If you’re looking for penny stocks to buy right now, you’ve got plenty of choices. By definition, I’m talking about stocks under $5 per share. Some traders will choose to buy penny stocks closer to the $5 mark, while others like to find more volatility in cheaper stocks. Now, there’s obviously more to it than price. But, in general, the lower the price, the higher the level of market fluctuation. This is what I mean by “volatility,” and it is something that has been the source of excitement for plenty of retail traders.
Some of the more popular groups of these retail traders are Robinhooders actively participating in discussions on places like Twitter and Reddit. Why Robinhood? It became one of the most popular trading platforms during the pandemic.
If you look at some of the penny stock brokerage growth statistics from last year, you’ll see what I mean. Furthermore, in February, one of the co-founders of Robinhood told members of Congress that the platform had more than 13 million users. Another stat from JMP Securities estimated the amount closer to 23 million.
While the figures could have picked up as the boom in crypto put eyes on things like Dogecoin, the retail community has remained steadfast in its use of mobile-first trading platforms. One of the downsides of using them is that most restrict access to certain things. In particular, I’m talking about stocks trading on specific exchanges. With Robinhood and Webull, for the most part, traders aren’t able to buy penny stocks traded on the OTC.
Penny Stocks To Buy For Under $1 On Robinhood
In light of this, users are limited to trading Nasdaq and NYSE stocks. Since these exchanges uphold certain standards, including minimum price levels ($1), it’s difficult to find stocks to trade at lower levels. However, with this as the backdrop, it hasn’t prevented millions of users from trading cheap stocks on the app. In this article, we’ll talk about a few that actually can be bought for under $1 on Robinhood right now. Will the risk be worth it? That’s something I’ll leave up to you.
- Acasti Pharma Inc. (NASDAQ: ACST)
- Assertio Holdings (NASDAQ: ASRT)
- United States Antimony (NYSE: UAMY)
Robinhood Penny Stocks To Buy [or avoid]: Acasti Pharma Inc. (NASDAQ: ACST)
I’ll preface this with the fact that there are many risks involved with buying penny stocks under $1. A change in the price of just a few cents can equate to significant changes in percentage gain or loss. Acasti is no stranger to this fluctuation. If you look back at the penny stock in November of 2020, shares were trading under $0.20. The stock rallied as high as $1.22 this year. Even though that was only about $1 worth of movement, that equated to a move of more than 500%. Currently, the stock sits around $0.40 as of Thursday’s close.
However, during the premarket, momentum began coming into the stock. One of the main reasons for this stemmed from the news of a definitive agreement to acquire Grace Therapeutics Inc. According to Acasti, this deal will give the company access to a pipeline of rare and orphan disease programs. This includes 3 clinical-stage assets that received Orphan Drug Designation from the FDA. What’s more, the deal is expected to close in calendar Q3 of this year. So this could be a relatively quick turn-around for such a transaction if approved by shareholders.
“As a result of the merger, we anticipate the combined company will have the financial resources to fund our lead programs to critical value inflection points. Our board of directors have approved the proposed transaction with Acasti, which is also supported by Grace’s shareholders,” explained Vimal Kavuru, co-founder and chairman of Grace.
Based on the timing of this news and the current momentum in the stock market today, ACST could be one of the penny stocks to watch heading into the rest of Q2 and into Q3. The big point of focus will be on the pending approval of the transaction.
Assertio Holdings (NASDAQ: ASRT)
Another one of the Robinhood penny stocks under $1 is Assertio Holdings. The company focuses on selling commercial pharmaceuticals. Its portfolio focuses on areas of neurology, hospital, and pain & inflammation.
Similar to ACST, ASRT stock had a strong start to the year. It rallied to highs of $1.45 from just $0.39 at the start of the year. Since reaching those highs, the penny stock has been in a free-fall. This week, Assertio shares broke below $0.50, down about 65% from its 2021 high.
Why would this be one of the penny stocks to watch right now? On May 6th, it released its latest round of earnings results. Assertio beat EPS expectations as well as beat on sales estimates. Furthermore, guidance showed that the company is anticipating fiscal 2021 net product sales of between $85 million and $92 million. Assertio is also looking for an adjusted EBITDA of $34M-$40M for the year. What’s more interesting is management’s comments on the results:
“This quarter provides our first data point in demonstrating the strength of our diversified portfolio and non-personal promotional model, which showed resiliency in the face of the continued effects of COVID-19, the impact of payor pressure, and our shift to a leaner operational profile.”Dan Peisert , President and Chief Executive Officer of Assertio
The company recently launched its direct-to-patient digital campaign with leading migraine telemedicine platform, Cove. The aim is to boost accessibility to its CAMBIA and SPRIX products. The company also expects to realize roughly $45 million in annualized cost savings after it incurs some restructuring costs. As companies work at coming out of the pandemic lulls, Assertio has expressed its stance in making 2021 a strong year. Now it will come down to delivering on this guidance.
United States Antimony (NYSE: UAMY)
With things like electric vehicles and rare earths captivating the market’s attention, United States Antimony has presented an interesting scenario. Not only does it mine things like precious metals, but it also focuses on other things like antimony and zeolite. These are elements that’ve been thrown around during the EV discussions.
They come into play after comments made by GM’s Tim Grewe, head of General Motors (NYSE: GM) global electrification and battery systems, suggested potential uses for zeolite include EV batteries. He explained that GM is pushing ahead with zero-cobalt and zero-nickel cells. Grewe said the company is experimenting with electrolyte and zeolite additives “that will extend their service life even more.”
While EV stocks and companies with exposure to the ecosystem have gained attention, the more recent focus for US Antimony, in particular, is on its latest collaboration deal. Earlier this month, the company signed an agreement to study the feasibility of processing Perpetua Resources antimony concentrates at facilities owned by US Antimony.
According to the company, Perpetua Resources is in the permitting process of major antimony and gold resources in Idaho at their Stibnite Gold project. According to its May update, this would represent the “only domestically mined and refined antimony products.”
“The mine’s proximity to US Antimony’s processing facilities represents an advantage to both companies. US Antimony will be evaluating samples provided by Perpetua Resources to design processing techniques whereby the precious metals and common minerals will be separated from the antimony, providing US Antimony with a significant additional source of antimony, gold, and silver.”US Antimony, May 3, 2021
It was explained that it is confident that a processing technique can be developed quickly. This is based on the company’s experience with similar antimony ores.
Are Penny Stocks Worth The Risk?
As I said earlier, cheaper penny stocks can carry much more risk than higher priced stocks just based on price alone. Taking out other market factors, a move of just 10 cents can mean a change of 10% or more when it comes to stocks under $1. If you understand volatility and how to trade fast-moving stocks, then these cheap Robinhood names could be ones to watch right now.