These Penny Stocks On Robinhood Popped On Tuesday; Are They On Your Watch List?
When we talk about penny stocks on Robinhood, it’s mainly about listed stocks. These are ones trading on the Nasdaq and NYSE as opposed to OTC penny stocks. Are there benefits or risks involved? Is one set of stocks better than another? Well, in general, a lot of it comes down to transparency and reporting requirements. Another thing to consider is that the clock starts ticking when you start looking at penny stocks under $1 on Robinhood. This is because major exchanges require the companies listed on them to meet minimum price requirements starting at $1.
This is where you’ll see the exchanges themselves sent a notice to companies stating that there’s a deadline for it to get back above $1. Some companies will effect a reverse split as a quick way to adjust share-price. Others will focus on building up their business enough to attract real market interest in hopes that eventually it’s “worth” at least $1. What happens if they don’t meet the minimum by the deadline? They can be delisted, most of the time, to the OTC. In that case, if you’re using Robinhood or Webull, you may not even have access to those shares at that point. This is why it can be tricky/risky when looking for individual penny stocks on Robinhood.
Needless to say, we have this new category of stock people search for. They tend to have more consistent volume than many OTCs, and they usually attract interest from larger institutions. You also tend to see more analysts following listed stocks versus non-listed names. Keeping this in mind, here’s a list of penny stocks on Robinhood traders that have begun following this week.
Robinhood Penny Stocks To Watch Right Now
- ZK International Group Co Ltd. (NASDAQ: ZKIN)
- Northern Dynasty Minerals Ltd. (NYSE: NAK)
- United States Antimony Corp. (NYSE: UAMY)
- Solitario Zinc Corp. (NYSE: XPL)
ZK International Group Co Ltd.
We’ve discussed this company numerous times in the past few months. ZK International is a producer of various steel products for sale in China for those who don’t know. This includes carbon steel, single-press tubes, and more. Because of the extensive urbanization in China, the need for raw materials is higher than in many years prior. Also, low covid cases in the country mean that industrialization can continue soon. This means that ZK could benefit from the rise of more industrialization. While many after-hours gains go without news, ZK International announced its fiscal year 2020 results right after market close.
In the results, the company posted revenue north of $86.8 million for the full year. This represents a more than 35% gain over the previous year’s revenue. Additionally, the company reduced its operating loss to $1.88 million from $8.65 million only a year prior. Jiancong Huang, CEO of ZK International, stated that “while the Covid-19 pandemic caused historic setbacks on the global economy and unprecedented difficulties…we managed to grow our top line by 35.9% and achieve record revenue of $86.85 million for the twelve months ended September 30, 2020, a testament to our strong product quality and customer recognition among our end customers.”
Northern Dynasty Minerals Ltd.
Over the past few quarters, Northern Dynasty has seen a lot of volatility in its financial reports. This is quite common due to the effects of the pandemic on all types of businesses. Also, investors have questioned the company in terms of its Pebble Project, which has brought speculation to new heights. Despite all of this, in the past few weeks, investors have shown a great deal of bullish interest in NAK stock.
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Recently, the company submitted an appeal regarding a permitting decision for the Pebble Project. Ron Thiessen, CEO of Northern Dynasty, stated that “we believe our submission clearly demonstrates the USACE’s Record of Decision for the Pebble Project is contrary to law, unprecedented in Alaska and fundamentally unsupported by the Administrative Record.”
So, why is this Project such a big deal? Well, the mine in question is allegedly one of the largest copper and gold-rich deposits in all of Alaska. This specific Project has also seen a lot of regulatory rollercoasters over the past decade or so. Although the USACE does not seem to favor further development on this land, we won’t know the final result until the appeal is reviewed. Whether or not this bullish price action can continue remains to be seen. NAK stock looks like it remains quite volatile in the short term, but if that’s what you’re looking for, it could be worth watching.
United States Antimony Corp.
UAMY is another penny stock that we’ve been discussing for quite some time. On Tuesday, shares of UAMY shot up by around 14% during trading before rocketing higher during after hours. While no news came out to justify this gain, we saw several similar companies post sizable gains during the day. For some context, UAMY is a vertically integrated producer of natural resources. This includes the production of zeolite and antimony, among other ores.
Last week, the company announced the closing of a $10.7 million registered direct offering. With this, it should have enough capital to continue building out infrastructure in both its Mexico and Montana based antinomy projects. Also, the company will use these funds to reduce debt on its balance sheet.
One of the hypotheses behind the recent gain is the correlation between UAMY and the EV market. Studies have shown that zeolite has a high amount of potential to be used in specific battery applications. Many electric car manufacturers, such as GM, have stated that they wish to move away from traditional cobalt and nickel-based batteries. Instead, these companies are using zeolite additives to produce new versions of EV batteries.
Aside from this, UAMY stock may also be running thanks to details revealed in its latest filing. The company signed a non-binding letter of interest regarding the potential supply of antimony with AMBRI. AMBRI is a company that utilizes antimony in its off-grid storage batteries.
Solitario Zinc Corp.
Solitario Zinc is an exploration and acquisition company working in developing various zinc mines in the Americas. This includes mines in Northwest Alaska, Peru, and more. As stated earlier, during trading, we saw a lot of bullish sentiment surrounding EV penny stocks and companies that provide services to these businesses. As a zinc producer, XPL does have a high correlation with the electric vehicle and battery market. Around a week ago, the company announced that it had acquired an option to buy a 100% interest in the Gold Coin Property based in Arizona. To date, drills on the property have never gone further than 60 feet. Despite this, studies have shown that there are five areas of interest in the mine that could have high mineralization of copper-lead-zinc-silver-gold.
Chris Herals, CEO of Solitario, stated that “we are excited to be re-entering the precious metals exploration space with the addition of the Gold Coin project. Gold Coin represents an untested gold system that displays widespread and strong gold values at surface. Arizona is an excellent mining jurisdiction that can be worked year-round. We look forward to reporting progress at Gold Coin as well as potential new gold acquisitions. This is an interesting sentiment as the company looks like it is diversifying its operations.”
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Given the potential for long term inflation in the U.S., many investors are turning to precious metals penny stocks as well. Since XPL works in both zinc and gold, among other minerals, some investors could consider it as a penny stock to watch.