Are These Robinhood Penny Stocks On Your List Right Now?
Robinhood and the penny stocks trading on it have come into question recently. With the increased scrutiny following the limiting trading of some 50 stocks, users remain unsure of the future. Do they stay with Robinhood, do they move onto other brokers? Whatever their decision will be, it doesn’t take away from the fact that there’s become a new definition for Nasdaq & NYSE penny stocks. These are now known as Robinhood penny stocks. For lack of a better description, this refers to listed stocks & therefore, we aren’t going to be talking about OTC stocks in this article.
Whether you use Robinhood, Webull, TDAmeritrade, ETrade, or any of the other brokers, there’s no arguing the fact that the stock market is red hot right now. We’re seeing new types of searches right now. This isn’t just “what are the top biotech stocks today.” Now it’s things like “most shorted stocks” or “high volume stocks.”
The interesting part is that there’s no industry theme, and it’s more a sympathy-type trade right now. The other day we saw an uptick in companies that had exposure to Alzheimer’s treatments. Some of them had abandoned their efforts a long time ago. But just because the “about” section mentioned the word, retail traders flocked to buy them. So what should you do with this information?
That is up to you. However, with so much hype in the market, what I will say is to be prepared for volatility. Many times it’s not a matter of if but when. GameStop and AMC were perfect examples. GME was trading above $400 & 4 sessions later, it dropped to the mid $70’s. If you know how to day trade, you know there’s 1 goal to remember: make money and repeat. With this in mind, is the momentum in these Robinhood penny stocks signaling new potential or raising a red flag? While you can decide that, will let you know what the buzz is so you’re up to speed.
Robinhood Penny Stocks To Buy [or avoid]
- Sesen Bio Inc. (NASDAQ: SESN)
- Enservco Corporation (NYSE: ENSV)
- Tellurian Inc. (NASDAQ: TELL)
- Tonix Pharmaceuticals Holdings (NASDAQ: TNXP)
- Hall of Fame Resort & Entertainment Co. (NASDAQ: HOFV)
Sesen Bio Inc.
Sesen Bio isn’t a new company on our penny stocks list. Since July 2020, shares of SESN stock have climbed more than 130%. What type of company is Sesen? It’s a late-stage clinical biopharmaceutical company working on treatments for cancer. This is a hot area of the biotech industry right now and likely one reason for traders watching its developments. Furthermore, its lead treatment, Vicineum, is in a Phase 3 trial in treating bladder cancer.
What’s The Buzz?
This month Sesen announced a successful application orientation meeting with the FDA for Vicineum. This was regarding its Biologic License Application (BLA) for the treatment. Now the clock starts ticking. The company said it expects to learn if the BLA is accepted for filing by the FDA on February 16, 2021.
Wednesday afternoon, shares of SESN stock steadily climbed right into the after-hours session. The penny stock even reached a high of $2.24 late in the evening. It will be interesting to see if the speculative momentum continues into the second half of the week.
No penny stocks list is complete without at least one energy name. Enservco provides oilfield services to oil and gas companies. Its geographic footprint covers seven major domestic oil and gas basins serving customers in 10 states. Earlier this week, a company lender (East West Bank) extended the maturity date on its $17 million term loan and $1 million working capital line of credit for Enservco. Obviously, 2020 was hard on energy companies, and many have had to restructure. Luckily, Enservco’s lender has worked with instead of against the company in light of the current economic state.
What’s The Buzz?
Late Wednesday afternoon, the company came out with more news. Cross River Partners, the investment firm managed by Enservco’s Executive Chairman Rich Murphy, will convert its remaining subordinated debt and accumulated interest to Enservco equity. Why is this important? While converting shares can create a dilutive event, this is a unique situation. Cross Rivers converted at Wednesday’s closing price and not at a steep discount. Now the market waits and sees how Cross Rivers handles its newly issued $2.18 shares. Will there be major dilution on the horizon?
Another energy name for this list of penny stocks on Robinhood is Tellurian. It’s an oil and gas exploration and production company. However, its main focus recently has been on building its liquified natural gas business. The Biden Administration has been very vocal about its stance on getting away from traditional fossil fuels. In this light, the long-term outlook for LNG could favorable compared to other fossil fuels. Comparatively speaking, its lower cost and lower emissions from a production and combustion standpoint.
What’s The Buzz?
While there haven’t been any major headlines recently, the upbeat sentiment on alternative fuel sources hasn’t hurt. Furthermore, the could be potential milestones to keep an eye out for. Namely, co-founder and Executive Chairman Charif Souki has stated that Tellurian aims to start construction on a $16.8 billion Driftwood liquefied natural gas (LNG) export project by summer. Because the current Administration seeks low to no emissions fuels, Tellurian might be a focus for those looking for energy names to put on their list.
Tonix Pharmaceuticals Holdings
Tonix is one of the cheapest penny stocks on Robinhood from this list. It began trading around 65 cents at the start of the year. This week the TNXP stock price reached highs of $1.27. The main focus has been on its TNX-1800 treatment. This is the company’s COVID-19 vaccine candidate. Tonix wants to report efficacy data from animal challenge studies of the vaccine candidate this quarter.
Aside from that, other pipeline treatments have gained attention. This year, Tonix published a patent application filed under the Patent Cooperation Treaty covering its TNX-1500. This is a humanized monoclonal antibody (mAb) directed against CD40-ligand. The patent application is titled “Anti-CD154 Antibodies and Uses Thereof” and published under International Publication No. WO 2021/001458 A1.
What’s The Buzz?
While there haven’t been any major headlines this week, that doesn’t mean things haven’t happened. Apparently, the current buzz around TNXP is centered on a patent and notice of allowance from the US Patent & Trademark Office. The patent is titled, “EUTECTIC FORMULATIONS OF CYCLOBENZAPRINE HYDROCHLORIDE.”
Hall of Fame Resort & Entertainment Co.
As far as entertainment penny stocks go, HOFV is quite an interesting one to consider. During trading on February 3rd, shares of HOFV stock shot up by as much as 28% to $3.12 per share. While you may not have heard of Hall of Fame Resort & Entertainment Co., it has risen in popularity in the past few years. The company mainly works in the professional sports industry, with a focus on pro football. It currently has a partnership with the Pro Football Hall of Fame and owns the Jonson Controls Hall of Fame Village. This property it used as an entertainment venue as well as a media hotspot.
Only a week or so ago, the company announced that it will be selling tickets to the Highway 77 Music Festival for a show date in September of this year. While it is wishful thinking to assume that covid will be over by then, the hopes are that it will have eased enough for a live event.
What’s The Buzz?
It’s the week of the biggest game in NFL Football this week. This could be sympathy momentum in light of this even. But even outside of that, as we’ve discussed in the past, HOFV recently closed a deal with StakeKings to launch a national fantasy league. As this deal unfolds, we know that fantasy sports continue attracting interest. It could be something to keep in mind if HOFV is on your penny stocks list right now.