Are Robinhod Penny Stocks Still A Buy?
Robinhood continues to captivate headlines & penny stocks are right up there with it. The mobile-first trading app has been the center of attention and scrutiny following last week’s events. With massive short squeezes from the likes of GameStop, AMC Entertainment, & others, a slew of brokers took drastic measures. They explained these were to “protect clients.”
Many traders were confused as it didn’t seem to protect them at all. It actually restricted them from buying shares of certain companies and only allowed closing transactions. As these handcuffed traders watched selling pressure come in, the entire market was abuzz with speculation.
Granted, it wasn’t only Robinhood but plenty of others restricting access to certain stocks. However, Robinhood was one of the more vocal brokers to make its point known. As a result, the platform has come under fire for its tactics. Have we seen a mass exodus from Robinhood? What we do know is that many were unhappy with last week’s events. But if you look at Reddit, there are still plenty of screenshots of trading accounts, charts, and the like, showing Robinhood’s platform in the background.
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What’s more, we continue seeing traders searching for top “penny stocks on Robinhood.” With this in mind, it appears that there is still plenty of interest in stocks trading on the app, which, for the most part, are Nasdaq and NYSE penny stocks. Will Robinhood continue restricting access to certain stocks? According to the bylaws, the app can restrict whatever it deems necessary.
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As of Monday, we also know that the company had brought in an additional $1 billion in funding over the weekend. According to sources who told Forbes this, the funds were in addition to a $1 billion cash injection it raised last week. Robinhood is also said to be in talks to raise a 3rd tranche of funding of up to $1 billion. So, hopefully, with fresh capital in hand, Robinhood can give a better user experience with a full offering of stocks.
Penny Stocks On Robinhood To Buy [or avoid]
- Evofem Biosciences (NASDAQ: EVFM)
- Zomedica Corp. (NYSE: ZOM)
- Vyne Therapeutics (NASDAQ: VYNE)
Shares of Evofem have been on a steady climb for the better part of the last month or so. Since late December, shares of EVFM stock have climbed from around $2.15 to highs this week of $3.15. Furthermore, those who look at technical indicators, you’ll notice something interesting as well. This is the first time that EVFM shares have tested the 200-Day Moving Average in more than 7 months. This and the 50-Day Moving Average have been consistent levels of support and resistance since last summer. Heading into February, Evofem is experiencing a strong boost in trading momentum with volume well-above average on Monday.
You may remember this company from 2020. A lot of anticipation was building around Evofem’s Phexxi for pregnancy prevention. There wasn’t any news from the company since January 12th. Evofem announced that it won the Business Intelligence Group’s BIG Innovation Award. However, last week the company did file a Form S-8 registering several million shares of stock. This hasn’t really had much of a lasting impact on the penny stock. There was a brief pullback, but as you can see, this week, EVFM is back on track.
One of the main points of focus right now is on its Phase 3 trial of its EVO100 treatment for chlamydia and gonorrhea. Late last year, the company said that despite the blowback from COVID-19, it’s still on track to activate all remaining sites in 2021 and complete enrollment of this 1,730-patient trial by the end of this year. EVO100 has already been granted Fast Track Designation for the prevention of chlamydia in women by the FDA.
Stifel Nicolaus recently weighed in on the EVFM stock forecast. The firm currently has a Buy rating and $5 price target.
Tiger King, Cameo, restrictions, oh my. Yep, all of that has to do with Zomedica Corp., and these have all been points of focus this year. Zomedica was on the Robinhood Restricted Stock list, with customers not able to purchase a certain amount of ZOM stock. While The Tiger King didn’t have anything to do directly with this, it was a catalyst for the penny stock earlier this year. In particular, Carole Baskin was at the center of attention thanks to a video that surfaced apparently in support of Zomedica and its TRUFORMA™ product. This was later found to be a paid-for video through the app Cameo. Cameo allows people to pay for shout-outs from notable celebrities. Baskin is one of those available for hire.
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Specifically, the company is approaching the commercial launch of its diagnostic medical device for the veterinary community. This week, Zomedica announced that it signed an agreement with Miller Veterinary Supply for the distribution of TRUFORMA™, which is planned to begin sales on March 30, 2021.
“It isn’t often that an industry-changing product like TRUFORMA™ comes along. We are honored and excited to have been chosen to help bring this technology to market. We look forward to working together with Zomedica to introduce TRUFORMA to our many valued customers and the pets in their care.”Clay Cass , Executive Vice President and Chief Operating Officer of Miller
Finally, Vyne Therapeutics Similar to Evofem, Vyne also has gained interest from analysts. H.C. Wainwright, for instance, has a Buy on the stock as well as a $3.50 target. That puts H.C.’s VYNE stock forecast roughly 56% higher than current levels. One of the main points of interest concerning Vyne has been the company’s pipeline. In fact, the penny stock pulled a reversal move on Monday following its latest pipeline update.
The company announced approval by the FDA to include new information in the product label for AMZEEQ® (minocycline) topical foam. The product is indicated for treating inflammatory lesions of non-nodular moderate to severe acne vulgaris in adults and pediatric patients 9 years of age and older.
“Both dermatologists and payors have had keen interest in antimicrobial resistance data as they balance patient care with antibiotic stewardship,” said Matt Wiley, Chief Commercial Officer for VYNE. “We believe the label update will be well-received.”
Final Thoughts On Penny Stocks
Clearly, we’re dealing with a high level of volatility in the stock market today. There’s no denying that the millions of new traders that began their investing journey in 2020 continue doing so this year. However, with an army of retail traders now powering social media message boards and discussion groups, it’s more important now than ever before to research.
What’s more, knowing how to day trade and what it entails is just as important. Sometimes the best trade to take is no trade at all. As you develop your own strategy, you will have a better handle of which stocks are better to watch than others. At the end of the day, remember, your goal is to make money.