A penny stock is defined as a security that trades under $5 per share. Because penny stocks are low priced, using them to make large intraday gains has become very popular. At the same time, these stocks are highly volatile, which means the chances of losing money can be high. This high risk with finding penny stocks to buy is what turns some away from investing. Often, these stocks can gain or lose their value by a large margin in a short period.
What penny stock investors do to reduce the risk of investing, is research. Developing an investment strategy can be very useful. For example, looking at what things are in a company’s pipeline can give you an idea of where it is at. Other research points include world news, sector news, filings, acquisitions, trading volume, rumors, and much more. That’s right, even so much as a rumor can cause a penny stock to see significant momentum.[Read More] 4 Reopening Penny Stocks For Your 2021 Watchlist
On May 11th, the broader stock market started strong, before quickly falling. Often when days like this occur, penny stocks will increase in price or show large movements. In some sectors, it is easier to keep track of advancements.
For example, with biotech penny stocks, you can look at what products are in trial stages, near FDA approval, or close to commercialization. With mining penny stocks, you can look at the latest mine and operational updates. These are just a few examples of the many penny stock sectors that exist.
Additionally, investors have to consider the effects of retail investing. This is playing out with brokerages like Robinhood and WeBull. And with so many new traders in the market, volatility is higher than ever. This should not serve to scare you, rather it can be viewed as an opportunity if you know how to use it.
As 2021 continues it will become more apparent which penny stocks are going to stay on top. These volatile stocks can often be very rewarding if you have the right tools at your disposal. It’s worth noting that with the pandemic still going on, traders’ emotions are still in flux.
This affects the entire stock market because it’s difficult to tell when economic recovery will occur fully. With all of this in mind, let’s look at five penny stocks to watch this week.5 Robinhood Penny Stocks to Watch
- Athenex Inc. (NASDAQ: ATNX)
- Transocean Ltd. (NYSE: RIG)
- BEST Inc. (NYSE: BEST)
- Farmmi Inc. (NASDAQ: FAMI)
- Boxlight Corporation (NASDAQ: BOXL)
Biotech penny stocks like Athenex Inc. have gone up in value significantly in the past few trading sessions. To understand ATNX, let’s take a closer look at what it does. Athenex discovers, develops, and commercializes drugs for the treatment of cancer. This is a large market and one that has seen a lot of momentum this year.
It’s earnings season right now, and it can either make or break a company’s stock price. Sometimes, it will have little to no effect on stock prices, but this is less common. Athenex reported its first-quarter 2021 financial and corporate results on May 6th.[Read More] Robinhood Penny Stocks Under $5? Check These 3 Out
Its revenue from product sales increased from $18.5 million to $20.4 million in the three months ended March 31st. This 10% increase was because of a $2.8 million increase in sales of its 503B products. This reported number is very encouraging for Athenex.
The company has a lot in its pipeline that could possibly trigger future momentum. Its U.S. partner Almirall S.A. launched Klisyri for treating actinic keratosis in the United States. One of its products is Oral Paclitaxel for treating metastatic breast cancer.
In regard to this, Athenex received a complete response letter from the FDA for the new drug application for on February 26th. When receiving any response from the FDA, it is always encouraging for both investors and the company alike.
“We continue to work diligently with our advisers to analyze and respond to the complete response letter received from the FDA on oral paclitaxel plus encequidar (oral paclitaxel). We are collecting additional data and doing additional analyses in support of our application.”CEO and Chairman of Athenex Inc. Johnson Lau
The company expects to have a meeting with the FDA before the second quarter ends. With this in mind, will you add ATNX to your list of penny stocks to watch?Transocean Ltd. (NYSE: RIG)
Transocean Ltd. is an energy penny stock that offers offshore contract drilling services. It contracts drilling rigs, equipment, and work crews for a large range of drilling operations. The company owns or has partial ownership in 37 mobile offshore drilling units, 27 deepwater, and 10 harsh environment floaters. This offers it a very broad market opportunity moving forward. Only a few days ago, the company announced its earnings.
On May 3rd the company reported its first-quarter results for 2021. This is likely what is driving its stock price up during the last week. Some of its numbers fell quarter over quarter, but they remain solid for the company in comparison to previous quarters. For example, its total contract drilling revenues were $653 million vs. $690 million the previous quarter.
President and CEO Jeremy Thigpen said, “During the quarter, our dedicated team of professionals continued to deliver safe, reliable, and efficient operations for our customers, producing 35% Adjusted EBITDA Margin, and some of the strongest operating statistics in company history.”
RIG stock has gone up more than 15% since the financial report was posted publicly. Will you be adding RIG stock to your watchlist?BEST Inc. (NYSE: BEST)
BEST Inc. is a tech penny stock that you may not have heard of. Recently, the company has come out with some sizable advancements that could be worth noting. Let’s first look at what BEST does. This company is a smart supply chain service provider in China.
Its technology is used in network optimization, smart warehouses, and store management among other things. While the company did file an annual report on Form 20-F for FY2020 back in April, this does not seem to be what is driving its stock price.[Read More] Blockchain Penny Stocks to Buy? 4 To Check Out on Robinhood
In fact, there is no apparent news that is causing BEST stock to increase in price. Yet still, its trading volume is 275% higher than its average full-day volume over the last 100 days. This could be due to China’s reopening and increased industrial demand. Additionally, we see prices with penny stocks move up and down frequently, even when no news is there to back it.
We’ve seen metals like copper and iron ore increase in value recently due to big demand in China. As one of the world’s largest economies, it has a big impact on the industrial sector. With this in mind, will BEST make your list of penny stocks to watch?Farmmi Inc. (NASDAQ: FAMI)
Farmmi Inc. is a penny stock we have discussed a few times in the past. If you have not heard of this company, let’s get you up to speed on what it does. Farmmi is an agricultural company that sells shiitake mushrooms, and other edible fungi products. This includes bamboo fungi, agrocybe aegerila, and much more. Its Farmmi Jicai online store sells its products, and they are also offered to restaurants, stores, and distributors.
On May 5th the company announced that its subsidiary Zhejiang Forest Food Co., Ltd., received a multi-product order for export to Japan of its mushrooms and fungus. These products have been in high demand recently which is significantly helping the company.
The New York Times recently stated, “Mushrooms are showing up in all sorts of wellness products, pushing them into the mainstream and making mushrooms a major force in the flourishing, multi-billion dollar wellness market.”
Well, what about Farmmi’s future? The Chairwoman and CEO Ms. Yefang Zhang stated, “We are moving forward with greater confidence having recently strengthened our balance sheet through an underwritten public offering. This gives us the improved financial strength needed to now move into an accelerated growth phase, with the support of an even more robust integrated supply chain and sales network.”
On May 11th, just a few days after its announcement, FAMI stock price is up more than 6.5%. This is not the only recent order that Farmmi has received, with many going to the United States and Japan. Will this company make it on to your list of penny stocks to watch this week?Boxlight Corporation (NASDAQ: BOXL)
Another penny stock we have mentioned many times recently is Boxlight Corporation. Boxlight is a tech penny stock that develops, sells, and services interactive classroom solutions. Its education products are targeted at the K-12 market and include projectors, flat panel displays, touch boards, and much more.
On May 11th the company announced that it has joined the Google Cloud Partner Advantage program. Boxlight will offer customized professional development and support to Google Workspace for Education. Its offering includes live training sessions, online courses, support to educators, professional development programs, and more.
Excited about the announcement, Dr. Alexandra Leis, CEO of Boxlight EOS Education stated, “Boxlight is committed to helping more teachers gain that enthusiasm and realize the full potential of Google Workspace for Education.” Shares of BOXL stock jumped nearly about 8% on the day of the announcement. Will BOXL enter your penny stock watchlist?Do These Penny Stocks Have a Place in Your Portfolio?
With the world in such a volatile place, nobody knows for sure when things will be normal again. What we do know is that looking at trends in the market can help exponentially when investing. This means understanding industry wide trends, and how they may affect specific markets as it relates to penny stocks.[Read More] What Are Penny Stocks? 2 Top Trading Tips for 2021
If there is a huge resurgence in COVID cases, it could make reopening penny stocks fall in value. These are just a few examples, but what we do know is that putting together a strategy can be very useful when investing in penny stocks. So which companies will make it on to your watchlist?