Penny Stocks On Robinhood To Buy For Under $1
Penny stocks are well known for higher risk due to lower prices along. Since it only takes a matter of a few pennies to equate to a big change in stock price, it is both a big advantage and a big risk for traders.
This month we’re seeing a lot more attention on higher-risk assets like penny stocks. Much of this has been a result of a few recent market trends. First, we’ve got broader markets reaching all-time highs. Despite the lighter volume, the S&P, Dow, & Nasdaq have all floated higher. This “boring” trend has caused traders to seek out more volatility.
Penny stocks and small caps are places where big swings in price are constantly present. Then you’ve got micro-trends in things like non-fungible tokens (NFTs) and cryptocurrency. Things like Dogecoin, Bitcoin, Ethereum, and others have grown in popularity. While gains are to be had across the board, the stock market has remained somewhat consistent.
When you’re talking about emerging trends, the world of companies traded as penny stocks has a wide birth of interesting names. It’s interesting to see the flexibility that some of these companies have. For instance, last week there were tech names that traditionally focused on cloud computing.
With the rise in popularity of Dogecoin and other cryptocurrencies, the company pivoted and announced it would start mining Doge and other meme coins. Whether this was a ploy to gain traction in the market or will it actually become a viable business solution for that company is to be seen.
Robinhood Becomes Hub For Penny Stocks & Cryptocurrency
Like it or not, this is where platforms like Robinhood have begun thriving. Meme coins like Doge aren’t accessible on just any platform. You can’t buy it with TD Ameritrade or Etrade. But you can go from buying penny stocks on Robinhood to trading crypto seamlessly. In this case, it makes a lot of sense as to why the “Robinhood traders” are actually helping to bring in some of this volatility and these speculative trading trends.
So, should you be trading penny stocks right now? This is going to be something you need to decide for yourself. If you can handle higher risk and understand that hype is playing a big role right now, it might not hurt to look at a few cheap stocks. Make sure you know why certain names are trending. Also, keep in mind that the lower the price, the higher the volatility. Keeping this in mind, there are a few penny stocks on Robinhood that can be bought for under $1 right now. Are they worth the risk?
- Zomedica Corp. (NYSE: ZOM)
- Castor Maritime Inc. (NASDAQ: CTRM)
- Sundial Growers Inc. (NASDAQ: SNDL)
Robinhood Penny Stocks To Buy [or avoid] #1: Zomedica Corp. (NYSE: ZOM)
Zomedica has been on our list of penny stocks for over a year at this point. Much of the move that ZOM stock has seen stemmed from anticipation and speculation. The company provides diagnostic services and devices for the veterinary community. Its TRUFORMA diagnostic device has remained a core focus. This year was the year that the company would shift from “development stage” to commercialization. Officially, the company began selling TRUFORMA during the first quarter of the year.
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This ultimately became a “buy the rumor/sell the news” type of move. ZOM stock climbed from under $0.10 last year to highs of nearly $3 ahead of commercial sales. Since then, however, ZOM slowly traded lower. This week, however, things appear to have reversed course. The penny stock bounced early in the morning on Monday. There weren’t any headlines or filings to pair with the move.
It seems that Zomedica is in somewhat of a limbo right now. The company has begun commercial sales. But it hasn’t been on a massive level (yet). It has taken steps forward to increase the potential distribution of the product. Last week, the company announced it would expand its direct sales organization with a phase-out of a distributor-based sales effort. With this pivot, it will be important to see how this impacts Zomedica’s TRUFORMA sales strategy. For now, it is one of the penny stocks on Robinhood trading under $1 to watch in April.
2. Castor Maritime Inc. (NASDAQ: CTRM)
Castor is in a similar technical trend as ZOM over the last few weeks. The shipping company’s stock rallied from around 11 cents late last year to highs of nearly $2 at the start of 2021. Since then, it’s been a slow bleed, and CTRM stock ended up coming within striking distance of testing its 200 day moving average last week.
However, at the start of this week, shares have slightly reversed course. This continues a smaller uptrend that began on April 15th. CTRM has put in higher lows for 3 straight days so far, with this latest move coming on the back of another big update. Castor announced another vessel acquisition.
The company agreed to acquire a dry bulk carrier for $23.5 million. It will get delivered with a time charter contract attached as well. The daily gross charter rate will be equal to 114% of the Baltic Panamax Index and carry an estimated remaining term of roughly 17-21 months.
“We are pleased to announce our eleventh vessel acquisition in 2021 with the addition of another Kamsarmax dry bulk vessel, our sixth, to Castor’s fleet. Upon completion of all our announced acquisitions, our fleet will consist of seventeen vessels. With significant capital on hand, we continue to look for further opportunities to grow our fleet with the addition of high-quality tonnage.”
Petros Panagiotidis, Chief Executive Officer of Castor
With this latest acquisition and recent attention from the Robinhood community, CTRM has found itself on the list of penny stocks to watch under $1 right now.
3. Sundial Growers Inc. (NASDAQ: SNDL)
Love it or hate it, Sundial Growers remains a favored name among retail traders. It was one of the hot penny stocks on Reddit earlier in the year as traders flocked to the stock. Soon after reaching highs of $3.96 this year, SNDL stock tumbled. The company had gone on a capital raising spree to the tune of hundreds of millions of dollars raised. It has also been a frequent name on the list of most active stocks in the market, daily.
Some of the buzz surrounding the company focuses on potential M&A. Cantor Fitzgerald analyst Pablo Zuanic holds a Neutral rating on the penny stock. He cites that Sundial is “in a transition phase” focusing on cost-cutting efforts and “regearing” its cultivation facilities. Zuanic also cited the company’s cash position of roughly C$700 million and “will look to M&A both in the domestic and elsewhere.”
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No new updates have come out from Sundial in relation to that analyst sentiment. However, since it’s one of the few mj stocks on Robinhood and it’s currently sitting under $1, traders have taken an interest in the stock. It does have a very large share structure with more than 1 billion shares outstanding. Regardless of that, SNDL remains one of the most actively traded penny stocks on Robinhood.
