscription box service Battlbox. As part of the partnership, Battlbox Pro Box subscribers will receive a SPOT Gen4 Satellite GPS Messenger™ with up to 6 months of service.
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There wasn’t any detail as to the financial potential of this partnership. However, it does give SPOT access to a wider audience of potential customers. This deal added to the latest development announced last week. Globalstar signed an agreement with Ceres Tag supplying satellite services to the livestock industry. David Smith, CEO of Ceres Tag, commented, “With over 1 billion cattle in the world and a similar number of sheep and goats, we now have a low-cost limitless way to monitor our animals. There has never been a more important time to know where your food has come from than during this pandemic.”
