New York (US). Trading Your Own Way quoting Robinhood reports of 5 Penny stock are ready to take off in the market reflecting a cautiously optimistic trade volume in the last quarter of 2020.
Whether you’re trading penny stocks on Robinhood, TD Ameritrade, Schwab, or even Webull you’ve got your pick of names to choose. However, some penny stocks, usually OTC penny stocks, are restricted from certain platforms such as Robinhood & Webull. Needless to say, with the market momentum we’ve seen in NASDAQ & NYSE small cap stocks, there’s still a wide range of hot penny stocks to trade.
This week, we’re seeing a strong surge in sectors of all shapes and sizes. Whether its entertainment, energy, biotech, or even beauty products, you name it, there are stocks to watch. The upbeat sentiment that continues pushing markets higher. This is likely a reason we’ve seen so much excitement in small caps. There’s actually been a noticeable rotation into these stocks under $5 believe it or not.
If we look at certain small cap ETFs it paints a clearer picture. The Vanguard Small-Cap Growth ETF, for example, has just made new highs this week while things like the S&P struggle to find footing. Further to this, the Russell 2000 ETF has also echoed a similar bullish sentiment to Vanguard’s ETF over the last few weeks. With this in mind, it makes sense as to why so many retail traders are searching for penny stocks on Robinhood, Webull and other popular trading platforms right now. Are any of these on your list right now?
Top Penny Stocks On Robinhood
- Aileron Therapeutics Inc.
- Sonnet BioTherapeutics Holdings, Inc.
- Camber Energy Inc.
- Rolls Royce Holdings
- Coty Inc.
Robinhood Penny Stocks To Watch #1: Aileron Therapeutics Inc.
Aileron Therapeutics Inc. (ALRN) is one of the penny stocks that have managed to establish a bullish trend amid recent market volatility. We’ve actually been following this company since last June when shares traded around $0.80. It’s definitely gone through ups and downs but overall, ALRN stock has climbed significantly since then. In May of this year, we saw shares reach new 52-week highs of $1.99. After some bouts of consolidation and rebounds, ALRN seems to have found a home above its 50-day moving average.
One of the biggest focuses for the company is its ALRN-6924 drug candidate. This is the company’s cancer drug designed to destroy cancer cells themselves. Aileron completed a $15 million stock purchase with Lincoln Park Capital last month. The significance of that has everything to do with the use of funds. This includes extending its cash runway to support its ALRN-6924 clinical development strategy.
One of the things traders are still waiting on are data readouts from its ongoing open-label Phase 1b clinical trial of ALRN-6924. The company completed enrollment in the dose optimization expansion cohort of the study. The only information given was that data was expected before year-end.
Regardless, ALRN stock is on the move again on Thursday. Shares reached a high of $1.50 during early trading. Volume has also picked up during the day. Something to keep in mind, however, is that the company did file for a shelf registration of 10.55 million shares via selling shareholders. Will dilution risk play a role moving forward?
Robinhood Penny Stocks to Watch #2: Sonnet BioTherapeutics Holdings, Inc.
Sonnet BioTherapeutics Holdings, Inc. (SONN) is another one of the penny stocks holding a consistent uptrend during October (so far). The company focuses on oncology with a platform for innovating biologic drugs of single or bispecific action. Sonnet’s FHAB™ (Fully Human Albumin Binding) technology uses a fully human single-chain antibody fragment that binds to and “hitch-hikes” on human serum albumin for transport to target tissues.
If you remember back in August, there was a big uptick in convalescent plasma penny stocks. Sonnet fell into this category based on its platform. Since then, a few things have happened for the company that brought some positive momentum to the stock. The main event came after the company reported positive preclinical safety data for its SON-1010 for oncology applications.
Sonnet also said it was on track to submit an IND by 2021. Prior to that and one of the outstanding items to note is its LOI in early August. The company executed a letter of intent to negotiate an agreement to license its SON-081 and SON-080 assets with New Life Therapeutics Pte. Ltd. of Singapore. No further updates had been released after this LOI so far.
Since September 24th, SONN stock has been on the rise. So far, it’s moved from $2.23 to highs of $3.05 on Thursday.
Robinhood Penny Stocks to Watch #3: Camber Energy Inc.
Shares of Camber Energy Inc. (CEI) have been on the move for the last few weeks. Similar to SONN, CEI stock saw its price reverse beginning on September 24th. At the time, the penny stock was trading around $0.46 and has since climbed to highs of $0.89 this week so far. While the company itself hasn’t posted any news, the sector it’s in has received some very strong momentum over that time.
The company is engaged in the acquisition and development of crude oil and natural gas from various known productive geological formations. The company operates exclusively in the onshore United States oil and natural gas industry.
Something else to keep in mind is that Camber has been part of a long-awaited merger. Earlier this year a preliminary joint proxy statement was filed. It related to the planned merger with Viking Energy Group. The two companies are now waiting on additional comments from the SEC. This merger is planned for Camber to issue new shares of the company to equity holders of Viking in exchange for 100% of Viking’s outstanding shares.
Louis G. Schott, Interim CEO of Camber, explained that, “Both Camber and Viking have filed their quarterly reports for the periods ending June 30, 2020, the next updates to the companies’ financial statements are not required until November 2020, and we anticipate being able to address any SEC comments on the Form S-4, if any, in only a few weeks after the receipt of such comments, which should allow us to move forward with the Camber and Viking stockholder meetings promptly after the SEC signs off on such Form S-4 filing.”
Robinhood Penny Stocks To Watch #4: Rolls Royce Holdings
Rolls Royce Holdings (RYCEY) is actually one of the OTC penny stocks that, as of October 8th, was tradeable on the platform. Normally, that isn’t the case with stocks listed on the Over The Counter exchange. Needless to say, RYCEY stock has been on fire this month. The company has been battling the downturn in its engineering arm.
The company was in trouble earlier this year as the coronavirus pandemic put a stranglehold on things like travel, airlines, etc. Obviously, its core business was hurt in a major way and the company has ended up burning through billions of dollars this year to stay afloat. In May the company cut 9,000 jobs and has further, recently sought to raise some $6.4 billion to boost its balance sheet. So why is this on a list of penny stocks to watch right now? If you look at the RYCEY stock chart, you’ll start to see why.
Since the beginning of the month, shares have pulled an about face. It moved from around $1.40 to highs this week of $2.77 so far. One of the things to note with RYCEY is what’s happening with regard to stimulus talks. Furthermore, the company is also leading the nine-member consortium to design the “rapid assembly” nuclear power stations to help the UK meet carbon emissions targets.
What’s also bolstering momentum for Rolls is what analysts are saying about the company. “RR [Rolls-Royce] is set to post record gains for this week as investors are buying the stock as it is way too cheap,” said Naeem Aslam, chief market analyst at AvaTrade.
Robinhood Penny Stocks To Watch #5: Coty Inc.
Coty Inc. (COTY) has trended higher this month in light of a few recent events. First, COTY stock came into October roaring after a series of new analysts updates for the company. Citigroup upgraded COTY to Neutral and announced a $3.25 price target for the penny stock. Furthermore, Jefferies echoed a similar sentiment. However, it upped its rating to a Buy and gave a $4 price target on Coty. Despite this being one of the worst performing penny stocks of 2020, the company itself continues making milestones.
This week, Coty announced that it officially launched the direct-to-consumer flagship websites for Kylie Skin in the United Kingdom, France, Germany and Australia. With the face of Kylie Jenner, Kylie Skin is one of the fastest-growing and most-engaged beauty brands on social media.
Kylie Jenner commented: “I’m so excited to launch KylieSkin.com in markets across the globe. I always wanted to bring my skincare line to more consumers around the world and this will allow for an easier shopping experience and faster delivery. I’m looking forward to engaging with more customers in the UK , France , Germany , and Australia , to hear what their favorite products are and how they incorporate them into their routines.”
Thursday’s session saw a continuation in what has now become a 6-day uptrend in the penny stock. However, from a technical perspective, that 50-day moving average has continued acting as a resistance point on the chart for months. Will COTY finally be able to put that in the rearview or is a pullback coming next?
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