There’s no denying that platforms like Robinhood and Webull have helped give easy access to new retail traders. That’s especially true when you see all of the penny stocks breaking out, thanks to retail momentum. Despite some of the shortcomings of these mobile-first platforms, the quick ability to place trades has remained an attraction. There’s one problem, however. Some stocks aren’t able to be traded on Robinhood or Webull. Generally speaking, access to OTC penny stocks is restricted. That means the vast majority of penny stocks under $1 are also not within reach.
Why? Since Robinhood and Webull allow access to NASDAQ & NYSE-listed names, these companies also have requirements. One of these requirements is maintaining a minimum bid price of $1. Fall below that level for too long, and there’s a risk that these companies get delisted to the OTC and, thus, unable to be traded.
Does this mean there aren’t penny stocks to buy under $1 on Robinhood? Absolutely not. However, with that, it’s essential to understand that there are added risks in doing so. Today we’ll look at 4 of these cheap penny stocks on Robinhood, and you can decide if they’re hot ones to buy or avoid entirely.
Read more: How To Buy Penny StocksRobinhood Penny Stocks To Buy Under $1 [or avoid]
- United States Antimony Corp. (NYSE:UAMY)
- Sesen Bio Inc. (NASDAQ:SESN)
- BIolase Inc. (NASDAQ:BIOL)
- Waitr Holdings (NASDAQ:WTRH)
One of the hot areas in the stock market today is actually mining. In particular rare earths and energy metals are taking up most of the focus. While you might think that the recent bout of volatility has traders looking at gold or silver, it’s energy that’s pushing sentiment. US Antimony specializes in, as you might guess, antimony mining. This is something used in myriad industrial applications, more relevantly in making batteries. According to the company, “China, historically the sole supplier of lump antimony trisulfide and the dominate supplier of antimony, in general, has held back the export of antimony trisulfide, leading to a potential worldwide shortage.”
The company has a wide berth of properties across North America. Right now, it’s reviewing these to ramp up efforts and secure new sources of antimony. US Antimony has also discussed that it’s actively hosting discussions with junior mining companies for potential partnerships. This includes projects like the ones on its Los Juarez property in Mexico. The company has expressed that this property could hold significant potential. The Mexican Government did additional work and reported a deposit of 1,000,000 metric tons grading 1.8% antimony and 8.1 ounces of silver per metric ton.
With growing interest in energy metals and rare earths, UAMY stock has begun gaining some attention in the stock market right now. Despite trading below $1, the penny stock is still up significantly on a year-to-date base, by more than 70%.Sesen Bio Inc. (NASDAQ:SESN)
Another one of the cheap penny stocks under $1 on Robinhood is Sesen Bio. This biotech stock has been at the center of heavy speculation for weeks. The dramatic sell-off that ensued following bad news last month has brought about a big question mark for traders. Specifically, the company’s Vicineum for treating bladder cancer was awaiting an outcome from filing a Biologics License Application. Last month the FDA ultimately determined that it couldn’t approve the Application in its present form. While recommendations were explicitly provided to additional clinical data needed, the damage was done. This ultimately sparked a sell-off in the stock, with SESN dropping below $1 for the first time since 2020.
Even with this as the case, SESN stock has traded some of its highest daily volumes ever. Furthermore, the drop seems to have begun holding a new channel between lows of $0.88 and highs of around $1 during the last few weeks. Meanwhile, some traders are looking at the stock as a potentially high-short interest name to know. But with a current short float of around 11%, that doesn’t necessarily compare with other “short squeeze penny stocks” we’ve watched explode this quarter.
The company remains focused on the next steps with the FDA for this application. In the meantime, Sesen continues advancing other pipeline treatments. This includes a recent 8K filing, which showed an update related to a research agreement entered into back in 2017. Specifically, this was a Cooperative Research and Development Agreement with the National Cancer Institute for Vicineum combined with AstraZeneca’s (NASDAQ:AZN) durvalumab for treating bladder cancer. Preliminary data was released from an interim analysis of 12 patients. The combo was well-tolerated, with no new safety signals seen. Given this, SESN has found itself on the list of penny stocks to watch under $1 right now.Biolase Inc. (NASDAQ:BIOL)
Another biotech penny stock hovering below that $1 threshold is Biolase. BIOL stock is hovering around its 50-day moving average but maintaining to hold levels above this significant technical level so far. Despite trading under $1 right now, BIOL stock is up 60% year-to-date. The company’s oral laser devices have earned the company its recent attention. That’s thanks to continued reopening efforts and novel advancements in dental technology.
Toward the end of last month, Biolase inked a deal with a leading endodontist, Dr. L. Stephen Buchanan, for a clinical advisory partnership. The goal is expanding laser adoption and increasing training programs with industry leaders like Dr. Buchanan.
“We are proud to be partnering with Dr. Buchanan because of his reputation as an expert in the research and development of new technology, instruments, and techniques in endodontics…This partnership provides the most advanced laser technology in Endodontics for Dr. Buchanan’s practice and training programs.”John Beaver, BIOLASE President and CEOWaitr Holdings (NASDAQ:WTRH)
One of the companies we’ve discussed in the past is Waitr Holdings. It was a big winner during the 2020 pandemic. Stay-at-home orders placed a bright spotlight on companies tackling the issue of how to shop and eat without being around people. Waitr’s delivery technology platform had then come to light.
However, this year has been much different. As of this month, WTRH stock is sitting around 2021 lows as it attempts to recover. A recent win with ProMerchan, Flow Payments, and Cap Cod Merchant Services has breathed a bit of new life back into the company. Announced last month, Waitr announced the completion of its acquisition of these companies. Carl Grimstad, CEO, and Chairman of the Board of Waitr, explained that the company’s goal “is to be able to offer a suite of payment services to our ecosystem partners, including loyalty programs, gift cards, payment processing, and merchant lending. We view these acquisitions as an important step in pursuing this strategy, and we believe this could lead to significant growth for Waitr in the future.”
Waitr’s core model operates online ordering options for customers and provides delivery, carryout, and dine-in options. Along with BiteSquad and Delivery Dudes, the company aims to connect local restaurants and grocery stores to diners in underserved U.S. markets. Now, with its foot in the door of merchant processing, will this finally be the catalysts to get things turned around in the market?Penny Stocks & Weighing Risk/Reward
When it comes to trading penny stocks, risk and reward are something that should come into play. However, we’re not talking about just any type of “cheap stocks” here. We’re talking about penny stocks under $1. This means that even a shift of a few pennies can equate to more significant percentage changes in position value.
If you choose to venture down this path of sub-$1 stocks, make sure you have a clear plan outlined and your profit/exit levels laid out in advance. The exciting and risky thing about these is that at any point, they can move explosively. In that instance, it’s better to be well-prepared than caught with your hands in your pockets, not ready to capitalize.