Best Penny Stocks on Robinhood to Watch For Under $4
Finding penny stocks on Robinhood is a great way to stay ahead in the stock market. While many investors believe that penny stocks are only traded on OTC markets, but it is actually quite the opposite. In reality, a penny stock is any security trading under $5 per share. And because of this, there are hundreds of options to choose from.
But keep in mind that just because there are penny stocks for under $5 or even $4, does not mean that they are worth buying. And often, the risk with penny stocks can be high simply due to their low price. However, with the right research on hand, investors can decide based on their portfolio style and investing strategy, if penny stocks are worth it.
Are Penny Stocks on Robinhood Worth It?
In the past few years, Robinhood has become the preferred trading platform for millions of investors. As a result, billions of dollars in new capital have flooded into the stock market. This has increased volume, and subsequently, market volatility. But, volatility is often a desired factor among penny stocks traders.
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Investors should understand that this can result in either quick profits or even quicker losses. The best way to avoid this is by having a thorough understanding of what makes a specific penny stock or industry move. So, considering all of this, let’s take a look at three penny stocks to watch for under $4 on Robinhood.
3 Penny Stocks on Robinhood For Your Under $4 Watchlist
- BIOLASE Inc. (NASDAQ: BIOL)
- Atossa Therapeutics Inc. (NASDAQ: ATOS)
- Kaixin Auto Holdings (NASDAQ: KXIN)
BIOLASE Inc. (NASDAQ: BIOL)
BIOLASE is a biotech company that creates laser systems for dental practitioners and their patients. The company is involved in the development, manufacturing, marketing, and sale of these laser systems. These systems allow dental specialists to perform cosmetic, surgical, and restorative procedures.
While the products that BIOLASE produces may take some time to see heightened adoption, there’s no doubting the potential that they have. In the medical industry, there is always room for improvement, and this is especially true when we consider standard procedures. On August 16th, BIOLASE announced that it has expanded its core capabilities by appointing 3 new board members that have significant dental experience.
“As we embark on an aggressive growth strategy, I am pleased to welcome the new Board members as their extensive experience in dental practice, translational and clinical research, and dental education will be extremely helpful as we continue to execute on the BIOLASE business plan.”
Chairman of the Board of BIOLASE, Jonathan T. Lord
With these new board members, the company may be able to have an easier time commercializing its products. In other recent news, the company just reported its second-quarter results. The company’s net revenue increased by 211% year over year to $9.1 million. Its net revenue was also 6% higher than its pre-pandemic revenues last year. BIOLASE laser system sales went up 424% year over year as well.
These numbers are very solid and show that BIOLASE is growing substantially right now. In the past month, shares of BIOL stock have increased by over 17% and YTD that number more than doubles to 39%. Keeping all of this in mind, will BIOL make your penny stocks watchlist?
Atossa Therapeutics Inc. (NASDAQ: ATOS)
In the biotech industry, it all comes down to which company is making the most breakthroughs. Additionally, investors like to find biotech stocks that have a correlation to current events. In line with this, Atossa Therapeutics Inc. is a biotech company that discovers and develops medicines based on oncology and infectious diseases.
One of its main programs is Endoxifen which is an active metabolite of tamoxifen. Endoxifen is in Phase II clinical trials to treat and prevent breast cancer at the moment. Additionally, Atossa has clinical trials in motion for treating COVID-19 patients.
On August 13th, the company announced its second-quarter financial results and a corporate update. In the results, Atossa stated that it ended the quarter with cash on hand of around $142 million. While it didn’t report any consistent revenue stream, this makes sense given that it is not in the commercialization stage with any of its products. However, it does have several with potentially promising futures.
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Additionally, the company released final data from its Phase 2 Endoxifen clinical trial, which seemed positive. Atossa also received authorization from Swedish regulators to start a Phase 2 clinical study of Endoxifem to reduce mammographic breast density.
“We continue to experience encouraging progress in our MBD and COVID-19 programs, with new regulatory approvals being granted in Sweden for a Phase 2 trial in MBD and authorization in Australia to commence a Phase 2 study of AT-H201 for respiratory illness associated with COVID-19.”
President and CEO of Atossa, Dr. Steven Quay
Because of its relevance to Covid, the company has seen a high amount of attention in the past few months. YTD, shares of ATOS stock are up by around 243%, which is quite substantial. Considering this, will it be on your list of penny stocks to watch?
Kaixin Auto Holdings (NASDAQ: KXIN)
Kaixin Auto Holdings is a company that participates in the used car market in China. Specifically, it operates 14 used car dealerships across mainland China, which offers it quite a broad reach. It also provides financing channels to its customers through its partnerships with financial institutions. In addition to this, Kaixin provides insurance, extended warranties, and after-sales services to its customers.
On August 6th, the company announced that it will enter the market for new energy vehicles. The company will quickly start EV R&D, production, and marketing for the future of these products. A few days later, the company announced that it will start with the smaller size electric vehicle market in China.
The company has launched development plans through its new EV unit to create vehicles for the subcompact and mini compact categories. In the past few months, the growth of the EV market has become explosive. And in China, the demand for compact EVs is high and growing substantially.
Estimates show that sales of subcompact and mini compact electric cars are currently projected to reach 5 million units by 2025 in the country. Since this announcement was made by Kaixin, the company’s stock price has increased by more than 77.8%. With this exciting news in mind, will you add KXIN to your penny stock watchlist this month?
Are Penny Stocks Worth It?
At the end of the day, finding the best penny stocks to buy all comes down to what type of trader you are and your investing goals. These two factors alone will help you to narrow down your search substantially.
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And with so much going on in the market right now, it can be difficult to stay up to date. So, considering all of this, do you think that penny stocks are worth it or not?
