Are These Cheap Penny Stocks Worth The Added Risk?
If you’re looking for penny stocks to buy right now, you’re among several million others with the same plan. But what are penny stocks anyway and are they worth the risk?
This is a topic that continues coming up, and since this is PennyStocks.com, it makes sense. First, penny stocks are shares of companies trading below $5, and they are, in fact, very risky. Just how dangerous are they? Well, if you look at penny stocks on Robinhood or Fidelity, for example, you’ve got more significant restrictions. This is in comparison to a broker like TD. While you can buy these cheap stocks on all 3 platforms, Robinhood only allows NASDAQ and NYSE-listed penny stocks, for the most part. There have been a few occurrences of OTC stocks trading on the platform. However, the majority are listed stocks. Due to higher risks and lower liquidity in most OTC penny stocks, the application doesn’t host them.
When it comes to buying penny stocks on a platform like Fidelity, you might have some trouble as well. Though they allow you to purchase stocks under $5, there’s a big hurdle. Unlike TD or Robinhood, Fidelity requires its customers to call in and place orders to buy penny stocks. According to the Fidelity website:
Because of the unique risks of investing in penny stocks, Fidelity customers can only buy and sell penny stocks by speaking to a representative and acknowledging their understanding of the specific risks associated with trading penny stocks. This is required for those who want to place trades that meet certain criteria.Fidelity Website
Penny Stocks To Watch
Regardless of your platform, if you’re looking to buy penny stocks on Robinhood, Fidelity, TD, Etrade, etc. you need to do research first. With that in mind, here’s some info on a few trending names in the market today. Will they be the best penny stocks to buy today?
- Denison Mines Corporation (NYSE: DNN)
- Predictive Oncology Inc. (NASDAQ: POAI)
- Boxlight Corporation (NASDAQ: BOXL)
- ZW Data Action Technologies Inc. (NASDAQ: CNET)
- Phio Pharmaceuticals Corp. (NASDAQ: PHIO)
Denison Mines Corporation
Uranium is hot right now. Uranium miners could be even hotter as far as topics of conversation go. This year we’ve seen a nice spike in momentum for alternative energy stocks. Furthermore, nuclear power production has become one of the points of focus for the Biden Administration.
“Things we’ve seen out of the Biden campaign and the transition team are very promising for a continuation and even acceleration of programs and policies that will support nuclear energy,” said John Kotek, policy development vice president for the Nuclear Energy Institute.
We’ve written plenty on Denison as it has been one of the top alternative energy penny stocks to watch. It mines uranium and has begun using an “in-situ recovery” mining method. This is supposed to create a process for uranium recovery that can generate more output and require less work. This week, DNN is in the news after announcing a $25 million bought deal financing round at 91 cents. Most funding rounds tend to trigger a sell-off in the market, but DNN has actually done the opposite. It could have to do with the use of proceeds of the deal. The company expects to use the money to fund evaluation and environmental assessment activities on its Wheeler River Uranium Project, including the proposed Phoenix in-situ recovery uranium mining operation.
Predictive Oncology Inc. (POAI)
While energy is a hot topic, so is biotechnology. Predictive Oncology has steadily climbed over the last few weeks and came close to testing its 2021 highs on Thursday. The move also came on the heels of a recent update form the company. Predictive announced its ow financint deal. Via a registered direct offering, the company signed an agreement to sell $7.4 million shares at $1.75 per share. With the closing of this transaction expected by mid-week next week, there’s still plenty of time to see how the market responds. Though the specific detail and use of proceeds were limited, we can look at the company’s recent updates for a bit of insight into what “working capital” could be applied to.
Earlier this year, its Helomics business finished integrating Quantitative Medicine’s active-learning Computational Research Engine. It was paired with Helomics’ TumorSpace™ knowledgebase of 150,000 tumor drug response profiles and the TruTumor™ patient primary tumor cell line assay. This allows Helomics to offer a new artificial intelligence-powered drug discovery service to pharmaceutical companies, further enhancing its personal medicine platform.
Furthermore, this month the company also reported commencing a drug repurposing project focused on ovarian cancer and using its AI-driven PeDAL platform. Dr. Carl Schwartz, CEO of Predictive Oncology, explained, “Our expectations are that the project will have significant value by generating proof data for our PeDAL approach, which will be useful in our commercial discussions with Pharmaceutical companies. In addition, the project will also demonstrate the long-term value of Helomics unique data.”
Boxlight Corporation (BOXL)
Shares of Boxlight continued higher on Thursday. The stock has been in a nice uptrend since the beginning of the year. The last few months have seen a few key milestones reached by the company, which have helped propel this move. First, the company completed a phase 1 rollout of its Clevertouch interactive touchscreens in Texas. It also installed Clevertouch IMPACT Plus panels in a school district in Colorado generating roughly $400k in revenue for the company.
This week, Clevertouch continued making headlines. Boxlight announced Clevertouch introduced the launch of their redesigned website. It explained this was the first of many brand investments for 2021. The new website was designed with the goal of offering easier communication with partners and customers. Furthermore, the company announced that The Ridgeway School, in the U.K. selected the Clevertouch IMPACT Plus touchscreens for its school.
ZW Data Action Technologies Inc. (CNET)
Bitcoin and cryptocurrency remain in the spotlight this week. Of course, companies with exposure have followed suit. ZW Data has now managed to move more than 70% this month after reaching highs of $4.18 this week.
Two critical updates helped give a momentum boost this week. First, ZW closed a strategic cooperation deal with China Digital Culture introducing decentralized finance through ZW’s Blockchain Infrastructure Framework platform. The two will operate IP data for esports and games.
The company continued progress in the blockchain/cryptocurrency arena with news of partnering with BitSpace for a blockchain mining platform. Yingguang Guo, Chief Technology Officer of ZW Data, commented, “We will work together to establish multiple large-scale self-operated mines with a load of more than 100,000 kilowatts in a much faster-operating efficiency. We will also have comprehensive cooperation with BitSpace in the field of digital currency, such as mine design and construction, mining machine procurement, operation and maintenance, and quantitative hedge investment of digital currency.”
With crypto as a hot button item for so many traders will CNET stock be on the list of penny stocks to watch this month?
Phio Pharmaceuticals Corp. (PHIO)
This is another one of the biotech penny stocks making 2021 a strong year so far. In fact, since the beginning of November, shares of PHIO stock are up over 85% so far. The main focus for Phio has been on advancing its immuno-oncology programs. In particular, it’s developing its INTASYL RNAi technology as a cancer immunotherapy platform for innovative therapeutics. Some in vivo data were presented at the Society for Immunotherapy of Cancer’s annual meeting and showed INTASYL compounds targeting PD-1, PD-L1, or TIGIT inhibited tumor growth.
There haven’t been any major headlines from the company other than news of raising funds. However, over the last few weeks, we do see Phio has been granted a few patents. This includes one titled” Methods for treating aging and skin disorders using nucleic acids targeting tyr or mmp1.” With cash in hand and progress being made, it will be interesting to see how Phio fares in February.