Are Webull Traders Right About These Penny Stocks?
With the rise of apps like Robinhood and Webull, penny stocks are more easily accessible to the masses. Millions of new traders flocked to the stock market in 2020 with visions of big money bets on popular stocks. But many had soon found that with these popular apps, some restrictions are in place. Mainly, things like OTC penny stocks aren’t accessible for the most part. While there have been some exceptions, the general rule is that penny stocks on Webull or Robinhood are only those trading on major exchanges.
The reason for this, most likely, is that the Nasdaq and NYSE exchanges require companies to meet stringent requirements. This includes both a minimum price as well as a minimum level of transparency via disclosure reporting. Needless to say, this restriction hasn’t stopped thousands of new traders from downloading the app and getting started trading penny stocks on Webull.
Aside from things like free stock, something that the app offers that other apps like Robinhood don’t is a community. Everything from discussion boards to sentiment scores is user-generated, giving a glimpse at what “the crowd” thinks of a specific stock. In today’s market, social sentiment has become a driving force. Within just a few months, Reddit users have made their presence known, with the community continuing to grow.
Traders now need to consider the “hype” factor when putting a list of penny stocks together. I won’t advocate buying a stock based on what social media tells you. But I will say that it is something to factor into your overall diligence process. In many cases, overly-hype stocks have a short shelf life resulting in big moves up and big moves down within days or even hours. With this in mind, here’s a short list of penny stocks Webull-ers are talking about this week. Will they be top names to buy or avoid?
Webull Penny Stocks To Buy [or avoid] This Week
- Castor Maritime (NASDAQ: CTRM)
- Zomedica Corp. (NYSE: ZOM)
- Senseonics Holdings (NYSE: SENS)
- Torchlight Energy Resources (NASDAQ: TRCH)
- Onconova Therapeutics (NASDAQ: ONTX)
Penny Stocks To Buy [or avoid] #1: Castor Maritime (CTRM)
I won’t go into a long, drawn-out discussion about markets last week. We know they experienced plenty of selling. But one thing I will highlight is that even with the multi-day sell-off, Friday saw a monster rebound. This wasn’t only in broader markets but with many penny stocks too. Some bounced over 100% from their intraday lows. While Castor Maritime wasn’t part of the triple-digit club, CTRM stock managed to post a 24% rally by the closing bell. What’s more, if you look at the stock chart, you’ll also see that it tested a significant technical level – the 50 Day Moving Average – but didn’t break below it. Whether this level is a firm area of support or if the broad market rally simply bailed out CTRM is for you to decide.
Regardless, shares ultimately tested lows of $0.65, which is significant. The reason being is that this mid-60 cent level was a previous level of support back in late January and early February. So the market rebound may have factored in, but those who like to look at technicals will also see the 65 cent area has historic support when you track certain levels earlier this year. Not only that, but it was also a point of focus in 2020 before CTRM stock dropped in June.
In any case, shipping stocks like CTRM have gotten a lot of attention recently. With oil & gas being in the market spotlight and restarting the global economy, Castor experienced a big move early on. The company also announced the delivery of a new vessel to add to its fleet. This now brings Castor’s total to 12 vessels on a fully delivered basis. Given the current market sentiment, will Webull traders be right about CTRM this week?
2. Zomedica Corp. (ZOM)
Zomedica has been one of the top penny stocks to watch for months. It wasn’t that long ago when ZOM was trading under $0.10. Key milestones and anticipation of a big commercial launch of its TRUFORMA® animal diagnostic product has traders keeping it on their list. Despite it being an early-stage company, Zomedica has reported strong financials coming into its first step in commercial sales.
Late last month, Zomedica reported its year-end 2020 financial results. This included a loss per share of $0.05. Compared to a loss of $0.19 per share for 2019, this was a significant step in the right direction for the company.
Robert Cohen, Zomedica’s Chief Executive Officer, said, “While we are thankful for our substantially improved balance sheet, we continue to be good stewards of our funds by remaining efficient in our operations as we prepare for the upcoming commercial release of TRUFORMA®.”
Now the market waits. Zomedica plans to start sales of TRUFORMA® on March 30th. In the meantime, it will be interesting to see if or how speculation plays a role.
3. Senseonics Holdings (SENS)
Similar to Castor, Senseonics also fell back to levels around its 50-Day Moving Average on Friday. However, unlike CTRM, SENS stock broke well below these levels and traded below $2 for the first time since January. The penny stock had actually been pulling back for a few weeks before the market sell-off this month. One of the bearish catalysts in play was a shelf registration statement to sell up to 54.2 million shares on behalf of selling stockholders. So that means the company receives no proceeds from any shares sold. The ones named in its registration statement included Marlin Fund, MSS SENS SPV, Senvest, BioStar Ventures, and Steward Capital.
The main point of focus for the company has been on its Eversense product. This is the company’s glucose monitoring technology. Last week the company posted its latest round of earnings results for 2020 and Q4. Tim Goodnow, Ph.D., President and Chief Executive Officer of Senseonics, explained, “We believe Ascensia’s commercial experience and global footprint will help grow the market for Eversense in 2021 and beyond. We are working with Ascensia to further expand commercial activity in the coming months. These collaborative efforts include developing plans for new programs designed to raise patient and provider awareness, reduce patient cost, and continually expand global access for Eversense.”
Something else to note, which may have played a role on Friday, is highlighted in the quarterly statement filed. Specifically, the filing points out that “management has concluded that the substantial doubt about the Company’s ability to continue as a going concern through March 31, 2022, that existed at March 5, 2020, has been alleviated.”
4. Torchlight Energy Resources (TRCH)
Many times we’ll discuss the mergers and acquisitions climate in the stock market. In the case of Torchlight Energy, M&A speculation has fueled momentum for the oil and gas penny stock. What’s more, this M&A news could ultimately turn Torchlight into a clean energy company, believe it or not.
Late last year, the company and Metamaterial signed an agreement to combine with Metamaterial prevailing as the company after all is said and done. Over the course of the last few months, Torchlight has worked on eliminating debt and shedding certain assets. Furthermore, the company has also been able to loan Meta millions in connection with the proposed combination.
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While no recent headlines have come to light, the hunger for green energy and cleantech stocks has only grown in 2021. Despite the pullback most stocks saw recently, it doesn’t change the fact that millions of traders have put stocks within this niche on their watch list. When it comes to TRCH in particular, the clock continues ticking on the proposed merger’s formal consummation.
5. Onconova Therapeutics (ONTX)
Like CTRM and SENS, Onconova shares ripped lower to the 50-Day Moving Average on Friday. In a similar fashion to SENS, ONTX stock also broke below this major technical level. However, if you look back on the chart history from the last year, you’ll see that the level it pulled back to has a history of being support or resistance.
A few weeks before ONTX stock plummeted from over $1 to under $0.20, it tested lows of $0.78. A few months before this, it tested highs of $0.74. Why mention this? On Friday, ONTX shares reached lows of $0.77 before bouncing back 32%, closing the session at $1.02. It seems like this mid-70 cent area has acted as historical support or resistance and held up to this theory on Friday.
Heading into this week, traders are watching to see if the rally continues. Users on Webull are bullish on the stock. Some of the key points of interest center around the company’s pipeline and upcoming data read-outs. The company’s ON 123300 is planned to begin a dose-escalation and expansion Phase 1 trial in the U.S. in the first half of this year. What’s more, a dose-escalation and expansion Phase 1 trial is currently underway in China.
Onconova’s product candidate oral rigosertib is in a dose-escalation and expansion Phase 1 investigator-initiated study. This is targeting patients with KRAS+ lung adenocarcinoma in combination with nivolumab. Also, Onconova has begun preclinical work investigating rigosertib in COVID-19. One thing that could be a catalyst (bearish or bullish) is its upcoming financial results. This week Onconova reports full-year 2020 results & a corporate update on Thursday.