One of the hottest platforms for trading penny stocks in 2021 is Robinhood. Despite many negative headlines associated with the broker, younger and novice traders have chosen it for how easy it is to trade with. Other apps include plenty of technical analysis tools and charting. But to fit it on a smartphone can be cumbersome for many. On the other hand, you’ve got Robinhood, which has allowed a quick way to do 2 things: buy and sell.
Is Robinhood Good For Penny Stocks?
Unfortunately, if you’re looking to buy OTC penny stocks on Robinhood, you won’t have many choices. The app, along with similar platforms like Webull, focuses on NASDAQ and NYSE listed companies. However, when it comes to the question above, it really depends on your own trading needs. Trade execution has been slower compared to other platforms. That’s in addition to the limited access to certain stocks.
However, if you check out many of the popular penny stocks on Reddit and other social media outlets, most users share screenshots from the Robinhood app. Is it good for penny stocks, though? I’ll leave that up to you.
What Are The Best Penny Stocks To Buy Now?
Given that penny stocks are shares trading below $5, there are plenty of choices. In this article, we’ll discuss penny stocks under $1. Stakes are much higher as volatility based on price alone plays a bigger role. It’s also an elite group when you start looking for these types of cheap stocks on platforms like Robinhood. Since the Nasdaq and NYSE require companies to meet certain minimum bid requirements, the $1 threshold is key. When stocks drop below that level, the exchanges begin sending notices: either get back above $1 or face delisting.
Even with this as the case, it hasn’t prevented the millions of traders looking for penny stocks to buy under $1. Visions of grandeur and a feeling of “getting in early” are likely sources of excitement stemming from buying cheap stocks. Honestly, if you’ve been looking at stocks under $5 and small-cap stocks, in general, there’s a bigger reason why these have attention right now.
Let’s take a look at the Russell 2000 Small-Cap Index ETF (NYSE: IWM). Even with the recent sell-off in the overall market, small-cap stocks are far-outpacing popular, large-cap lead markets. Case in point, the Nasdaq QQQ is red on the year, and the S&P 500 SPY is only up about 3% since the start of 2021. In the same light, small-caps are up over 8% year-to-date. So it stands to reason that smaller companies are thriving. What are the best penny stocks to buy right now? I’ll leave the ultimate decision up to you, but here are 5 that can be bought for under $1 and have been trending this month.
Robinhood Penny Stocks To Buy #5. Castor Maritime
Castor Maritime (NASDAQ: CTRM) provides seaborne transportation for dry bulk cargo. It ships everything from coal and iron ore to grain and fertilizers. Obviously, the concern in the Suez Canal hasn’t helped global shipping expansion. Some $10 billion in shipping traffic per day has been disrupted. However, Castor hasn’t commented one way or another as to its own routes becoming encumbered by this incident.
The company took delivery of another ship this week, the M/T Wonder Sirius. “Our two tankers are projected to generate in aggregate, assuming no off-hire days, approximately $10 million of gross revenues for the minimum scheduled period of the charters, or approximately $21 million should the charterer exercise their options to extend both charters by an additional one-year term. These figures do not take into account any profit sharing that may apply above the minimum daily hire of $15,000,” said Petros Panagiotidis, Chief Executive Officer of Castor, in this week’s update.
4. Acasti Pharma
Acasti (NASDAQ: ACST) is another one of the penny stocks trading for less than a buck right now. It started the year off strongly, rallying from around 34 cents to highs of $1.22. But since then, ACST has been trying to recover to no avail. One thing it has been doing well at is raising money. The company is reviewing strategic options to drive shareholder value. This has been a long and drawn-out process ever since its CaPre trials fails to meet the mark. Now, armed with cash and having engaged Oppenheimer, hopes are that Acasti can make something out of its current asset holdings.
From a technical perspective, ACST stock has treaded water at a level previously shown as support. It’s also right around the price where shares traded before the drop last year. Considering the gap from 2020 remains filled, and new momentum has come into the market this week, will ACST continue to see support at these levels?
3. Adamis Pharmaceuticals
Shares of Adamis Pharmaceuticals (NASDAQ: ADMP) have mimicked a similar trend as ACST. The penny stock rallied strongly at the start of the year, moving from 50 cents to highs of over $2.30. Since then, it’s been a clear downtrend with a few “pit stops” along the way.
The main point of focus for traders has been on Adamis’ COVID treatment candidate. This month the company said that in studies conducted at Galveston National Laboratory, hamsters challenged with the virus that causes COVID-19 (SARS-CoV-2) resulted in decreased inflammation in the lungs of animals treated with Tempol compared to controls. What does this mean? It demonstrated that the company’s Tempol could reduce inflammation in animals given the SARS-CoV-2 virus. The next step is submitting the publication to a peer-review journal.
Given the focus on COVID treatment stocks recently, ADMP seems to have caught the attention of the market.
2. Genesis Healthcare
Genesis (NYSE: GEN)has come full-circle over the last few months. It started the year around 50 cents, ran above $1, and now sits back around 50 cents. The biggest reason for the drop came when the company discussed strategic restructuring and a voluntary delisting from the NYSE.
“The severity of the pandemic dramatically impacted patient admissions, revenues, and costs, compounding the pressures of our long-term, lease-related debt obligations,” said Chief Executive Officer Robert Fish. “These restructuring transactions improve the financial and operational stability of the Company significantly and build on the encouraging signs we are seeing as COVID-19 case rates continue to materially decline and residents, patients, and staff are vaccinated.”
Is there light at the end of the tunnel? In light of the company looking for ways to restructure doesn’t necessarily suggest it’s throwing in the towel. But a voluntary delist did give a blow to GEN stock. However, this week the company brought on Harry Wilson as the new CEO. Wilson is also noted as a “turnaround specialist,” so it will be interesting to see if GEN subsequently turns around with this appointment.
1. Kelso Technologies Inc.
Finally, Kelso Technologies Inc. (NYSE: KIQ) rallied in kind with the market on Thursday. The stock is up over 50% year-to-date but still well-off of its 2021 high of $1.48. It looks like the termination of one of its contracts earlier this month was cause for concern in the market. Furthermore, its earnings miss didn’t necessarily help things. So is there anything to pay attention to right now with KIQ?
The company develops products for equipment used in transportation. Obviously the pandemic did a number on the industry last year. But with the “reopening trade” becoming more prevalent, traders are optimistic. In particular, the company supplies and designs rail tank car valve equipment for handling and containing different commodities. With rail becoming a more popular topic of conversation this month, and cheap penny stocks gaining momentum, KIQ could be one of the penny stocks to wathc.