Are you looking for penny stocks to buy? You’re not alone and the last few weeks have been big for small cap stocks. When the market goes into a funk as it did around election time, it can be hard to find your rhythm. That’s mainly due to the fact that a considerable number of traders will sit on the sidelines to avoid volatility. I think that’s what we saw a few weeks back.
But heading into this next week, it looks like trading volumes are coming back and stocks are on the move. This year has seen a huge spike in new trading accounts. We did a study on Penny Stocks Brokerage Growth Statistics For 2020 and found a big jump in new trading accounts. One of the firms to experience the biggest growth was Robinhood. Though it’s a private company, analysts estimate that during the first 9 months of the year, some 5 million new accounts were opened on the app.
Now, I know what many of you will say, “Robinhood might not be the best brokerage for traders.” But all opinions aside, the fact remains, other than the TDAmeritrade/Charles Schwab merger figures, Robinhood is at the top of the heap when it comes to user growth. So obviously, with a resurgence in trading momentum, riskier asset classes become a focus. Enter penny stocks and million looking to learn how to make money with them.Robinhood Penny Stocks To Watch
- 22nd Century Group Inc. (XXII Stock Report)
- Coty Inc. (COTY Stock Report)
- Chembio Diagnostics Inc. (CEMI Stock Report)
- Ayro Inc. (AYRO Stock Report)
- Marathon Patent Group Inc. (MARA Stock Report)
All of the new traders out there asking, “Can you buy penny stocks on Robinhood?” the answer is yes, but there’s a catch. While brokers like TD/Schwab, Etrade, Interactive Brokers, and others allow you access to all penny stocks, Robinhood and Webull, for that matter, don’t. With only a few exceptions, these mobile-friendly brokers only allow access to NYSE and NASDAQ listed penny stocks.
This might seem like a “big deal” but, for the most part, the overall number of penny stocks on Robinhood and Webull is in the thousands. So your choices are pretty open. With that in mind, here’s a list of penny stocks for your list this week. Will they be on the buy or sell-side right now?Robinhood Penny Stocks To Buy [or sell] #1: 22nd Century Group Inc.
22nd Century Group Inc. has been one of the penny stocks to watch for the last few months. Ever since hitting a 52-week low of $0.55 in September, XXII stock has been on the rally-path. When you talk about vice stocks to watch, 22nd Century is usually part of the conversation that involves penny stocks. The company has been working on the development of a low nicotine tobacco product. In fact, one of the main initiatives for the company is obtaining FDA authorization for its VLN modified risk tobacco.
Last month 22nd Century was granted a new U.S. patent related to the reduction of nicotine in the tobacco plant. This gave the company a path forward in bringing very low nicotine traits into nearly any type of tobacco. This month the company reported earnings, beating analyst estimates on both EPS and sales. 22nd Century posted a 3 cent loss per share which came in better than the 4 cent loss per share estimate. Furthermore, its $7.3 million in sales was 32% higher than what Wall Street expected.
Something else to note is that 22nd Century continues evolving its cannabis arm as well. In its earnings update, the company expressed the goal to form operational partnerships that will enable it to offer comprehensive commercial breeding, cultivation, and extract purification services utilizing its proprietary hemp/cannabis plants in development. So we’ll have to see how that part of 22nd Century’s plan unfolds moving forward.Robinhood Penny Stocks To Buy [or sell] #2: Coty Inc.
Another one of the penny stocks to watch for the last few weeks has been Coty Inc. We’ve discussed the company quite frequently lately amid the recent surge in consumer stocks. Coty is a luxury brand builder. The company sells fragrances, cosmetics, and skin/body care products. Coty licenses brands like Calvin Klein, Hugo Boss, Gucci, Davidoff, CoverGirl, Rimmel, and Sally Hansen. Mst notably, Coty has licensed the rights to Kylie. With the namesake being Kylie Jenner, it’s becoming one of the fastest-growing and most-engaged beauty brands on social media.
This has helped lead some growth for the company and recently translated into strong, fiscal Q1, 2021 results. The company announced net revenue of $1.69 billion, which beat estimates of $1.08 billion. Furthermore, earnings per share came in at 11 cents. Compared to the 5 cent loss-per-share, these blew out Wall Street’s expectations for the quarter. Sue Nabi, CEO of Coty stated that “our first-quarter results are a testament that a stronger, more focused and more flexible Coty is emerging in the middle of the Covid-19 pandemic and better prepared to face any future market disruptions.”
What’s more is that traders might have something else to track in November. This pertains to the company’s proposed sale of its professional retail hair business. This would include Wella, Clairol, OPI and ghd brands. The expected closing date is November 30th at a price of $2.5 billion. Also keep in mind, that this is a sale of 60% of the business and Coty will continue retaining 40%.Robinhood Penny Stocks To Buy [or sell] #3: Chembio Diagnostics Inc.
We’ve discussed Chembio Diagnostics Inc. a few times over the last several months. In fact, the last time we checked the company out, Chembio announced that the FDA approved its Premarket Approval (PMA) application for the DPP HIV-Syphilis System. However, the most recent focus of the company has been on coronavirus testing. Obviously, this remains a big point of interest for the market amid record levels of COVID cases recently.
In October, Chembio submitted an Emergency Use Authorization application for its DPP SARS-CoV-2 Antigen test system. It has been designed to detect SARS-CoV-2 antigens in only 20 minutes. Last week, more news was released by Chembio after the Friday closing bell, which could be of interest come Monday morning. The company announced that its subsidiary Chembio Diagnostics Brazil Ltda. received regulatory approval from Agência Nacional de Vigilância Sanitária to market the DPP SARS-CoV-2 Antigen test system in Brazil.
Javan Esfandiari, Chembio’s Vice President and Chief Science & Technology Officer said, “Enabling patients and providers to know this information at the point-of-care in 20 minutes can help further reduce the risk of virus transmission and improve patient outcomes.”
With this news, we’ll have to see how the market reacts come Monday. However, what we can see already is that aftermarket trading saw a strong spike. Will it continue this week?Robinhood Penny Stocks To Buy [or sell] #4: Ayro Inc.
Ayro Inc. is no stranger to our list of penny stocks on Robinhood to watch. It’s been one of the hot penny stocks to watch in November. Furthermore, for the better part of the last 2 quarters, AYRO stock has experienced a considerable level of attention and momentum. The company’s part of the booming EV sector. With electric vehicle stocks surging during the second half of this year, traders are looking for cheap stocks to buy. The main reason I think is that companies like Nio Inc. (NIO Stock Report) and even Arcimoto Partners (FUV Stock Report) have climbed so much but were penny stocks at one point this year.
With the likes of other companies such as Electrameccanica Vehicles Corp. Ltd. (SOLO Stock Report) becoming the newest “penny stock graduate”, AYRO is one of only a few popular EV penny stocks to watch, currently. This week may be another active one for the sector as Nio is set to report earnings on Tuesday.
While traders should be aware of the sympathy momentum fueling AYRO’s latest rally, there are other fundamental things to keep in mind. Specifically, what the company has going on with the recent partnership deal between AYRO and Karma Automotive. The partnership includes a plan to produce more than 20,000 light-duty trucks over the next three years. It’s also reportedly worth as much as $300 million. Those who’ve got this on their list of penny stocks to watch might want to consider that EV stock could experience some higher volatility this week.Robinhood Penny Stocks To Buy [or sell] #5: Marathon Patent Group Inc.
Marathon Patent Group Inc. falls into the bitcoin and blockchain stocks category. The company specifically focuses on mining cryptocurrencies and has been one of the popular penny stocks to watch recently. With other companies like Grayscale Bitcoin Trust (GBTC Stock Report) reaching record levels in 2020, the obvious case can be made for a bullish stance on bitcoin right now. Rightfully so as the cryptocurrency has reached some of its highest levels since 2018.
Recent earnings results from Marathon didn’t paint the brightest picture of EPS growth from the last quarter. However, the future prospects of the company, based on management’s commentary could be bright based on recent sales figures.
Merrick Okamoto, Chief Executive Officer, stated, “With only 2,060 miners in operation in September when Bitcoin was trading at $10,000, the company generated $650,000 in Bitcoin revenue, our largest quarterly Bitcoin revenue in history. By the end of the 2nd quarter in 2021, we will have 23,560 miners deployed which equates to a greater than 1100% increase in mining capacity. At current Bitcoin prices, our deployment of new miners has the potential to produce more than an 11 fold increase in our monthly revenue as compared to our September 2020 revenue production.”
With more uncertainty on the future of stimulus against the backdrop of low interest rates, will this be another big week for bitcoin and blockchain stocks?