Apr 25, 2021 (Penny Stocks via COMTEX) -- Should These Be On Your List Of Penny Stocks To Buy?
Trading penny stocks is simple in theory. You find cheap shares, hit the buy button on your broker platform, then sell when your profit target is reached. However, when it comes to finding the top penny stocks to buy, a lot more effort goes into it than just knowing how to buy or when to sell. Research is key, and understanding volatility is important.
The definition of penny stocks refers to shares of companies trading under $5. With this as the backdrop, share price alone can make for a volatile situation in the market. Think about it. Even with the highest-priced penny stock, a 50 cent move still equates to a noticeable gain. The lower the price, the less movement needed to realize meaningful gains.
This is one of the main reasons new traders choose penny stocks to buy in the first place. Even a $500 position can produce a much larger windfall in a shorter time frame compared to purchasing shares of Netflix ( NASDAQ: NFLX ) or Amazon ( NASDAQ: AMZN ). But there is a downside, of course. Not all penny stocks go up. Also, the ones that do climb don't move higher in a straight line. Even if you're learning about investing, penny stocks are usually not the first type of asset to choose. This is simply due to the higher level of volatile price action these typically see.
Penny Stocks To Buy On Robinhood
Here's where new trends take hold. The Reddit community has now become the poster for retail traders. Earlier this year, Redditors across multiple subreddits like r/WallStreetBets and r/PennyStocks rallied behind certain companies. GameStop ( NYSE: GME ), Express ( NYSE: EXPR ), and Nokia ( NYSE: NOK ) are just a few names that took flight during the 2021 short-squeeze frenzy.
Also, the broker of choice among these retail traders seems to have been Robinhood. It's easy to use and simple to place trades with. But it also comes with its own downside. Not all penny stocks are accessible on it. With few exceptions, OTC penny stocks can't be purchased on the platform. Does this mean it's a lost cause if you're trading penny stocks ? Of course not.
But the amount of stocks under $1 is relatively limited compared to other brokers like ETrade or Fidelity. Needless to say, we've found a few that have been trending recently and have also become some of the more actively discussed penny stocks on Reddit . Will they be on your buy or avoid list this week?
Oragenics Inc. ( NYSE: OGEN )
AIkido Pharma Inc. ( NASDAQ: AIKI )
Kelso Technologies Inc ( NYSE: KIQ )
Brickell Biotech, Inc. ( NASDAQ: BBI )
Reddit Penny Stocks To Buy [or avoid] #1: Oragenics Inc. /zigman2/quotes/205629316/composite OGEN -5.53%
Oragenics was a big mover earlier in the year. Shares of OGEN stock surged from under 50 cents to highs of $1.80 within a few weeks. The big catalyst behind the move stemmed from Oragenics' potential COVID-19 vaccine, Terra CoV-2. The company raised some capital which triggered a sell-off in February, but it recovered early last month. That was when the company entered into a material transfer agreement with Biodextris Inc. This was for the use of three intranasal mucosal adjuvants in Terra CoV-2.
These adjuvants are added to vaccines to enhance their immunogenicity. Biodextris' BDX100, BDX300, and BDX301 offered an additional immune response, manufacturing efficiency, and intranasal vaccine administration benefits.
Obviously, you'll see that most of April was reminiscent of February in that OGEN stock had slid lower. But late last week, the tides turned. Shares rallied over 40% from Wednesday to Friday. There wasn't any formal news or a filing to pair with the move. However, the speculative nature surrounding pandemic penny stocks remains a focus. With rising cases globally, OGEN stock could be one to watch after last week's late rally.
2. AIkido Pharma Inc. /zigman2/quotes/204026265/composite AIKI +3.49%