Are You Watching These Penny Stocks On Robinhood
Last week was an interesting one for penny stocks and higher-priced stocks as well. Fears of inflation and uncertainty over the energy industry captivated headlines. Friday gave a brief bit of respite from the selling pressure. However, right up until the last half hour of the May 14th session, volume levels were some of the lowest in weeks. Once the closing bell rang, stocks had regained a bit of what they had lost earlier in the week.
So what’s in store right now? With another busy week of earnings, we’ll likely get a closer look at the state of “the consumer.” Retail earnings will likely captivate headlines initially. Barring any unforeseen economic glitches, the market will have plenty of Q1 data to digest. What’s more, there’s also going to be plenty to discuss after guidance, and corporate conference calls are concluded.
An important thing to remember is that penny stocks generally beat to the tune of their own song. Early last week, when inflationary fears roiled markets, we saw plenty of cheap stocks making big moves higher. In fact, for those of you who traded on Monday or Tuesday, you’ll likely remember stocks like Protagenic Therapeutics Inc. (NASDAQ: PTIX), Obalon Therapeutics Inc. (NASDAQ: OBLN), and even Ambev (NYSE: ABEV), which all surged higher. This has been a high point for traders, especially during volatile periods for the broader markets.
Penny Stocks On Robinhood
Given the strength on Friday, it will be important to note the momentum early on. Will we see this bullishness continue? Social sentiment has played its role in stocks recently. Whether we’re talking about penny stocks on Reddit or the latest Tweet from Elon Musk, retail trading action has become heavily influenced by social trends.
The last year has seen big growth in the number of new traders coming into the market following the pandemic. If you look at some of the penny stock brokerage growth stats from last year, you can see where most of these “noobs” have gone: Robinhood.
The application’s easy user interface and overall simplicity of the app have become an appeal. Despite countless problems and technical issues its users have had, retail traders have remained loyal thanks to the ability Robinhood has presented for accessing markets from seemingly anywhere.
The downside is that not all penny stocks can be traded on the app. With few exceptions, OTC penny stocks aren’t accessible through Robinhood and other apps like Webull. Citing increased levels of risk, the applications allow access to penny stocks trading on the Nasdaq and NYSE. So, given that there are millions of traders looking for cheap stocks to add to their list, here are a few companies to watch during the second half of May.
Robinhood Penny Stocks To Buy [or avoid]
- Salarius Pharmaceuticals Inc. (NASDAQ: SLRX)
- MindMed Inc. (NASDAQ: MNMD)
- Ideanomics Inc. (NASDAQ: IDEX)
Salarius Pharmaceuticals Inc. (NASDAQ: SLRX)
One of the examples of penny stocks going against the broader trends is Salarius Pharmaceuticals. Since the start of the year, SLRX stock has been an active one to watch. It began in January trading under $1 and ultimately rallied to highs of $3.50 following a few key milestones. The company develops therapies for different types of cancers.
Obviously, this niche of the biotech industry remains a hotbed for advancement. But, as far as the overal biotech space is concerned in the market, things have been cold. Take a look at the Nasdaq Biotech ETF (NASDAQ: IBB) or the S&P Biotech ETF (NYSE: XBI). Both began the year strong but are now negative for 2021. In contrast to this, shares of SLRX stock are higher by more than 40% year-to-date.
[Read More] How to Buy Penny Stocks In 2021
Last week finished strong for Salarius, which saw a surge late in the Friday session and continued trading after the closing bell. This was an extension of the trend that began after the company reported its latest quarterly results earlier in the week. One of the key highlights from those results came when David Arthur, President, and CEO of Salarius, said that “Salarius is operating from a position of strength as we work to advance our clinical trials exploring seclidemstat as a potential treatment for Ewing sarcoma, select FET-rearranged sarcomas, advanced solid tumors, and hematologic cancers. By mid-year 2021, we expect up to three total active clinical trials in up to five patient populations evaluating single-agent seclidemstat and up to three combination therapies.”
With 2021’s midway point quickly approaching, this could be something to keep in mind.
MindMed Inc. (NASDAQ: MNMD)
Another trend that has begun gaining steam is in the use of psychedelic treatments. While it is still somewhat on the fringe of the medical world, more investors have gotten some exposure to related stocks. Companies like Peter Thiel’s Compass Pathways (NASDAQ: CMPS) have brought some legitimacy to the industry.
While there aren’t many main-listed names in psychedelics, Compass quickly took a leading role. You’ve also got other companies like Seelos Therapeutics (NASDAQ: SEEL), which gained attention this year following new advancements with its ketamine treatment candidate.
MindMed has become the latest name to join the main-listing ranks in the stock market. The company has focused on a multi-pronged approach to psychedelic-assisted treatment, including the use of technology for some of its processes. It’s also looking to build upon its portfolio using psychedelics for more than just cognitive diseases. Earlier this month, MindMed announced the launch of “Project Angie.” The company aims to advance the development of psychedelics, including LSD, to treat pain conditions. MindMed is currently exploring two primary clinical indications for the treatment of pain.
With the growing body of traders looking for new industries in 2021, magic mushroom stocks have come into the spotlight. As a result, companies like MindMed are gaining some attention and could be on the list of penny stocks to watch right now.
Ideanomics Inc. (NASDAQ: IDEX)
This article has discussed trends. In the case of Ideanomics, the latest uptick in renewed interest in electric vehicles has played a role. The company had a big first quarter of the year after getting wrapped up in the EV hype. However, like most electric vehicle stocks in 2021, shares fell and have done so for the last few months. Its product portfolio includes everything from cars and e-tractors to electric motorcycles and, now, hybrid vehicles.
Earlier this month, Ideanomics announced the acquisition of US Hybrid. According to the company, “The acquisition of US Hybrid brings to Ideanomics the application of US-built technology, for use in its own vehicles, and significantly extends the company’s capabilities in zero-emission transportation. US Hybrid will continue to service its existing customer base, and Ideanomics will assist them in scaling their business operations within the Ideanomics Mobility business division. US Hybrid operates from locations in California, Connecticut, and Massachusetts.”
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With the closing of this acquisition, momentum seems to have come into the market. On Friday afternoon, following the market close, IDEX stock shot to highs of $2.56. Considering it closed the regular session at $2.46, this could be something to follow at the start of the week and see if the trend continues.
Penny Stocks To Buy This Week
Whether you’re buying penny stocks on Robinhood, Webull, TD, or others, the goal is always the same: make money and repeat. It’s important to identify trends and determine how sustainable they are. Furthermore, paying attention to more than just corporate headlines can help too. I’m not saying to only following chatter on social media but to use it to your advantage, if anything at all. Remember that these stocks carry plenty of risks, so if you are looking for penny stocks to buy this week, have a clear strategy outlined before diving straight in.
